A product category refers to a certain sort of item or service. To arrange products, a company usually creates product categories. This can be in the form of a tree-like hierarchy of categories. Product categories can also take the form of a flat structure, such as a list of product types.

We create category pages to divide our e-commerce store's inventory into manageable subsections so that consumers can swiftly access specific products. However, category pages, like other internet pages, have a secondary purpose: they can draw readers from search engine results pages to the website. 

Why is e-commerce product categorization important?

• Customers are more likely to buy when your site is user-friendly, which increases conversions. Users find it challenging to navigate websites if we do not use taxonomy. 
• Customers make their purchasing decisions by considering features like color, size, and materials, etc. Therefore, we should provide these categories also. 
• The internal search tool, as well as the facets and filters that help users narrow down their search, are all driven by your categorization. 
• When external search engines examine your site, they can make sense of it and appropriately index it.
• When discussing products or ordering stock, categories standardize product information, ensuring that everyone on your team is on the same page.
• Analytics and reporting will show you which product categories are performing well and which are not, allowing you to make more informed business decisions.
  

How to categorize products on your e-commerce site?

This simple procedure will guide you through the process of creating product categories and attributes. You should always strive to assist clients in finding what they're looking for with the fewest number of clicks or page scrolls possible.

• Begin by creating your categories.

1. Understand how your client shops.

The user experience is crucial. From where a user will start their search when looking for something. Depending on the products you sell, for example:

For furniture, they might begin with the room of the house; for clothing, they might begin with the purpose of the garment and so on.

2. Make a list of your first-level categories.

Review your product line and do the first-level grouping of products. These primary categories can be shown in a grid or carousel on your home page, or in a top or side menu. These broad categories, like the aisles in a supermarket.

For example: Start with casual wear, sportswear, formal wear, underwear, and accessories if your clothing categories are based on what a garment is used for.

3. Choose your second-tier categories.

Subcategorize the products that fall into each of the first-level categories. Subcategories commonly appear as grids on category pages or as drop-down menus from the main category menus. These are similar to the shelves in each aisle of a supermarket.

For example, the sportswear category will have various subcategories like active t-shirts, sports shoes, etc.  

4. Choose your categories for the third level.

Subdivide each of your subcategories further if necessary.

For example, you may make third-level categories for sizes in the sports shoes category, etc. 

5. Continue as needed.

Continue to create levels until you're satisfied that all of your products have been logically arranged.

6. Assign each of your items to a category.

Examine each item on your inventory list to ensure that it is assigned to at least one category in your back office and as many categories as necessary on your website. Remember to keep your clients' purchasing experience in mind while deciding which website category it belongs to.