It is not at all about taxes but it is a step towards better revenue. Taxonomy is a Greek word for the laws of ordering. Taxonomy is an effective process of eCommerce data presentation which provides structure to product data and specifies the relationship between them. When the products are organized in a structure, customers can find the products in the least possible clicks.
It is arranging the products in a hierarchy that puts products into categories. Each product in a category will have its own attributes (such as color, size, etc). Thus helping customers to easily navigate through product listings and helping them find exactly what they want increases the chance of a successful purchase.
Improved User Experience
Taxonomy allows products to be arranged in a hierarchical order in which products are grouped into specific subsets. This allows the product catalog to be presented in stages making it more manageable.
Category tree, which helps group products by nature, is called the breadcrumb trail.
Home->Tools-& equipment -> Power Tools -> Sanders & Sander ->Accessories -> Orbital Sanders
Value list which is a predefined set of possible values such as 230 V, 1000-2000 min speed, etc.
Faceted Search Results
Taxonomy enables search results that get the most contextual content to the user. A Forrester research report found that when retail sites are not properly showcased they sell 50% less than better-organized sites. When searches come up with unexpected results, 47% of users gave up after just one search, and only 23 percent tried three or more times.
Taxonomy takes into consideration what matters most to your customers. It helps to understand who your audiences/customers are to meet their specific needs. Building a taxonomy that takes into consideration what a shopper needs, to make a good buying decision, what kind of people will be using the site, which taxonomic terms connect with common people helps immensely to increase traffic to your website. Customer-focused taxonomy connects with regular shoppers online resulting in more purchases.
Strong product taxonomy makes it easy for search engines to pull out the required product information and present it to the customers. It makes it seamless for customers to navigate, search, choose a product, or find an alternative from the recommended choices, add products to the cart, and checkout resulting in higher revenue for the e-store.
Altius specializes in product developmental services and comes up with a master category table with high-level industry standards that cater to B2B and B2C sectors, creating a site that is easy for search engines to find your products and for customers to make purchases.