What Is Cross Merchandising?

cross-merchandising Credit: Siri Stafford/Photodisc/Getty Images

Cross merchandising is the practice of stores and retail locations displaying different categories of products together in an effort to push more sales and increase revenue. Some products that retailers commonly cross merchandise include batteries with electronic appliances, mobile phone covers with mobile phones and jewelry and handbags with women's dresses.

Cross merchandising is effective because it encourages customers to purchase additional products that can be used with the initial product that they intended to purchase. Displaying products with the use of mannequins and fixtures can prompt customers to purchase both related and unrelated goods.

Successful cross merchandising often includes the display of merchandise that is complementary and the arrangement of merchandise avoids a cluttered look.