Improving your revenue by 10% through better product sorting

Introduction

Greetings! I'm Will, a co-founder of the AI Collection Merchandiser app for Shopify. We specialize in product sorting optimization, which has proven to boost revenue significantly—up to 10%. This guide is my way of giving back to the Shopify community by sharing a comprehensive, no-purchase-necessary strategy for leveraging your store’s potential.

The Proof in the Pudding

Real-world results speak volumes, and here's what they say about product sorting: At Urban Outfitters, we observed that improper product sorting led to decreased sales post-launch. Through meticulous sorting, we reversed this trend, as evidenced by the A/B testing that displayed a marked improvement in conversion rates. A properly optimized sorting strategy can project nearly a $10 million increase in annual revenue.

Conceptualizing the Sorting Framework

A well-thought-out sorting framework is a game-changer for any e-commerce store. It’s about creating a system that adapts to your store's unique needs, not just following a one-size-fits-all approach. The goal is to enhance the shopping experience, driving sales by strategically positioning products.

Finding Your Star Collections

Pinpointing your most valuable collections is the first step toward optimization. Utilize Google Analytics to understand which collections get the most clicks, leading to sales. Focus on collections like sales or new arrivals, which are usually the most visited sections.

Setting Goals for Merchandising

Merchandising goals should align with both business objectives and customer satisfaction. The primary goal is to enhance revenue for each customer’s visit to a collection page. A well-merchandised page should not only look good but make the purchasing process intuitive and effortless.

The Step-by-Step Shopify Sorting Process

Effective sorting involves several detailed steps, each contributing to the overall success. Ensure that out-of-stock items are not taking prime real estate on your page. Sort products based on recent sales data, reflecting current customer preferences. Utilize sales data, conversion rates, and stock percentages to prioritize items that have a higher likelihood of selling.

Executing the Strategy in Shopify

Here’s how to put the strategy into action using the provided template. Compile essential product metrics into a spreadsheet for easy analysis. Combine data-driven sorting with manual adjustments to reflect current promotions and aesthetic goals. Manually adjust your Shopify collections to reflect the optimized product order from your analysis.

Wrapping Up

We've covered the proof of concept, the framework for thinking about product sorting, detailed steps to execute the strategy, and a template to help you along the way. I hope this video provides the insights and tools you need to boost your store's revenue. If you have any questions, reach out via our website, and we'd be delighted to chat further. Happy sorting!