What Is Merchandising?

Merchandising From Retail to eCommerce: The Benefits of Visual Design

Merchandising is a retail strategy that promotes products and influences customer behavior in order to increase sales. Products can be displayed or presented in creative ways to entice customers to purchase.

This key process utilized by merchants all around the world has evolved from shelving coordination in brick-and-mortar stores to stylized techniques on digital websites. Here's everything you need to know about the evolution of merchandising from the basics to the advanced strategies of top-selling eCommerce merchants.

The Basics of Merchandising

In old markets, visual merchandising was important: placing the freshest and most vibrant products visibly attracted sales.

Merchandising displays are created depending on the business needs. If a vegetable seller has a low inventory of apples, they might be placed at the back of the store to limit the potential for stockouts. If watermelons aren't in season and are selling for more than average, placing them at the front of the store could draw more attention. 



» Start at the beginning: The evolution of merchandising

Benefits of Merchandising

• Increased sales & revenue: By strategically showcasing the most popular, profitable, or new products, you can ensure that they're easily found by customers and have a higher chance of being purchased. Additionally, personalized recommendations increase the chance of sales as customers find exactly what they need.
• Faster inventory turnover: Effective merchandising helps identify slow-moving inventory and allows you to adjust pricing, implement promotions, or optimize stock levels by analyzing sales data and customer behavior. This also helps you forecast and prepare for future merchandising trends.
• Improved customer satisfaction: From a customer perspective, shoppers benefit from a smoother product discovery journey, increasing their satisfaction and boosting their customer loyalty.
• Enhanced brand image: A professional and well-organized store reflects positively on your brand, helping differentiate you from the competition and leaving a lasting impression on your customers.
• Data-driven decision-making: Effective merchandising enables analytics tools to track customer behavior, measure the effectiveness of merchandising strategies, and identify areas for improvement.

» Here are some data-backed strategies to increase AOV

What Is Digital Merchandising?

Over time, merchandising has grown in complexity, evolving to meet modern consumer demands. With the growth of eCommerce, digital online merchandising has given a whole new dimension to the art.

Online merchandisers control the assortment and display of online store collections, search results, and even upsell and cross-sell product recommendations. They use digital merchandising tools such as visual merchandising editors, merchandising rule editors, merchandising strategies, and display optimizers to make products and collections enticing for shoppers to buy.

» See how B2B and B2C merchandising are different

Digital Merchandising vs. Traditional Merchandising

4 Digital Merchandising Techniques

To maximize the potential of digital eCommerce merchandising, implement the following techniques and strategies:



1. Personalized Shopping Experiences

With the effectiveness of AI digital merchandising tools and machine learning, eCommerce merchants can use data-driven insights to personalize product recommendations and tailor the shopping experience for individual customers. This guarantees a memorable experience that keeps them coming back.

Amazon's personalized "For you" recommendations



» Not sure how to personalize? Book a demo with Fast Simon to learn more about our AI-powered eCommerce personalization solution

2. A/B Testing

It's never guaranteed that any one design or strategy will be more effective than others. This is why it's essential to test different store layouts, images, and product descriptions to optimize conversion rates with A/B testing, a technique where you show different customers one of two almost identical versions of the same page or feature with slight variations to see what performs better.

» Need specific tools? Here are the best digital merchandising tools in 2025

3. Mobile Optimization

As of 2023, mobile eCommerce sales account for over 60% of all eCommerce sales. Optimizing your website for mobile is an essential part of the eCommerce digital merchandising process. Here's what to keep in mind:

• Create a responsive design: Utilize flexible layouts that adapt to different screen sizes, a flexible grid system to adjust the layout of content, and optimize your images for various screen resolutions.
• Optimize page load speed: A site that takes too long to load could turn potential customers away, especially on mobile. Compress images without compromising quality, reduce file sizes by minifying CSS and JavaScript, and leverage browser caching to ensure your site loads as fast as possible.
• Consider UX: Design a clear and simple navigation menu, use predictive autocomplete for search results, ensure clickable elements are large enough, and consider touch gestures and scrolling behavior.

4. Social Commerce and Influencer Marketing

Omnichannel merchandising that utilizes multiple social media platforms can help you reach a wider audience and boost sales. Social media can be integrated directly into your merchandising strategy through features like Instagram Shopping.

Additionally, making use of social media allows you to leverage the benefits of influencer marketing, turning the vast audiences of popular social media influencers into potential advertisers for your brand and increasing social proof through user-generated content.

» Here's how to leverage customer reviews in eCommerce merchandising

Advanced Merchandising Strategies

Visual Merchandising



Merchandising begins with the eyes, so present products in a visually favorable light to encourage purchases. Create this effect by making sure products are:

• Clean
• Well organized
• Placed in a logical spot
• Spaced sufficiently
• Creatively displayed

Product merchandising design and packaging influence the buyer when presented at the right time in the right way. Creatively tying in related products or accessories creates cross-sell and upsell opportunities to increase sales. For specific strategies, consider the following:

• Color psychology: Using the right colors can influence customer behavior, such as prompting action with red or establishing trust with blue. Be sure to use consistent palettes across your site and other platforms to reinforce your branding.
• Product placement: Strategically placing products on your site follows the same logic as placing key items at eye level in a supermarket. You should place the best deals or products you want to push in the most prominent positions of your site, such as on your homepage or the top of your Shopify collections. Leverage eCommerce merchandising principles like the rule of three to balance compositions and create aesthetic displays.
• Signage and display: The value of your store's products and deals should be easy to see. For example, if you offer seasonal deals or cost-effective bundles, they should take priority on your homepage and collection pages with potential savings prominently displayed.

» Still confused? Here's our complete guide to visual eCommerce merchandising

Seasonal Merchandising Cycles

Merchandising seasons and cycles play a key role in merchandising. Some retailers make upwards of 80% of their sales during the holiday season, so holiday-season merchandising strategies are crucial.

Seasonality is an important principle of merchandising. Cycles relate to cultural customs, holidays, and seasonal events such as:

• Weather patterns: Weather directly influences demand for certain products. For example, sales of warm clothing or heating appliances might increase in winter, while demand for swimwear and outdoor furniture might surge in summer.
• School schedules: The "back-to-school season" often sees a rise sales of school supplies and stationery, electronics, clothing, and other related products.
• Religious and secular holidays: Major holidays and cultural nuances often affect consumer spending and product demand. Examples include decorations and gifts for Christmas, chocolates for Easter, flowers for Valentine's Day, etc.

» Here are the best merchandising ideas for Easter

How to Overcome Merchandising Challenges in Different Industries

1. Fashion

The biggest challenges in merchandising for fashion eCommerce include high competition, fast-changing trends, and a need to showcase visual appeal.

Best practices for fashion eCommerce merchandising:

• High-quality visuals: Professional photography, 360-degree views, and video demonstrations are crucial for giving customers a clear view of what they'll be purchasing.
• Personalized recommendations: Leverage AI to suggest outfits based on user preferences, browsing history, and purchase history.  
• Interactive experiences: Virtual try-on tools, size guides, and style quizzes enhance the online shopping experience.  
• Limited-time offers and exclusive drops: Create a sense of urgency and exclusivity to drive sales.



2. Electronics

The biggest challenges in eCommerce merchandising for electronics include complex product information, technical specifications, and a need to build trust and credibility.

Best practices for electronics eCommerce merchandising:

• Detailed product descriptions: Provide comprehensive specifications, comparisons, and customer reviews.
• Interactive product demos: Use videos and interactive elements to showcase product features and functionalities.
• Live chat support: Offer real-time assistance from knowledgeable product experts.
• Bundling and cross-selling: Promote complementary products and accessories.
• Clear return policies: Build trust by offering hassle-free warranties, returns, and exchanges for faulty products.

» Need help? Here are our tips for cross-selling





3. Home Goods & Furniture

The biggest challenge in eCommerce merchandising for home goods and furniture is showcasing large and bulky items that are difficult to visualize in a customer's space.

Best practices for home goods & furniture eCommerce merchandising:

• 3D visualization tools: Allow customers to virtually place furniture in their homes using augmented reality (AR).  
• High-resolution images and videos: Showcase the details and textures of products with high-quality visuals.  
• Room scene inspiration: Create shoppable room scenes to provide design inspiration and showcase how products can be styled together.
• Style guides and lookbooks: Offer curated collections and style guides to help customers create a cohesive look.



4. Grocery

The biggest challenges in eCommerce merchandising for groceries include managing perishable goods, accurately representing freshness, and focusing on convenience and speed.

Best practices for home goods & furniture eCommerce merchandising:

• High-quality food photography: Showcase the freshness and appeal of products with visually enticing images.
• Personalized shopping lists: Allow users to save and share shopping lists, and suggest items based on past purchases and dietary preferences.
• Slot-based delivery and pickup: Offer convenient delivery and pickup options with real-time tracking.
• Interactive recipe integration: Integrate recipes with product suggestions and shopping lists.
• Loyalty programs and rewards: Incentivize repeat purchases with personalized offers and exclusive discounts.

Take Control of Your eCommerce Merchandising With Fast Simon

Effective merchandising is a cost-effective way of boosting sales by optimizing the buying potential of shoppers who visit the store. The evolution of merchandising over the years is a testament to the way the commercial culture and market have grown, but one truth remains glaring and constant over thousands of years: merchandising is a must.

Thankfully, with the rise of AI and machine learning, digital merchandising for eCommerce doesn't have to be a difficult process. There are many AI-powered merchandising tools and technologies that can handle the heavy lifting while you focus on growing your business.

» Need a great digital merchandising tool? Book a demo with Fast Simon to see how we can help you

Zohar Gilad is the CEO and Co-Founder of Fast Simon, with extensive experience in eCommerce for the past decade. His articles have been published in Forbes, VentureBeat, Total Retail, Martech Series, Retail Touch Points, and more.