Right Products, Right Placement: Master eCommerce Merchandising Strategies for Your Store

eCommerce merchandising is the backbone of any successful online store. It involves strategically presenting products to maximize sales and profits. From selecting the right products for promotion to optimizing your homepage, collection pages, and product pages, every step is crucial. This guide will delve into effective eCommerce merchandising strategies that can elevate your online store to new heights.

What Is Online Merchandising & Why Do You Need It?

Online merchandising is the practice of presenting products in a way that maximizes sales and enhances the shopping experience. It involves curating product assortments, designing attractive product pages, and strategically placing promotions. Effective online merchandising is essential because it helps you stand out in a crowded marketplace, guides customers through their purchasing journey, and ultimately drives more sales.

How To Choose The Right Products For Your Ads

Selecting the right products for your advertisements is crucial for capturing customer interest and driving sales. Focus on two main criteria:

1. Best Selling Products:

   These products already have a proven track record of attracting customers and generating sales. Featuring them in your ads can leverage their popularity to draw more traffic to your store.

2. Highest Gross Profit Margins:

   Promoting products with high-profit margins can significantly impact your bottom line. These products ensure that even with substantial advertising costs, you can maintain a healthy profit.

Two Questions You Should Ask Yourself Before You Choose Which Products To Push

Before deciding which products to feature prominently, consider the following questions:

What is the contribution margin?

1. Understanding the contribution margin of each product helps determine its profitability after accounting for variable costs. This insight is critical for choosing products that will not only sell but also boost your overall profits.

What time period am I looking to optimize profitability for?

2. Decide whether you are optimizing for short-term gains or long-term profitability. Short-term strategies might focus on quick-selling items, while long-term strategies might prioritize building a loyal customer base with high lifetime value products.

How To Merchandise Your Online Store For Maximum Profits

1. Product Profitability:

   Prioritize products with high margins and consistent demand. This ensures that every sale contributes significantly to your bottom line.

2. Higher AOV (Average Order Value):

   Implement strategies to increase the average order value, such as bundling products or offering volume discounts.

3. Optimizing Best Sellers:

   Highlight best-selling products across your store. These items have a proven appeal and can drive significant sales.

Step 1: Optimizing The Homepage

Your homepage is often the first point of contact for potential customers. Make it compelling and user-friendly:

1. The Hero Banner:

   Use a hero banner to showcase top products, promotions, or new arrivals. It should be visually striking and convey a clear message.

2. Collection Slideshow:

   A dynamic collection slideshow can guide visitors to various product categories, encouraging exploration.

3. Subscription CTAs:

   Place call-to-actions (CTAs) for newsletter sign-ups or special offers prominently to capture customer information for future marketing efforts.

Step 2: Optimizing The Collection Pages

Collection pages should facilitate easy navigation and highlight key products:

1. The Hero Banner:

   Reinforce the theme of the collection with a banner that captures attention and sets the tone.

2. More Best Sellers:

   Display best sellers within each category to drive sales and build customer trust.

Step 3: Creating Product Pages

Product pages need to be informative and enticing. Ensure high-quality images, detailed descriptions, and clear CTAs. Incorporate customer reviews and ratings to build trust and provide social proof.

How To Remove Friction To Product Pages

Streamlining the path to purchase can significantly boost conversions:

• Simplify navigation and minimize the number of clicks needed to reach product pages.

• Ensure fast load times and mobile optimization.

• Provide clear and concise product information.

How To Add Friction To Product Pages

Adding strategic friction can increase engagement and upsell opportunities:

• Decrease Organic Traffic:

  Limit access to certain pages to make them appear exclusive or premium.

• Offer Subscriptions:

  Encourage customers to subscribe for regular deliveries of consumable products.

• Product Recommendations:

  Suggest complementary products to increase the basket size.

• Upsells:

  Highlight higher-end versions or related products.

• Shipping Threshold:

  Encourage customers to add more items to their cart to qualify for free shipping.

Other Merchandising Hacks

• Utilize social proof by showcasing customer reviews and user-generated content.

• Implement scarcity tactics, such as limited-time offers, to create urgency.

• Use retargeting ads to bring back potential customers who have shown interest but didn't complete the purchase.

Why You Should Merchandise Your Ad Account

Merchandising isn't just for your store; it applies to your ad account too. By strategically selecting and promoting products through ads, you can drive targeted traffic to your store, boost sales, and maximize your return on ad spend (ROAS). Ensure your ads reflect the merchandising strategies on your site for a cohesive and effective marketing approach.

CONCLUSION

In conclusion, mastering eCommerce merchandising involves a blend of strategic product selection, effective page optimization, and smart marketing. By focusing on high-margin products, enhancing the shopping experience, and aligning your ads with your merchandising strategy, you can drive significant growth for your online store.