What will you learn from the article?
- What is a PIM system and how does it work?
- What are the main benefits of implementing PIM?
- Who is the PIM system best suited for?
- How does PIM affect product data management in eCommerce?
- What are some examples of practical PIM applications?
- What questions should you ask yourself before choosing a PIM system?
- What types of PIM systems are available on the market?
- What does the future hold for PIM systems in the context of eCommerce development?
PIM (Product Information Management) is one of the key systems in the world of eCommerce, used to manage, organize, and systematize product information. What do you need to know about this system? Why is it so important? Who is PIM implementation suitable for? How can PIM help? We'll try to answer these questions in this article.
What is PIM?
PIM is a system that guarantees, among others:
- Control over product information collected in the system and then distributed to all sales channels (e.g., eCommerce, catalogs). You decide where and what data is transferred.
- Time savings are achieved by collecting and entering data into a single system, which often allows for duplication of effort. Time savings also occur in responding to errors, which often occur when there is a lack of control over information entered in multiple locations.
- security – one of the most important advantages of using PIM is the feeling that data is not scattered and only a strictly defined group of people has access to it
- limiting chaos in the product database – this is one of his most important tasks.
PIM is primarily used for data collection, standardization, and normalization. It can also be used to create personalized product categories and integrate with sales channels. PIM will also be helpful in minimizing errors that can occur when adding thousands of new SKUs, for example. Here, too, PIM proves to be an excellent choice, as it contributes to faster product launches.
Why is PIM so important?
The above lists all the most important tasks facing a PIM system. Why is it so important? Because it combines all the elements that are crucial for businesses – it saves time, reduces the likelihood of errors, and additionally provides control over all collected information. PIM implementation often occurs during the migration phase.
How does the PIM system work?
A PIM system is a tool that should be considered the primary source of product information. Contrary to appearances, its operation is very simple – PIM serves as a central location for storing product data. The system can be integrated with external tools and sales channels.
PIM is where all changes are made, such as modifying descriptions or updating media related to a given SKU. PIM's purpose is to collect all product data (including name, description, category/collection affiliation, tags, labels, icons, photos, and video materials), while also distributing this data to specific sources or sales channels.
Who is PIM for?
Below are five groups for which PIM implementation is particularly dedicated:
– For store owners who have a large product base
Imagine a situation where the number of products in your store is growing month after month. You started with a few dozen SKUs, now it's several thousand, and the database is still growing. To manage all this information and ensure that each product is properly populated with the most important data that helps customers make purchasing decisions, you need a system that will gather everything in one place and serve as the main source of truth about products.
– For store owners who are migrating their eCommerce from one engine to another
In practice, many e-businesses decide to invest in PIM when they're changing their store engine. During migration, they want to switch to a better solution, but also incorporate PIM, which, with a larger product database, is invaluable for data export. When switching to other online store software, they also want to implement an additional system to automate processes.
In the context of migration, it is worth taking into account a number of elements that we mentioned, among others, in this article.
– For shop owners who are thinking about expanding abroad
If you run an online store, have a wide product range, and the next step is to expand into new markets, PIM can be a great solution because it allows you to manage (including translate) products from the main store and its language versions in one place.
– For store owners who receive product information from various sources
It's common for product information to be obtained from multiple sources—for example, we receive data from the manufacturer, the content creator, or the designer responsible for the visuals. In PIM, you can collect this information, and each content provider can have access to it within a scope you define, which in practice limits your involvement. Of course, you can define what information is required to publish a product in your store.
– For store owners who use product information across various sales channels
If you're a business that sells across multiple channels (e.g., online store, brick-and-mortar store, marketplaces), PIM will be crucial for defining what information is contained in specific sources. In practice, completely different data may be sent to eCommerce, while others may end up on Amazon or Allegro.
Examples of using the PIM system
Below are examples of using the PIM system in practice:
- Several sales channels
How do you avoid information chaos when each product sales channel has different guidelines? Imagine selling shoes in your own eCommerce store, on eBay, Allegro, and in brick-and-mortar stores.
Different product data must be delivered to each of these locations. With a PIM system, you can specify which information should be transferred to each source. This way, you can avoid dozens of Excel spreadsheets and ensure that the specified channel contains the required, pre-defined data assigned to a given sales source.
2. Extensive product range
If your product database contains thousands, or even tens of thousands, of SKUs, a PIM system will allow you to enter new data much faster. Multi-actions, for example, allow you to assign a new tag to a specific product group. This tag can be useful in subsequent eCommerce steps, for example, for assigning products to specific customer groups.
Having an extensive product range, managing it on the PIM side will be much more efficient.
3. Complex product data specificity
When your products have complex data – a very extensive description, a product gallery, a specification table, product icons, a Q&A section, work on such products is often entrusted to several people.
With a PIM system in place, your employees will be able to work only on their assigned sections – one will focus on descriptive content, the other on technical specifications. This ensures that data was entered by dedicated, authorized individuals.
4. Selling in multiple markets
If you have been selling for one year and are considering selling abroad, the process of transferring and adjusting products thanks to PIM will be much faster (and therefore less expensive).
PIM will help us gather the required data and translate it into the specified language. PIM will also serve as a source for complete migration from one version to the next.
Benefits of using the PIM system
The benefits of using the PIM system, based on the information provided earlier, include primarily:
- centralization of product information
- control over the posted data
- distributing specified data to specific sales channels
- team work on sections assigned to specific users
- standardization of information about products that customers encounter in various places
- optimized management of information stored in PIM
The benefits of using a PIM system, and their full scope, will ultimately depend on the functionalities implemented within the system. Every e-business is different and poses different challenges for PIM.
Which PIM system should you choose?
Choosing the right tool is crucial. It's crucial to answer several important questions, define your needs, and determine what you expect from a PIM. Particularly important to consider:
- what is the production base?
- What product data do I obtain?
- What is the degree of complexity of the product materials?
- How many channels are used for sales?
- Do I care about granting permissions to different users?
- Should the system have functionalities personalized for me, or will the standard ones suffice?
There are several types of PIM systems available on the market: open source, SaaS, and PaaS. Market leaders include Akeneo , Ergonode , and PimCore . Plytix is also gaining popularity.
The cost of implementing PIM depends on several factors. The key issue is deciding which solution to choose. If we ultimately choose an open-source PIM, we generally have to take into account a more time-consuming implementation phase, which naturally impacts the final cost of the entire project.
The future of the PIM system in eCommerce
There's no doubt that the benefits of implementing PIM are immense. However, it's worth considering what the future holds for PIM in eCommerce, given the current industry conditions.
To answer this question, it's important to consider the overall growth of e-commerce worldwide, as the future of PIM depends largely on it. Based on the report, Worldwide Ecommerce Forecast Update 2022 , Digital Sales Growth Plummets as Overall Retail Returns to Pre-Pandemic Trendlines, the e-commerce industry is expected to reach approximately $6.3 billion in 2023, and by 2026, the figure is estimated to rise to $8.15 billion. The e-commerce market will continue to grow, as indicated not only by the numbers but also by general shopping trends – a shift away from offline shopping.
As the industry grows, buyers' expectations will increase, which will translate into the needs of e-business owners.
Providing relevant and sufficient product data to make purchasing decisions will be crucial. As the industry develops, the needs for systems integrating with e-commerce platforms will increase, including those related to the implementation of PIM systems.
Regardless of the PIM system chosen, it is worth first talking to experts who specialize in implementing a given solution – they, in cooperation with representatives of the selected PIM, will conduct a presentation of the solution and talk about the implementation process.
Summary of the most important information
- PIM is a product information management system that centralizes data and enables its distribution to various sales channels.
- Main advantages of PIM: Time saving, error reduction, data centralization, security, and facilitation of teamwork.
- The PIM system is for store owners with a large product database, in the process of eCommerce migration, thinking about international expansion, using various sources of information and selling through multiple channels.
- Choosing a PIM system: It is important to determine your needs, e.g. number of products, data complexity, number of sales channels.
- Types of PIM systems: Open source, SaaS, PaaS; popular tools include Akeneo, Ergonode, PimCore, Plytix.
- PIM systems will become increasingly important in the context of eCommerce market growth and rising customer expectations.
