Definition: Product Categorization

What is product categorization?

Product categorization is the process of organizing products into specific categories or groups based on shared characteristics, such as by product type (e.g., electronics, apparel, home goods), product features (e.g., color, size, material), or product use (e.g., sports equipment, cooking tools).

For example, a furniture retailer may categorize their products into sections like living room furniture, bedroom furniture, dining room furniture, and outdoor furniture. Within each section, further categorization can be done based on specific features or styles, such as sofas, coffee tables, beds, and chairs.

This systematic categorization allows customers to navigate the store or website more easily and quickly find their desired products. It also helps businesses effectively manage their inventory and provide a more tailored shopping experience for their customers.