Product Taxonomy Automation

Product Categorization Automation Explained

Matt Payne
November 23, 2022

It's no secret that eCommerce businesses need to automate their product categorization to keep up with the competition. Not only is it a time-consuming process, but it's also one that requires precision and accuracy.

However, product categorization offers the benefit of reducing customer frustration by ensuring that search and browsing are streamlined. Plus, it helps with SEO with the help of natural language processing, (NLP).

Thankfully, advanced AI technology has tackled the hassle of manual product categorization by facilitating the entire process. Now, with the help of powerful AI such as, you can accurately categorize your products with ease and get a leg up on the competition.

In this blog post, we'll explain what product categorization automation is, why eCommerce businesses need it, and how our platform can help you optimize your product catalog for better performance.

What Is Product Categorization Automation?

Simply put, product categorization is the organization of products according to specific categories and utilizes a specific product hierarchical framework. This may seem like a simple task, however, it becomes daunting when your business boasts a vast amount of products on a wide range of sales channels. What's more, one product can have multiple categories. With that said, you have to ensure that each product is accurately categorized, and remains up-to-date without using a ton of effort and time.

To help you overcome this challenge, product categorization automation comes into play.

Why Does eCommerce Need Product Categorization Automation?

Now that we know what product categorization is, let's discuss why eCommerce businesses need it. After all, as an eCommerce business owner or manager, your ultimate goal is to make sure customers can find the products they're looking for as quickly and easily as possible.

Improve Customer Satisfaction and Experience

Product categorization plays a pivotal role in customer satisfaction and experience. Research has shown that around 99% of customers will leave an eCommerce website and not make a purchase on their first visit. These people are just browsing. However, if they can't find what they're looking for, chances are they'll never come back.

This is where product categorization comes in. By automating your product categorization, you can ensure that products are accurately categorized and easy to find. As a result, customers will be able to find what they're looking for quickly and easily, without getting frustrated.

Upsell and Cross-Sell Easily

What's more, product categorization can help you upsell and cross-sell products. For instance, let's say a customer is looking for a pair of shoes. If the product they're interested in is categorized under "men's shoes", they may also be interested in other products in that category such as socks, laces, and insoles.

By automating your product categorization, you can ensure that customers are presented with relevant products that they may be interested in, leading to more sales and a better customer experience.

Eliminate Data Entry Errors

Manually categorizing products is a time-consuming and tedious task. Not to mention, it's prone to human error. One small mistake can lead to big problems down the road.

For instance, let's say you have a product that's categorized under "men's shoes" but it's actually for women. A customer may purchase the product not realizing it's not meant for them, leading to returns, refunds, and a loss in sales.

Product categorization automation can help you overcome these challenges by accurately categorizing your products, and eliminating data entry errors.

Enhanced Categorization For Ecommerce Product Taxonomy

The model is enhanced for eCommerce product taxonomy. This allows it to gain a deeper understanding of products and their relationships to one another.

As a result, the model is better able to categorize products accurately.

Optimize The Prompt

You can optimize the prompt by adding more context such as the season, the product type, or the customer's needs.

For instance, let's say you're selling winter coats. You can add context by specifying that the customer is looking for a winter coat.

Run a New Product Through

Once you've added the input for the season, product type, and customer needs, you can run a new product through the model. The model will then generate an output based on the example input such as choosing a season and categorizing it accordingly. 

Best Practices For Product Categorization Automation

Once you've decided to automate the enhancement of your product categorization, there are a few best practices you should follow to ensure accuracy and consistency.

Here are a few best practices to follow:

Understand How The Temperature Parameter Affects The Randomness Of Your Outputs

The temperature parameter affects the randomness of your outputs. The higher the temperature, the more random the outputs will be.

As a result, you should experiment with different temperature settings to find the one that generates the most accurate results.

Optimize The Instructions Or Generation Goal To Fit The Use Case

The model will change when you add more variance to both the examples used and the listings used at runtime. For example, if the model is accustomed to a certain product type such as women's shoes, adding laptops into the mix will throw it off. Automatizes Your Product Categorization

Product categorization is a vital part of any eCommerce business. It helps customers find what they're looking for, and it can lead to more sales. automates your product categorization, so you can focus on other areas of your business. With our powerful AI technology, you can categorize your products with ease and accuracy.

If you're looking to automate your product categorization, look no further than We can help you take your business to the next level.

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