Smart merchandising is the practice of using emerging technologies and user experience principles to strategically position products for optimal customer conversions on eCommerce platforms. The technology is rooted in data, and utilizes advanced algorithms to make merchandising decisions in real time. These algorithms are based on the product catalogue and the customer purchase history, and are designed to promote high-performing items for increased sales.

The use of intelligent merchandising to inform merchandising strategies is becoming increasingly prevalent in the retail industry, particularly as retailers are shifting more focus toward digital channels. The goal is to deliver a personal, relevant, and seamless shopping experience that meets the unique needs of each individual customer.

Smarter Selling: Maximizing Profits with Intelligent Merchandising Strategies

A key aspect of this strategy involves tagging products to better understand customer interests and intent, including search queries. This allows for more effective showcasing via product assortment, where certain products are emphasized based on their popularity or relevance. Additionally, the use of natural language processing enables better understanding of shoppers’ searches even when they include variations in phrasing or typos.

This strategy also provides opportunities for cross-selling and upselling, increasing order values by recommending complementary or related items. Findify’s intelligent search capabilities, for example, enable this by analyzing a customer’s browsing and purchase history to provide them with personalized recommendations. By providing these recommendations, merchants can increase customer satisfaction and reduce bounce rates.