Home Professionalisms The Psychology Of Inventory Display: How Visual Merchandising Boosts Sales

The Psychology Of Inventory Display: How Visual Merchandising Boosts Sales


by Bjoern Sjut, co-founder and CEO at Finc3

How you organize, arrange and stage your products in retail can drastically improve your performance. The psychology behind displaying your inventory can make or break your merch’s success. That’s what we’ll explain – how visual merchandising works and its impact on boosting sales.

The Impact of Visual Merchandising on Sales

Visual merchandising can help you create a pleasant experience for potential customers. It’s a consumer-psychology-based method of displaying products that can help increase sales.

Compelling visual merchandising works as a promotion of your brand. How you display products and package them helps you build awareness. Convey the right message to your customers and encourage them to purchase.

Visual merchandising also encourages event participants to present their products attractively. For example, using special lighting or showcasing high-end products. A well-staged display can earn your many sales.

Understanding The Psychology Behind Visual Merchandising

You must understand a few key things to understand the psychology behind visual merchandising.

First, you must understand your clientele to identify what visuals interest them. For example, create clean and organized displays for higher-income business professionals.

Secondly, your display should evoke feel-good emotions in customers. Use appealing visuals and fragrances in your booth to enhance visitors’ experience.

Make sure you stand out from competitors by arranging eye-catching displays with accent colors.

Finally, help customers imagine how your products will alter their lives. Set up scenes that can show what value your products bring to customers and spark their desire to purchase.

The Two-Finger Rule and Its Role in Merchandising Success

Two finger rule is one of the best practices for adequately displaying merchandise on shelves. According to this rule, the space between the top of a product and the shelf above it should not be more than two fingers long. This helps you create a fully stacked shelf from which customers can quickly grab what they need. Two-finger rules make it easier to organize products on adjustable displays.

Top Three Crucial Elements in Successful Visual Merchandising

Here are three essential elements to successfully implement visual merchandising:

1. Branding.

You should use the personality and character of your brand in your visual merchandising. Incorporate your branding elements into the signage, visuals, display designs, etc. This way, visitors will know about your brand, and you can stand out from competitors.

2. 5 Senses.

Physically experiencing a product can deliver entertainment and value to consumers. That is because visual merchandising helps engage the five senses of customers. Such as-

3. Touch.

Place your products in a spot customers can access them easily. This helps them touch or hold the product, feel its texture, and make buying decisions.

4. Sight.

Create a visual appeal using dramatic lighting effects, color, and attractive visuals. Let your customers feel more intrigued.

5. Sound.

Select melodic music to play in the background which is neither loud nor monotonous. This creates a sound appeal without making customers distracted.

6. Scent.

Use mild yet tempting scents in your booth to uplift the mood of the visitors. Customers often remember please scents, which will likely boost their experience and enhance the chances of revisits.

7. Taste.

Food & beverage companies offer samples of their products to attract customers with their sense of taste. Other companies can provide refreshments like welcome drinks or toffees at the counter to please visitors.

Measuring The Effectiveness of Visual Merchandising Techniques

As you start, you must define your goals, including Amazon marketplace management services, to measure the success of your visual merchandising techniques because it matters whether you wish to increase brand awareness, visitors, or sales.

To calculate your ROI, identify your sales revenue and visual merchandising costs, including the costs associated with “Amazon marketplace management services.” Then using the ROI formula, calculate the effectiveness of your campaign.

ROI = (Benefits – Costs) / Costs x 100%.

The Significance of Effective Displays in Visual Merchandising

Effective displays can significantly impact the results of visual merchandising, bringing more sales and revenue to the business. It also helps build awareness around your brand and do so publicly.


Bjoern Sjut

Bjoern Sjut was co-founder and CEO at Finc3, an agency that has now become a part of Front Row that offers Amazon marketplace management services. Bjoern has authored marketing publications and reports on email marketing and digital analytics, and he is a frequent speaker at international online marketing events. In addition to Finc3, he co-founded the wine platform Navinum.