Online merchandising:

what it is and how it works

Online merchandising is the process of organising and presenting products in an online store in such a way that the customer is both attracted to purchase and can easily find the desired item. Unlike a physical store, where products are displayed on shelves to catch the shopper’s attention, in the digital space, elements such as website design, catalogue structure, and high-quality images play a crucial role.

Today, online merchandising has become an essential tool for any e-commerce business. Proper organisation of products on a website can significantly boost conversion rates and the average order value. This is particularly important given the increasing competition, where a customer can easily switch to another site if something doesn’t meet their expectations.

As e-commerce continues to grow, the role of online merchandising becomes ever more important. A well-organised process increases the likelihood that a customer will stay on the site and complete a purchase. Therefore, it is vital to understand how to effectively use online merchandising to achieve optimal results.

It is a way to ensure that when a customer visits the website, they can quickly find the desired product and be motivated to purchase it. Unlike traditional merchandising, the focus here is on creating a convenient and enjoyable experience for online shoppers.

Key objectives of digital merchandising:

• Improving user experience
• Product presentation
• Personalising offers
• Data analysis and behavioural triggers
• Mobile optimisation

Digital merchandising is the process of presenting and organising products in the online space to enhance their appeal and drive sales.

The website must be user-friendly. Navigation should be intuitive, and the design appealing. The homepage needs to catch the customer’s attention and showcase popular or value-for-money products, so users can quickly navigate and find what they need.

Since customers cannot physically interact with products, it is crucial to provide as much information as possible. High-quality images, detailed descriptions, and videos help create a complete picture of the product. Successful digital merchandising requires displaying product images from various angles, highlighting their features and benefits.

One of the key advantages of digital merchandising is the ability to personalise offers for each customer. Analysing user behaviour helps suggest products that are most relevant to the individual. These could be recommendations based on previous purchases or viewed items, significantly increasing the likelihood of a sale.

Digital merchandising relies on analysing user behaviour data on the website. For example, heatmaps help determine which page elements attract the most attention. This data assists in optimising the placement of products and buttons, making the website more user-friendly.

In today’s world, more and more customers are shopping from mobile devices. It’s essential for the website to be adapted to different screen sizes and perform quickly on all platforms. The mobile version of the site should be just as convenient and functional as its desktop counterpart.

Digital merchandising allows for flexible management of product placement on pages, adjusting their presentation based on user behaviour, and quickly adapting to changes in demand.

Examples of successful digital merchandising can be seen with retailers like Amazon and eBay. These companies use sophisticated algorithms to personalise the customer experience, offering products that are most likely to interest specific users. Additionally, they actively employ artificial intelligence technologies to analyse user behaviour and optimise product presentation on their websites.

Digital merchandising is becoming an integral part of a successful strategy for any online store. When used correctly, it can increase conversion rates and build a loyal audience that will return to the site again and again.

Online merchandising is aimed at enhancing product appeal and increasing sales. In the digital space, there are specific features and principles that determine its effectiveness.

The primary goal of online merchandising is to understand the target audience and offer them what they need. Analysing user behaviour data helps create offers that are most likely to interest potential buyers.

Example: An online sportswear store can analyse which products are popular among certain age groups or regions. This enables the store to present relevant products to the customers who are most likely to purchase them.

The product page is the “face” of the product online. This is where the customer decides whether to make a purchase. It’s important for the page to include as much useful information as possible: high-quality photos, detailed descriptions, product specifications, and customer reviews. Action buttons like “Add to cart” or “Buy now” should also be prominently displayed.

Example: A product page might feature a 360-degree view of the item, allowing the customer to see it from all angles. This is particularly important for categories such as electronics or furniture.

Just like in physical stores, the placement of products on a website matters. This applies not only to their position on the page but also to how they are displayed in the catalogue and how easy they are to find using search and filters. Featured products should be visible right on the homepage, while additional offers should be displayed on relevant pages.

Example: Featuring popular products or new arrivals on the homepage grabs users' attention and encourages them to shop. Using recommendation blocks like “Similar items” or “Frequently bought together” helps increase the average order value.

Promotions, discounts, and special offers are key tools in online merchandising. They attract customer attention and encourage purchases. It’s important that such offers are prominently displayed and easily accessible on the website.

Example: Displaying promotional banners on the homepage and within product pages encourages customers to buy. Pop-up windows offering discounts or free shipping when certain conditions are met can also boost sales.

Modern online stores actively use personalisation to boost sales. Analysing data on previous purchases and user behaviour on the website allows retailers to suggest the most relevant products. Recommendations based on customer interests increase the likelihood of a purchase and make the shopping experience more enjoyable.

Example: If a user frequently buys home goods, an online store can suggest additional products from that category, such as decor or home appliances.

Visual content plays a key role in capturing customers’ attention. Images, videos, and infographics help users better understand the product and create a positive impression of the store. It’s important that visual content is high-quality and aligns with the overall brand concept. For premium products, for example, it’s recommended to use more sophisticated and detailed images to highlight their uniqueness and superior quality.

Example: Using high-quality images that show the product in various settings or conditions builds customer trust and encourages purchases. It’s also important to regularly update content, adding new photos and descriptions to maintain audience interest and stay aligned with current trends.

Modern technologies, such as artificial intelligence and machine learning, significantly enhance the capabilities of online merchandising. They enable more accurate predictions of user behaviour and offer the most relevant products. Analytics helps track the effectiveness of merchandising efforts and make necessary adjustments to the strategy.

Example: Online stores using artificial intelligence technologies can personalise offers in real time by analysing the user’s actions on the website. This creates a unique user experience and increases customer loyalty. Heatmap analysis, which shows which page elements attract the most attention, helps optimise product placement and improve site navigation.

Online merchandising is a powerful tool that can significantly improve sales efficiency in an online store. By applying the right strategies and approaches, you can increase conversion rates, boost average order value, and attract more customers. Let’s look at the main methods that will help you achieve these goals.

Purchase history and behavioural triggers

Personalisation is a powerful tool for boosting sales. By using user behaviour data, you can offer each customer products that best match their interests. This can be implemented through recommendation systems that analyse purchase history, viewed items, and search queries on the site.

Example: If a customer frequently buys sports goods, they can be offered new collections or accessories for training. This approach increases the likelihood that the customer will find exactly what they need.
Behavioural triggers are another way to increase conversions. These triggers activate based on user actions on the site. For instance, if a customer adds a product to their cart but doesn’t complete the purchase, you can send them a reminder email or offer a discount on that item. This encourages the customer to return to the site and finish their purchase.

Visual product representation and content strategy

Visual content plays a key role in capturing customer attention. High-quality images, videos, and infographics help users better understand the product and create a positive impression of the store.

• Product images should be of high quality, showcasing the item from various angles and in different use scenarios. For example, clothing might be shown on a model, while electronics could feature detailed shots with technical specifications.

• Video reviews and 3D models can also significantly boost conversion rates. A customer who sees the product in motion or interacts with it through virtual reality is more likely to make a purchase decision.

• The content strategy should include creating useful materials such as blogs, reviews, tips, and guides on product usage. These resources help customers better understand the product and its benefits, increasing trust in your brand and encouraging purchases.

Promotion through social media and email marketing

Social media plays a crucial role in attracting new customers and retaining existing ones. Regular posts about new products, promotions, and special offers help maintain audience interest and drive traffic to the website.

• Integration with social media allows customers to share products they like, attracting new clients through recommendations from friends and followers. For example, “Share” and “Like” buttons on product pages encourage users to share product information on their accounts.

• Email marketing is an effective tool for customer retention and boosting sales. Regular newsletters with personalised offers, updates on new arrivals, or promotions help maintain contact with customers and encourage them to return to the site.

Example: Sending automated emails with product suggestions based on previous purchases or user interests significantly increases the likelihood of repeat purchases. Trigger emails, sent after adding items to the cart or viewing specific pages, are also highly effective.

Using artificial intelligence

Modern technologies significantly enhance the online merchandising process. The use of artificial intelligence, machine learning, and analytical tools helps predict user behaviour more accurately and offer the most relevant products.

Analytics plays a key role in understanding how users interact with your website. Analysing data on visits, conversions, and user behaviour helps identify weak points and optimise the site to improve the user experience.

Example: Heatmap analysis can reveal which page elements attract the most user attention and which go unnoticed. This data helps optimise the placement of products, banners, and buttons on the website, making it more user-friendly.

Loyalty programs and bonus systems

Loyalty programs and bonus systems encourage repeat purchases and increase customer commitment to your brand. Offering bonuses, discounts, and special deals for regular customers helps retain your audience and boost the average order value.

Example: An online store can introduce a point-based bonus system, allowing customers to accumulate points and redeem them for discounts on future purchases. This motivates customers to return to the site and make new purchases.

Mobile optimisation

With the growing number of users shopping from mobile devices, optimising websites for mobile platforms has become essential. The mobile version of the site should be lightweight and fast, with simplified navigation and a minimalist design.

Example: If a website doesn’t display well on mobile devices, users may have difficulty selecting and purchasing products. This can lead to losing customers who will opt for more user-friendly platforms.

Using promotions and special offers

Promotions, discounts, and special offers are important tools in an online merchandiser's arsenal. They attract customer attention and can motivate them to make a purchase. It’s essential for such offers to be highly visible on the website and easily accessible.

Example: Placing promotional banners on the homepage and within product pages encourages customers to proceed with a purchase. Pop-up windows offering a discount or free shipping based on certain conditions, such as a minimum order amount, can also be effective.

These approaches will help you make the most of online merchandising to improve sales efficiency in your online store. It’s important not only to optimise key pages of the site but also to actively utilise personalisation, high-quality visual content, and leverage social media and email marketing. Modern technologies, analytics, loyalty programs, and promotions all contribute to attracting and retaining customers, increasing conversion rates and boosting the average order value.

Product promotion in an online store is one of the key aspects of successful e-commerce operations. It’s important not only to properly display and present products on the site but also to promote them effectively to attract the attention of potential customers and encourage purchases. There are several strategies that help achieve this goal.

SEO plays a crucial role in promoting products online. Optimising website content, including category pages and product listings, helps improve the store’s visibility in search engines. It’s important to use keywords that match the search queries of your target audience, as well as optimise titles, meta descriptions, and images.

Example: If an online store sells sportswear, it’s essential to include keywords like “sports trousers,” “women’s yoga leggings,” or “men’s running shoes” on the site’s pages. This will help your site appear in relevant search results, increasing traffic.

Content marketing is another effective tool for promoting products. Creating useful and engaging content related to your products helps attract and build loyalty with your audience. This could include articles, reviews, product usage tips, video tutorials, and even webinars.

Example: If your store specialises in cosmetics, you can create content on proper skincare, recommend products for different skin types, and provide usage tips. Such content not only attracts new customers but also retains existing ones by offering valuable information.

Influencer marketing involves collaborating with opinion leaders (influencers) to promote your products. Influencers can use their platforms to showcase products, helping to draw their audience’s attention to your online store.

Example: A popular fashion blogger can introduce your brand to their audience through product reviews, style tips, and recommendations, which significantly builds trust in your products and attracts new customers.

Messenger marketing is a proven way to stay in touch with your customers and draw their attention to new products or promotions. Regular personalised message campaigns with offers and updates help keep customers engaged and encourage repeat purchases.

Example: You can create a series of messages that include a welcome letter for new subscribers, updates on new arrivals and promotions, and reminders about abandoned carts. Personalised offers based on previous purchases can also motivate customers to make new purchases.

Paid advertising in search engines and social media allows you to quickly drive traffic to your site and increase sales. Pay-per-click (PPC) ads on Google, targeted ads on social media, and advertising on partner websites can be powerful supplements to organic marketing methods.

Example: Google or Bing campaigns can target specific audiences using parameters such as age, interests, location, and behaviour. This helps display your products to users who are most likely to be interested in purchasing.

Listing products on marketplaces like Amazon or eBay allows you to significantly expand your reach and increase sales. Marketplaces provide a platform with a ready-made audience, making it much easier to access new customers.

Example: By selling your products on marketplaces, you can quickly boost sales by gaining access to millions of potential customers who visit these platforms daily.

Affiliate programs allow other websites and bloggers to promote your products in exchange for a commission. This is an effective way to attract new customers and increase sales without significant advertising costs.

Example: Creating an affiliate program for bloggers who will recommend your products helps expand your audience and drive sales. Bloggers earn a commission for every sale made through their link, motivating them to actively promote your products.

Offline events such as exhibitions, seminars, and pop-up shops provide opportunities to interact directly with customers and showcase products. Collaborations with other brands or events help attract new audiences to online platforms and strengthen your market position.

Example: Hosting a pop-up shop in a shopping mall or participating in a specialised exhibition allows you to present your products to a broader audience, gather valuable feedback, and establish personal connections with customers.

Online merchandising is a key element of success for any online store. When organised correctly, it not only improves the appearance and structure of your website but also significantly boosts sales. The use of modern technologies, such as personalisation, behavioural triggers, and analytics, creates a unique and convenient user experience that encourages customers to make purchases.

It’s important to remember that online merchandising is not a one-time effort but an ongoing process that requires regular analysis and optimisation. By following the principles and strategies outlined in this article, you can effectively manage your online store, attract new customers, and retain existing ones, ensuring the steady growth of your business.

Summary:

• Website optimisation: Improve key pages, ensure easy navigation, and create high-quality product listings.
• Personalisation: Use user behaviour data to create personalised offers.
• Visual content: High-quality images and videos to build customer trust.
• Social media and email marketing: Integrate with social platforms and send regular newsletters to attract and retain customers.
• Analytics and technology: Use artificial intelligence and data analysis to optimise processes.
• Promotions and special offers: Effectively use discounts and promotions to drive sales.

By following these recommendations, you can use online merchandising as a powerful tool to increase sales and build a loyal customer base.

Tilda Publishing