Blog » Challenges in Product Information Management and How PIM Overcomes Them

Challenges in Product Information Management and How PIM Overcomes Them

Author name: Anton Koroid

PIM - Product Information ManagementeCommerce

The evolution of the e-commerce market has been nothing short of remarkable. As consumers increasingly turn to online platforms for their shopping needs, businesses have had to adapt and innovate to stay competitive.

As e-commerce demands change, the management of product information has become a critical component of e-commerce success. Product Information Management (PIM) has emerged as a crucial solution to address the key challenges faced by businesses in this domain, but now to succeed you need to know what is PIM in e-commerce.

The Importance of Product Information Management

Effective product information management is essential for businesses operating in the e-commerce industry. It is the backbone of providing accurate, consistent, and reliable product data to customers across multiple platforms and channels. Product data is not just about descriptions and images; it encompasses a wide range of information such as specifications, pricing, inventory levels, and more.

‘In the digital economy, both B2C and B2B customers are demanding more compelling, frictionless, and personalized commerce experiences. Retailers, manufacturers, and brands must deliver accurate product data to all their distribution channels to optimize the story being told around their products. IDC believes the importance of product information management (PIM) will only grow as organizations seek to forge stronger customer relationships within both the creation and loyalty loops via engaging product stories.’ As stated in The 2020 IDC PIM for Commerce MarketScape report.

There are a few issues of product information management that need to be solved for the best productivity of the e-commerce business. Among them:

• Processing huge amounts of data. E-commerce businesses handle vast volumes of data, making it challenging to ensure data accuracy and consistency.

• Management of huge volumes of different types of digital assets. Beyond text data, e-commerce companies deal with images, videos, documents, and more, making it complex to organize and manage these assets.

• Lack of transparency between departments and teams. Siloed operations often lead to miscommunication and inconsistencies in product information.

• Error-prone sheet tables. Reliance on spreadsheets can result in data entry errors, causing customer dissatisfaction.

• Tasks needed manual labor. Manual data entry and management are time-consuming and prone to human errors.

• Lack of strong connection with suppliers. Collaboration with suppliers is vital, but it can be disjointed and inefficient.

• Disorganization of product catalogs. Poorly organized catalogs can make it difficult for customers to find products.

• Inaccuracy and inconsistency of product information. Inconsistent or outdated information can lead to customer confusion and loss of trust.

• Delays in product launches. Slow processes hinder the introduction of new products to the market.

• Handling requirements for multiple sales channels. The rise of omnichannel retailing demands a consistent presentation of data across various platforms.

What is PIM?

Unlike traditional physical stores, digital retailers present information about their products on web pages. Needless to say, a critically important task in this context is ensuring regular updates of product pages with accurate and up-to-date information, as well as presenting information most compellingly and intuitively.

Another important task is scaling while maintaining integrity and flexibility in distributing product information. Given the vast product catalogs, diversity of suppliers, and complexity of product details, only an efficient management system can address this challenge.

Overcoming product information management challenges using PIM

Product Information Management (PIM) is a comprehensive system designed to centralize and streamline the management of product data. It allows businesses to collect, organize, and distribute product information efficiently and accurately. PIM systems provide a single source of truth for all product data, ensuring consistency and integrity across multiple sales channels.

• Organization of the product catalog. PIM systems excel in structuring product information, enabling businesses to effortlessly organize, categorize, and update their product listings. This organization results in a well-structured catalog that is easily navigable for both customers and internal teams.

• Reducing manual entry needs. PIM systems introduce automation into the data entry process, drastically reducing the risk of human errors. This automation not only enhances the data's accuracy but also saves valuable time and resources.

• Troubleshooting spreadsheet errors. PIM systems effectively eliminate the reliance on error-prone spreadsheets, offering a more robust and accurate data management solution. With PIM, there is no longer the need to manually manipulate and update data within spreadsheets.

• Efficiently managing large volumes of product data. PIM systems are specifically designed to handle vast amounts of data, ensuring data integrity and consistency. They can efficiently manage and process product data regardless of its scale, whether a business has hundreds or thousands of products.

• Effective management of different types of digital assets. PIM systems offer centralized storage and management of various digital assets, streamlining the handling of images, videos, documents, and more.

• Establishing strong relationships with suppliers. PIM systems provide a platform for efficient collaboration with suppliers. By facilitating the sharing and updating of product information, PIM ensures that businesses maintain a strong and seamless connection with their suppliers.

• Increasing transparency within departments and internal teams. PIM solutions promote communication and collaboration across departments, ensuring consistent data. By centralizing product information and providing access to relevant teams, PIM fosters transparency and information sharing.

• Simplifying work across multiple sales channels (omnichannel approach). PIM ensures that product data is consistently presented across various sales channels, creating a seamless shopping experience for customers. Businesses can easily adapt and deliver product information tailored to each sales channel while maintaining data consistency.

• Accelerating new product launches. PIM e-commerce expedites the introduction of new products to the market by streamlining the process of adding and updating product information. By offering a centralized platform for managing product data, PIM allows businesses to efficiently create and update product listings, reducing the time to market for new products.

Conclusions

In the ever-evolving e-commerce market, product information management is a critical element for success. The challenges faced by businesses can be daunting, but with the adoption of PIM systems, these challenges can be effectively addressed. PIM for e-commerce enables businesses to streamline their product data management, resulting in improved accuracy, consistency, and efficiency.

In an era where data is the lifeblood of e-commerce, embracing PIM is not just a choice but a necessity to stay competitive and provide customers with a superior online shopping experience. As the e-commerce landscape continues to evolve, businesses that embrace PIM will be better equipped to thrive in this dynamic industry.

Modified on: 11/03/2023