# Product Groups

Product groups in Flow Retail are organized in a hierarchical structure, similar to a tree. At the top, you’ll find high-level groups, with more specific sub-groups branching out below.

Each product group or category in this hierarchy is called a node. For example, “Projectors” would be one node, which could contain further nodes for specific types or brands of projectors beneath it.

This structure helps you manage products efficiently, simplifies reporting, and makes it easier to set up targeted campaigns.

#### Example:

```
|__ Brown Goods   (level 1 node)
   |__ TV         (level 2 node)
      |__ 20-29"  (level 3 node)
      |__ 30-49"  (level 3 node)
      |__ 50-69"  (level 3 node)
      |__ 70-99"  (level 3 node)
   |__ Projector  (level 2 node)
      |__ 40-99"  (level 3 node)
      |__ 99-149" (level 3 node)
```

{% hint style="warning" %}
It’s important to plan your product group structure carefully from the beginning. A well-organized hierarchy will save time, improve reporting, and make it easier to work with campaigns and inventory.
{% endhint %}

### Choose the right number of levels in each node

We recommend using 2 to 4 levels in your product group tree, depending on the total number of products in your system. Too few levels can make it harder to organize large assortments, while too many can become unnecessarily complex. Aim for a clear and balanced structure that fits your product range.

<table><thead><tr><th width="417.46875">Number of products</th><th>Recommended Product Group Levels</th></tr></thead><tbody><tr><td>&#x3C; 100</td><td>1</td></tr><tr><td>100-999</td><td>2</td></tr><tr><td>1000-9999</td><td>3</td></tr><tr><td>10000-999999</td><td>4</td></tr><tr><td>1000000</td><td>5</td></tr></tbody></table>

{% hint style="success" %}
Note that there is no need of having the same number of levels in each "node", e.g. if you have a level 1 node called "Services", and you only have five services, they you do not need any sub-nodes on that product group.
{% endhint %}


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