Most retailers sell a wide range of products to suit the needs and tastes of their customers. For example, a home goods company might sell hundreds, or even thousands, of products, from cozy faux-fur throws to elegant fluted vases. To manage this wide range of products, retailers group them into product categories.
Product categories help businesses organize their products stock,Rationalization Business Operationsand easy to use Shopping Experience Customers benefit from a product category system because it allows them to easily navigate your store or website and quickly find the items they need. Let’s take a look at the benefits of product categories, best practices for categorizing products in ecommerce, and strategies for successful product category marketing.
What are product categories?
A product category is a logical grouping of similar products that have a common function, feature, or intended use. Categorizing products helps businesses operate more efficiently and provides a satisfying shopping experience for customers.
In a typical product category hierarchy, the top-level categories are the broadest groupings of products, such as “Clothing” or “Electronics.” Within each top-level category are more specific product lines or subcategories. For example, under the “Clothing” category, there are subcategories such as “Men’s Clothing,” “Women’s Clothing,” and “Children’s Clothing,” each of which can be further subdivided into more specific categories such as “Shirts,” “Pants,” and “Dresses.”
Why are product categories important for e-commerce?
Product categorization is a key element in designing a user-friendly e-commerce store. Organizing your products into clear, logical categories and subcategories provides the following benefits:
Improved website navigation
Making product categories clear on your e-commerce website can improve navigation and make it easier for customers to find the items they need, such as related products within a particular category.
For example, if a customer is in a fitness outlet looking for a new yoga mat, clearly defined categories like “yoga supplies” and “yoga mats” will help them quickly find the desired product and compare related products, reducing friction in the shopping and purchasing process and increasing the chances of a sale.
Improved discoverability of off-site products
Beyond your own website, organized product categories can help more customers discover your products through search engines and other online channels, driving more traffic to your e-commerce store. SEO Checklist Optimizing your category pages with relevant keywords and descriptions increases the chances that your products will appear in search results when customers search for your products.
For example, when a customer searches for “formal wear” on Google, category pages optimized for “evening dresses” or “tuxedos” may appear in the search results, attracting potential customers to your site who may not have been aware of your brand before.
Efficient inventory management
Product classification not only benefits customers; Inventory control For e-commerce businesses. Grouping products by product type makes tracking easier. Stock LevelsIdentify popular items and reorder or Inventory forecast.
For example, if your company sells cosmetics and you separate your foundation categories by skin tone, you can quickly determine which shades sell out faster and need to be restocked more frequently.
Targeted marketing and promotions
Clear categorization allows for targeted Marketing campaigns Promotions that cater to specific customer segments and their unique interests.
If your company sells outdoor equipment, you can target Email Campaigns Feature discounts on camping gear to increase engagement, boost sales, and ultimately Brand awareness Among your ideal customer base.
Better customer insights and analytics
analysis Customer Behavior Tracking consumer tastes and preferences across different product categories provides valuable insights and analytics for e-commerce businesses. Tracking how consumers interact with different product types and move between other products can help you identify trends, popular items, and areas for improvement in your product offerings. Packaging.
For example, you may notice that customers who purchase mobile phones also frequently purchase accessories such as phone cases and screen protectors. Bundle Offers or Cross-selling Displaying these items on your product pages improves the customer experience and Average Order Value.
How to categorize e-commerce products
- Understand product range and customer needs
- Define a clear and intuitive category hierarchy
- Consistent and accurate product data
- Implement user-friendly navigation and filters
- Continually monitor and improve based on data insights
Categorizing products for your e-commerce store is a multifaceted process that requires careful thought and planning. To develop a comprehensive product categorization strategy, follow these steps:
1. Understand your product range and customer needs
The categorization process begins with analyzing your product assortment and identifying items to group together based on common characteristics or uses. If you have a large number of products, strike a balance between creating enough categories to keep you organized, while avoiding an overly complicated structure that could overwhelm or confuse shoppers.
2. Define a clear and intuitive category hierarchy
next, Target Audience Consider your customers’ needs, preferences, and shopping behaviors as well. This will help you determine which categories and subcategories will best suit your customer base. Create a clear hierarchy by defining your primary categories based on the most important attributes or characteristics, such as product type, gender, and age group. Then establish subcategories that further refine these groups based on more specific attributes, such as size, color, material, and style, so that your hierarchy is intuitive and easy for customers to navigate.
3. Consistent and accurate product data
Maintaining accurate and complete product data and ensuring items are categorized correctly and consistently allows customers to filter and search for items within a product family. Establishing standard naming conventions and attributes across your product catalog helps ensure products are properly assigned to the right categories and subcategories.
4. Implement user-friendly navigation and filters
Implement clear and intuitive category labels Breadcrumb navigationattribute-based filters, and more to make it easier for users to browse and find the products they want. Allow customers to narrow their search results based on criteria such as price range, brand, or other relevant product characteristics. Consider using automatically assigned product tags and keywords to improve search capabilities and help customers quickly find the products they’re looking for, even if they don’t know the exact category or subcategory they’re looking for.
5. Continually monitor and improve based on data insights
Regularly monitor and analyze your e-commerce site performance data, including search queries, click-through rates, conversion rates, etc. Conversion rateidentify areas where product categorization needs improvement. Use these insights to refine your categories and subcategories to align with changing customer needs and preferences. Additionally, keep an eye on your competitors’ product categorization strategies and adjust your own approach to stay competitive and provide your customers with the best possible user experience.
What is Product Category Marketing?
Product category marketing is the technique of promoting and selling a specific group of related products to a target audience, rather than individual products. For example, a fashion retailer might create a marketing campaign that focuses on athleisure wear, highlighting the comfort, versatility, and style of products like leggings, sports bras, and sneakers.
Product category marketing helps guide customers who are browsing online or in-store to find the products they’re looking for. An e-commerce store that sells pet supplies could create a targeted “dog toys” category marketing campaign. Social Media Advertising To attract dog owners looking for fun, durable pet toys. Providing clear, informative content for each category as part of your marketing strategy will help guide your customers towards making a purchase decision. Purchase decision Increase sales within that product group.
Product Category FAQ
What are some examples of product categories?
Consumer Electronics is a product category that includes TVs, soundbars, smart speakers, streaming devices, etc.
How do you categorize your products?
To categorize your product, consider its main function, target audience, key features, and how customers will intuitively search for or browse for it on your website or in-store.
What are some common mistakes to avoid when categorizing products?
A common mistake to avoid when categorizing your products is making your categories too broad or vague, as this will make it difficult for customers to find what they are looking for and may lead them to get frustrated and buy from another brand.
