diff --git a/plugins/woocommerce/changelog/e2e-update-snapshotPathTemplate b/plugins/woocommerce/changelog/e2e-update-snapshotPathTemplate
new file mode 100644
index 00000000000..606a9ae6a32
--- /dev/null
+++ b/plugins/woocommerce/changelog/e2e-update-snapshotPathTemplate
@@ -0,0 +1,4 @@
+Significance: patch
+Type: dev
+
+E2E tests: configure snapshotPathTemplate
diff --git a/plugins/woocommerce/tests/e2e-pw/playwright.config.js b/plugins/woocommerce/tests/e2e-pw/playwright.config.js
index 7fb1ba7b105..e678fa8da4a 100644
--- a/plugins/woocommerce/tests/e2e-pw/playwright.config.js
+++ b/plugins/woocommerce/tests/e2e-pw/playwright.config.js
@@ -68,6 +68,7 @@ const config = {
 		actionTimeout: 20 * 1000,
 		navigationTimeout: 20 * 1000,
 	},
+	snapshotPathTemplate: '{testDir}/{testFilePath}-snapshots/{arg}',
 	projects: [
 		{
 			name: 'default',
diff --git a/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-0-default b/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-0
similarity index 100%
rename from plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-0-default
rename to plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-0
diff --git a/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-1-default b/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-1
similarity index 100%
rename from plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-1-default
rename to plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-1
diff --git a/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-2-default b/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-2
similarity index 100%
rename from plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-2-default
rename to plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-2
diff --git a/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-3-default b/plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-3
similarity index 100%
rename from plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-3-default
rename to plugins/woocommerce/tests/e2e-pw/tests/customize-store/assembler/homepage.spec.js-snapshots/selected-homepage-blocks-class-frontend-3