Product Categorization in E-Commerce

Why is E-commerce Product Categorisation Important?

1.Enhances Consumer Satisfaction

Proper product categorisation helps users quickly find the products they’re looking for, reducing the time spent searching for an item. When listings are grouped logically, it’s easier for shoppers to navigate through categories and subcategories to shop for what they need. This streamlined process leads to increased consumer satisfaction, encouraging repeat business and positive word-of-mouth referrals. Happy customers are more likely to come back for more and recommend it to others, which can ultimately lead to higher sales and growth.

2.Enables Category-Specific Features

Well-structured product categorisation enables sellers to implement category-specific features, such as customised product recommendations, special deals and promotions. These tailored offers can be targeted towards specific customer segments, increasing the likelihood of conversion. For instance, if you have listed your products under a separate category for 'sale' items, you can promote them more effectively and attract price-conscious buyers. Category-specific features help create a more personalised shopping experience, fostering customer loyalty and driving recurring purchases.

3.Makes Searches More Relevant

A well-designed product categorisation system fosters better search results that are both accurate and relevant. When customers enter keywords or apply filters, they receive a list of matching products that meet their criteria. This relevancy improves the chances of completing a sale. Bundling similar items together also helps in suggesting alternative products that might interest the customer, further enhancing their shopping experience. This not only saves time for customers but also increases the likelihood of conversions for sellers.

4.Helps Customers Find The Right Products

Effective product categorisation empowers customers to narrow down their search by selecting specific attributes, such as price range, brand, colour, size or any other specific features of the item. This filtering process helps shoppers quickly eliminate unsuitable options and zero in on the most suitable products. As a result, customers are more likely to find the right products, leading to increased sales and reduced returns. When customers can easily check out and browse the catalogue based on their search filters, they’re less likely to contact customer support or return items, saving you time and resources.

E-commerce Guide: How To Categorise Products?

1.Know Your Product

The first step in effective product categorization is to know the product you’re selling. Understand its features, benefits, and any unique selling points. This knowledge will help you place the product in the correct category, making it easier for customers to find. Additionally, knowing your product well allows you to write accurate product descriptions, which can further aid in effective categorisation. 

2.Be Accurate and Detailed

When creating categories and subcategories, accuracy and detail are key. Use specific and descriptive names for each, and avoid using overly broad or vague terms. For example, instead of categorising men’s shirts in the 'clothing' category, use 'men’s clothing' and similarly for 'women’s clothing' and 'children’s clothing'.

3.Analyse Your Customer Base

Understanding your target audience is essential in creating effective product categorisation. This is possible by analysing your customer base to determine what types of products they’re interested in and how they typically search for them. This information can help you categorise according to their preferences and behaviours. For instance, if your customer base primarily consists of professionals searching for formal wear, you may want to use tags like 'business attire', 'office wear', or similar terms to reach your audience.

To sum up, efficient categorisation is a crucial aspect of product management for every online retailer. It not only helps in organising large inventories but also leads to better customer experience and increased sales. With shopatsowcarpet Seller Hub, you can take advantage of our efficient resources and tools to manage the product inventory and increase sales of your business. Sign up today and reach millions of customers in India by leveraging the largest e-commerce platform in the country.