Blog » The Evolution of Product Information Management (PIM) in e-commerce
The Evolution of Product Information Management (PIM) in e-commerce
Author name: Anton Koroid
Managing product information efficiently and effectively for eCommerce has become a paramount concern for businesses. Product Information Management (PIM) systems have played a crucial role in streamlining the way organizations handle product data. The following article explores the evolution of PIM in the context of e-commerce, examining its definition, key characteristics, market dynamics, prospects for development, and its transition into Product experience management (PXM).
PIM is a comprehensive solution that enables businesses to centralize, organize, and distribute product information across various channels. It serves as a hub for all product-related data, including descriptions, images, pricing, and specifications. The primary goal of PIM is to ensure consistency and accuracy in product information, both online and offline.
There are some features of using PIM e-commerce. What is PIM in e-commerce? PIM systems allow businesses to store all product information in a single repository, ensuring consistency and reducing data duplication. PIM tools enable businesses to enrich product data with relevant information, such as images, attributes, and multimedia content. E-commerce businesses can easily publish product information across multiple platforms, including websites, marketplaces, social media, and mobile apps, from a single source.
PIM systems also automate processes related to data updates, approvals, and version control, saving time and reducing errors. PIM solutions provide tools for data validation, ensuring the accuracy and completeness of product information.
Market outline
In 2022, the PMI market was estimated at $8.5 bn. It is projected that the industry will grow from $9.52 bn in 2023 to $23.72 billion by 2032, demonstrating a compound annual growth rate (CAGR) of 12.08%. The increasing demand for PIM solutions is driven by the thriving e-commerce industry, where improving and expediting customer service is a key growth factor. The use of PIM systems is also on the rise due to the growth of retail and e-commerce companies and the increasing volume of data that needs to be managed. The key drivers for the growth of the PIM market in e-commerce include:
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E-commerce expansion. The global shift towards online shopping has necessitated better product data management to ensure a seamless shopping experience for customers.
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Consumer expectations. Shoppers expect accurate and detailed product information, driving businesses to invest in PIM systems to meet these expectations.
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Competition. In a crowded e-commerce space, businesses are striving to stand out by providing superior product information, which PIM systems facilitate.
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Regulatory compliance. Strict regulations related to product data, such as the EU’s GDPR and industry-specific standards, have prompted the adoption of PIM to maintain compliance.
Development prospects
Experts of Group Futurista anticipate that the global PIM systems market will grow at a rate of 9% per year, surpassing $15 billion by 2028. The adoption of PIM business applications in e-commerce has become a necessity due to a significant enhancement of operational efficiency.
Companies aim to make their supply chains more resilient and accelerate innovation without jeopardizing their competitive advantages, while technology leaders shift from digital technologies to human-centric technological innovations. The future of PIM in e-commerce holds several promising developments:
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Artificial intelligence (AI) and Machine learning (ML) integration. PIM systems will increasingly incorporate AI and machine learning for enhanced data management, personalization, and recommendation engines.
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Mobile commerce integration. PIM will adapt to the growing importance of mobile commerce, offering features for mobile-specific product information and marketing.
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Aanalytics enhancing. PIM systems will provide advanced analytics and insights into product performance and customer behavior, facilitating data-driven decision-making.
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Global expansion. As e-commerce goes global, PIM systems will support multi-language, multi-currency, and multi-region capabilities.
Increasing PIM Efficiency
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Improve data quality. The most crucial step you can take for your PIM is to maintain the cleanliness and accuracy of your data. This makes data management more accessible and allows you to provide the best quality of customer service.
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Automate data collection. You can save time and effort by eliminating repetitive tasks, such as manually inputting data from product labels or cleaning price data from supplier websites using specialized data automation software. This also ensures consistency in the data you input across your product catalog.
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Hire a PIM expert. You can find talented individuals with experience in PIM on freelance websites or gather a small, dedicated outsourced team. There shouldn’t be any issues if you’re using a SaaS-based PIM solution such as PIMinto.
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Stay at the cutting edge. Finally, make sure you stay updated with the latest trends and innovations in the field of PIM.
Transition of PIM to PXM
While the e-commerce market is saturated, and content volume is growing exponentially, research by Epsilon indicates that approximately 80% of consumers are more likely to purchase if brands offer a personalized experience.
This compels PIM system providers to shift their focus toward the quality of customer service and products. The next logical step in the evolution of PIM is the transition to Product experience management (PXM). What benefits can brands gain from this evolution?
PIM systems were initially designed for e-commerce brands as a means of centralizing product catalogs and associated data. This centralization speeds up the introduction of new products to the market and ensures a more consistent omnichannel shopping experience. However, it imposes certain limitations when it comes to creating relevant content.
PxM provides e-commerce brands with opportunities to manage the shopping experience, addressing the question of how a product or service becomes accessible to consumers. Any effective PxM will include PIM, expanding its capabilities. However, well-structured data alone is no longer sufficient to inspire a purchase or create a frictionless path to purchase, especially for B2B buyers who seek self-service capabilities. Customers are looking for more control over their digital experience, while traditional PIM solutions no longer meet this demand.
Conclusions
As e-commerce continues to thrive and evolve, the role of PIM is becoming increasingly vital. PIM enables businesses to streamline their product data management, ensuring accuracy, consistency, and better customer experiences.
The market for PIM systems is growing rapidly, and the future holds exciting prospects for even more advanced PIM solutions, including the transition to PXM. To remain competitive in the e-commerce landscape, businesses must continue to invest in and adapt their product data management strategies. PIM and, eventually, PXM will be instrumental in achieving success in the online marketplace.
Modified on: 10/13/2023