Who is the E-commerce Merchandiser?
Before we begin, I want to face with the most important question: who is the e-commerce Merchandiser and what kind of work does he/she usually do? I really hate complexity, so I’ll get straight to the point: basically, a merchandiser is a figure who, within e-commerce, has the ownership to manage strategically the products to achieve established goals, increase sales, and create a good segmentation of products. I’m talking about a figure who usually works closely with two souls, on the one hand, the product itself and on the other, the numbers; when I say numbers of course I mean data, in fact through the correct analysis of the data you will understand what should be a good strategy on product distribution, price matching and also the path you want to pursue for your e-commerce. I would like to define myself as a merchandiser who really cares about products but also a guy who loves numbers and this is a perfect combination for this kind of work.
The formula is pretty simple: passion for products + love for numbers = merchandiser.
Types of Work
Having briefly defined the role of the e-commerce merchandiser, now I would like to focus on the types of work they can handle:
- Constant analysis of historical product performance data: this involves considering various KPI’s such as Gross Revenue, Net Revenue, Sell Through, Quantity Sold, Product traffic, Conversion, Stock on hand, Percentage of discount and many others; The essential tools to use are the BI system, GA4 and SAP/PIM.
- Creating price matching strategies: the goal here is to increase revenue and sales, but more importantly, to improve the margin considering the Cost of Goods Sold (COGS) and the price benchmarks of your market without decreasing the brand in a very cheaper way, it’s important to maintain good margin volume and achieving a good sales/revenue only with big discounts is not a great deal (it could be a one-way street with no way back).
- E-commerce Optimization & Product Management: strategically position and distribute products across key sections (categories) of your site such as the Home Page(HP), Product Listing Page(PLP), Product Detail Page(PDP), Cart/Check-out (through recommendations). Leverage targeted promotions to maintain a healthy balance between full-price and discounted items, ensuring as much as possible the profitability while driving sales.
- Product segmentation decisions: determining the perfect segmentation of products within the assortment is critical. This involves creating a Product Segmentation Pyramid based on the strategy, price decision and importance of each category/family. This segmentation also impacts each Account, such as different Marketplaces (Amz, Yoox, Zalando, Farfetch) vs Direct-to-Consumer (DTC) channels; Below, (is purely invented) an example of Product Segmentation for one of the main channels (DTC), divided by three levels (three Tiers):
1- Premium products: these are the core products that represent the brand. For those, maintaining full price is essential to protect their value, ensuring strong margins while reinforcing brand positioning.
2 – Core products: these are the evergreen models that can drive huge sales; are fast-moving items with balanced margins and are often strategically discounted to boost/increase revenues. Able to be, through marketing (social/google) strategy, the first point of entry for new customers.
3 – Entry and Cross selling products: these represent a lower price, and lower margin and can increase the AOV through the effect of cross-selling strategy. As for the 2 Tier they can be considered an entry point for new customers.
- Product Knowledge: being an expert on your products, as e-commerce merchandiser, is crucial. Knowing your brand’s product and its positioning in the market can help to effectively distribute them on-site, express their benefits and potential (not just attributes) and explain their features to reinforce the brand image and highlight the real quality of the product. A good example of advantage/feature expression, considering the Fashion Industry, is the template used for Velasca’s Product Detail Page(PDP), which is really simple but effective. Analyzing this template for Desktop we have:
- “Buy This Look” (on the image): A key feature designed to increase Average Order Value (AOV) with a single click while at the same time enhancing the customer experience. It allows customers to see and purchase all items featured in a look. For example, a customer looking for a jacket might see a full outfit in a lifestyle image, notice a cool sweater, and decide to buy it too (+AOV).
- Product information box: A simple structure displaying key details such as Category, Season, Color, and Composition.
- Delivery information: Highlights two essential aspects of e-commerce—free shipping and estimated shipping delivery.
- Four pillars: Focus on Velasca’s core commercial values, including 30-day returns and Made in Italy production.
A perfect combination of images: combining Still Life and Lifestyle images can create a winning approach that enhances both product visibility and brand storytelling. This combination can also improve and stress the function of “Buy This Look” button.
- Product details (Line/Design, etc.): The “Made In” field is particularly effective, especially in this case that can emphasize the product’s Italian origin. These details reinforce the perception of quality and craftsmanship.
- Material explanation: A dedicated section describing the materials used, highlighting their benefits and how they enhance the product’s durability and comfort.
- Care instructions: Clear guidelines on how to properly maintain and clean the product to ensure longevity.
- Italian craftsmanship: A section dedicated to the significance of Italian production, emphasizing manual craftsmanship and traditional techniques.
- Behind-the-Scenes video: For me the most important element. An inspiring video that shows the factory where the item is produced, along with an insightful interview with the factory owner. Genius Loci always prevails.
And now, check personally with your eyes the PDP construction: https://it.velasca.com/products/montefalco-blslvp
How to achieve your monthly target with a smart product strategy
Now that we’ve explained who is the e-commerce merchandiser and what types of work they can handle, let’s dive into a practical example of how product strategy can help you to reach a monthly revenue goal.
First things first, this is a hypothetical and simplified example, but I hope it gives you some useful insights to apply to your own strategy. And remember: nothing happens by chance in the e-Commerce. Every product placement, price point, and promotional push is the result of analysis, strategy, and intentional decisions (don’t think the products you see on websites are just randomly displayed).
Breaking down the product pyramid
For this example, let’s take a brand and focus on three main categories: Shoes, Apparel, and Accessories. As mentioned earlier, the products in these categories are arranged in a pyramid with different levels/tiers.
- Level 1: Premium Products – High-priced, high-margin items that reinforce brand positioning. These aren’t discounted and maintain their full price.
- Level 2: Core Products – Best-sellers with good margins that could be featured in promotions (Winter Sale, Summer Sale, Black Friday, etc.).
- Level 3: Cross-Sell Products – Lower-priced, lower-margin items that boost AOV (Average Order Value) through cross-selling opportunities.
- (Optional) Level 4: SMU (Special Make-Up Products) – Exclusive items made for specific channels like DTC, distributors, or wholesale (e.g., a brand might create an SMU specifically for YOOX, Farfetch, Footlocker).
From strategy to numbers
Now that we’ve considered our product pyramid, let’s look at the numbers. Suppose our revenue goal for next month is €2.1M (net revenue, after returns). Looking at last year’s performance for the same period (YoY), here’s what we achieved:
| 2024 – March | |||||
| Categorization | Traffic | Demand | Quantity | AUR | % Demand |
| Apparel | 165,365 | €700,321 | 4,300 | €163 | 37% |
| Shoes | 140,434 | €850,214 | 3,912 | €217 | 45% |
| Accessories | 100,234 | €350,241 | 5,600 | €63 | 18% |
| Grand Total | 406,033 | €1,900,776 | 13,812 | €137 | 100% |
Last March, our e-commerce made €1.9M in net demand sales, with 13.8K units sold, mainly driven by the Shoes segment (which accounted for 45% of total sales). This year, for March 2025 we aim for +10% growth, meaning we need to reach at least €2.1M in net revenue and sell around 15K units.
With this target in mind, let’s break down the key categories that will shape our strategy for the month:
1 – Apparel Capsule Collection (Level 1): A new collection focused on Apparel will be released this month, featuring a slight price increase (+€30-40 MSRP per item). This could drive demand, especially with a balanced Awareness & Consideration budget (50% – 50%) split across Meta & TikTok.
2 – Replenishment of Carry-Over Shoes (Level 2): With key models restocked, we could allocate a dedicated budget with a dedicated campaign on Google with specific keywords regarding the name of the model or dedicated asset group of the performance max campaign.
3 – New Color Ups (CU) for Accessories (Level 3): A strong opportunity to leverage PMAX campaigns on Google to boost visibility and conversions.
With all of these elements, we can now forecast category demand and distribute our budget accordingly—considering Google & Meta ads, e-mail marketing (DEM), and a structured product calendar roadmap.
| Categorization | %Demand of Net Revenue | Demand of Net Revenue | Note |
| Apparel | 50% | €1.050.000 | Capsule Collection |
| Shoes | 30% | €630.000 | Same Model – fast mover |
| Accessories | 20% | €420.000 | New Color Up |
From forecast to execution: how to strategically distribute products on-Site
Now that we’ve concluded the forecast for Apparel, Shoes, and Accessories, let’s translate it into an actionable on-site product distribution strategy. The goal? Create a seamless shopping experience while optimizing visibility and conversions.
Here’s how we can structure it:
New capsule collection
Feature a Hero Banner on the Home Page (HP) with a CTA leading to a dedicated landing page or directly to the Product Detail Page (PDP). Prioritize these new models at the top of the “New In/New Collection” category.Use the HP product carousel to show the highest-margin products of this collection. Add a strip bar announcing the launch, linking to the Collection Landing Page (CLP). Commercial Boost: Offer free shipping on any item from this collection within the first week to encourage conversions and give an initial strong boost. Ensure a strong launch across multiple channels at the same time: Email, Social, Paid Ads (starting when products go live), and On-Site Content.
Color Up (CU) for accessories
Add a double banner on the HP linking directly to the PDP (no intermediate landing page). Introduce a “Related for You” section across PDP, Cart, and Wishlist, featuring the new accessory color up to boost cross-selling.In the Cart flow, this can play a crucial role in increasing the AOV (Average Order Value) in the final purchase phase.
Shoes category updates
Refresh all the Shoes categories with the re-stock of new carry-over models. Sort by stock levels (higher to lower) to optimize inventory turnover.
Aligning these product placements with the marketing strategy can maximize visibility, engagement, and ultimately, conversions.
Automating product distribution: visual merchandising through smart tools
With the Visual/Search merchandising tools, you can define boosting rules based on key metrics. Here’s an example for the “New In” category:
1 – Category Based Prioritization – New Capsule Collection (100%): Assigning a 100% boost ensures this specific collection is always displayed at the top.
2 – Performance Based Ranking – Conversion Rate (70%): Products with the highest conversion rate (sales/traffic) will appear just below the capsule collection.
3 – Stock Availability Filtering – Out of Stock (0%): Out-of-stock products should be pushed to the bottom or hidden if your system allows it; alternatively, if your CMS supports stock-based ranking, assigning 50% to stock levels ensures well-stocked items appear before low-stock ones.
This is just one example—each category may require different metrics. For instance:
New In: Conversion rate and stock levels metrics.
Men’s “View All“: Based on Bestsellers and New Arrivals considerations.
Women’s Jackets: Avg discount level metric + Conversion.
The power of automation
Once boosting rules are in place, the system automatically updates product rankings based on real-time data. This ensures:
- Optimized product visibility
- Prioritization of high-converting items
- Stock-driven placement
Conclusion
I’ve worked with platforms like BigCommerce and Magento, which didn’t offer visual merchandising tools. So, in those cases, I had to get creative and come up with data-driven strategies that still made sense for visual merchandising. I’ll be diving deeper into this in a separate article soon because, yes, if you’re wondering, it is possible to do visual merchandising manually driven by data—and still be super efficient at it!
Just a quick note: All the examples in this article are purely invented, for me, the real value comes from understanding the concepts and ideas behind them. The goal is to give you a solid starting point and a clearer picture of how merchandising can work and how you can approach your product assortment strategy.
That’s all for today!
To summarize, here are the key takeaways from this article:
- The role of an e-commerce merchandiser
- Types of work as a digital merchandiser
- Organizing monthly targets with a smart product strategy
- How to apply boosting rules with dedicated tools