Having a good ecommerce product taxonomy is one of the biggest contributors of high traffic volume and conversion rates. It impacts the shopping experience, which translates to whether a shopper buys anything from your store.
In this guide, we’ll share what it is, why is it important and its best practices alongside real-life examples that you can reference.
What is product taxonomy?
Product taxonomy refers to the hierarchical structure used to categorize and organize products. It’s a structured system that makes it easier for customers to find what they want in the quickest way possible.
Here’s an example of product taxonomy in the fashion & apparel industry:
Key Components of Product Taxonomy
Categories and Subcategories: Organizing for Easy Navigation
Product taxonomy starts with clear, hierarchical organization, making it easier for customers to navigate from broad categories to subcategories, and finally the product itself.
Imagine entering a physical store selling men’s wear looking for a black t-shirt. You would head to the tops section, locate where all the t-shirts are, and look out for black. It’s the same for ecommerce.
Tops would be the category and t-shirts would be the subcategory.
Attributes: Adding specificity to search
Attributes are key details that describe products, allowing customers to refine their search, and find the item they’re looking for. These can include:
- Physical characteristics: Size, color, material
- Brand and style features: Brand name, fit type, or occasion
Taking the same example of black t-shirt. Attributes would be black, the shirt may be made of 100% cotton, and its available sizes may range from XS to XL.
Why Is Product Taxonomy Important?
Improves SEO and searchability
When looking for products, shoppers have keywords and phrases in mind. If they’re shopping for a waterproof sofa that’s made with vegan leather, they’d search for those words.
It could be in another structure like “vegan leather sofa waterproof”, or with synonyms like “repels water”, or “faux leather”. With a strong product taxonomy that uses these keywords and phrases, you’ll be able to capture high-intent searches and drive traffic to your store.
Increased conversions and sales
A good ecommerce product taxonomy makes it easy for shoppers to find what they need. It can even direct them to a product they weren’t actively searching for.
That can greatly improve conversion rates, from traffic to purchase, as well as increase the average order value.
More enjoyable browsing experience
Not just for hard metrics like traffic and sales, a strong product taxonomy strategy also makes it much more enjoyable for users to browse.
There’s less friction and less frustration clicking around trying to find something. The result is more positive brand perception.
Richer customer insights
When products are properly grouped and presented, you get customer insights that are more actionable, like their browsing behavior, preferred products and budget preferences.
For example, if a product doesn’t do well, it could be because the category has insufficient demand or the product is too expensive in its category. You can then either choose to discontinue the product line or adjust prices accordingly. And you’ll only know this well with a good product taxonomy.
How product taxonomy can boost sales
Ecommerce is competitive. When a shopper doesn’t find what they want, it’s easy for them to click into another store and search there.
There are 2 types of site visitors—browsers and searchers.
Customer journey of browsers
Browsers are more casual shoppers. They may have little or no idea of what they want to buy, so they spend more time looking around.
They might start with the navigation bar, clicking on categories and subcategories before finding an interesting product and clicking into it.
Browsers are more likely to shop in the bestsellers or trending section where social proof is strong.
Customer journey of searchers
Searchers know what they want. When they enter an ecommerce store, they start looking for the product by clicking through categories or going straight for the the search bar.
They might use synonyms or longer phrases in the search bar. But they still end up in the right place quickly.
Let’s say a searcher is looking for a pair of hiking shoes from Salomon. They would enter “Salomon hiking shoes” in the search bar, or click on the Salomon category under brands, and select the hiking subcategory.
An effective product taxonomy is where both groups are directed to the best fit products in a quick and frictionless way.
Product taxonomy best practices
Map customer behavior
Successful taxonomies reflect how customers think and shop. Conduct analysis through surveys, user testing, or keyword research to identify common search terms and shopping patterns.If customers often search for seasonal or solution-based categories—like “Holiday Gift Ideas” or “Skin Care for Dry Skin”—incorporating these into your taxonomy can make their experience more intuitive.
Use Hypotenuse AI’s automated product tagging tool to label your products with the appropriate product tags to ensure they fall under the right category.
Keep it logical and intuitive
Avoid overwhelming shoppers with too many layers. A clean, streamlined hierarchy ensures users can navigate quickly. For example, instead of a complicated tree with Men’s Shoes > Formal > Leather > Size 10, simplify it to Men’s Shoes > Formal Shoes, with filters for size and material.Take inspiration from successful brands in your industry. Make sure to tailor your categorization to your unique offerings and audience. By benchmarking against brands that excel in ecommerce, you can refine your taxonomy to be both intuitive and relevant to your target market.
Optimize for SEO
Conduct keyword research using keyword research tools or automate it with Hypotenuse AI’s SEO keyword suggest feature.
Incorporate these into your categories, attributes and product descriptions so that the right product shows up when shoppers search.
It’s important to use synonyms so that no potential purchases go to waste.
Review and adjust regularly
Observe how shoppers interact with your taxonomy. Are they finding what they need quickly? Or are they confused and do they tend to click around for a long time before exiting your store? Tweak accordingly.
Plus, every now and then, there’s a new retail trend. Look out for this and create categories to ride on the trend. Make these categories prominent on your navigation bar and homepage.
Inspiring Examples of Product Taxonomy
Glossier: Minimalism with User-Centric Naming
Glossier’s product taxonomy aligns perfectly with its minimalist branding. Instead of overwhelming customers with industry jargon, they use straightforward, customer-friendly terms:
- Categories: Skincare, Makeup, Body, Fragrance.
- Descriptive filters: "Skin Type” and “Skin concern” filters
Glossier also leverages curated bundles and routine-based categories like "Morning Skincare Sets," allowing customers to shop based on needs rather than individual products.
REI: Tailored to Outdoor Activities
REI caters to outdoor enthusiasts with a taxonomy that reflects how shoppers think about their adventures:
- Categories Based on Activities: Camp & Hike, Climb, Cycle, Water.
- Subcategories: Within “Camp & Hike,” you’ll find specific groupings like Tents, Ligting, and Hydration.
- Seasonal Adjustments: "Winter Gear" or "Summer Essentials" emerge at relevant times.
Zalando: Regional Adaptability
As a pan-European fashion retailer, Zalando customizes its taxonomy to regional preferences. For example:
- Localized Categories: "Rainwear" is emphasized in Nordic countries, while "Beachwear" takes prominence in Mediterranean regions.
- Occasion based search filters: Tailored to cultural and seasonal trends, such as "Festive Wear" in December or "Oktoberfest Outfits" in Germany.
- Trending categories: Currently popular sub-categories that are displayed on the home page.
This adaptability ensures customers in different markets find relevant categories at the right times, improving overall engagement.
Chewy: Pet-Centric Taxonomy for Variety
Chewy organizes its product catalog not only by product type but also by pet type:
- Primary Categories: Men, Woman, Kids
- Subcategories: Horse, Chicken, Farm Animal, Pet Bird, Fish
- Specialty Needs: Grain-Free, Hypoallergenic, or Age-Specific Food.
Chewy also integrates problem-solving categories like “Solutions for Sensitive Stomachs” or “Joint Health Supplements.” This personalized taxonomy aligns with how pet owners think about their purchases.
Conclusion
An effective product taxonomy is the backbone of a successful ecommerce strategy. By organizing your products thoughtfully and intuitively, you can enhance searchability, improve the customer experience, and ultimately drive conversions.
A well-crafted taxonomy not only simplifies navigation but also tells a story about your brand, meeting customers where they are and guiding them seamlessly to where they want to be.
