Benefits of Online Merchandising for e-Commerce

Posted on July 17, 2018 by


Benefits of Online Merchandising for e-Commerce

As retail is advancing by leaps and bounds, merchandising is now more important than ever and this more critical in online retail, cause your visitors can leave your store for another in a click.  As per Wikipedia, Merchandising is any practice which contributes to the sale of products to a retail consumer.  It refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.

This includes strategies like 1) discounting 2) physical presentation of products (UIUX), and 3) the decisions about which products should be presented to which customers at what time. Tagalys helps online retailers with the 3rd point using online store data to dynamically determine sort orders in Search & Listing pages.

So what are the key benefits of determining which products should be presented to which customers

Increase top of the funnel engagement

Retailers spend aggressively on SEM, Social Media, and other sources to increase online traffic to their store. The objective is to increase the top of the funnel, but these visitors are not necessarily engaged. Without engagement, visitors are more likely to leave in an instant, increase your cost of customer acquisition and reducing profitability. To get the engaged, it all starts with allowing them to find something of interest fast and viewing the product. This is the beginning of nurturing your online visitor towards the end sale. Increasing product views is the most important goal of online merchandising and is done by placing the right products in the right positions at your site e.g., Search & Listing Pages. This improves the click through from impressions on your page to the product view, increasing the probability of end conversions.  

Increase Visitor Retention

You might have read in several blogs how online stores have less than 30 seconds to grab a visitors attention. You are competing with other retailers and every other mobile app, that wants the time of your consumers. Chances are your visitors might not buy something during the first visit, hence they are unlikely to return without being engaged the first time. Data-driven merchandising helps increase the number of products views per visitor. Each additional product viewed by visitors gets them more committed to your online store increasing the probability they will return. Let’s face it, with digital information overload, even remembering what you did 24 hours back is hard, hence unless you have grabbed the attention of your visitor, they are unlikely to return to their journey at your store. Online shopping is convenient, but retails are conveniently forgotten if you have not grabbed the mindshare of your visitors.

Increase Store Conversions

Online merchandising is not done to only improve visitor experience, its performed so the end of the day it increases your sale. The effort is minimal when you use a data-driven automated solution like Tagalys and can become inefficient & unproductive if done manually. Your online store could be an extension of your offline version. Akin to the sales folks, who showcase your products to your prospects, Online merchandising could help automate the sales processes in your e-commerce store and enhance your ROI based on data. With analytics, you can instantly understand your shopper’s patterns and show them what they want. Unlike the offline world, where you have to rely on a human, if you analyze and predict using your store’s data, it will improve the probability of increasing your store conversion. 

Increasing engagement top of the funnel, leads to a similar improvement at the bottom of the funnel, even if you have no change at the bottom of the funnel. And unlike improving the bottom of the funnel metrics like “Abandoned cart”, which involves multiple touchpoints off-site, merchandising improves engagement on your site, when the visitor is presentn and when you have the best shot at making that impression. Because first impressions are the best impressions

 Visitors Product Views Add to Carts Buy
 Without Merchandising  25000 45%  11250 25%  2813  4% 113
 Without Merchandising  25000 50% 12500 25% 3125 4% 125
Improvements 11% 11% 11%


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Posted in e-Commerce Product Listing pages eCommerce Site Search