Customers shop online for one key reason—convenience. But as easy as online shopping can be, you can instantly lose customers if you don’t structure your eCommerce business properly. But how?
Product categorization is the blueprint of convenient online shopping, helping customers navigate eCommerce stores with ease. Like how grocery stores group items according to respective aisles, eCommerce stores should also have an organized system to help customers quickly get what they need and want.
In recent years, smart retailers have implemented AI-based product categorization systems to automate retail operations and enhance the customer experience. In this article, we’ll go over what product taxonomy is, the benefits of implementing it, and how to get started.
When browsing through an eCommerce website, where do you begin? For example, when shopping for shoes, we often start by navigating different categories—for men, for women, or for children. The online shop’s search engine narrows your selection from women’s shoes to heels, boots, sports shoes, and more. This customer journey illustrates how product categorization works.
Product categorization, also known as product taxonomy or eCommerce taxonomy, is the classification of products into distinct, hierarchical categories. Ecommerce product category hierarchy is based on their characteristics, features, and attributes.
While this process may seem simple, a product may fall under multiple categories depending on how many variations there are. They can be divided into broad categories that branch into more specific subcategories.
A comprehensive categorization of products makes it easier for customers to add to their carts and keep discovering new items, resulting in increased sales for your eCommerce business.
Aside from improving the overall customer experience, eCommerce taxonomy brings multiple advantages to the overall business operations.
To increase sales and add value to your business, product categorization should be done correctly. Here are three major elements to create an effective eCommerce taxonomy:
To identify the key elements of product taxonomy in your business, start with your customer’s perspective. Know who they are, what they want, what they could buy in the future, and how they want to navigate your shop.
AI-powered product categorization tools can help automate and streamline the process, saving time and improving the accuracy of personalized content. However, when done in-house, the back-end process can be costly, tedious, and time-consuming. If you need more resources or knowledge, opt for eCommerce outsourcing, such as solutions from data labeling companies that have the expertise and technology to power automated product taxonomy.
Interested in product categorization but need help figuring out where to start? That’s where data annotation companies like TaskUs come in.
Recognized by the Everest Group as the World’s Fastest Business Process (Outsourcing) Service Provider in 2022 and highly rated in the Gartner Peer Insights Review, TaskUs offers tech-enabled outsourcing expertise in various industries. We partner with the most disrupting companies to provide cutting-edge customer experience solutions to our valued clients.
Through our proficiency in AI Services and Retail and eCommerce, we provide data annotation services, audio transcription, and data collection services to power automation for eCommerce businesses, including product catalog management. Our team of experts has extensive experience in eCommerce product categorization to help you add metadata to your product catalog.
With access to a talented, diverse, and global workforce, we can quickly recruit, train, and manage teams of any size to cater to your specific requirements.