8 Best Online Merchandising Strategies To Boost Sales in 2025
Australia ranked among the top three countries worldwide in terms of experiencing remarkable growth in online sales in 2023. In this rapidly evolving e-commerce landscape, online merchandising plays a pivotal role in driving sales and enhancing the overall shopping experience for customers.
The significance of deploying effective online merchandising strategies cannot be emphasised enough. In this article, we will delve into the core principles of online merchandising for e-commerce, and unveil strategies to elevate sales in the coming years.
What is Online Merchandising?
Online merchandising is the art of curating and presenting products on an e-commerce website in a way that maximises sales and creates a delightful shopping experience. It involves a combination of design, content, and data-driven strategies to showcase products in the most appealing manner possible.
The 5 R’s for online merchandising include:
Right Products:
Online merchandising involves carefully selecting and featuring products that are most likely to resonate with your target audience. These products should align with customer preferences and needs.
Right Time:
Timing is crucial in online merchandising. You should present products at the right time, considering seasonal trends, holidays, and customer behaviour patterns to maximise their appeal.
Right Place:
Placing products strategically on your e-commerce website is essential. You should position them where customers are most likely to notice and engage with them. This typically includes the homepage, category pages, or during the checkout process.
Right Price:
Pricing plays a significant role in online merchandising. It involves setting competitive and appealing prices that both attract customers and ensure profitability.
Right Quantity:
Managing product quantities is vital to prevent stockouts or overstock situations. Balancing supply with demand ensures that customers can find and purchase desired products.
5 Key elements of online merchandising include:
- Product Presentation: This includes high-quality product images, detailed descriptions, and appealing product titles. Effective presentation helps customers understand the product and its benefits.
- Navigation and Search: Ensuring that customers can easily find and filter products using intuitive navigation and search functions is crucial for a seamless shopping experience.
- Pricing and Promotions: Online retailers often use pricing strategies, discounts, and promotions to influence buying decisions.
- Personalisation: Tailoring product recommendations and content based on customer preferences and behaviour is becoming increasingly important.
- User Experience: A user-friendly website design, smooth checkout process, and responsive customer support are essential for retaining customers.
Importance of Online/E-commerce Merchandising:
Online merchandising is of paramount importance for several reasons:
✓Increased Competition:
The e-commerce space is highly competitive, and consumers have countless options. Effective merchandising helps your products stand out in a crowded market.
✓Enhanced User Experience:
A well-merchandised website ensures that customers can easily find what they're looking for, which reduces frustration and encourages repeat visits.
✓Higher Conversion Rates:
When products are presented effectively, they are more likely to convert browsers into buyers.
✓Data-Driven Insights:
Online merchandising leverages data to make informed decisions about which products to feature, how to price them, and how to target specific customer segments.
Now, let's explore 8 online merchandising strategies and best practices that can help boost sales in 2025:
8 Online Merchandising Strategies and Best Practices:
1. Real-Time Inventory and Pricing Updates:
One of the key frustrations for online shoppers is discovering that a product they desire is out of stock or that its price has changed since their last visit. To address this issue and enhance customer trust, implementing real-time inventory and pricing updates is crucial.
Best Practices:
● Inventory Management System: Invest in a robust inventory management system that can track stock levels in real-time and trigger alerts for low-stock or out-of-stock items.
● Dynamic Pricing: Utilise dynamic pricing algorithms that adjust product prices based on demand, competition, and other relevant factors. This not only ensures competitive pricing but also maximises profitability.
● Transparency: Clearly communicate stock availability and price changes to customers. Consider implementing features like "Notify Me When Back in Stock" for out-of-stock items.
2. Personalised Product Recommendations:
Personalisation has become the go-to e-commerce merchandising strategy. By analysing customer data and behaviour, you can recommend products that are highly relevant to individual shoppers, increasing the likelihood of a purchase.
Best Practices:
● Data Collection: Collect and analyse customer data, including browsing history, purchase history, and demographic information, to create detailed customer profiles.
● Machine Learning Algorithms: Implement machine learning algorithms that can generate personalised product recommendations based on customer profiles. These algorithms can continually improve recommendations as they gather more data.
● A/B Testing: Regularly test and refine your recommendation algorithms to ensure they are effective and non-intrusive.
3. Content-Driven Merchandising:
Content-driven merchandising strategy involves using engaging and informative content to not only showcase products but also educate and entertain customers. This approach can build trust and loyalty while driving sales.
Best Practices:
● Rich Product Descriptions: Create compelling product descriptions that highlight key features and benefits. Use storytelling to help customers visualise how the product can improve their lives.
● Video Content: Incorporate product videos, tutorials, and reviews to provide a more immersive shopping experience. Video content can address common customer questions and concerns.
● User-Generated Content: Encourage customers to leave reviews, share photos, and write testimonials. User-generated content adds authenticity and credibility to your product listings.
4. Social Commerce Integration:
Integrating your e-commerce platform with social media channels can be a powerful online merchandising technique. Social commerce allows customers to discover and purchase products directly from their favourite social platforms.
Best Practices:
● Create Shoppable Posts: Make your social media posts shoppable on platforms like Instagram and Facebook, where users can click on products and make purchases without leaving the app.
● Utilise User-Generated Content: Utilise user-generated content from social media to showcase real customers using your products. Encourage customers to share their experiences and tag your brand.
● Leverage Social Media Advertising: Leverage social media advertising to target specific demographics and drive traffic to your e-commerce website.
5. Mobile Optimisation:
With the increasing use of mobile devices for online shopping, optimising your e-commerce site for mobile is essential. A mobile-friendly design and seamless mobile shopping experience are critical for success.
Best Practices:
● Implement Responsive Design: Implement responsive design to ensure that your website adapts to different screen sizes and devices.
● Simplify the Navigation: Simplify the navigation and checkout process on mobile to reduce friction and cart abandonment.
● Optimise for Website Speed: Test your website's load times on mobile devices and optimise for speed. Slow-loading pages can lead to bounce rates.
6. Customer Reviews and Ratings:
Customer reviews and ratings play a significant role in building trust and influencing purchase decisions. Integrating these into your product listings can improve online merchandising.
Best Practices:
● Feature Customer Reviews: Feature customer reviews prominently on product pages, including both positive and negative feedback. Authenticity is key.
● Allow Customers to Rate Products: Allow customers to rate products and sort them based on ratings. This helps shoppers quickly identify highly-rated items.
● Utilise Reviews: Encourage satisfied customers to leave reviews and offer incentives, such as discounts or loyalty points, for their contributions.
7. Seasonal and Trend-Based Merchandising:
Aligning your online merchandising with seasons, holidays, and emerging trends can boost sales by capitalising on the latest consumer interests.
Best Practices:
● Seasonal Promotions: Plan seasonal promotions and themed merchandising campaigns well in advance. This includes holiday sales, back-to-school offers, and more.
● Updated on Industry Trends: Stay updated on industry trends and adjust your product selection and marketing strategies accordingly. Trend-based merchandising can create buzz around your brand.
● Data Analytics: Use data analytics to understand which seasonal campaigns and trends resonate most with your target audience and refine your strategies accordingly.
8. Abandoned Cart Recovery:
Implementing strategies to recover abandoned shopping carts can significantly improve your conversion rates and overall sales.
Best Practices:
● Follow-Up Emails: Send automated follow-up emails to customers who abandon their carts, reminding them of the items they left behind. Moreover, you can offer incentives like discounts or free shipping to complete their purchase.
● Retargeting Ads: Consider using retargeting ads on platforms like Facebook and Google to reach potential customers who left your website without making a purchase.
● Analyse the Reasons: Continuously analyse the reasons for cart abandonment and make improvements to your checkout process. Some examples include simplifying forms or offering guest checkout options.
Boost Your Online Sales
Online merchandising remains a critical component of success. By understanding its fundamentals, recognising its importance, and implementing effective strategies can boost your sales. Stay agile, create a more satisfying shopping experience for your customers and continue refining your online merchandising efforts.
Bonus Content:
How E-commerce is Affecting Retail Stores
Best eCommerce Platforms in Australia
eCommerce Agencies in Melbourne