Introduction to ecommerce merchandising

What is ecommerce merchandising and why should you care?

If you run an online store, you're probably always looking for ways to boost your sales and keep customers coming back. That's where ecommerce merchandising comes in. It's all about presenting your products in a way that makes people want to buy them. Think of it as the online version of arranging items in a physical store to catch shoppers' eyes. See our other articles for a deeper look at what ecommerce merchandising is and for some ecommerce merchandising best practices.

Good ecommerce merchandising can make a big difference to your bottom line. It helps customers find what they're looking for quickly, discover new products they might like, and have a smooth shopping experience. This can lead to more sales, happier customers, and fewer abandoned carts.

But how do you do it well? That's where ecommerce merchandising tools come in handy. These are software solutions that help you organize, display, and promote your products effectively. Let's take a look at some of the key types of tools you might want to consider for your online store.

Product discovery and search tools

Site search optimization tools

Have you ever been frustrated trying to find something on a website? Your customers feel the same way when they can't easily find what they're looking for in your store. Site search optimization tools help solve this problem by making your search function smarter and more user-friendly.

These tools can do things like correct spelling mistakes, understand synonyms, and even guess what customers are looking for based on partial search terms. For example, if someone types "blue sweater" into your search bar, a good site search tool will show them all your blue sweaters, even if some product descriptions use the word "jumper" instead.

Visual search and image recognition technology

Visual search is a new technology that's changing how people shop online. It lets customers search for products using images instead of words. For instance, a shopper could upload a photo of a dress they like, and your site would show similar items from your inventory.

This technology is especially useful for fashion and home decor retailers. It helps customers find exactly what they're looking for, even if they don't know how to describe it in words.

Product recommendation engines

You know how Netflix suggests shows you might like based on what you've watched before? Product recommendation engines do the same thing for your online store. They analyze customer behavior and purchase history to suggest products that shoppers are likely to be interested in.

These tools can significantly boost your sales by encouraging customers to buy more. They can show related items, frequently bought together products, or personalized recommendations based on a customer's browsing history.

Visual merchandising and product presentation tools

360-degree product viewers

In a physical store, customers can pick up items, turn them around, and examine them from all angles. 360-degree product viewers try to recreate this experience online. They let shoppers spin and zoom in on product images, giving them a better sense of what the item really looks like.

This tool is particularly useful for products where details matter, like furniture, electronics, or jewelry. It can help reduce returns by giving customers a clearer idea of what they're buying.

Augmented reality (AR) for product visualization

AR takes product visualization a step further. It lets customers see how products would look in their own space. For example, a furniture retailer could let shoppers use their smartphone camera to see how a couch would look in their living room.

This technology can be a game-changer for businesses selling large or customizable items. It helps customers feel more confident in their purchases and can lead to fewer returns.

Product customization tools

If you sell products that can be personalized, product customization tools are a must-have. These let customers design their own version of a product, seeing the results in real-time.

For instance, a t-shirt company could let customers choose the color, add text, and place graphics on their shirt. As they make changes, they see an updated image of how the final product will look. This not only engages customers but also reduces the chance of misunderstandings about the final product.

You can learn more about ecommerce visual merchandising here.

Pricing and promotion management tools

Dynamic pricing software

Have you ever noticed how airline ticket prices change based on demand? That's dynamic pricing in action. Dynamic pricing software lets you automatically adjust your prices based on various factors like competitor pricing, demand, time of day, or even the weather.

This can help you stay competitive and maximize your profits. For example, you could automatically lower prices on slow-moving items or raise them slightly on popular products during peak shopping times.

Promotion and discount management platforms

Running sales and promotions can be a great way to boost your business, but managing them can be tricky. Promotion and discount management platforms help you create, schedule, and track your promotional campaigns.

These tools can do things like automatically apply discounts at checkout, create unique coupon codes, or set up buy-one-get-one offers. They also often provide analytics so you can see which promotions are working best.

Inventory and catalog management tools

Real-time inventory tracking systems

Running out of stock on a popular item can mean lost sales and frustrated customers. Real-time inventory tracking systems help prevent this by giving you up-to-the-minute information on your stock levels.

These systems can automatically update your website when items are low or out of stock, send alerts when it's time to reorder, and even predict future inventory needs based on sales trends.

Product information management (PIM) software

If you sell a lot of different products, keeping all the information about them organized and up-to-date can be a challenge. That's where PIM software comes in. It provides a central place to store and manage all your product data, from descriptions and images to pricing and inventory levels.

This makes it easier to keep your product information consistent across all your sales channels, whether that's your own website, Amazon, or other marketplaces.

Catalog optimization tools

Catalog optimization tools help you organize your products in a way that makes sense to your customers. They can automatically categorize products, suggest cross-sells and upsells, and even help you identify gaps in your product range.

For instance, these tools might notice that customers who buy printers often search for ink cartridges immediately after, prompting you to make sure you're offering compatible cartridges and displaying them prominently.

Customer segmentation and personalization tools

Customer data platforms (CDPs)

CDPs collect and organize data about your customers from various sources. This could include their purchase history, browsing behavior on your site, interactions with your marketing emails, and more.

This comprehensive view of your customers allows you to create more targeted marketing campaigns and personalize the shopping experience. For example, you could send different email promotions to customers who frequently buy from you versus those who haven't made a purchase in a while.

AI-powered personalization engines

These tools use artificial intelligence to create a unique experience for each shopper. They can do things like show different homepage layouts, product recommendations, or even pricing based on what they know about the customer.

For instance, if a customer frequently browses running shoes, an AI personalization engine might prominently feature your latest running gear when they visit your site.

Behavioral analytics tools

Behavioral analytics tools help you understand how customers interact with your site. They can show you things like where people click most often, how far they scroll down a page, or at what point they tend to abandon their shopping carts.

Heat mapping tools create visual representations of this user behavior. This can give you insights into how people are interacting with your site and what they're most interested in.

For instance, you might notice that many people are scrolling all the way to the bottom of your product pages, suggesting that you could add more information or related products there to keep them engaged. Or, if you notice that many customers abandon their carts when they reach the shipping information page, you might want to look into simplifying your checkout process.

This information can be invaluable for improving your site design and identifying potential obstacles in the customer journey.

A/B testing and optimization tools

Split testing platforms

Split testing, also known as A/B testing, is a way to compare two versions of something to see which performs better. Split testing platforms make it easy to run these experiments on your website.

For example, you could test two different product page layouts to see which one leads to more sales. These tools will show each version to a portion of your visitors and then give you data on which performed better.

Conversion rate optimization (CRO) tools

CRO tools help you identify ways to increase the percentage of visitors who make a purchase. They often include features like the previously mentioned heatmaps (showing where people click most), session recordings (videos of how people use your site), and form analytics (showing where people struggle with your checkout process).

Using these tools, you might discover that many customers are clicking on a particular image expecting it to be a link. This insight could lead you to make that image clickable, potentially increasing your sales.

Analytics and reporting tools

Ecommerce-specific analytics platforms

While general analytics tools like Google Analytics are useful, ecommerce-specific platforms offer more detailed insights into your online store's performance. They can track things like average order value, customer lifetime value, and product performance.

These tools can help you answer questions like: Which products are your best sellers? What's your return rate? How many of your customers make repeat purchases?

Business intelligence (BI) dashboards

BI dashboards pull data from various sources to give you a comprehensive view of your business performance. They often present this data in easy-to-understand visual formats like charts and graphs.

With a good BI dashboard, you can quickly see how your sales are trending, which marketing channels are performing best, and how your inventory levels are looking, all in one place.

Performance monitoring and alerting systems

These tools keep an eye on your site's performance and let you know if something goes wrong. They can alert you to things like slow page load times, broken links, or sudden drops in sales.

For example, if your site starts loading slowly, a performance monitoring tool could send you an alert so you can fix the problem before it impacts your sales.

Conclusion: Selecting the right tools for your ecommerce business

Assessing your merchandising needs

With so many tools available, it can be overwhelming to know where to start. The key is to think about your specific business needs and challenges. Are you struggling with inventory management? Do you want to personalize the shopping experience? Are you looking to improve your site's search functionality?

Start by focusing on the areas where you think you can make the biggest impact. You don't need to implement every tool at once. It's often better to start with one or two key areas and expand from there.

Integration and scalability considerations

When choosing tools, it's important to think about how they'll work with your existing systems. Look for tools that integrate well with your ecommerce platform and any other software you're using.

Also, consider your future needs. As your business grows, will these tools be able to grow with you? It's often worth investing in slightly more robust tools that can scale up as your business expands.

Remember, the goal of all these tools is to make your life easier and your business more successful. They should help you create a better shopping experience for your customers, leading to more sales and happier shoppers. Don't be afraid to try out different tools and see what works best for your unique business. The world of ecommerce is always evolving, so stay curious and keep exploring new ways to improve your online store.