Ecommerce merchandising: Components, strategies, & tools

At every successful physical retail store you’ll notice one thing: nothing is random. From front shelf product to last minute checkout accessory, everything is placed by a merchandiser who knows how customers think and shop.

The same goes for ecommerce.

In online shopping, customers can’t feel the product or the aesthetics of the store. Instead, they rely on what they see, and how well the products are presented. That is where ecommerce merchandising makes its mark.

What is ecommerce merchandising?

Ecommerce merchandising is the strategic process of displaying, organizing, and promoting products online to maximize conversions and enhance the shopping experience.

Example: An online fashion store showing “New Arrivals” on top of the homepage and using product filters like size, color, and price to help shoppers quickly find the right outfits.

Ecommerce merchandising doesn't end with just adding a product photo and a price. Ecommerce merchandising decides:

• Which product should go where?

• Who should see which items?

• What presentation encourages trust and purchase?

Key components in ecommerce merchandising

Brand identity

Brand identity is the look, voice, and personality of an ecommerce business. It includes everything from logo, color palette, and the kind of language one uses in product descriptions.

Welly turned basic first-aid into something fun and friendly. Their packaging, playful illustrations, and casual tone make medical supplies feel approachable, especially for families.

Brand identity is the foundation for every merchandising decision. In ecommerce merchandising, the products you highlight, how you photograph them, and how customers emotionally experience your store defines your brand identity.

Layout

Layout is the structure of your online storefront. It's about how products appear, and what the homepage highlights first. A well designed layout helps shoppers find what they’re looking for quickly, without feeling lost. Black Diamond Equipment uses a bold, dark theme that reflects the adventure/outdoor lifestyle. Their high impact visuals and clear CTAs move shoppers toward gear categories within seconds.

Layout is the execution part of merchandising. It determines which products get the spotlight, how categories are prioritized, and what customers notice first. When shoppers can move from browsing to checkout in fewer clicks, your revenue increases.

Product grouping

Product grouping refers to organizing your catalog into categories, collections, and bundles. Instead of leaving customers to wander, you guide them with options that match their needs by style, size, brand, or even lifestyle.

It ensures customers are shown relevant products at the right time, influencing what goes into the cart and how much they end up buying. It reduces choice paralysis, and lifts average order value and time-on-site.

Recommendations

Recommendations are product suggestions placed at key moments in the shopping journey like You May Also Like, Frequently Bought Together, or Trending Now. They’re powered by data and designed to surface items shoppers are most likely to want next.

Ecommerce stores see 25–30% of online sales influenced by personalized recommendations.   In ecommerce merchandising, recommendations automate product discovery, and personalize the storefront, while improving conversion rates in real time.

Social proof

Social proof is proof that real people trust your brand. It gives shoppers the confidence to hit “Buy” instead of backing out. This can be identified in many ways like star ratings, written reviews, photos and videos from customers, influencer mentions, testimonials, trust badges, or even media coverage.

In ecommerce, trust is everything. In fact, 98% of consumers read online reviews before buying anything. When social proof is strong and easy to see, customers feel safe committing to the purchase. You'll have a lower bounce rate, less frequent cart abandonment, and higher credibility.

Ecommerce merchandising strategies

Mobile-first merchandising approach

The mobile-first merchandising strategy includes making product discovery and purchase smoother with visuals optimized for mobile. Fast loading pages, thumb friendly layouts, and simplified checkout options like auto fill and mobile wallets are essential when designing for mobile.

Smooth browsing, fast loading, and touch friendly navigation are the result of a well planned mobile-first merchandising approach.

For example, ASOS makes sure customers can swipe through product photos smoothly on mobile which creates an intuitive browsing experience. A mobile-first mindset makes things easy for most customers, and the results are shown in conversions.

AI-powered personalization

AI-powered personalization organizes and arranges products automatically according to customer behavior and intent using artificial intelligence. Nearly 71% of customers expect companies to deliver personalized interactions.

It suggests items based on browsing history, showcases best sellers or trending products, and can adjust and update product promotion during seasonal shifts. With personalization, the relevance of the store improves as it meets customer needs, which drives conversion.

Dynamic product positioning and ranking

Dynamic product positioning allows your bestsellers to automatically move to the top of category pages the moment they start converting. No more weekly updates; your store adapts instantly.

It reduces manual work and ensures popular products always remain visible to customer's eyes.

Customer segmentation and targeting

Customer segmentation and targeting is customizing product displays and promotions for different types of customers based on their gender or age, their location, purchase behavior, how price sensitive they are, and customer loyalty.

A customer who often purchases diabetic-friendly food items must receive personalized suggestions for low sugar snacks and glucose monitoring kits. Customer segmentation is essential for effective personalization, which directly increases purchases.

Ecommerce merchandising tools

Strategy means nothing without the right tools. Let's look at what actually makes merchandising work.

Personalization tools

Personalization tools collect behavioral, demographic, and contextual data to shape the shopping experience.

Personalization tools decide your homepage recommendations, smart category filters, targeted banners, and cart reminders that actually feel helpful.

The personalization tools that can be used are Zoho Commerce Personalization (built-in personalized recommendations and automation), Nosto, and Dynamic Yield.

Search and recommendation engines

An advanced search bar is more valuable than a redesigned homepage. Recommendation engines work alongside it to help customers discover products that are relevant to them.

Search and recommendation engines improve keyword corrections, filtering that actually understands intent, and product discovery through related suggestions.

The search and recommendation engines that can be used are Algolia and Klevu.

Analytics and A/B testing

In analytics, data shows you what works, and what doesn't. It reveals which banners actually get clicked, which product placements drive sales, and where customers abandon their carts.

The metrics that should be measured for ecommerce merchandising are conversion rate, average order value (AOV), click-through rates (CTR), cart abandonment rate, and product discovery metrics.

A/B testing means you run two versions of a page simultaneously, say, one with a red button and one with blue button, and see which one your customers actually click.

Use Google Analytics 4 to understand customer behavior and Optimizely or VWO for A/B testing.

Ecommerce merchandising trends

Social commerce

Social commerce is the process of selling products directly within social media platforms, allowing customers to discover and purchase without ever leaving apps like Instagram. It is expected to grow from USD 1.63 trillion in 2025 to USD 6.23 trillion by 2030 (30.71% CAGR).

Rather than driving traffic away from social platforms to your store, social commerce brings your products directly to where customers already spend their time. In the coming years, we'll have live shopping events, AI-powered personalization, and conversational commerce in full force.

Augmented reality (AR)

Augmented reality (AR) in ecommerce allows customers to virtually visualize products in their own environment before purchasing. Using their smartphone or AR glasses, shoppers can try on clothing, see how furniture fits in a room, preview makeup shades, or rotate 3D product models to explore details.

AR is expected to reach USD 38.54 billion by 2030 (35.8% CAGR) and will have a generative AI for 3D assets, real-time virtual try-ons, and interactive and social ARs.

AR dramatically reduces return rates, boosts conversion rates, and increases customer satisfaction. Shoppers feel more confident in their purchases, leading to stronger brand loyalty and reduced support costs from returns.

Voice search optimization

Voice search optimization in ecommerce refers to preparing your store for customers who discover and purchase products using voice commands through smart speakers (Alexa, Google Assistant, Siri) or in-app voice features.

Nearly 50% of online shoppers now use voice assistants to discover products, and voice commerce is projected to surpass USD 151.39 billion by 2029 (29.2% CAGR from 2025).

In the coming years, we’ll see smarter intent understanding, and quick transitions between voice, mobile, and in-home devices. By optimizing product attributes, mobile performance, and conversational content, brands increase visibility in voice-driven search results.

Conclusion

Ecommerce merchandising helps customers find what they actually want, and encourages them to make larger purchases. Get these strategies right—personalization, smart search, and great product displays—and your store will stop feeling like a catalog.

Zoho Commerce simplifies ecommerce merchandising by offering built-in tools for storefront design management, and product showcasing with no technical skills required. Get started today with these merchandising best practices and let Zoho Commerce help you convert browsers into buyers.