What Is Geo-Merchandising?

Innovative merchandising and personalization can make all the difference when it comes to your eCommerce strategy. It can be what separates you from the crowd; the thing that keeps customers coming back. Geo-merchandising is one way to achieve this, creating unique shopping experiences based on location.

What Is Geo-Merchandising?

Geo-merchandising uses location-based data and merchandising to create a personalized experience for customers on a local level. It is a retail strategy that uses geographical information to optimize the user experience in the following areas:

• Product placement
• Pricing
• Promotions

Through using real-time data and analytics, you can offer your users tailored experiences. Based on their preferences, behavior and the needs of the local market, you can ensure that each shopper has a personalized experience for them.

Benefits Of Geo-Merchandising

Geo-merchandising contains many of the benefits of other personalization techniques, but specifically with location being considered. For example, you wouldn’t want to advertise summer clothes in Europe in December, but in Australia this would make sense. Geo-Merchandising is about letting your customers know that you know and care about them. 

Let’s take a look at some of the benefits

Improved User Experience

You want to show users products relevant to them. You want to show users the products that they want to see, that they like. Through mixing personalization with both geo-location and also personal preferences and tastes, you’re narrowing the chances of getting it wrong. Instead, you’re more likely to show customers products that resonate with them, keeping them coming back for more.

Optimized Personalization

Personalization is so important, and the more tailored experience the customers get, the more they trust your brand. This personal touch shows them you care, and without it your eCommerce business will not be able to compete with others on the scene.

Inventory Management

Geo-merchandising allows you to analyze purchasing patterns and demands across different locations. This means understanding your customers more, and being able to fine-tune supply chain and ordering strategies. The more information you have, in this sense, the better equipped you are to move forwards.



With this knowledge you will have reduced instances of over or understocking, which saves cost and improves operational efficiency. Having good inventory management is a great pillar of a successful eCommerce business, and geo-merchandising can help facilitate this.

Optimized Merchandising

Getting merchandising right is a must for any eCommerce business. With good merchandising (understood through regular A/B testing), sales can be boosted, marketing campaigns can be successful, and customer satisfaction will rise.

Through understanding local customer bases you can ensure that promotions, landing pages, banners, widgets and campaigns are all in alignment. By ensuring that these are relevant and appealing, you are sure to keep customers on your side.

Strategies For Successful Geo-Merchandising

So now we know what geo-merchandising is, and why it can be so beneficial for your business. But how do you move forwards and ensure it works? Let’s take a look at some strategies that can help achieve this.

Data Integration

As with so many areas of eCommerce, data is key. Making the most of the data you have available to you is so important in terms of understanding customers, and moving forwards. For geo-merchandising to work, you must invest in merchandising and personalization tools that will provide you with this data.

AI systems can help you to integrate data throughout your site, which will help you understand customer preferences and locations insight. This can then be processed to offer a better user experience.

Personalized Products

Merchandising is very important in terms of user experience. Where products are placed, and how they are arranged should be based on geographical location, and the preferences of these locations. Purchase history and preferences can be used to make sure that products catch customers’ attention in the way you want them to. 

Dynamic Pricing

Dynamic pricing is a great technique that allows your prices to remain competitive. It means adjusting pricing based on local demand and competition. This means that low-demand products will not be priced as competitively as high. This drives sales, and is a key strategy in geo-merchandising.

Tailored Promotions

Personalized promotions can be targeted based on geographical location. Making sure that the marketing you use, recommendations and promotions resonate with the cultural and seasonal settings of different regions is key. It will catch the customers where they are at, show that you care, and boost sales.

Conclusion

This post has been an introduction into geo-merchandising, and the many benefits it can bring. It’s definitely something to consider if you haven’t already. The strategies we have outlined at the bottom are a great place to start. Most importantly, keep analyzing data and make sure you are using systems that help to facilitate this to allow your business to grow.