PIM system: What it is and how it powers your eCommerce

A PIM system is the perfect solution for the development of marketing strategies, dissemination and expansion in digital channels ceases to be a major challenge in the eCommerce world.

E-commerce and B2B companies need to find an efficient method for managing and distributing your product information to customers and partners. A PIM allows them to keep all their product information updated and synchronized on each of their commercial platforms.

A while ago, we analyze the complexity of the industrial sector and we understood that many companies, wanting to automate processes, synchronize data and minimize human errors during the management of their product information, face different obstacles: catalogs with thousands of references, a wide variety of products and features, complex models of relationships with suppliers, and others. Is that your case? We explain how to break down such obstacles.

What is the PIM system?

A PIM system, also known as Product Information Management, is a software that allows you to store, manage and update all the information about the products in your e-commerce From the same place, such as:

• Images
• Descriptions
• Technical details
• Videos
• Categories
• Languages
• SKU (Stock-keeping unit) data
• Prices and different types of currencies
• Models and references

In addition to other elements needed to feed product catalogs, websites, Marketplaces, as well as other marketing and sales tools.

El glamour of a PIM is in the ease of distribution of information; it's like a time machine that allows you to travel to different channels and formats, displaying your product data in the best way, adjusting them to each platform and market. This will allow you to ensure accuracy, at every touchpoint and stage of the sales process.

In addition, the easy integration of your ERP; your company's internal resource management system, with a PIM solution, streamlines and optimizes product inventory tracking.

Investing in a PIM system It can bring important management advantages. Among the main ones, we can highlight:

• It improves the efficiency of business processes by reducing the time needed to manage product data.
• It increases the accuracy, consistency and quality of product information, avoiding errors and redundancies.
• Optimizes product time to market, allowing you to launch new products to the market faster and more efficiently.
• It improves the customer experience by providing detailed and accurate product information.
• It generates trust in relationships with customers, facilitating their purchasing decisions.

E-commerce companies increasingly recognize the benefits of a PIM system, and the development of this solution stops growing and innovating. In fact, a study by Allied Market Research, states that the PIM solution in the global market was valued at 9.90 billion dollars in 2019 and forecasts a reach of 59.25 billion dollars in 2027, thus growing by 25.2% in CAGR, and of course, significantly increasing its demand and need in e-commerce processes.

It is important to note that there are different types of PIM systems on the market, such as SaaS PIMs hosted in the cloud and accessible online, and on-premise PIMs installed locally on company devices. The choice will depend on the needs of your company and the provider you choose.

What type of company needs a PIM?

Any company that sells products online can benefit from a PIM system. The truth is that some companies need it more than others.

Generally, PIM systems are used in B2B businesses; by wholesalers and manufacturers, which offer a wide range of products in different channels and markets. However, many companies that benefit from this powerful solution don't necessarily fall into these two categories.

To help you understand how a PIM fits into your marketing strategy, we explain the business features that require this solution.

Large number of products and SKUs

For companies that manage thousands of products, achieve a 360º overview of all product information it's incredibly valuable. This is where a PIM system is essential, as it manages to manage the information of each product efficiently. In addition, it facilitates its distribution to different channels, all from the same platform.

Complexity: Variety of attributes

A PIM system simplify and centralize all your product data, helping you make better business decisions, work faster and achieve more in the same period of time. For companies with complex product information, this system is even more useful.

What makes product information complex? Variety and we don't just mean the number of products in the inventory.

If your products have different features; like size or color, it increases its complexity. As well as if there are different elements that accompany each product; such as attached digital assets or special categories.

The more varied your product information, the more difficult it will be to keep everything under control; a “Product Information Management” (PIM) eliminates such difficulty.

Distribution and customization

PIM systems are especially useful for companies that sell products through multiple online channels: eCommerce, retail outlets and distributors.

It's the Common thread that runs through marketing and sales, as well as the supply chain and services. Incorporate and manage product information which is dispersed among several manufacturers, suppliers and departments, to establish a single holistic data ecosystem.

By having all your product information in one place, it will be easier for you to update it, in addition to customize it depending on the channel and the market, you will save time, effort, and the cost of generating, storing, managing and publishing the data for each product.

It is the engine that drives the omnichannel commerce success; improve the accuracy and consistency of the information presented to your customers, optimizing their experience and motivating their purchase intention, thus increasing your online income.

Selling in different languages

If you offer products internationally, you'll know that it's key display your product information in local languages and comply with regulations of each market. You'll also know how challenging this process can be, especially if you have to manage dozens of languages and countries.

A PIM helps you manage product translations and adapt their distribution to different channels and markets.

Data exchange with partners

A PIM centralizes all product information, thanks to this the company can establish clear structures for working with third parties, for efficient and agile management of information flow. Communication will be clearer; from manufacturers to distributors and vice versa.

How to know if you need a PIM system

If you still have questions, we have prepared an easy and quick method to determine if a PIM solution could add value to your company, it's about answering 8 key questions. If your answer is “yes” to any of the questions, it's a sign! Your company could probably use a PIM system:

1. Does your team spend a lot of time manipulating large amounts of product data?
2. Do you regularly update your product catalog?
3. Is your eCommerce in different languages?
4. Is product information scattered across different departments of the organization?
5. Do you want to improve the shopping experience for your customers?
6. In your product catalog, do you customize information or elements depending on the market?
7. Is product information stored in different formats and channels?
8. Do you want to launch an omnichannel strategy to boost sales?

What should I consider before investing in a PIM

You may already know if your company needs a PIM system or not. But before you choose, we invite you to consider some key aspects.

The ease of integration

Before investing in a PIM, it's essential verify their ability to integrate with other systems, such as: ERP, CRM, CMS, marketing tools, and others.

This aspect is vital, as it can be the riskiest factor in an IT project and the cause of increased costs. So Make sure you are clear about the linked systems and processes to your business strategy.

An effective PIM system should support and improve your current processes, not change them completely.

Your Business Needs

It's important to identify the needs of your business strategy, as well as the specific actions and the level of complexity of your products. Many companies end up with a solution that is too complex and paying more than they actually need.

If you have simple products with few variants and you sell through a limited number of channels, a simple PIM system will suffice. But if you have a wide range of products with numerous variants, you sell through multiple channels, with customized catalogs and to different markets, you will probably need a more robust PIM system that can handle detailed information and integrate with external databases and systems.

Fully understanding each of your business needs will allow you to meet them and find the right PIM solution.

The ease of use

It's useless to have a sophisticated system if no one in the company knows how to use it. Bet on a PIM with an intuitive interface, providing an optimal and efficient experience for your work team, as well as for your clients and partners.

Support and assistance

Avoid inconveniences and get a positive return on investment choosing the right supplier or partner.

It is important to keep in mind that level of support and assistance provide the provider of the PIM system and how you can contact the team if problems arise.

If you want to have a smooth implementation process, look for a partner that offers a PIM system that can integrate with your other IT systems without compromising the security or quality of your data.

It's very important that you can collaborate seamlessly with your external systems, vendors and market channels.

Scalability and security

Scalability is a key aspect to consider before investing in a PIM system, especially if your company plans to grow or expand in the future. This will increase the volume and complexity of your products, probably also your sales channels.

Scalability refers to the system's ability to handle a larger volume of products, users, and features without degrading system performance.

In the market you will find different PIM solutions, don't be guided only by their economic value, Evaluate your functional capacity. But even more important: Always think about the future of your business. A PIM is a long-term investment, choose a scalable solution that adapts to changes in your business.

Avoid risks and wasted time! Having a PIM that can't sustain your growth will undoubtedly affect your return on investment and you'll have to start over with a different system.

As you may have already noticed, a PIM system allows you to serve all parties involved in the online business process: prospects, customers, suppliers, producers and distributors, in different markets and channels. Publish the right information, to the ideal recipient, on the channel and at the right time.

If you are going to invest in a PIM system, Remember to choose the ideal supplier, the one that will cover all your business needs, now and in the future. After choosing, start structuring the action plan for implementing this solution in your business and to check all its benefits.

Finally, we invite you to download our guide to the first steps in a PIM system and if you need help implementing this solution, don't hesitate to contact us.