In 2019, 14.1% of global retail sales occurred online, and this figure is expected to rise, reaching 22% by 2023 according to eMarketer. The convenience of ordering products from the comfort of one’s home, especially with the option for next-day delivery, has contributed to the growing popularity of online shopping. As the e-commerce landscape continues to evolve with new businesses emerging daily, maintaining competitiveness becomes crucial for online retailers. One significant aspect of attracting and retaining customers is through effective e-commerce merchandising.
In this article, we’ll delve into what e-commerce merchandising entails, why it holds importance, and explore ways that every online business can enhance its merchandising strategies.
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What Is E-commerce Merchandising and Why Does It Matter
E-commerce merchandising has become increasingly crucial due to the growing interest in online shopping. Presenting products in a simple yet aesthetically pleasing manner has evolved into an art form, with many websites experimenting with various merchandising techniques to capture the attention of customers. This approach goes beyond creating a visually appealing website; it plays a vital role in converting site visitors into paying customers. Through strategically placed calls to action (CTAs), reminders for abandoned shopping carts, and “order again” buttons, e-commerce merchandising has the power to influence consumer buying habits.
Here are some key aspects of what e-commerce merchandising can achieve:
Entice Customers
Effective merchandising entices customers by creating visually appealing displays that capture their attention. This goes beyond aesthetics and involves strategic placement and presentation of products to engage and captivate potential buyers.
Display a Variety of Products:
E-commerce merchandising enables businesses to showcase a diverse range of products in a way that is visually coherent and inviting. This helps customers explore different offerings, encouraging them to discover and consider various items.
Generate Website Traffic with SEO-Geared Listings:
Merchandising involves optimizing product listings for search engines (SEO). By incorporating relevant keywords, attractive product descriptions, and engaging visuals, businesses can enhance their online visibility and attract more organic traffic to their website.
Promote Certain Products/Special Offers:
Through strategic merchandising, businesses can effectively promote specific products or highlight special offers. This targeted promotion can drive attention to key items, encouraging customers to make purchases or take advantage of exclusive deals.
Convert Browsers into Buyers:
One of the primary goals of e-commerce merchandising is to convert casual browsers into active buyers. This involves creating a user-friendly and persuasive online environment, guiding visitors through the purchasing process with well-placed CTAs and compelling product displays.
Components of an e-commerce merchandising strategy
An effective merchandising strategy is crucial for helping customers easily locate the specific products they are searching for on an ecommerce site. To achieve this, four key elements should be incorporated: brand identity, layout, product grouping, and recommendations.
Brand Identity:
A robust merchandising strategy takes into account the ecommerce site’s brand identity, which refers to the visual representation of the brand. This includes essential elements such as the logo, style, and color palette. The goal is to create a cohesive and unique experience that customers can readily associate with the brand, all while ensuring that these brand elements do not distract from the showcased products.
Key Considerations for Brand Identity in Merchandising:
Consistency:
The brand identity should remain consistent across the entire ecommerce site. This consistency helps in making the site recognizable and familiar to repeat customers. It establishes a sense of trust and reliability, as customers know what to expect both in terms of the overall experience and the products offered.
Recognition:
A well-defined brand identity facilitates brand recognition. Customers should be able to identify your brand easily through consistent use of logos, styles, and colors. This recognition contributes to building a strong and memorable brand presence.
Uniqueness:
While adhering to consistency, the brand identity should also highlight the unique aspects of the brand. It’s about creating a distinct visual experience that sets your ecommerce site apart from competitors, leaving a lasting impression on customers.
Integration with Product Presentation:
The brand identity should seamlessly integrate with the presentation of products on the site. It should enhance the overall aesthetics and contribute to a positive user experience, reinforcing the connection between the brand and the products offered.
UX/UI design
User experience (UX) and user interface (UI) are integral components of your ecommerce site’s design, each contributing to a distinct aspect of the overall user interaction. UX design focuses on the holistic experience of a visitor on your online store, while UI design pertains to the aesthetic appeal, look, and feel of the site. Together, they shape the visual organization and identity of homepages, landing pages, and product pages, aiming for an intuitive and user-friendly design.
Factors to Consider in UX/UI Design for E-commerce Merchandising:
Attention-Grabbing Imagery:
- To keep customers engaged, incorporate attention-grabbing images and other media that entice them to explore your products and special offers.
- High-quality visuals contribute to a positive user experience, showcasing products in an appealing and informative manner.
- Effective and Easy-to-Use Search Bar:
- A crucial aspect of ecommerce merchandising is facilitating customers in finding what they desire. An easy-to-find search bar with predictive search results streamlines the search process.
- Predictive search results assist users by suggesting potential matches as they type, enhancing the efficiency of product discovery.
- Intuitive Navigation:
- Recognizing that some online shoppers may not have a specific product in mind, the goal is to assist them in browsing and discovering appealing items.
- Achieve this by ensuring your site’s navigation is intuitive, with product and category pages placed where customers expect to find them. Clear and logical navigation paths enhance the overall user experience.
Curation
Online merchandising encompasses the practice of curation, which involves grouping specific products with common attributes. This strategy enhances the online shopping experience by inspiring customers and empowering them to make decisions aligned with their needs. By curating products based on shared characteristics such as material, collection, or function, online retailers create a more engaging and personalized browsing experience.
Examples of Curation in Online Merchandising:
Category and Subcategory Pages:
Consider a furniture ecommerce site with a category page for furniture and a subcategory page for living room furniture. Curation could involve further grouping products, such as bringing together all mid century modern furniture in one collection. This approach sparks creativity and provides customers with a curated selection that aligns with a specific style or theme.
Linking Trending Products and Offers:
Use curation to link together trending products and current offers on your landing page. This can be achieved by featuring a prominent section that recommends highest-rated products alongside any ongoing discounts, sales, or promotions, such as free shipping. This approach not only showcases popular items but also encourages customers to take advantage of special deals.
Personalized recommendations
a robust merchandising strategy leverages personalized product recommendations, tailoring the suggestions to specific customers based on their unique search and purchase history. These recommendations are generated by algorithms that take into account various data points from an online shopper’s behavior, such as browsing or purchase history, location, or information included in their personal profile.
Implementation of Personalized Product Recommendations:
Browsing or Purchase History:
The algorithm considers a customer’s past interactions with the online store, including products they have viewed, added to the cart, or purchased. This data helps in understanding their preferences and interests.
Location:
Personalized recommendations may also take into account the customer’s location. For example, showcasing products that are popular or relevant in their geographic area, or considering regional preferences and trends.
Personal Profile Information:
Information included in a customer’s personal profile, such as preferences, interests, or demographic details, can contribute to refining personalized recommendations. This data allows for a more targeted and relevant suggestion of products.
e-commerce merchandising strategies to increase sales
Here are the ecommerce merchandising tips to increase sales:
Don’t Forget the Mobile:
Optimize your site for smartphones, as nearly 50% of purchases are made from mobile devices. Ensure a seamless and user-friendly mobile experience to capture a significant portion of your audience.
Personal Product Recommendations:
Implement personalized product recommendations based on the visitor’s browsing history, past purchases, and items in their cart. Provide relevant suggestions to enhance the shopping experience and encourage additional purchases.
User-Generated Content:
Encourage and display user-generated content, such as customer reviews, ratings, and photos. Potential buyers often rely on the experiences of others when making purchase decisions, making user-generated content a valuable tool for building trust.
Visual Merchandising:
Use high-quality visual content to showcase your products effectively. Include videos, images from different angles, and zoom-in features to provide customers with a comprehensive view of the product. Quality visual merchandising aids in the decision-making process.
Optimize Your E-commerce SEO:
Leverage search engine optimization (SEO) to improve your website’s visibility on search engines. Identify relevant keywords, create high-quality content, and optimize product pages to attract organic traffic and increase your Google search ranking.
Be Unique:
Differentiate your brand by thinking outside the box and trying new approaches. Offer unique value propositions, innovative marketing strategies, or exclusive products to stand out in a competitive market.
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