Merchandising

What is merchandising

Merchandising is the practice of promoting and presenting products in ways that encourage sales. It can include product placement, special offers, in-store displays, signage, and online techniques that influence buying decisions. The goal is to put the right product in the right place, at the right price, at the right time, and in the right quantity.

Why merchandising is important

Product placement: Displays and features increase visibility and sales.
Variety: Highlighting options helps customers see the range available.
Promotion: Discounted items and deals can draw shoppers in and encourage them to explore.

Merchandising strategies

There is no single approach that works for all brands. Strategies depend on category, objectives, and audience. Goals may include attracting traffic, building loyalty, or raising brand awareness.

Merchandising in retail

Retail merchandising often uses sensory and visual tactics to engage shoppers. Examples include:

Window and in-store displays
Interactive displays with sound, scent, or motion
Shelf layouts that highlight products at eye level
Seasonal bundles such as “back to school” kits
Free samples, tastings, or demonstrations
Fully stocked, organized shelves

Merchandising in ecommerce

In online stores, merchandising is about guiding customers through the digital shopping journey. Common tactics include:

Live chat to support buyers
Easy-to-find search bars
Free shipping offers
Seasonal collections and curated landing pages
Rich product descriptions with images, video, or audio
Recommendations for bestsellers and popular items
Banners highlighting sales or promotions
Cross-selling, upselling, and bundles
Product categorization and labeling (e.g., “bestseller”)

Advantages of merchandising

Strong merchandising improves the shopping experience and drives business growth. Benefits include:

Higher sales and profits
More repeat purchases
Improved customer loyalty
Greater brand awareness
Increased average order value
Faster inventory turnover

Discounts and limited-time offers can also build urgency, motivating shoppers to act quickly.

Sales vs merchandising

Merchandising prepares the path to a sale, while sales complete the transaction. For example, an in-store banner can lead a shopper to a product. When they purchase it, that is the sale.