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Jan 23, 2026 | 4 minute read

What is Product Merchandising? Strategies, Examples and the Role of AI

written by Kirsten Aebersold

Online product catalog with ai search bar.

Summary: Product merchandising has evolved far beyond store shelves and window displays. In commerce, the most successful brands are those that treat product merchandising as a dynamic, AI-powered strategy — one that guides shoppers to the right product, at the right time, with as little friction as possible.

Whether you’re a manufacturer managing thousands of SKUs or a retailer selling across multiple geographies and digital touchpoints, effective merchandising is how your products rise above the noise. This blog explores how merchandising has transformed, and how Elastic Path empowers teams to deliver modern product experiences that convert.

What is Product Merchandising?

Product merchandising is the practice of presenting products in a way that drives discovery, consideration, and purchase. It blends product placement, promotion, storytelling, and technology to deliver the most relevant experience for each shopper — whether online, in-store, or across channels.

In traditional retail, that meant shelf arrangements and end caps. Today, it means intelligent filtering, curated collections, personalized offers, and seamless cart-to-checkout experiences.

With AI capabilities and modern B2C and B2B commerce platforms, merchandising now includes:

  • Dynamic product recommendations
  • Geo- or persona-based catalog views
  • Real-time personalization across devices
  • Performance-driven product bundling
  • AI-powered promotions and pricing strategies

Traditional vs. Modern Merchandising

In-store merchandising still matters, but the digital wave has changed everything. Brands are now expected to recreate the same sense of inspiration, relevance, and support across every online touchpoint.

Then:

  • Eye-catching in-store displays
  • Static catalog layouts
  • Manual product updates
  • Generic pricing and promotions

Now:

To succeed, brands need more than a good-looking storefront. They need back-end tools that allow their teams to configure, test, and scale complex merchandising strategies fast, and without relying entirely on development teams.

Why Product Merchandising Matters More Than Ever

Shoppers today expect intuitive, personalized experiences — and they’ll bounce if they don’t get them. According to research conducted by Vanson Bourne and Elastic Path, 86% of organizations fear they’ll be left behind without AI in their online store experience, and 73% of teams say their growth is limited by the inability to effectively showcase their product catalog.

Great merchandising helps brands:

  • Drive higher conversion rates
  • Boost average order value (AOV)
  • Improve inventory turnover
  • Support customer loyalty
  • Stand out in crowded markets

Merchandising is no longer a visual accessory. It’s a critical lever for performance and profitability.

Modern Merchandising in Action

Here are two brands reimagining product merchandising:

Serena & Lily: Configurable Catalogs with Merchandiser Control

Serena & Lily offers highly customizable products, such as sofas with hundreds of potential fabric and size combinations. Powered by Elastic Path, their merchandising team manages these complex configurations and launches curated product collections without requiring extensive developer support. The result is an intuitive, elevated shopping experience that reflects their design-led brand.

Vivrelle: Curated Collections and Dynamic Access

Vivrelle, a luxury subscription brand, uses Elastic Path to deliver personalized merchandising based on membership tier and real-time product availability. Members explore curated collections of designer accessories tailored to their preferences and status—creating a frictionless, premium experience that keeps them coming back.

Elevating Product Merchandising with Elastic Path

In an era where merchandising is both art and algorithm, brands need more than templates and static catalogs. They need tools that empower teams to experiment, adapt, and personalize at scale.

That’s where Elastic Path Product Experience Manager comes in. Designed for businesses with complex product configurations, multi-channel strategies, and evolving buyer expectations, Product Experience Manager merges catalog management, merchandising logic, and AI into a unified, flexible solution.

Whether you’re managing thousands of SKUs, launching new experiences across geographies, or trying to boost average order value, it enables you to:

  • Build and update dynamic catalogs in minutes instead of weeks
  • Personalize product experiences by region, channel, or customer segment
  • Power intelligent bundles and pricing strategies that convert
  • Give merchandisers and marketers more control, without overloading developers

Modern merchandising is not a nice-to-have. It’s a revenue lever. If your commerce platform isn’t keeping pace with how your buyers shop, it may be time for a rethink.

Learn how Elastic Path can help you create product experiences that stand out—and sell. Talk to an expert for a customized demo.

Get Started with Elastic Path

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