Product Information Management (PIM) is becoming increasingly crucial for eCommerce businesses globally, and its importance continues to grow. According to AlliedMarketResearch, the global PIM market was valued at $9.90 billion in 2019 and is projected to reach $59.25 billion by 2027, growing at a compound annual growth rate (CAGR) of 25.2% from 2020 to 2027. As your company scales, implementing a sophisticated PIM system ensures you offer the best user experience possible.
Today’s PIM software collects, manages, enriches, and distributes product information across various distribution channels, from your eCommerce storefront to social sales channels, marketplaces, and even advertising networks. Essentially, a PIM acts as a central hub for your product content management, synchronizing it across your tech stack — including your eCommerce platform, ERP, OMS, and other third-party integrations.
The Growing Need For PIM
Scaling your business is an exciting challenge, but it comes with potential pitfalls, especially regarding managing product information. Over time, item numbers, references, catalogs, SKUs, images, videos, translations, localizations, documentation, custom attributes, and more can become difficult to manage.
Once data quality falters, cleaning it up becomes tough. Discrepancies arise, workarounds are implemented, and workflows slow down. Mid-market and enterprise organizations with large, complex product catalogs are particularly at risk as they rapidly add and edit volumes of products across multiple channels.
Complications can arise when managing multiple price lists, geographic locations, languages, currencies, promotions, etc. This can lead to:
- Error-prone and inaccurate product launches or updates.
- Erroneous orders and increased returns, impact the bottom line.
- Inefficient business processes lead to higher costs.
- Increased customer dissatisfaction due to incomplete, out-of-date, or inconsistent data across channels.
- Depleted or overstocked inventory.
- Ineffective product branding and merchandising.
Accurate and consistent product information across channels, including detailed descriptions and high-quality images, is crucial to communicate your products’ value to customers. As you scale, managing more data means that the Excel spreadsheet you used in your early days will no longer suffice. When your back-office systems are in sync, they can manage product details, run targeted marketing campaigns, and expand to new sales channels more effectively.
PIMs Collect Various Types Of Data
PIM solutions can handle more types of product data than you might realize, maintaining a single source of product truth. Types of data typically stored in a PIM include:
1. Media Files: Digital assets like product images, gifs, videos, 3D renderings, or any other media file used to enhance product descriptions.
2. Important Product Information: Detailed descriptions, tech specs, and other relevant data.
These data types won’t all surface in each sales or marketing channel — you choose what works best for each channel.
Important Product Information Management Features
When evaluating potential PIM systems, consider these details to make a complete comparison based on your needs:
1. Product Evolution: How has the product evolved, and what future features and functionality are on the roadmap?
2. Onboarding And Implementation: How easy is the onboarding process? How long does it take? What is the time to market?
3. Integration: How well does the product integrate with its partner network? Are integrations and optimizations pre-built, or will you need a developer?
4. Real-Time Data Sync: Does the data sync in real-time?
5. Limitations: Does the vendor have limitations on sales channels, languages, currencies, or storefronts?
6. Sourcing: How do they source product information? Are they compatible with your product providers?
7. Additional Costs: Will you incur additional costs if you need to tap into multiple manufacturers’ feeds?
Here’s a baseline feature list for comparison when researching PIM systems:
- Integration Platform as a Service (iPaaS)
- Data Modeling, Normalization, and Conversion
- Advanced Merchandising and Search Tools
- Bulk Product Editing
- Advanced Pricing Rules
- Secure Data Backups
- Static Content Scheduling
- Variant Products and Bundled Products
- Multi-language and Multi-Currency Support
- Digital Asset Management (DAM)
- Google Merchant Center Publication
- Custom Product Readiness Status States
- Readiness State Change Events
- Easy-Build Custom Product Attributes
- eCommerce Platform Publication
- Legacy Data Conversion
- Cross Channel Inventory Synchronization
- Enterprise Resource Management (ERP) Integration
- Customer Relationship Management (CRM) Integration
- Shipping and Fulfillment Integration
- Product Feeds and Electronic Data Interchange (EDI)
- Sitemap Generation
- REST API
- Custom API Endpoints
- Third-Party Marketplace Publication
- Live Online Training Sessions
- Order Management Integration
- User Permissions and Roles Settings
- Advanced Pricing Engine
- Smart Categories
- Custom Business Objects
Advantages Of Implementing A PIM
Modern shoppers search extensively for the best deals, making consistent product information across all touchpoints essential. A Statista report highlights that Amazon is the top destination for online shoppers seeking inspiration. Consistent product information across all channels not only improves customer experience but also streamlines back-office operations through data governance, providing advantages like standardized product data and efficient distribution processes.
1. Reduced Manual Data Entry: A PIM reduces manual data entry by importing data from other systems and pushing product information to your eCommerce store and online sales channels. This reduces data entry errors and inconsistencies, and updates sync across all channels and systems.
2. Precise Information: Pulling product data directly from suppliers’ databases minimizes errors and inconsistencies, improving the customer experience and reducing returns.
3. Central Database: With one central database, managing product information is simpler and more efficient. All sales channels source product information from this central location, ensuring consistency.
4. Scalability: A PIM makes scaling your business easier by preventing duplicative work and data inconsistencies. Accurate information across channels saves time and money, supporting business growth.
5. Omnichannel Efficiency: A solid PIM supports omnichannel and multichannel efforts by easily exporting product data to social channels, marketplaces, and more, reinforcing your brand across channels.
6. Improved Marketing Campaigns: Marketing departments can quickly tailor campaigns based on the latest product information from a centralized database, meeting the dynamic demands of omnichannel shopping.
Possible Disadvantages Of Using A PIM
No software is perfect for everyone. Some potential disadvantages of PIM systems include:
- Customization challenges for specific product types.
- A learning curve that could delay implementation and reduce adoption.
- Lack of integration with ERP systems, limiting benefits like accurate inventory counts and sales reporting.
- Poor integrations with existing infrastructure.
- High costs and custom development requirements, create barriers for smaller businesses.
- Despite these disadvantages, understanding your needs and thoroughly researching PIM options can help you find a system that significantly improves back-office operations.
When Does It Make Sense To Implement A PIM?
Organizations benefit from better product data management as they expand globally, support multiple languages and currencies, and sell across marketplaces and social channels. Even with a small number of products, a PIM can be beneficial if those products have many variables or customization options.
Consider implementing a PIM proactively before your systems become strained. If you see issues, a PIM might be worth the investment. Factors to consider include:
- The number of products and the complexity of product information.
- Your roadmap for new product releases or development.
- Improvements you want to make to product information, like enriching descriptions with multimedia or emotional copy.
- Time constraints may affect your ability to focus on the implementation process.
- Current and planned sales channels.
- Business growth projections.
Choosing A PIM
Understanding the advantages of a PIM is one thing; selecting the right one for your business is another. Key questions to ask include:
- Does it integrate with your current systems? Ensure the PIM can integrate seamlessly with your existing systems, acting as a central hub for all product data.
- Is it built to accommodate growth? Choose a scalable solution that can support your business now and in the future.
- Does it support multiple languages? Ensure the PIM can handle multiple languages, maintaining data fidelity across different regions.
The Final Word
If you still view sales channels as separate entities, you may not realize the power of a PIM. Whether you’re a small business not yet leveraging technology or automation, or an expanding company aiming to scale efficiently, a PIM is essential. It reduces manual data entry, ensures accurate product information, and supports omnichannel sales and marketing efforts. Though risks exist, thorough research and understanding your business needs can help you find a PIM that significantly improves your operations.
EnFuse Solutions can help you implement the right PIM solution to optimize your product management and drive growth across all channels. Get in touch with us today to learn more!
Comment