Online retailers need to give their products the right names and place them in the correct categories to enable customers to find and buy them. This is the raison d’être for product taxonomy. They organize all available products in a way that customers can find what they want instantly.
Product taxonomies work as product hierarchies by placing the products into categories. Subsequently, the products in a category are grouped using tags and then assigned attributes. In practice, this will help customers move easily between levels to discover the product they want. Additionally, multiple independent taxonomies can be overlaid to offer alternative views of the same data. For example, in a database of music, a product could be found via genre, or a record label. All these elements in a product taxonomy help an online retailer to surface the right product to a customer and enhance the chance of the product being purchased.
How does a product taxonomy enable an online retailer to improve conversion rates? Customers have limited shopping time. Therefore, if they are unable to find the product they want quickly, they will abandon the search. This will result in lost sales, and over time, confidence in the brand will be lost.
A product taxonomy pre-empts this by properly naming and categorizing the products. This minimizes the amount of work customers have to do to purchase exactly what they want. That is the end goal of an online retailer, and it is the key driver behind the science of a product taxonomy.
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