Blog » The Global Growth of PIM in E-commerce
The world of e-commerce has witnessed a remarkable transformation over the past few years, with technological advancements and changing consumer behaviors driving the industry forward. One key aspect of this transformation is the growing importance of Product Information Management (PIM) systems.
PIM software is no longer just a tool for managing product data; it has become a vital component of e-commerce success. In this article, we will explore the global growth of PIM in e-commerce and its significant impact on the industry.
Market Overview
E-commerce, or electronic commerce, is the buying and selling of goods and services over the Internet. The concept has been around for decades but has experienced explosive growth in recent years. The digital marketplace offers consumers convenience, a wide variety of options, and the ability to shop from the comfort of their homes. E-commerce platforms have become an essential channel for businesses to reach customers and expand their global reach.
This surge in e-commerce popularity has led to fierce competition among businesses, making it imperative for them to optimize their online presence, customer experiences, and product catalog offerings.
According to Statista's forecast, in 2023, with a projected market volume of $1.31 tr, the majority of revenues will be generated in China. The revenue in the e-commerce market will reach $3.64 tr. The compound annual growth rate (CAGR) for revenue from 2023 to 2027 is expected to be 11.17%, resulting in a projected market volume of $5.56 tr by 2027.
It is anticipated that by 2027, the e-commerce market will have 5.3 bn users, with a user penetration of 57.2%, expected to reach 66.6% by 2027. Furthermore, the average revenue per user (ARPU) will be $827.4.
Genesis of PIM
PIM solutions were designed to manage and centralize product catalog data, attributes, and information. Its primary objective is to ensure that product information is accurate, consistent, and up-to-date across all sales channels. With the rapid growth of e-commerce, businesses are faced with the challenge of handling a vast amount of product data, which can include details like product descriptions, images, pricing, and specifications.
This data must be distributed across various e-commerce platforms, marketplaces, and mobile apps. Manual management of such data can be error-prone, time-consuming, and inefficient. The emergence of PIM software can be attributed to several factors:
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Data complexity. The need to manage extensive and diverse product information across various platforms and sales channels.
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Global expansion. As businesses seek to reach international markets, the need for multilingual and region-specific quality product data becomes crucial.
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Customer expectations. Modern consumers demand accurate and consistent quality product information to make informed purchasing decisions.
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E-commerce growth. The increasing number of e-commerce platforms, marketplaces, and mobile apps require seamless product catalog integration.
PIM Market Outlook
As per Market Research Future, the global PIM market is expected to grow at a CAGR of 25.8% from 2020 to 2027. This growth is driven by the increasing adoption of e-commerce, the need for effective data management, and the growing awareness of the benefits of PIM systems.
The PIM market evaluation has surged from $12.2 bn in 2022 to an estimated $23.8 bn by 2027, indicating a growth rate of 14.3%. This spike demonstrates the increasing significance of data management and product presentation in modern markets. The PIM market has grown substantially in response to the e-commerce boom. This growth can be attributed to various factors:
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Enhanced data quality. PIM systems help ensure data accuracy, completeness, and consistency, which enhances customer trust and satisfaction.
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Multi-channel selling. With the proliferation of sales channels, businesses rely on a PIM tool to maintain a unified product content database across all platforms.
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Global expansion. A PIM tool supports businesses in adapting their product information for international markets, allowing for efficient expansion.
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Integration with e-commerce platforms. PIM systems increasingly offer integration with popular e-commerce platforms like Shopify, Magento, and WooCommerce, simplifying the management of quality product content.
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Improved product discoverability. Optimized product data and search functionality help customers find what they're looking for more easily, leading to increased sales.
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Competitive advantage. Businesses utilizing PIM systems often outperform competitors by delivering a superior shopping experience.
Sales on third-party online marketplaces between 2022 and 2027 could grow by 10.4%. It is expected that this growth will account for 40% of the total expected global retail sales growth, including in physical stores. Of this, 63% of the expected e-commerce sales growth is attributed to it. Leading the way are e-commerce giants such as Amazon, Alibaba, and eBay. However, new platforms such as InstaCart, Rock Auto, and StockX are not far behind, showing an impressive global growth of 114.63%.
What PIM does e-commerce need
A SaaS-based PIM solution offers retailers, manufacturers, and suppliers the flexibility to implement their product content management strategy. As such, a PIM allows for the consolidation and automation of all product content to be maintained in a centralized hub. Additionally, many PIM solutions provide the ability to maintain digital assets in addition to product data. Digital asset management features allow easy enrichment of product data and help deliver compelling product experiences from within the PIM platform. From the PIM, product data and digital assets can be analyzed, errors corrected, marketing data imported, and information optimized before synchronizing changes across all platforms and marketplaces in real time.
PIMinto, a SaaS-based PIM solution, is known for its user-friendliness, rapid updates, and new features without the need for additional resources, hours, or technical equipment. One of the key advantages of SaaS PIM systems is their ability to seamlessly adapt to the needs of companies with millions of product listings and complex data fields.
The SaaS route offers an alternative to traditional on-premises software, which needs to be installed on every device where it will be used. SaaS-based PIM provides access to information anywhere, without the need to download or install programs or applications.
Conclusion
The global growth of PIM software in e-commerce and its adoption by e-commerce managers is a testament to the evolving nature of the industry. As businesses adapt to changing consumer expectations and global expansion, PIM has become an indispensable tool for introducing and maintaining high-quality product experiences and delivering a seamless shopping experience. The increasing adoption of PIM systems is a strategic move that empowers businesses to stay competitive, enrich product listings, and thrive in the ever-expanding e-commerce landscape. In the years to come, PIM tools will continue to be a driving force behind the success of e-commerce businesses worldwide, ensuring that consumers receive accurate, consistent, and up-to-date product descriptions and information regardless of where and how they shop.
PIMinto differs from other PIM solutions. PIMInto is focused on providing the best end-consumer compelling product experiences with direct connectivity to e-commerce platforms with the least coding. Developed by specialists in the e-commerce space who understand the need to effortlessly maintain quality product content while making e-Commerce manager's jobs easier. PIMInto PIM is a convenient and user-friendly tool that does not require IT expertise or the support of large development teams to deliver compelling product experiences, time savings and increased e-commerce sales.
Modified on: 10/27/2023