[Learn] Merchandising

What is online merchandising and why does it matter?

Merchandising, traditionally speaking, is largely about the product on the shelf; what's offered in the store. But, there's more to it. Take a look at this definition of merchandising:

"…merchandising 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…" It's the second part of that definition: "display of products in such a way that stimulates interest and entices customers to make a purchase" that is at the heart of online merchandising. Online merchants typically don't select or manage the inventory, but they optimize the performance of the inventory in the online store environment based on customer behavior.

Today, the online merchandiser's tool set is rich and robust: sophisticated on site search tools, product recommendation software, product videos, side by side product comparisons, enhanced visualization tools, reviews and ratings, the list goes on. Site analytics help merchants identify how placement and presentation decisions are impacting conversion, basket size and sales. Site administration tools have advanced to help "non-technical' online merchants make presentation changes easily. A/B testing tools allow for ongoing testing, learning and optimizing based on what works. More than ever, online merchants are focused on site productivity; getting maximum product engagement, conversion and sales per order.