Product Taxonomy

You might think that Product Taxonomy sounds like a complex scientific term.

That’s because it is.

Taxonomy is literally the science of classifying information. It’s typically associated with classifying living organisms in biology. It’s a way to organize information hierarchical categories. 

For retailers, ecommerce product taxonomy focuses on organizing products in a way that makes them easy for customers to locate. Product taxonomy best practices  improve customer buying journeys by making the shopping experience intuitive and comprehensive. It brings order to chaos. If a customer walks into a physical store where milk is stocked next to shoes and bread is mixed in with electronics, they’d likely walk right out.

The same is true for your digital storefront. Online shoppers need your website or app to make sense. They’re looking to find products quickly and intuitively, without having to think too hard about how they got there. 

What is Product Taxonomy in Ecommerce?

Product taxonomy is a hierarchical system that organizes your product catalog into logical categories and subcategories. Instead of classifying living organisms, you’re classifying products. 

A well-structured product taxonomy creates a logical system for organizing and categorizing your entire product catalog. An effective product taxonomy framework makes it easy for customers to find what they need with utilities like site search. It makes website navigation more intuitive and functional. A complete product taxonomy includes:

• Broad categories: Sits the top of the taxonomy chain like Home Entertainment on an electronics website—this creates the basic structure for organizing your products.
• Subcategories: Secondary categories that fall within the broadest bucket—like Major Kitchen Appliances and Washers & Dryers which are still broad, but help shoppers navigate to the department they need.
• Product attributes: Attributes help shoppers refine results based on specific attributes they need like Gas Dryers vs. Electric Dryers.
• Facets & Filters: Further classify products and enable facets and filtering options—these might be brands like Whirlpool or Maytag. They could also be a specific product feature like or washer capacity, color, screen size, or fabric.
• Cross-referencing capabilities: Allow products to appear in multiple related categories.

Here’s an illustration of how a product taxonomy might look for a retailer that sells  electronics and home appliances.

Product Taxonomy Examples

1. Finding a holiday sweater for Spot 

You’re shopping for your dog’s first holiday party and want to make sure he looks festive. You head to your favorite pet store’s website to find the perfect sweater.

Broad categories: Dog, Cat, Other Animals, Pharmacy

Subcategories: Food, Treats, Toys, Clothing

Product attributes: Holiday, Outdoor, Large Breed, Small Breed

Facets/Filters: Color, Size, Brand, On Sale

2. Ordering office supplies for a growing team 

Your company just hired 20 new employees and you need to outfit their workspaces quickly with all the basics. You pull up your go-to office supply store’s app and start your shopping spree.

Broad categories: Office Supplies, Paper, Furniture, Ink & Toner

Subcategories: Desks, Chairs, Pens, Envelopes, Folders

Product attributes: Sustainable Materials, Standing, Ergonomic, Folding/Stacking

Facets/Filters: Brand, Type, Color, Price

3. Shopping for a living room makeover 

You’ve just moved into a new apartment and want to create a cohesive modern look for your living room. You navigate to the website of your preferred high-end home goods retailer and go to town.

Broad categories: Furniture, Outdoor, Bedding, Lighting, Rugs

Subcategories: Quilts, Duvet Covers, Sofas, Coffee Tables, Floor Lamps, Ceiling Fans

Product attributes: Outdoor, Contract Grade, Weatherproof, Stain Resistant

Tags: Brand, Size, Color, Price, On Sale

Ecommerce Product Taxonomy Best Practices

You need to understand how your customers shop before you can create an effective product taxonomy. The purchasing manager shopping for office supplies for 20 people is navigating a different buying journey than the pug owner who wants a holiday sweater for Fido. 

There’s one common factor linking these two experiences—thoughtful product organization can dramatically improve their shopping experiences. Here are some best practices to consider when creating product taxonomies for your customers. 

1. Start by analyzing customer behavior data 

Your site and customer journey analytics contain a lot of great information including the categories and search terms visitors use most. Pay attention to the actual language shoppers use when they search because it might be different from the language you’re using internally. A shopper might search for “cheap laptop” where the retailer or manufacturer might use more technical or specific language like “budget gaming laptop”. Use these search insights to structure your taxonomy around real customer behavior rather than internal assumptions.

2. Build clear, logical hierarchies

Keep your category structure simple and intuitive and no more than 2-3 levels deep. In a physical store, you want broad departments like Toys that break down into logical sections—Toddler Toys, Board Games, Dolls. Within each section, there are specific areas that function as subcategories (Play Sets, Wooden Toys, Learning Toys, etc.) This same approach works well in virtual shopping environments. Avoid creating too many subcategories that could overwhelm shoppers. Each level should help customers narrow down their choices.

3. Create categories with mobile users in mind

Over 77% of global retail traffic comes from smartphones, so product taxonomy needs to work seamlessly on small screens. Keep mobile navigation clean and intuitive with prominent search features and clear category labels. Using expandable menus saves space, while limiting the number of subcategories displayed at once keeps shoppers focused. Facets and filters become especially important on mobile devices since they reduce scrolling and help visitors refine options quickly.

4. Use attributes to augment taxonomy

Product attributes give shoppers a straightforward way to reduce their results to exactly the items most relevant to them. Attributes like color, size, material, or price range help site visitors prioritize the search results. Use attributes that matter most to your specific category and customer needs. A furniture retailer might prioritize style (modern, traditional), material (leather, fabric), and size (apartment-sized, sectional) while an electronics store might focus on features (wireless, bluetooth) and compatibility (iOS, Android). 

5. Test, monitor, and refine your taxonomy

Product taxonomy will change as customers’ needs and your product offerings change. Continually revisit your site analytics to see how customers interact with your categories and whether they’re finding products efficiently. Pay attention to “no results” searches and popular search terms that don’t align with your current structure, then use this intel to update to your taxonomy approach. New products, seasonal changes, and evolving customer behaviors should inform your taxonomy framework. Consistently refining your taxonomy approach keeps it relevant—and useful—to visitors. And usefulness is what sells those dog sweaters.