Product Tagging: Are you doing It right?

What is Product Tagging?

At its core, product tagging is the process of assigning descriptive metadata to products. These tags act as labels that categorise products based on attributes, making them easier to manage internally and discover externally.

For example, an online fashion retailer could tag a t-shirt with:

• Material: Cotton, Organic
• Style: Casual, Short Sleeve
• Seasonal Relevance: Summer Collection, Holiday Picks

Tags are more than just labels. When applied strategically, they create a structured dataset that improves operational efficiency and enhances the customer experience.

Manual vs. Automated Product Tagging

There are two primary approaches to product tagging: manual and automated. Each has its advantages, and the most effective strategy often combines both.

Manual Product Tagging: Precision and Control

Manual tagging is best suited for curated collections, premium product lines, or marketing campaigns that require human judgment. It offers flexibility, allowing retailers to apply nuanced, highly specific tags that automation might overlook. For example, a luxury retailer might manually tag limited-edition collections to ensure exclusivity in certain customer segments.

Automated Product Tagging: Scalability and Efficiency

Automation, on the other hand, enables large-scale tagging with predefined rules. This is ideal for retailers with vast and frequently changing inventories, where manual tagging would be impractical. Automated systems can tag products dynamically based on sales performance, stock levels, or other data points. For instance, a retailer could automatically tag items as "low stock" when inventory falls below a certain threshold or flag bestsellers based on real-time purchase trends.

The most effective approach often combines both: manual tagging for controlled curation and automation for scalable, rule-based categorisation.

The Business Benefits of Product Tagging

A well-structured tagging system delivers tangible benefits across both internal operations and the customer experience.

Streamlined Inventory and Operational Control

With properly tagged products, retailers can filter inventory more effectively, whether by category, sales performance, or stock status. This level of organisation ensures teams can quickly locate products, analyse trends, and make informed merchandising decisions. Additionally, automation-driven tagging can trigger workflows such as custom shipping rules for fragile items or priority placement for high-margin products in marketing campaigns.

Enhanced Data-Driven Insights

Tags provide an added layer of data intelligence. By analysing how specific tags—such as "clearance," "sustainable," or "limited edition"—impact conversion rates, retailers can refine their pricing, promotional, and stocking strategies. B2B businesses can also use tagging to differentiate wholesale-exclusive products from direct-to-consumer inventory, ensuring the right products are surfaced to the right customers.

Improved Product Discovery and Personalisation

For customers, product tagging transforms search functionality and browsing experiences. Well-implemented tags enable precise filtering, allowing shoppers to find exactly what they need—whether they’re looking for "waterproof" jackets or "vegan" skincare. Additionally, tagging supports dynamic merchandising, automatically creating collections such as "Trending Now" or "Festival Ready" based on real-time data.

Smarter Promotions and Discounts

Retailers can use product tags to apply discounts and promotional rules efficiently. For example, items tagged as "flash sale" could be automatically discounted for a limited time, ensuring offers are applied consistently without manual intervention.

Building an Effective Tagging Strategy

To maximise the impact of product tagging, businesses must take a structured and strategic approach. First, it’s crucial to keep tags concise yet meaningful—short, descriptive tags such as "vegan," "best seller," or "leather jacket" work far better than long, ambiguous phrases. Structuring tags into logical categories also improves manageability; for instance, grouping attributes under themes like Material (Cotton, Wool, Synthetic) or Occasion (Formal, Casual, Outdoor) ensures consistency and prevents duplication.

Inconsistent tagging can quickly lead to clutter, so regular audits are essential. Over time, some tags will become obsolete—seasonal tags, for example, need periodic updates to ensure relevance. Without this upkeep, the tagging system becomes a hindrance rather than an asset.

Equally important is standardisation. A documented tagging strategy ensures uniformity across teams, reducing errors and preventing unstructured growth of the tag database. Many businesses also benefit from restricting tag creation permissions to authorised users, ensuring that only well-thought-out tags are added.

Finally, automation should be embraced where it makes sense. High-turnover tags—such as "bestseller," "low stock," or "trending"—are perfect candidates for automation, reducing the need for constant manual updates while maintaining real-time relevance.