Product categories: the key to increasing conversions on your e-shop

What are product categories?

Imagine your e-commerce as a vast and unknown territory, where product categories are the key waypoints on a map that guide your customers through a wide range of products. Each category groups similar items, such as electronics, fashion, or toys, simplifying the shopping experience.

By organising the offerings in a logical and intuitive way, categories streamline the navigation experience, allowing consumers to easily find their way among the various available options and increasing the chances of conversion.

Categories can also be subdivided into subcategories. For example, the product category 5968 "Health Products" may include subcategories such as "Dietary Supplements," "Skincare Products," "Medical and Health Devices," and so on. This hierarchical structure further enhances the navigation experience, allowing buyers to refine their search based on their specific needs.

Optimise product categories to boost your sales

Optimising product categories is essential for maximising sales on an e-store. A clear and strategic organisation of products guides consumers towards their purchasing choices, consequently increasing the chances of conversion. For example, if a seller of sports goods categorises products by specific disciplines, such as football, running, and cycling, they will attract enthusiasts looking for targeted items.

What other advantages can there be?

• Improved search and filter functionalities: Properly cataloguing products within the right categories allows search systems to provide more accurate results to buyers.

• Adaptation to market trends: Understanding trends within different product categories enables effective strategy adjustments. Tools like Google Trends or industry market analyses provide valuable insights into what consumers are actively searching for.

How backend analysis can transform your sales strategies

One often-overlooked aspect is how important the backend of an e-commerce site is for analysing the performance of different product categories. By using available analytics tools, sellers can monitor sales, assess which categories perform best, and identify areas for improvement. This data provides valuable strategic insights that can guide future decisions and significantly impact marketing strategies.

For example, if an analysis reveals that electronic products generate a higher conversion rate compared to home goods, the seller might choose to allocate more resources to marketing and advertising in the technology sector.

Additionally, analysing the best-selling products allows for more efficient inventory management, whether opting for in-house warehousing or relying on outsourcing solutions like those offered by T-Data. This focus overall translates into:

• Improved inventory management

• Reduced operational costs

• Maximised return on investment

Discover the 5 categories on Amazon that are making a difference in 2024

In 2024, certain categories on Amazon have proven to be particularly profitable, attracting significant investments from sellers. Here are the 5 categories that recorded the best results in the past year (source):

• Home and Kitchen (35%): Kitchen tools, home goods, and decorations

• Beauty and Personal Care (26%): Cosmetics, skincare, and hygiene products

• Clothing and Accessories (20%): Fashion, footwear, and jewellery

• Toys (18%): Educational items, collectibles, and board games

• Health and Household (17%): Supplements, over-the-counter medications, cleaners, and baby products