Ecommerce merchandising isn’t as simple as just having products in stock. For an ecommerce business, the difference between great and subpar merchandising is the difference between excellent and poor conversion rates. Elevating your customer experience through advanced merchandising strategies will help your customers find the products they want and help your business increase average order values and revenue along with other essential ecommerce KPIs.
Most ecommerce strategists love to focus on the ecommerce conversion funnels, product listing strategies, and customer retention strategies they can use to entice visitors to purchase inventory and keep them coming back. Although all of those are crucial to an overall marketing strategy, the evolution of ecommerce has seen the rise of omnichannel experiences, machine learning, and the need for brands to create truly personalized user experiences through advanced machine learning and artificial intelligence.
If independent brands want a chance to compete against big retailers like Amazon and the endless competition, they don’t need to work harder; they need to work smarter. Nogin offers omnichannel infrastructure and technology to all our partners. Our tech automatically deploys marketing campaigns based on customer data to create predictive commerce.
Along with continuous research and development, our tech automatically deploys the most profitable tactics from each of our clients’ stores, so everyone wins. Along with lower shipping costs, increased ROAS, and ecommerce experts available to manage your store, brands can finally focus on doing what they do best: growing a brand.
Gaby Haffer, Director of Buying, Merchandising, and Planning in Brand Management at Nogin, explains the best merchandising tips you can use to grow your business.
What is Ecommerce Merchandising?
Ecommerce merchandising encompasses how ecommerce businesses sell their products to visitors, including branding, images, and placement to increase customer engagement, satisfaction, and conversions.
Brands should focus on merchandising to position their products in a natural way that entices customers to complete a purchase. It’s not only about how you display products but utilizing a compelling call to action, pop-ups, offers, browsing history, and other messages or sequences to keep customers engaged and on the path towards a purchase.
At Nogin, we constantly A/B test different merchandising techniques across our brands to determine what works and what doesn’t. We can continuously run different merchandising strategies thanks to our tech’s machine learning and AI capabilities. Our platform automatically determines what works best and ditches merchandising approaches that don’t work.
Our partners benefit from the information from other brands under the intelligent commerce suite, so your store will automatically implement the most effective merchandising techniques that convert customers and improve profit margins.
Merchandising and Optimized Product Discovery
Merchandising and optimized product discovery are critical components of a successful eCommerce strategy. By streamlining the pathways for customers to find relevant products, businesses can improve user experience, drive conversions, and enhance customer satisfaction. Below are key ways to improve product discovery:
- Enhancing Site Search and Navigation
- Leveraging Personalization
- Curating Category Pages for Simplicity
- Visual Merchandising and Discovery
- Optimizing for Mobile and Voice Search
- Real-Time Inventory Management
- Data-Driven Optimization
Enhancing Site Search and Navigation
An intuitive and AI-powered search interface ensures customers can find products quickly and accurately. Features like auto-complete, typo correction, and semantic search provide relevant results even when search queries are incomplete. Faceted navigation, including filters for price, size, and availability, simplifies the browsing process for large catalogs.
Leveraging Personalization
Personalized merchandising helps tailor the shopping experience to individual user preferences. AI-powered tools can recommend products based on browsing behavior, purchase history, and popular trends. Dynamic product placement—such as “You May Also Like” suggestions—engages customers with relevant content, increasing both satisfaction and purchase likelihood.
Curating Category Pages for Simplicity
Well-structured category pages make product exploration intuitive and efficient. Using clear headers, subcategories, and visual cues like bestseller badges or “Limited Stock” tags draws customer attention to key products. Highlighting seasonal items and curated lists simplifies decision-making while boosting engagement.
Visual Merchandising and Discovery
High-quality visuals are essential for online product evaluation. Features like 360-degree product views and AR try-on tools create an immersive experience, reducing purchase hesitation. Ensuring that visuals are optimized for mobile devices enhances consistency across platforms, which is crucial for today’s mobile-first shoppers.
Optimizing for Mobile and Voice Search
Mobile shopping continues to dominate, making it essential to design a responsive, mobile-first experience. Incorporating intuitive filters, tap-friendly navigation, and simplified layouts improves usability. Additionally, optimizing search for natural language voice queries ensures customers can find products effortlessly, even via smart assistants.
Real-Time Inventory Management
Aligning product discovery with real-time inventory insights enhances customer experience and sales. Highlighting products with low stock or limited availability creates urgency and drives faster purchases. For out-of-stock items, showcasing alternative or similar recommendations keeps customers engaged.
Data-Driven Optimization
Continuous monitoring of product discovery performance ensures strategies stay effective. Tracking metrics like search abandonment rates, click-through rates, and time on page helps identify bottlenecks. Using these insights to optimize algorithms, navigation structures, and product placements ensures ongoing improvement.
Ecommerce Merchandising Trends
Ecommerce changes every day. Although utilizing traditional marketing strategies is essential, brands will need to invest in the tech and talent required to deliver a superior online shopping experience.
Online customers expect convenient and personalized shopping experiences. Brands will need to integrate an omnichannel infrastructure to compete with online shoppers. Utilizing social media or PPC ads to convert a shopper into an impulse purchase is one thing but keeping them engaged and coming back is another challenge.
Let’s discuss some of the top ecommerce merchandising trends and how your brand can evolve with the times.
One of the most impactful trends is the use of AI-Generated Content in E-commerce, which allows for highly personalized shopping experiences by leveraging customer data and predictive analytics. Incorporating technologies like AI Product Photography and Virtual Try-On Technology can further enhance the user experience, making it more engaging and tailored to individual preferences. Another important aspect is focusing on product listing optimization, ensuring that product descriptions, images, and metadata are fine-tuned to improve search rankings and attract more potential buyers. This integration is a key element of modern ecommerce strategies transforming how brands interact with their customers and boosting overall satisfaction and conversion rates.
Artificial Intelligence (AI)
We are just at the beginning of the AI revolution in ecommerce. Brands will have to leverage AI tech to elevate their stores. Brands integrated on an intelligent commerce platform with AI and machine learning capabilities will deploy the most effective product page optimization and user experience strategies that automatically show personalized product recommendations, offerings, and experiences that convert customers.
Headless Inventory
Headless commerce platforms offer many advantages to ecommerce brands, but one of the biggest is headless inventory management. Headless inventory management analyzes inventory data and transactions across a brand’s omnichannel network to inform buying and merchandising decisions.
Personalization
Creating a personalized experience is essential to connect with customers and increase sales. For a truly personalized experience, brands must utilize an omnichannel platform that integrates all their channels to collect data on which customers are engaged and where and how to reach them best. Messaging to a new customer versus a loyal, frequent shopper is much different.
Intelligent commerce collects customer data on all parts of the user journey. Using machine learning and AI integrated into your website and all other customer touch points allows brands to deploy curated and unique messaging tailored to each customer.
Whether it’s a particular Facebook ad they viewed, a PPC ad they clicked, or a blog they read, our advanced ecommerce software takes that information. It automatically implements effective messaging to continue to drive customers down their marketing funnel towards a conversion.
Ecommerce Merchandising Challenges
Brands can face several tough challenges when it comes to online merchandising. Gaby Haffer, Nogin’s Director of Buying, Merchandising, and Planning in Brand Management, lists her top three ecommerce merchandising challenges.
1. No Physical Stores
One of the biggest challenges, especially for apparel brands, is that customers can’t try out or try on products before purchasing them. A fundamental obstacle for an ecommerce brand is building trust with visitors. Many luxury ecommerce brands will rent a physical store to create tangible brand experiences or pursue celebrity collaborations. Ecommerce brands must have the right content, testimonials, and marketing collateral to entice visitors and lower their action threshold to complete an online purchase.
By utilizing an omnichannel system to reach customers at the right time, nurture them down your funnel, and leverage smart data to elevate their shopping experience, brands can develop a viable connection and enlist loyal brand enthusiasts using intelligent commerce.
Gaby Haffer expands on this fundamental challenge, noting, “I think one of the most challenging parts of our jobs in an ecom business is that we don’t have any physical stores for our brand. So that makes it a little bit more challenging because the customer is not really able to go into one of our stores, touch the product, feel the product, and really fall in love. For us (Justice), the customer is a 10-year-old girl, so the nagging factor is very important where she makes sure that her mom buys her what she wants. Without having a store, it’s a little harder to build some of that loyalty we have. Nogin is very helpful because we are able to use our blog to communicate our mission statement, and we’re able to communicate our fit through our platform. The photography we use definitely uses a diverse customer so that every girl can see herself wearing our product.”
2. Affordable Shipping and Average Order Value (AOV)
Shipping is always a costly challenge to conquer in ecommerce. Amazon is big enough and has the infrastructure to support fast shipping solutions for customers. Prime items are eligible for free, two-day shipping, and they’ve scaled to a level where expenses still result in profitable outcomes.
Unfortunately, many mid-size brands must leverage 3pl fulfillment or dropshipping companies. It is not only expensive but often, holes and inefficiencies drive up costs. Not to mention, affordable free shipping is rarely a tangible option. Brands also need to try to increase average order values to receive workable margins. If customers purchase $5-10 products, brands can’t afford to ship them out for $2-3.
Gaby expands on the issue of fulfillment, mentioning, “One of the biggest profit killers for ecommerce business is shipping. Obviously, with the state of the world, shipping is just more and more expensive. The good news is that the Nogin venture has so many brands that they service and partner with that we can use those mass scales to definitely get the best rate out there for shipping.”
Nogin has several fulfillment centers, the omnichannel infrastructure, and tech to deliver affordable shipping costs to our partners. Brands on our headless platform are plugged into our 3pl EDI software integration. Our tech uses machine learning and AI to optimize shipping coordination to lower costs and maximize profitability continuously.
Agility
Many independent ecommerce retailers are stuck when it comes to tech. The enterprise solutions are expensive, inflexible, and require manual specialist oversight to execute tasks. Nogin offers the agility of smaller shops with the enterprise capabilities brands need. Our team and tech make it a breeze to implement new promotions, shift categories, and handle all things merchandising efficiently.
Gaby expands, saying, “I think in the retail sector, agility is key, and what I think Nogin’s technology does better is offer us the agility to make changes in real time, and that has been a real blessing for us. For example, we are able to change a promotion in real time. We are able to change pricing if we see some things that aren’t right. And that really has helped us. Also, within merchandising, we are able to merchandise by choice as opposed by the entire style, which has also been very helpful to really drive better results.”
Ecommerce Merchandising Tips and Best Practices
Here’s a quick list you can save that details our expert ecommerce merchandising tips:
- Invest in Intelligent Browsing Solutions: Make it easy for your customers to find products that align with their customer data using modern site search solutions. Invest in modern autocomplete and Natural Language Processing (NLP) algorithms.
- Use Omnichannel Infrastructure: Migrate on an omnichannel system that continuously uses customer data to deliver products and a personalized brand experience for each customer.
- Save Returning Visitor Products: Have previous visitors view their browsing history and list recently viewed items when they come back to your online shop.
- Geolocation Capabilities: Utilize visitor IP addresses to offer personalized offers based on customer data. You can also use geolocation to show products applicable to their environment. For instance, displaying winter jackets and beanies to visitors browsing your website from Canada in November.
- UTM Parameters: Personalize landing pages by establishing UTM parameters to segment traffic based on customer behavior.
- Dynamic Pricing: Plug into intelligent software that can intuitively display dynamic pricing to beat competitors and increase conversion rates.
- Filters and Faceted Search: Break down and filter results into manageable subcategories that allow customers to find the products they want faster and easier.
Visual Merchandising
Visual merchandising is a powerful strategy in eCommerce that focuses on the deliberate presentation and organization of products to attract, engage, and convert customers. In an online setting, this practice relies heavily on compelling visuals, strategic layouts, and advanced technologies to replicate the sensory experience of physical stores. High-quality imagery, cohesive branding, and well-structured product displays play a pivotal role in influencing purchasing decisions and enhancing customer satisfaction. When executed effectively, visual merchandising transforms the digital shopping journey into an engaging and seamless experience.
High-quality product imagery lies at the heart of eCommerce visual merchandising. Clear, dynamic images that showcase products from multiple angles, include zoom functionality, and offer 360-degree views create trust and confidence among buyers. Lifestyle images and videos demonstrating product usage can forge emotional connections, allowing customers to visualize the product in real-world scenarios. Advances like AI-generated visuals and augmented reality (AR) tools further enhance this process, enabling brands to present products in endless variations of colors, settings, and styles without the constraints of traditional photography
Consistency across visuals and branding is equally crucial. A cohesive design that reflects a brand’s identity—through color schemes, fonts, and visual hierarchies—can elevate the shopping experience and increase brand recall. Effective visual merchandising also integrates personalization, where AI tools tailor product displays and recommendations based on user behavior and preferences. By combining strategic product placement, high-quality visuals, and innovative technologies, brands can create immersive digital storefronts that not only capture attention but also drive conversions and build long-term customer loyalty
Merchandising, Inventory, and Pricing Management
Merchandising, inventory, and pricing management are the backbone of a successful eCommerce operation. These interconnected elements work together to ensure products are presented effectively, stocked efficiently, and priced strategically to maximize both customer satisfaction and profitability. By leveraging best practices and advanced technologies, businesses can streamline operations and gain a competitive edge in a rapidly evolving market.
- Strategic Product Merchandising
- Real-Time Inventory Monitoring
- Demand Forecasting and Inventory Optimization
- Dynamic Pricing Strategies
- Promotional and Competitive Pricing
- Inventory-Based Pricing Models
Strategic Product Merchandising
Strategic product merchandising involves curating products in a way that captures customer attention and boosts sales. Techniques include grouping related items into themed collections, utilizing high-quality imagery with multiple views, and maintaining consistent branding across the website. By aligning product displays with seasonal trends and customer preferences, businesses can create engaging shopping experiences that encourage exploration and increase conversions.
Real-Time Inventory Monitoring
Accurate, real-time inventory tracking ensures that customers can purchase what they see without unexpected stockouts. Integrating inventory management software allows businesses to monitor stock levels, automate reordering, and optimize warehouse operations. This minimizes the risk of overstocking or running out of high-demand items, ultimately improving customer satisfaction and operational efficiency.
Demand Forecasting and Inventory Optimization
Predicting customer demand is essential for maintaining optimal inventory levels. Advanced forecasting tools use historical sales data, seasonal trends, and market insights to anticipate demand accurately. By aligning inventory levels with predicted needs, businesses can reduce holding costs, minimize waste, and ensure products are always available for customers.
Dynamic Pricing Strategies
Dynamic pricing enables businesses to adjust product prices in real-time based on factors like demand, competition, and stock levels. AI-powered pricing tools analyze market conditions and customer behavior to optimize prices for profitability. This strategy helps eCommerce brands remain competitive while maximizing revenue, especially during peak shopping periods or low-stock scenarios.
Promotional and Competitive Pricing
Promotional pricing strategies, such as limited-time discounts, bundles, and seasonal sales, are effective tools for driving customer engagement and increasing order values. Monitoring competitor pricing ensures businesses remain attractive while protecting profit margins. By strategically balancing promotional campaigns and competitive analysis, businesses can capture customer interest without compromising revenue.
Inventory-Based Pricing Models
Inventory-based pricing adjusts product prices according to stock availability. For instance, items with limited stock may be priced higher to create urgency, while overstocked products can be discounted to clear inventory. This dynamic approach helps optimize inventory turnover, reduce holding costs, and increase profitability, particularly for high-value or seasonal items.
Learn More About Nogin’s Intelligent Commerce Suite
Plug into our intelligent ecommerce platform to gain the tech and expertise you’ll need to deliver an optimal merchandising experience to your customers. Learn more about the proven research behind Commerce as a Service (CaaS) and why it’s the best option for mid-size ecommerce retailers to scale their business. Download Part two of the Coresight Research report for free to learn how to solve profitability issues in ecommerce.
Ecommerce Merchandising FAQ
How do you develop a merchandising strategy?
Develop a merchandising strategy by analyzing customer data, setting clear goals, selecting the right products, and creating compelling displays. Regularly review sales metrics and adjust your strategy to meet market trends and customer preferences.
What is the pyramid principle in merchandise display?
The pyramid principle in merchandise display involves arranging products in a triangular shape, with larger items at the base and smaller items at the top. This visual technique draws the eye upward, creating an appealing and organized presentation.
What is merchandising in e-commerce?
Merchandising in e-commerce refers to the strategies used to display products online to enhance customer engagement and increase sales. This includes product categorization, high-quality images, detailed descriptions, personalized recommendations, and strategic placement.
How to become an e-commerce merchandiser?
To become an e-commerce merchandiser, gain experience in retail or marketing, and develop skills in data analysis, customer behavior, and digital marketing. A degree in business, marketing, or a related field can be beneficial. Practical experience with e-commerce platforms and merchandising software is also crucial.
What does an Ecommerce merchandising specialist do?
An Ecommerce merchandising specialist manages the online presentation of products, optimizes product listings, analyzes sales data, and implements strategies to increase conversion rates and average order values. They ensure that products are displayed attractively and that promotional activities are effectively executed.
What is Ecommerce visual merchandising?
Ecommerce visual merchandising involves creating appealing online displays to attract and engage customers. This includes using high-quality images, videos, detailed product descriptions, and strategic layout designs to enhance the shopping experience and drive sales.
What is the role of a merchandise manager in ECommerce?
A merchandise manager in eCommerce oversees the selection, presentation, and promotion of products. They analyze sales data, forecast trends, manage inventory, coordinate with suppliers, and implement merchandising strategies to optimize sales and profitability.
What is online retail merchandising?
Online retail merchandising is the practice of presenting products on an e-commerce site to maximize sales. This includes organizing product categories, creating appealing product pages, using engaging visuals, and implementing marketing strategies like discounts and personalized recommendations.
How to merchandise your website?
Merchandise your website by organizing products into clear categories, using high-quality images and detailed descriptions, incorporating customer reviews, and utilizing personalized recommendations. Ensure your site is user-friendly with intuitive navigation, effective search functions, and responsive design.
What does an eCommerce merchandise coordinator do?
An eCommerce merchandise coordinator supports the merchandising team by managing product listings, coordinating with suppliers, updating inventory, and assisting with promotional activities. They ensure products are accurately represented and promotions are executed effectively.
