The Ultimate Merchandising Guide

Whether you’re selling products online through an e-commerce platform or are operating a brick-and-mortar location, having a great product just isn’t enough to stand out from the crowd. Upping your merchandising game can have a huge effect on your bottom line, no matter if you’re selling on the web or in person. 

But your merchandising strategy has to be more than just ensuring everything looks good. Yes, a pretty store or e-commerce site is enticing, but does it make your customers fill up their baskets? Does it drive your average order value? If your current methods aren’t cutting it, how do you level up to a merchandising strategy that actually works for you? Don’t worry, we’re here to help.

But first: Why does merchandising matter? Good merchandising can:

• Attract customers
• Help your business sell a wide variety of products
• Generate traffic
• Get you more sales with special offers
• Turn casual browsers into actual buyers

Merchandising is all about knowing your customer. You’ll need to understand who they are, what they want, and what makes them buy in order to give them the best shopping experience possible, completely tailored to them, ensuring they come back again and again. 

Here are a few of our favorite merchandising strategies. The best part? They work! Read on to choose what you wish to apply in your physical or online store.

Merchandising Strategies 101

These effective merchandising strategies have always been popular among retailers and they’re perfect for both in-store and online sales. New to merchandising and not sure what your customers respond to? Start with these tactics.

1.Best Sellers

It’s basic psychology—people want what other people have. That’s how trends are created. So why not entice customers to enter your brick-and-mortar store by displaying the best sellers everyone’s after in your front window? This method will show passersby that your store is the destination for hot new items, while keeping things interesting for your regulars. Selling online? Prioritize the items you sell on your website based on how popular they are, showing best sellers first. Or, create a best sellers section that is automatically updated based on your sales, thanks to an AI-powered tool like Fast Simon.

2. Liquidation

Who hasn’t gone on an e-commerce website only to click on the red “Sale” button without looking at anything else, or entered a store and booted it to the very back section to see what kind of treasures could be found at unbelievable prices? Promoting older products at reduced prices will help you keep your stock fresh, so customers can always find something new and exciting when they shop with you. This merchandising tactic will be especially effective if your customer is bargain-focused and loves a good sale. (Check out the Know Your Customer section below to learn how to sell better to bargain hunters.)

3. Show Them What They Want to See

Your product isn’t going to sell if it’s kept in a corner of your store no one bothers to look in, or at the bottom of a page in a seemingly random section of your website. Your customer needs to see something in order to want to purchase it. Online, prioritize items that are popular based on purchases, views, margins, and stock quantities. Same goes for physical stores, but since you won’t have access to view counts, keep an eye on your customers and what they look at, and not necessarily always purchase. Think something kept in the back of your shop could perform better? Move it to a high-traffic area like directly inside the front door, in the cash lineup, or in the display window. Trial and error will teach you what your customers want and will keep things interesting for regular shoppers.

4. Switch Things Up

Even if something has been performing beyond your wildest dreams, change the way you present products at least once a month. If an item is popular and is selling like hot cakes, good for you! But you must keep moving as trends come and go and shoppers will eventually want something else. Keep your customers engaged by showing them the next hot thing every time they come back. 

Start Merchandising Better

No matter the store, the product, or the type of customer, there’s always a way to better your merchandising strategy. You’ll foster a happier, more loyal customer base, while growing your revenues at the same time. But don’t forget: you don’t have to do this alone! Merchandising manually can be quite the headache and can take up a lot of precious time—time better spent elsewhere.

Learn about more merchandising strategies on The Ultimate Merchandising Guide.

Discover the magic of machine-learning AI and contact Fast Simon to create and automate your perfectly personalized merchandising strategies!

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