What Is Ecommerce Product Categorisation: Everything You Need to Know

Can you imagine hunting for a single speck of sand on a massive beach? That’s what shopping can sometimes feel like on an ecommerce site that lacks well-thought-out product categorization.

This process is not just about good looks or ease of use. It’s a powerful strategy that can better your site’s SEO, improve the user experience, and ultimately, increase sales.

Interested in learning more? Stay with us as we dive into the details of ecommerce product categorisation and how it can revolutionize your online store.

Key Takeaway :

Ecommerce product categorization is the process of organizing and grouping products into specific, meaningful categories to improve the shopping experience, increase sales, and enhance site search and SEO. It is a strategic tool for competing in the vast online marketplace and involves tailoring categories to customer locations, avoiding the use of the “other” category, limiting products to one category, ensuring unique and distinct categories, and maintaining consistency with the brand’s voice and ethos.

Why is product categorization important in ecommerce?

1. Improves Shopping Experience: Proper categorization elevates the customer shopping experience, making it easier to browse and find products.
2. Increases Sales: By grouping similar products, it encourages customers to add more items to their cart, directly influencing sales volumes.
3. Enhances Site Search and SEO: Well-structured categories improve your site’s search functionality and SEO, making your store more visible in online searches.
4. Simplifies Navigation: A site without categorization is overwhelming. Imagine a mega-store with countless products and no organization – it’s a quick way to lose customers.
5. Utilizes Advanced Technologies: Machine learning and natural language processing can automate and refine the categorization process, reducing manual effort and errors.
6. Acts as a Secret Weapon: Effective product categorization is not just about organization; it’s a strategic tool for competing in the vast online marketplace.

Other points state the importance of Ecommerce product categorisation in a business.

✅ Organized ecommerce sites with clean organizations sell more

When it comes to the fast-paced world of online shopping, the way you layout and categorize your products can make a huge difference in your sales and customer satisfaction. If your online store is neat and well-arranged, with a smart system for sorting products, you’re more likely to win and keep customers.

A well-arranged online store makes it simple for customers to find exactly what they need, making your site more user-friendly.

A well-thought-out product classification system can be used as a method to upsell or cross-sell products, which can boost your sales.

A tidy online store gives customers a wide range of choices, which could tempt them to buy more.

✅ Product organization and categorization enable better search functionality

Maintaining a neat and organized online store is a surefire way to boost your sales. But what’s just as important is enhancing your search functionality. How? By smartly organizing and categorizing your products. This simple strategy helps your customers navigate your site with ease, pushes specific products to the forefront, and increases the average order value.

The magic of product organization and categorization lies in its ability to supercharge search functionality. It makes the shopping experience a breeze by helping customers find exactly what they need, which results in more sales conversions.

Plus, it’s a great way to optimize your site for search engines, making you more visible online and improving the overall user experience.

✅ Product categorization helps with monitoring data

Product grouping isn’t just about making your online store look tidy, it’s a smart way to keep tabs on everything that’s going on. Think about it. When you’ve got your products neatly arranged into categories, it’s easier to see what’s happening. You can track which categories are getting the most visits and which ones are turning those visits into sales.

You can also see how your customers are behaving based on the categories they visit. Say, for instance, you’ve got a category that’s getting a lot of visits but not a lot of sales. Maybe something’s off? Maybe the prices are too high, or the product descriptions aren’t clear enough? This is the kind of information you can glean from category-based monitoring.

And then there’s the magic of tools like Shopify’s Live View analytics. With this, you can keep an eye on the performance of your shop in real-time.

But, let’s not forget about the customers. A well-organized online store is a joy to browse. And a happy customer is more likely to make a purchase. So, when you think about it, product grouping isn’t just about keeping your shop tidy, it’s about making your customers happy and helping you make smart, informed decisions about your business.

✅ Product organization creates a streamlined shopping experience for your customers

If you’ve ever wondered why some online shops are just so easy to navigate, the answer lies in good product organization. Having a well-arranged ecommerce platform, with products neatly grouped and labelled, makes a world of difference to your customers. They can easily find what they’re looking for, compare different options, and make their purchases without any fuss.

The magic of product organization doesn’t stop at customer convenience; it also helps to increase your sales. With an easy-to-navigate site, customers are more likely to buy, and not just one thing, but multiple items. And let’s not forget about Search Engine Optimization (SEO)! A well-organized product line can give your platform better visibility, attracting even more potential customers to your online shop.

A step-by-step guide for ecommerce product categorization

Alright, let’s chat about sorting out your ecommerce products.

To kick things off, you’re going to need to gather all the essential details about your items and brainstorm some potential categories they could fit into.

Don’t forget that using keywords to boost your products’ visibility and organizing your items based on how your customers shop can make a huge difference.

But don’t stop there, keep refining and improving your approach as you go along.

1) Collect essential product data

Ever thought about how to categorize products for an online store? Well, the first step is gathering all the necessary product information. It’s like being a detective, collecting clues from a variety of sources – your suppliers, the product creators, and even your internal records.

Now, imagine you’ve got all this information. Where do you put it? You’ll need a place to store it all where it’s easy to access. This could be software designed for managing product information or even a database you create yourself.

But here’s the thing – your job isn’t done once you’ve collected all the data. You have to keep it up to date. Whether it’s changes in pricing, availability, or product specs, keeping your information current is key. It’s like maintaining a garden – you can’t just plant the seeds and walk away, you have to tend to it regularly.

2) Create potential categories for your products

Alright, let’s talk about your products. You know, the stuff you’re selling? We’re going to focus on getting them organized into categories. This is a pretty big deal and needs some thought.

So, how do you do it? First, you’ve got to figure out where you can get info to help you make these categories. The goal here is to make it easy for your customers to find what they’re looking for. So, think about how they shop and try to match that.

When you’re naming your categories, make it simple and clear. This will help your products get found more easily.

And don’t forget, this isn’t a one-and-done thing. Keep an eye on how things are going and tweak as needed. It’s all about making the shopping experience as smooth as possible for your customers.

3) Use keyword research for product category/page optimization

So, you’re looking to boost your ecommerce site’s visibility and make it super easy for your customers to find what they need, right? Well, keyword research can be your secret weapon in achieving just that.

And no, it’s not about randomly stuffing your site with all the relevant keywords you can think of. It’s more of a strategic game plan, where you align your keywords with what your customers are likely to search for and with the products you offer.

So, how do you go about it? Here’s a quick rundown:

• Start by pinpointing the keywords that work best for your products. Then, weave these into your product category and subcategory descriptions and meta tags.
• Don’t shy away from using specific, long-tail keywords on your category pages. These can help highlight unique product features and attributes.
• Don’t forget, this isn’t a one-and-done deal. Keep a close eye on how your keywords are performing and tweak them as needed to keep your page optimization at its best.

And there you have it – a simple, effective way to optimize your product categories using keyword research.

4) Categorize your products based on user behaviour

Okay, let’s talk about sprucing up your online store. One of the best ways to do that? Organizing your products based on how your customers behave. Trust me, it’s a game-changer.

Here’s the deal. You’ve got to keep an eye on your customer’s moves. What they’re searching for, the lingo they’re using, their journey to the checkout line – all of these can clue you in on how to best arrange your products. Make it feel intuitive for them, and you’ll find your products flying off the virtual shelves.

And guess what? There are tools out there that can help you get into your customer’s heads (in a non-creepy way, of course). They can predict patterns and trends, helping you stay one step ahead.

This isn’t just about making your website look pretty. It’s about making it easy and enjoyable for your customers to shop. Do that, and you’ll see your sales going up. Sounds good, right?

5) Scale and iterate your product categorization efforts

As your online store grows, it’s super important to keep re-evaluating and updating your product categories. This will keep your store organized and make it easier for customers to find what they’re looking for. By constantly adjusting and improving your product categorization, you can make shopping on your site a breeze, and make your products easy to find on other ecommerce platforms.

Here’s what you should be doing:

• Keep an eye on your product categories, and update them based on how your customers are shopping and what’s currently in style.
• As you add new products, make sure they fit neatly into your existing categories. This will make your site easy to navigate.
• Consider using a Product Information Management (PIM) system. This will make it easy to store and manage your product categories.

Ecommerce product categorization best practices

For effective product categorization in online shops, it’s crucial to tailor your categories to the locations of your customers and steer clear of placing items into a vague ‘other’ category. Instead, strive to assign each product to a specific, well-defined category.

Categories should not only be distinct but also mirror your brand’s style. Additionally, when crafting product categories and descriptions, consistency with your brand’s voice is key.

✅ Adjust your product categorization based on geolocations

Ever thought about giving your product categories a little shake-up based on where your customers are? It’s a clever tactic that can make your product lineup feel more personal and tailored to your buyers, wherever they might be in the world.

Regional preferences, shopping habits, and trends can be wildly different, and by tuning into these, you can give your customers a shopping experience that feels more relevant and engaging.

Here’s the game plan:

• Get to know your sales data. What’s flying off the shelves in which regions?
• Give your product catalogue a makeover. Highlight those top-selling items for the customers who love them.
• Keep an eye on the ball. Trends change, and so should your categories. Don’t forget to listen to what your customers are saying, too.

Just by giving this a whirl, you can create a shopping experience that feels more like a personal shopper, and less like a one-size-fits-all. And who doesn’t love that?

✅ Avoid using “other” as a category

Crafting the perfect product categories for your ecommerce site is a bit like piecing together a puzzle. You want to make it easy for your customers to find what they’re looking for, right? So, you might think adding an ‘other’ category for those miscellaneous items would do the trick. But here’s the thing, ‘other’ is a bit of a grey area. It’s not very clear or specific, making it tricky for customers to find what they need. And let’s be honest, who wants to rummage around in the ‘other’ bin?

The key is to be specific and relevant to your product categories and their details. It’s all about making your customers’ shopping experience smooth and stress-free. The easier it’s for them to find what they need, the happier they’ll be. A happy customer is a loyal customer.

✅ Keep products limited to one category at a time — except for special categories

In the world of online shopping, it’s good practice to keep just one product per category. Think of it like organizing a physical store. You wouldn’t want to mix up shoes with kitchen utensils, right? The same goes for your virtual store.

Why do this? Well, it’s simple: it makes things easier for customers. If they can find what they want quickly and without fuss, they’re more likely to buy. And who doesn’t want that?

Of course, there are a few exceptions to this rule. Special categories like ‘Bestsellers’ or ‘Clearance sales’ are a great way to showcase specific products. It’s a bit like setting up a special display in a brick-and-mortar store – it catches the eye and can help boost sales.