Product taxonomy is defined as creating a structure to organize all available products in a way that customers can find. In product taxonomy, all available products are put into several categories to which specific attributes are applied. A good taxonomy is a perfect combination of user behavior, trends, and cultural differences. The end result being it becomes easy for the customers to find their desired product amidst the long list.
Having a proper product taxonomy is very important as it leads to faster purchase decision-making and incremental business sales. Improper taxonomy can cause loss of sales. Product taxonomy cannot and must not be avoided. In this blog, we will look at how product taxonomy increases productivity.
Research has found that a poorly structured website causes 50% less sales as compared to a properly organized website. Visitors tend to visit a particular website while they browse over the internet. If your products are not properly placed within the website, either the website will miss out on potential searches, or the visitor will visit your website but will be unable to find the product. In both the situations, your product sales will be affected.
A well-built taxonomy will allow your website to display relevant products at all times, directly impacting the decision-making process of the buyer. Clear distinct categories and correct labelling directly improves business sales.
Here are some best practices to develop the right product taxonomy for your eCommerce business:
- Get an energetic team onboard and explain them the importance of good product categorization. Try to get a qualified team who have degrees in information science or linguistics. They will be capable of understanding the right terminology and hierarchy.
- Understand your users’ psychology and shopping behavior. Study the way customers navigate through different websites and choose their product. Find out their search behavior and factors that influence their buying decision. You can also talk to them or conduct a survey to understand their likes and dislikes distinctly.
- Have a deep understanding of your entire data. Focus on information that really matters to your buyers. Maintain the accuracy of the product information.
- To categorize, start visualizing your products with various attributes. A complicated taxonomy is of no use to anyone. Prepare a proper hierarchy to all the categories. Stay consistent with names at all levels. Users tend to spare lesser time searching for products; hence, the taxonomy needs to be as simple and clear as possible.
- Allow your users to navigate and test your taxonomy in all possible ways. Take reviews and modify your taxonomy accordingly to make it better. Taxonomy must be updated regularly. Add new categories and improve the hierarchy whenever necessary.
- The taxonomy must be the same across all the business units within the company. There must not be any discrepancies internally.
Product taxonomy is an important foundation for the success of any eCommerce business. A good product taxonomy is always built keeping the users in mind. It can start with simply writing on a few cards and creating divisions, to developing them into a brilliant architecture that customers would love to visit again and again in order to shop. Product taxonomy made right will increase productivity and enhance business sales. In the longer run, an efficient taxonomy minimizes the work of both the buyer as well as the seller.