What does PIM stand for? How does it work? How does it help me increase sales conversions of my eCommerce store?
Any eCommerce store striving for growth asks these questions.
Here is one reason why you need PIM.
According to reports by NARVAR, 89% of people return their online purchase to the vendor. 45% of the time, people replaced the product for two reasons: they received the wrong product or did not match the website’s product description. The reason for this is the incorrect product information.
Sales and product information is the lifeblood of any eCommerce platform. But it won’t be wrong to say that incorrect product information can result in higher instances of returns or order cancellations, leading to a bad experience with your eCommerce platform. It drives stakes into the very heart of the platform’s existence, finally causing a dip in sales.
So, PIM becomes an integral part of an eCommerce platform. This blog, as you read on, will shed light on the various question in your mind like:
- What does PIM do for an eCommerce store?
- What is PIM software?
- How does PIM software work?
- How does PIM drive sales conversions?
What does PIM do for an eCommerce store?
Here is the answer to what does PIM stand for in eCommerce.
In eCommerce, PIM means Product Information Management.
Product Information Management(PIM), by definition, is the process that takes care of all the product-related data and information required to sell and market a product over an eCommerce platform.
PIM makes it easier for eCommerce platforms to ensure data quality, maintenance, and distribution across online and offline channels.
What is PIM software?
PIM software is a system that automates the labor-intensive product information management process. The PIM software ensures that all information and data related to products on an eCommerce platform stays in the system untampered and hygienic.
The PIM software checks your data standards to conform to all the established norms across all the distribution channels like CSEs, marketplaces, eCommerce platforms, brand portals, product sheets, and datasheets.
The PIM software makes you efficient. With PIM software in place, a tap of a button can make the changes in your product information resonate across all the channels mentioned earlier.
You don’t have to scan across individual channels and waste your time. One tap, and you are all done with making changes across all channels. It becomes your single source of truth.
Your customers, irrespective of where they are, will always see what they expect to see.
Below are some of the key features most PIM products have:
- Custom API for Product content syndication.
- Automated data transformations as per sales channels needs.
- Have software ecosystem integrations to streamline operations.
- Has a data validation system to uphold the product content quality.
- The multi-tenant architecture with individual user-level access control for better management.
- Content creation, enrichment, and manage multiple variations of product information.
- Have automated data exchange for electronic document transfer.
- Content standardization for simple content exchange.
Now, it’s time we found out how PIM works.
How does a PIM work?
Have you ever wondered how product information management (PIM) software works?
A PIM software has 5 Basic functions to perform:
- Data Ingestion
- Data Transformation
- Data Distribution
- Workflow Management
- Digital Asset Management
Data Ingestion receives data information from multiple sources like vendors, suppliers, and other parties. To maintains the data quality and format the raw data into meaningful product information as per the need of business channels, eCommerce stores need to keep a single source of truth for this fragmented data.
Data transformation manages the bulk data and product properties. It takes care of any inadequacies in the product information and creates filters. It also has access levels for various users based on their roles to manage the data’s sanctity even better.
The data distribution system is the only connection between products and various distribution channels like CSEs, marketplaces, eCommerce platforms, brand portals, product sheets, and aggregators. This system manages and keeps track of all the information shared across platforms that meet the requirements without error.
Workflow management helps in recording various events and what actions eCommerce platforms can take based on those events. Workflows help automate multiple menial tasks, which saves time, effort and helps focus on essential tasks.
Digital Asset Management
Digital asset management aids in storage and manning the bulk media required in the eCommerce platform’s smoother functioning. It does so effectively by associating media to correct descriptions and providing various other tools to edit the media.
Now you have learned most about the what does PIM stand for, PIM software, and how the PIM software works. However, one question remains unanswered, i.e., how does it contribute to the sales conversions of the eCommerce platform.
How does PIM drive sales conversions?
Contributing to revenue is the critical ROI of PIM software. A PIM software contributes in three ways:
- Improve Conversions
- Reduce Returns
- Simplify Product Portfolio Expansion
Customers demand an immersive buying experience while making a purchase online. Detailed product information with excellent media quality and personalized content at every point of interaction on the website increases immersion into the buying experience. PIM software delivers all this at a blazing fast pace effortlessly.
Thus, making a sales experience worth remembering and sharing. This referral traffic converts far better than your initial traffic and increases your overall sales conversions.
Accurate product information and highly detailed images increase customers’ confidence in buying a product from the eCommerce platform. It sets the right expectations in terms of product quality and its appearance. It reduces losses due to product returns and minimizes awful user experience.With steady return rates, it becomes easier for the eCommerce platform to plan restocking items, reduce processing cost and return rates.
Simplify Product Portfolio Expansion
PIM is the single source of truth for all distribution channels. It is the single place where we store all content related to old and new products. You won’t have to go to each location to change product information. It makes editing existing product information and adding new products a hassle-free process. It speeds up the product portfolio expansion process.
Taking a new product to the market is now faster and easier with PIM software in place.
Now that we have answered, What does PIM stand for, how it works, and how can it help you generate more revenue? It’s time for you to decide to go on a journey with us or learn more about PIM.