Mayank Patel
Sep 4, 2025
4 min read
Last updated Sep 9, 2025

When everything is available online, nothing feels discoverable. Shoppers drop off within seconds if they can’t find what they want. That’s why modern merchandising is less about inventory and more about strategy; organizing, personalizing, and presenting products in ways that turn an endless shelf into a guided path.
A taxonomy is simply how products are organized. A clear hierarchical category structure (with intuitive subcategories and product attributes) is important so that shoppers can easily browse and find what they’re looking for.
The way items are grouped directly impacts user experience and conversion rates: if users can’t quickly locate a product, frustration builds and they bounce, often within seconds. For this reason, thoughtful taxonomy isn’t just nice-to-have; it’s a core merchandising strategy.
Designing an effective taxonomy is both art and science. From a data-structure perspective, most e-commerce taxonomies form a tree: broad parent categories branch into more specific child categories, and eventually into individual products.
Each product also carries attributes (metadata like brand, color, size, etc.) that cut across categories. This hierarchical arrangement enables guided discovery. Customers start in broad sections and drill down by selecting subcategories or filtering by attributes.
Importantly, simpler is often better. It’s best practice to use as few top-level categories as possible without sacrificing clarity; too many parallel options at once can quickly lead to decision fatigue and overwhelm.
In other words, don’t present 50 “aisles” on your homepage and force the shopper to choose. Instead, define a logical, streamlined category structure and let filters do the heavy lifting of refinement.
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Modern e-commerce sites almost universally employ faceted search and filtering to help users slice through a vast catalog. Faceted search (also called guided navigation) uses those product attributes as dynamic filters, for example, filtering a clothing catalog by size, color, price range, brand, etc., all at once.
This capability is a powerful antidote to the infinite shelf’s chaos. By narrowing the visible options step by step, facets give users a sense of control and progress toward their goal. Each filter applied makes the result set smaller and more relevant.
From an implementation standpoint, faceted search relies on indexing product metadata and often involves clever algorithms to decide which filters to show. With a large catalog, there may be tens of thousands of attribute values across products, so showing every possible filter is neither feasible nor user-friendly.
Instead, e-commerce search engines dynamically present the most relevant filters based on the current query or category context. For example, if a user searches for “running shoes,” the site might immediately offer facets for men’s vs women’s, size, shoe type, etc., instead of unrelated filters like “color of laces” that add little value.
By analyzing the results set, the system can suggest the filters that are likely to matter, essentially reading the shopper’s mind about how they might want to refine the search. This dynamic filtering logic is often backed by data structures like inverted indexes for search and bitsets or specialized databases for fast faceted counts.
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Even with a great taxonomy and strong filters, two different shoppers landing on the same mega-catalog will have very different needs. This is where personalization and recommendation algorithms become indispensable.
Advanced e-commerce platforms now use machine learning to dynamically curate and rank products for each user. By analyzing user data: past purchases, browsing behavior, search queries, demographic or contextual signals, algorithms can determine which subset of products out of thousands will be most relevant to that individual.
Recommendation engines are at the heart of this personalized merchandising. These systems use techniques like collaborative filtering (finding patterns from similar users’ behavior), content-based filtering (matching product attributes to user preferences), and hybrid models to surface products a shopper is likely to click or buy.
For example, a personalization engine might note that a visitor has been viewing hiking gear and thus highlight outdoor jackets and boots on the homepage for them, while another visitor sees a completely different set of featured products.
User behavior analytics feed these models: every click, add-to-cart, and dwell time becomes input to refine what the algorithm shows next. Over time, the site “learns” each shopper’s tastes. The benefit is two-fold: customers are less overwhelmed (since they’re shown a tailored slice of the catalog rather than a random assortment) and more delighted by discovery (since the selection feels relevant).
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A smart strategy is to vary the merchandising approach for different contexts and customers. For first-time or anonymous visitors (where no prior data is known), showing the entire endless catalog would be counterproductive.
It’s often better to present curated selections like bestsellers or trending products. This “warm start” gives new shoppers a manageable starting point instead of a blank page or an intimidating browse-all experience.
On the other hand, returning customers or logged-in users can immediately see personalized recommendations based on their history. The key is using data wisely to guide different customer segments toward discovery without ever letting them feel lost.
Modern recommendation systems also use contextual data and advanced algorithms. For instance, some platforms adjust recommendations in real-time based on the shopper’s current session behavior or even the device they use. (Showing simpler, more general suggestions on a mobile device where screen space is limited can outperform overly detailed personalization, whereas desktop can offer more nuanced recommendations.)
Cutting-edge e-commerce architectures are exploring vector embeddings and deep learning models to capture subtle relationships between products and users to enable features like visual search or chatbot-based product discovery. We can build these algorithms. Talk to us.
UX design choices play a huge role in whether the shopping experience feels inspiring or exhausting. Just because you can display thousands of products doesn’t mean you should dump them all in front of the user at once.
The content at the top of category pages, search results, and homepages is disproportionately influential. Critical items (whether they are popular products, lucrative promotions, or highly relevant personalized picks) should be merchandised in those prime slots. As a case in point, product recommendations or banners shown in the top viewport are roughly 1.7× more effective than those displayed below the fold.
There is an ongoing UX debate in ecommerce about using infinite scrolling versus traditional pagination or curated grouping. Infinite scroll automatically loads more products as the user scrolls down. This can increase engagement time, as users don’t have to click through pages and are continuously presented with new items.
However, infinite scroll can also backfire if not implemented carefully. If shoppers feel they are wading through a bottomless list, they may give up. And once they scroll far, finding their way back or remembering where something was can be difficult. User testing has found that people have a limited tolerance for scrolling, after a certain point, they either find something that catches their eye or they tune out.
A balanced approach is often best. Many sites employ a hybrid: load a substantial chunk of products with an option to “Load More” (giving the user control), or use infinite scroll but with clear segmentation and filtering options always visible.
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Aside from search and filters, consider adding guided discovery tools in the UX. This might include features like dynamic product groupings, recommendation carousels, or wizards and quizzes. For example, you can programmatically create curated “shelves” on the fly: e.x. a “Best Gifts for Dog Lovers” collection that appears if the user’s behavior suggests interest in pet products.
These can be powered by the same algorithms we discussed earlier, which can identify meaningful product groupings from trends in data. Such groupings address a common UX gap: a customer may be looking for a concept (“cream colored men’s sweater” or “outdoor kitchen ideas”) that doesn’t neatly map to a single pre-defined category.
Relying solely on static navigation might give them poor results or force them to manually hunt. By dynamically detecting intent clusters and generating pages or sections for them, you improve the chance that every user finds a relevant path. It’s impractical for human merchandisers to pre-create pages for every niche query (there could be effectively infinite intents), so this is an area where algorithmic assistance shines.
Merchandising is no longer a downstream activity that happens after inventory is set; it’s upstream, shaping how catalogs are structured, how data is modeled, and how algorithms are trained. Teams that treat merchandising as a technical capability—not just a marketing function—will be positioned to turn complexity into competitive advantage.