What is Intelligent Merchandising?

Intelligent merchandising is the use of data, user experience best practices, and eCommerce tech stacks to create highly personalized shopping experiences that convert shoppers into paying customers. It can be as simple as reminders to fill carts or displaying a visually appealing product collection on the homepage, or it can include intelligent search and navigation, dynamically optimizing filters and offering a category-focused faceted search based on customer preferences.

The Future of Retail: Exploring Intelligent Merchandising

AI-powered visual merchandising is a key feature of intelligent merchandising tools, leveraging real-time user insights and browsing behaviours to deliver a curated shopping experience that is uniquely relevant to each visitor. It can also be used to cross-sell or up-sell without annoying visitors (recommending products they don’t need) or losing them altogether (not providing any recommendations).

Smart merchandising solutions can help optimize inventory levels by accurately predicting demand and minimizing overstocking and understocking. This reduces warehousing and storage costs as well as the need for deep discounting to clear out old stock, protecting profit margins.

The intelligence that smart merchandising delivers enables retailers to create stand-out promotions with confidence by accurately forecasting the impact and cross effects of a new pricing or promotion plan on existing and future sales. This is a massive step forward from traditional retail analytics that can only provide historical data – often with significant time lags. This means that intelligent merchandising is truly a ‘game-changer’ for the retail industry.