Category management is the process where a retail business who sells goods designates groups for their merchandise to belong. They give homes to the homeless. This matches like items together by type instead of brand or model. Product grouping into strategic business units (SBU) better serves the demands and needs of consumers. Categories differ regionally and from outlet to outlet. Learn how to get started.

Identifying Categories

First, you need to decide on the groups. Take the clothing industry, for instance. The category management of apparel can be organized in several ways: women’s, men’s, and youth. It can also be split up based on sizing or color. In the case of most online clothing stores, there are multiple sub-categories withinthe main one. Business owners want to narrow merchandise focus until a customer makes a selection, which is easier when there is less to choose from. i.e. women’s clothing > tops > blouses > size 10 > blue.

Simple Navigation

Well-thought-out categories make it easier for customers to find what they’re looking for. In turn, it increases your sales. If a potential consumer has to travel through a complexcategory web to get to a size medium, front-zip jacket in royal blue, chances are good that they’ll give up before finding it. They’ll get frustrated and leave the site, replacing it with one that’s easier to navigate.

Likewise, if your online store has no general organization at all, even if there is only a single page for everything, customers will get bored of scrolling before looking through all of your available items. You’ll miss a million sale opportunities simply because you couldn’t be bothered to find a home for your products to live.

Stock Balance

When the stock is organized into efficient categories, it’s easier for you to identify unbalanced areas. You want to ensure that the merchandise you have available matches what the customer wants, but it should also have ample supply in each group to allow the customer to get everything they need in a single shopping session.

Using apparel again as an example, there should be pants, coordinating tops, and accessories that all come together to make one full outfit. Don’t neglect the extra items when making your supply order. A pair of jeans can go well with several different tops, and sometimes, all it takes to change the look of an entire outfit is a colored scarf or long, beaded necklace.

Simply put -the category management process is digital closet organization. And, just like reorganizing a closet, the task begins with finding a place for everything, so everything can be put in its place.

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