What is Classification

Classification is the process of organizing products into categories based on shared characteristics, attributes, or functions. It helps businesses and systems group similar items together so they can be found, compared, and managed more easily.

Think of classification like sorting your wardrobe into sections (like shirts, pants, and shoes) so you know where everything belongs and can find what you need quickly. In product information management, classification makes sure your products are grouped logically, making it easier to manage catalogs, feed data to sales channels, and support reporting.

Examples

Example Description
Product Categories Grouping items like electronics, clothing, or furniture for easier browsing and inventory control.
Product Hierarchies Structuring products in parent-child relationships (like a smartphone with different variants).
Industry Standards Using established classification systems (like UNSPSC, eCl@ss) to maintain consistency across suppliers and retailers.

A brief history

Classification has been part of commerce and cataloging for as long as merchants have needed ways to organize and sell their goods efficiently. But in the digital age, it’s become even more important: ecommerce platforms and online stores need standardized classification to handle large product catalogs, and use PIMs to help them do it.

Global classification standards emerged, such as the ETIM, UNSPSC, and eCl@ss, to help businesses worldwide classify their products in the same way so they speak the same product language.

Good to know

Effective classification is a foundation for good product information management. Modern PIM systems often allow custom classification structures or integration with industry standards, giving businesses flexibility to organize products in ways that match their unique needs and market requirements.

Know more

Frequently Asked Questions

How is classification different from categorization?
They’re often used interchangeably, but categorization usually refers to placing products into broad groups, while classification can include more detailed attribute-based grouping and hierarchy.
Do I need to use a global classification standard?
It depends on your business. Global standards improve consistency across partners and platforms, but some businesses use custom classifications that fit their products and customers better.
Can classification change over time?
Yes. As your product range evolves or markets shift, you may need to update classification structures to keep them relevant and useful.