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Choosing the Right PIM for Your E-commerce Business
Author name: Anton Koroid
In e-commerce, product information is paramount and customer expectations are continually on the rise, a robust Product Information Management (PIM) system is your business's best ally.
PIM can streamline the management of your product data, making it crucial for your e-commerce success. In this article, we'll explore what PIM entails, why businesses need it, the state of the PIM market in 2023, common PIM pain points, and steps to help you choose the right PIM system for your e-commerce business.
What Does PIM Include?
PIM systems create an environment where e-commerce entrepreneurs can gather, develop, manage, and maintain information about their products from a centralized repository. Such centralization helps digital retailers efficiently exchange data with company websites and e-commerce platforms. PIM is also designed to assist in collecting and managing product data in a dynamic multi-channel market. A PIM system is a comprehensive tool that helps e-commerce businesses manage and organize a multitude of product-related information. It encompasses:
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Key product data. This includes details like Stock Keeping Unit (SKU), Universal Product Code (UPC), names, titles, and descriptions.
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Taxonomy and relationships. Categories, labels, variants, and other related attributes.
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Technical specifications. Information about product sizes, materials, ingredients, warranties, and more.
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Digital assets. Essential media such as images, videos, and documents.
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Marketing data. Keywords, characters, and SEO elements.
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Sales information. Data on prices, customer reviews, and feedback.
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Design specifications. Style tables, designer notes, assembly instructions, and more.
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Channel-specific information. Data is tailored to various platforms, like Google categories, Amazon titles, and mobile device descriptions.
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Localized information. Multilingual copies and translations.
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Production data. Supplier and manufacturer details.
Why Businesses Need PIM?
According to a report by R3 Consulting Partners, companies that choose to implement PIM software can reduce time to market by 400%, increase sales by up to 50%, experience a 23% decrease in returns, and reduce customer inquiries by 27%. In addition to sales growth and significant profit increase, implementing PIM has an immediate impact on your revenue. Just imagine what an efficient PIM can mean for productivity, new product opportunities, potential partnerships, and customer loyalty.
PIM is an invaluable asset for businesses across various industries, but it holds particular significance for retail and manufacturing organizations. Here are some compelling reasons why your e-commerce business should consider implementing a PIM system:
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Managing complex product content. E-commerce businesses deal with intricate product content and relationships that require efficient organization and management.
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Large SKU count. E-commerce platforms often offer a vast array of products that would be overwhelming to manually update. PIM automates this process.
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Multi-channel sales. E-commerce businesses sell their products through various online channels, making it crucial to have a centralized system for product data.
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Multi-channel marketing. Utilizing multiple marketing channels is a standard practice for e-commerce businesses. PIM streamlines this process.
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Data consolidation. PIM systems can gather and consolidate data from various suppliers, ensuring consistency and accuracy.
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Accurate product information. Providing consistent, accurate product information to multiple teams and customers is a key benefit of PIM.
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Reducing manual processes. PIM reduces the need for time-consuming manual updates and corrections.
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Flexible product offerings. E-commerce businesses often need to expand or change their product offerings multiple times a year. PIM simplifies this process.
Retail and Manufacturing
In the retail sector, PIM is used to aggregate and manage product data from inventory management and point-of-sale systems. This integration creates a Single Source of Truth (SSOT) for product data, ensuring consistency across all channels.
Manufacturers benefit from PIM systems by creating an SSOT for their product data. This helps them provide accurate information to customers, suppliers, and distribution channels, enhancing collaboration and data integrity.
PIM Pain Points
Between 2022 and 2030, the global PIM market is expected to experience significant growth. Key players in the global trade and e-commerce industry are actively expanding their PIM implementation strategies. In 2021, the size of the global market is estimated to be $12.6 bn. It is projected that the annual growth rate will reach 12.1% by 2030. By 2027, the market is expected to reach $25 bn. At the same time, the market faces a set of challenges that will shape the development of the technology in the foreseeable future. These include:
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Scattered, manually managed data. Managing product information manually can lead to errors, inconsistencies, and inefficiencies.
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Dispersed teams and technologies. Without a centralized system, teams struggle to collaborate, leading to communication breakdowns and data silos.
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Slow time to market. Manual data management delays product launches, impacting your ability to capitalize on market opportunities.
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Inability to scale. Manual data management becomes unsustainable as your business grows, hindering scalability.
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Poor product impression. Inaccurate or inconsistent product information can result in lost sales, customer dissatisfaction, and high return rates.
Steps to Choose the Proper PIM System
Once the decision to implement a PIM solution is made, it's essential to focus on understanding what is required from the PIM tool. First and foremost, a thorough analysis of software providers in the market will be necessary. Among the next steps to consider are the following:
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Building a team of stakeholders. Gather a team of individuals who understand your business's specific needs and can contribute to the PIM implementation process.
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Defining major goals. Set clear objectives for assessing and implementing the PIM system. These goals should include creating an omnichannel customer experience, responding quickly to new markets and channels, and optimizing internal operations.
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Identifying necessary features. Determine the essential features you need, including centralizing, systematizing, and optimizing product information, localizing and contextualizing data, empowering product data governance, ensuring user-friendliness, and streamlining internal operations.
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Selecting the right PIM vendor. Choose a vendor who offers a cloud-based and composable solution, aligned with the latest industry standards.
The provider who can offer the most advanced technology becomes of paramount importance. The PIMinto brand provides extensive scalability while significantly reducing costs through the utilization of cutting-edge cloud technologies.
PIMinto is a comprehensive product information management platform designed to grow with your small, large, or medium-sized business, offering a reliable set of features that evolve with your needs. PIMinto simplifies product data exchange across multiple platforms through a wide range of export options and customizable rules. It's the ideal solution for effective product information management tailored to the unique needs of any business.
Conclusion
In the fast-paced world of e-commerce, staying ahead of the competition requires efficient product information management. By understanding what PIM entails, recognizing its importance for your business, and taking the right steps to select the appropriate system, you can enhance your e-commerce business's success and ensure a seamless customer experience. Invest in the right PIM system, and you'll be well-equipped to navigate the dynamic e-commerce landscape.
Modified on: 11/05/2023