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We live in the age of short attention spans and high consumer demands. The longer the shoppers search for products, the lower the chance of a conversion.

One of the most effective strategies to positively impact ecommerce conversion rates is search merchandising.

It can increase them by up to 50% on average.

How can search merchandising improve your site’s search relevancy, boost conversion rates, and grow your sales?

Let’s discuss this.

Search Merchandising - a Hack to Enhance Ecommerce Conversions

Search merchandising, or ‘searchandising,’ involves customizing search results on ecommerce platforms to meet specific criteria.

This strategy can significantly influence conversions, potentially increasing them by an average of 50%.

Why is this strategy so fruitful, and how can your ecommerce site implement search merchandising effectively?

What is Search Merchandising in Ecommerce?

Searchandising entails prioritizing certain products, categories, or promotions in search results to highlight specific offerings.

It includes boosting certain products, categories, brands, and discounts or rearranging search results so your website visitors notice certain deals (or products) first.

Similar to product placement in physical retail spaces, this approach can unlock significant opportunities for online retailers.

The Impact of Search Merchandising on Ecommerce Success

Research shows a direct correlation between search merchandising and ecommerce success.

Approximately 64% of online shoppers use the search function with intent to purchase, emphasizing the value of presenting relevant results promptly [1].

Here’s how search merchandising facilitates this:

  • Increasing Search Relevance: Tailoring search results to display relevant products, especially those that are seasonal or timely, can immediately attract shoppers’ attention. This strategy is supported by research indicating the importance of search relevance in driving conversions [2].

  • Improving User Experience: A seamless shopping experience, facilitated by relevant and visually appealing product displays, not only engages customers but also fosters loyalty. This approach is critical for long-term business success, as returning customers often represent a higher value at a lower acquisition cost [3].

  • Boosting Sales: Strategically highlighting products and promotions can significantly enhance sales. This effect is akin to product placement strategies in physical stores and has been shown to contribute substantially to ecommerce revenue [4].

  • Informing Business Decisions: The insights gained from search merchandising initiatives provide valuable data for refining product offerings and marketing strategies. Analyzing customer behavior and preferences based on search patterns can lead to more effective decision-making [5].

Effective Strategies for Converting Through Search Merchandising

To maximize the benefits of search merchandising, ecommerce platforms should consider the following strategies:

  1. Adopt Advanced Search Solutions: Upgrading to AI-driven search tools can enhance customization and relevancy of search results, further improving conversion rates [6].

  2. Optimize for Mobile: Given the significant portion of ecommerce traffic coming from mobile devices, optimizing search functionality for mobile users is crucial [7].

  3. Showcase Key Products: Highlighting best-selling items or those in demand can directly influence purchase decisions [8].

  4. Experiment and Personalize: Testing different search merchandising strategies and personalizing search results based on user data can enhance the effectiveness of your efforts [9].

LupaSearch - Your Partner in a Converting Search Merchandising

Search merchandising is a powerful tool for improving ecommerce conversion rates and driving business growth.

Pick a reliable e-commerce search partner like LupaSearch that utilizes converting search merchandising to boost your e-commerce conversion rates and sales.

Schedule a free demo with LupaSearch and witness search merchandising effectiveness in action.

References

  1. Agarwal, A., Hosanagar, K., & Smith, M. (2008). Location, Location, Location: An Analysis of Profitability of Position in Online Advertising Markets. Journal of Marketing Research, 48, 1057 - 1073. doi:10.1509/jmr.08.0468. https://journals.sagepub.com/doi/10.1509/jmr.08.0468.

  2. McDowell, W., Wilson, R., & Kile, C. (2016). An examination of retail website design and conversion rate. Journal of Business Research, 69, 4837-4842. doi:10.1016/J.JBUSRES.2016.04.040. https://www.sciencedirect.com/science/article/abs/pii/S014829631630203X?via%3Dihub.

  3. Fatta, D., Patton, D., & Viglia, G. (2018). The determinants of conversion rates in SME e-commerce websites. Journal of Retailing and Consumer Services, 41, 161-168. doi:10.1016/J.JRETCONSER.2017.12.008. https://www.sciencedirect.com/science/article/abs/pii/S0969698917306525?via%3Dihub.

  4. Cezar, A., & Öğüt, H. (2016). Analyzing conversion rates in online hotel booking: The role of customer reviews, recommendations, and rank order in search listings. International Journal of Contemporary Hospitality Management, 28, 286-304. doi:10.1108/IJCHM-05-2014-0249. https://www.emerald.com/insight/content/doi/10.1108/IJCHM-05-2014-0249/full/html.

  5. Haans, H., Raassens, N., & Hout, R. (2013). Search engine advertisements: The impact of advertising statements on click-through and conversion rates. Marketing Letters, 24, 151-163. doi:10.1007/S11002-013-9226-5. https://link.springer.com/article/10.1007/s11002-013-9226-5.

  6. Lee, J., Podlaseck, M., Schonberg, E., Hoch, R., & Gomory, S. (1999). Analysis and Visualization of Metrics for Online Merchandising. , 126-141. doi:10.1007/3-540-44934-5_8. https://link.springer.com/chapter/10.1007/3-540-44934-5_8.

  7. Haan, E., Kannan, P., Verhoef, P., & Wiesel, T. (2018). Device Switching in Online Purchasing: Examining the Strategic Contingencies. Journal of Marketing, 82, 1 - 19. doi:10.1509/jm.17.0113. https://journals.sagepub.com/doi/10.1509/jm.17.0113.

  8. Inman, J., Winer, R., & Ferraro, R. (2009). The Interplay among Category Characteristics, Customer Characteristics, and Customer Activities on in-Store Decision Making. Journal of Marketing, 73, 19 - 29. doi:10.1509/jmkg.73.5.19. https://journals.sagepub.com/doi/10.1509/jmkg.73.5.19.

  9. Dinner, I., Van, H., & Neslin, S. (2013). Driving Online and Offline Sales: The Cross-Channel Effects of Traditional, Online Display, and Paid Search Advertising. Journal of Marketing Research, 51, 527 - 545. doi:10.1509/jmr.11.0466. https://journals.sagepub.com/doi/10.1509/jmr.11.0466.