Product taxonomy is a system for classifying all the products on the market so that buyers can locate what they're looking for with a smaller number of clicks. Typically, they function as a product hierarchy that classifies items. Consider a buyer who is interested in finding the newest men's sweaters. That person will go through the following steps to find the right product.
Men’s clothing > Winter Clothing > Sweaters
This is called a product taxonomy. The goal of taxonomy is to organize and classify product data to simplify understanding structured and unstructured data. Retailers must leverage taxonomy to keep customers from leaving their website before discovering what they want.
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