Blog » Why Every E-commerce Business Needs a PIM System
Why Every E-commerce Business Needs a PIM System
Author name: Anton Koroid
E-commerce, driven by advancements in technology, and undergone a remarkable transformation in recent years. Not only, has it grown exponentially to become a cornerstone of the global economy. This evolution has created new challenges and opportunities for businesses of all types.
To stay competitive and efficient in this dynamic environment, e-commerce businesses need tools that can streamline their operations, enhance customer experiences, and manage vast amounts of product data. One such tool that has become increasingly essential in the e-commerce industry is the Product information management (PIM) system.
Genesis and Evolution of E-commerce
The World Trade Organization (WTO) defines electronic commerce as a set of operations related to the production, distribution, placement, sale, or delivery of goods and services using electronic means.
According to the UNCTAD Report on the Information Economy in 2015, electronic commerce is understood as the purchase and sale of goods and services through computer networks and other technological devices. Electronic commerce encompasses both physical goods and intangible (electronic, digital) goods and services that can be delivered in digital form.
Natural Growth and Evolution
It is expected that in 2023, the global e-commerce market will reach $6.3 tn. Estimates suggest that in the coming years, this figure will continue to grow, this indicates that borderless e-commerce is becoming a profitable option for online retailers. By 2024, 21.2% of the total retail sales volume will be conducted online.
According to the International Trade Association, China continues to lead in global e-commerce sales, accounting for more than 50% of all retail sales worldwide. In 2022, the total volume of online sales will surpass the $3 trillion mark.
After China and the USA, the third-largest e-commerce market is the United Kingdom, accounting for 4.8% of the share of e-commerce retail sales. Following the UK are Japan (3%) and South Korea (2.5%).
As e-commerce naturally grew and evolved, so did the complexities of managing product information. E-commerce businesses began to face challenges related to organizing and presenting vast amounts of product data efficiently, ensuring data accuracy, and synchronizing information across various online channels. This is where PIM systems come into play.
Definition of PIM
A PIM system is a centralized software solution designed to collect, manage, and distribute product information. A PIM serves as a single source of truth for product data. With all product data maintained in one place it becomes easier and more efficient to manage the, growing complexity of product information in the e-commerce sector. PIMs collect different types of data to create a structured and organized repository. These data types include:
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Media Files. PIMs store and manage images, videos, and other media assets related to products, ensuring consistent and high-quality visual representation.
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Product usage data. Information on how products are used, maintained, and reviewed can be stored and utilized for improving product descriptions and customer support.
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Emotional data. Customer reviews, sentiment analysis, and other emotional data can help businesses understand customer preferences and sentiment toward their products.
Important Features
PIM systems come equipped with various essential features that cater to the specific needs of e-commerce businesses. PIM systems are tailored to meet the unique requirements of e-commerce, aiding businesses in managing a wide array of product data efficiently. There are lots of benefits to implementing PIM for e-commerce businesses regardless of niche, volume, and intended scaling. In particular, PIM systems automate data entry processes, reducing the risk of errors and saving time. Other benefits include
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Information accuracy. Maintaining data accuracy is crucial in e-commerce. PIM ensures consistency and correctness across all channels.
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Database centralization. All product data is stored in one centralized location, streamlining data management and ensuring consistency.
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Scalability. PIM systems are designed to handle the growth of an e-commerce business, making it easier to expand product offerings and sales channels.
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Effectiveness of the omnichannel approach. PIM enables consistent product information across all sales channels, improving the customer experience.
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Improving marketing campaigns. PIM provides valuable data for creating more targeted and effective marketing campaigns.
PIM Selection
Choosing the PIM for e-commerce is critical to optimizing your operations and maximizing your online sales potential. To avoid costly mistakes, it's important to understand the key factors to consider when choosing an e-commerce PIM. It's essential to consider several factors:
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Complexity of product information, including technical specifications. Choose a PIM that can accommodate the level of complexity your products require.
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Plans of releasing or developing new products. Ensure the PIM can easily incorporate new products and updates.
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Product information improvement level. Look for features that facilitate product data enhancement.
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Temporary restrictions. Consider any time-sensitive limitations in your product data management.
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Number of sales channels and their scaling. Ensure the PIM can support your current channels and potential future expansions.
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Business growth expectations. Select a PIM that aligns with your growth strategies and objectives.
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Integration with current systems. The PIM should seamlessly integrate with existing software and systems.
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Language support. If your business operates in multiple regions, choose a PIM with multilingual capabilities.
Choosing the best PIM solution for e-commerce businesses can be a challenging task due to various issues. One such issue is the wide range of options available in the market. Since numerous providers offer PIM solutions with different features and capabilities, it can be difficult to determine which solution aligns with the specific needs and requirements of the business.
Another challenge lies in the complexity of implementing PIM in e-commerce and integrating it with existing systems. Ensuring a smooth integration of the chosen solution with current software and processes is of utmost importance, and this can be a labor-intensive and complex process. Finally, cost can also be an issue, as PIM solutions can vary significantly in terms of pricing models and associated expenses.
It is crucial for enterprises to carefully assess and consider these potential issues to make an informed decision and select the best PIM solution based on their specific needs. PIMinto is considered the optimal solution because of its advanced SaaS architecture. The PIM easily transforms data to meet the specific requirements of each sales channel and simplifies product information exchange through multichannel publishing. We also like the fact that Piminto offers a free pricing tier. This allows stakeholders to fully evaluate the functionality of the PIM for e-commerce before committing to add the PIM to their technology stack. Features like filtering, bulk operations, unlimited attributes, assigning attributes to groups, views, advanced category and attribute filtering, as well as fast data serving via data streams a clear winner when looking for a PIM for eCommerce.
Conclusion
In today's rapidly evolving e-commerce environment, a Product Information Management system has become a critical tool for businesses. By centralizing product data, automating processes, and ensuring data accuracy, a PIM can significantly contribute to e-commerce growth. As businesses seek to provide a consistent, personalized, and engaging customer experience across various channels, the implementation of a PIM system is no longer an option but a necessity. Choosing the right PIM for e-commerce that is tailored to your specific needs can be the key to success in the ever-competitive e-commerce industry.
Modified on: 10/17/2023