Whether you’re selling a product through Google, Facebook, or any other eCommerce channel, one of the most important steps is listing it in the right product category. Case in point: Having your best pumps (as in, shoes) appear among plumbing fixtures in home improvement doesn’t just mean you’re targeting the wrong audience, it depletes the trust shoppers have in your brand.

Today, tech-forward solutions can help you categorize your products accurately and automatically across all digital channels and marketplaces.

Dubbed “smart categorization,” these tools not only offer near-perfect accuracy, they transcend outdated methods like rule-based categorization, which involve manual back-end settings and imperfect data matching.

Instead, smart categorization relies on machine learning to automate the process from end to end—eliminating hours of busywork, accelerating your time to market, and boosting your overall revenue.

Read on to learn what smart categorization is, how it works, and (most importantly) what it can do for your business.

What is smart categorization?

Simply put, smart categorization means using artificial intelligence (AI) to automate the way you group and classify your products on different digital channels. In this way, it’s distinct from:

• Manual categorization, which requires you to select each product’s category line by line and channel by channel. Across hundreds or thousands of products and listings, this can quickly drain your team’s time and resources and lead to many avoidable human errors.

• Rule-based categorization, where you attempt to streamline manual processes with a set of pre-established—but often misapplied—rules. For instance, in the above example, a rule might mistakenly list a pair of high-heeled shoes with plumbing supplies because it’s trained to identify the word “pump” in a product’s name.

On the other hand, smart tools automate the categorization process from end to end without being overly prescriptive. Many smart categorization solutions allow you to customize your settings across different products and channels and to easily oversee and override suggested categories.

How it works

With smart categorization, a dynamic, AI-powered algorithm takes each product’s data and, using built-in pattern recognition, instantly matches it to the most relevant and specific product category for each eCommerce channel, according to its specific requirements.

This goes not only for existing products but for each new product you add to your feed, which will be processed and categorized in real-time.

The best part of machine learning is that, well, it learns. The more product data is processed—and the more you accept or adjust the algorithm’s suggestions—the more experienced and knowledgeable the AI will be, leading to an even faster and more granular output.

The benefits of smart categorization

Compared to legacy processes like manual and rule-based categorization, AI-driven smart solutions promise greater:

• Speed, by instantly and automatically classifying your products at the click of a button

• Precision, by training on and learning from millions of detailed data points across a wide range of industries

• Simplicity, by adapting to the data structures and complex listing and categorization requirements of different digital channels

• Value, by ensuring the right products are shared with the right audiences for optimal sales revenue—and without the ongoing costs of manual maintenance

Smart categorization in action

Channable offers a smart categorization feature as part of our frictionless feed management tool.

Our solution is unique because we use a tiered process to ensure all categorizations are carried out efficiently and effectively.

First, your product data is analyzed and optimized to fill in any missing fields and correct any formatting or filing issues. From there, our algorithm automatically sorts and categorizes your products.

Our accuracy rate is an industry-leading 97%—but, for those items that slip through the cracks, you can implement rules that categorize them with a click. Finally, you can review all suggested classifications before going live to confirm they meet the mark.

The result? With Channable’s smart categorization feature, you can enjoy: