Product Taxonomy vs. Product Classification: Understanding the Difference 

Are you confused about the difference between product taxonomy and product classification? You’re not alone. These terms are often used interchangeably, but they actually have distinct meanings. In this article, we’ll explore the definitions of product taxonomy and product classification, and how they can drive your business. We’ll also provide tips on how to create a proper taxonomy structure that can boost your revenue.  

What is Product Taxonomy? 

Product taxonomy is a classification system for products and services. It is used to organize and group products by their attributes, such as type, color, size, and price. The taxonomy structure enables product discovery and informs the organizing approaches behind product categories.  

Product taxonomies are critical to the customer experience on ecommerce platforms, marketplaces, and websites. For customers to find the right product, they need to intuitively navigate the product hierarchy, browse through product categories, locate the product type they are interested in, use product attributes to narrow their selections, and locate the precise product content that will ultimately help them decide what to purchase.  

What is Product Classification? 

Product classification, on the other hand, is the process of grouping products based on their characteristics or attributes. It involves assigning products to categories based on their features, such as size, color, or material. Product classification is not exhaustive and usually only groups items according to one or two attributes.  

How Can Product Taxonomy and Product Classification Drive Your Business? 

A proper taxonomy structure can boost your revenue by improving the customer experience. With a well-organized taxonomy, customers can find what they want in the fewest clicks possible. This can lead to increased customer satisfaction, repeat business, and positive word-of-mouth.  

Product classification can also drive your business by improving your product information management (PIM). By grouping products based on their attributes, you can more easily manage your product data and ensure that it is accurate and up-to-date. This can lead to improved data governance and better decision-making.  

Tips for Creating a Proper Taxonomy Structure 

Here are some tips for creating a proper taxonomy structure that can boost your revenue: 

• Use a hierarchical structure that enables product discovery and informs the organizing approaches behind product categories. 

• Group products into categories based on their features, such as size, color, or material. 
• Use tags to group products into each category. 
• Apply additional product data, such as attributes, to the items in each product category. 
• Ensure that your taxonomy is well-organized and easy to navigate. 

Product taxonomy and product classification are two distinct concepts that can drive your business. A proper taxonomy structure can boost your revenue by improving the customer experience, while product classification can improve your product information management. By following the tips outlined in this article, you can create a taxonomy structure that is well-organized and easy to navigate.  

If you’re looking for taxonomy or classification support for your ecomm site, contact us today to see how our taxonomy experts can help.