Magento offers significant benefits to store owners, especially thanks to its open source code that allows for extensive customization. This feature is especially important in B2B commerce, where companies have unique needs such as custom pricing, bulk ordering, order creation capabilities, and ERP integration.
Magento comes in two versions: Magento Community and Adobe Commerce. Magento Community is open source and supported by an active community of nearly half a million members, over 4,400 extensions, and continuous innovation by users.
However, the nature of open source can also create challenges that require investing in specialized partners to support development, design optimal user experiences, and host the website on the optimized infrastructure.
Product Information Management (PIM)
A PIM platform offers three main benefits:
- Centralized Source of Truth: It acts as the definitive source of product information within organizations.
- Enhanced Information Quality: It facilitates role-based workflows, descriptions, and quality analysis mechanisms to improve data accuracy.
- Data Syndication: It allows data syndication to e-commerce platforms like Magento, as well as to Amazon, ERPs, and eProcurement platforms.
When Is a PIM Worth It for a Magento Store Owner?
For small businesses, using Magento as a product information repository may be sufficient, especially if multi-channel operations and data integration between suppliers are not common. However, as a company grows, investments in PIM typically require three scenarios:
- High Volume of Product Data: Managing large amounts of data becomes cumbersome without a PIM.
- Inaccuracies in Product Data: Discrepancies in data across departments require a centralized system.
- Partner Data Integration: Receiving product data from partners necessitates a streamlined approach.
One example is the manufacturer-distributor relationship. For example, a component manufacturer must provide accurate specifications, such as voltage and diameter, so that distributors can use their tools effectively. Another situation occurs when a company wants to move to an omnichannel approach and sell on platforms such as Amazon or Home Depot. Harris Web Works has developed powerful solutions to meet these needs.
Data Accuracy, Consistency, and Efficiency for the business
PIM improves data accuracy and consistency, saves time, and reduces errors, increasing efficiency. Efficiency encompasses many different aspects of business operations, from automating data entry to creating API integrations that expedite branded attire production.
Teamwork is another aspect of efficiency. When managing product information, different departments (e.g. engineering, marketing, operations) have unique data requirements. PIM promotes seamless collaboration by allowing each department to contribute effectively.
Time to know more about their B2B commerce services: Our partner and co-writer of this article, Harris Web Works, has developed proprietary technology in Magento to aggregate data from multiple sites, as well as other marketplaces such as Amazon and Supply House. This allows businesses to efficiently manage multiple websites and e-commerce platforms, ensuring faster time-to-market for e-commerce orders.
ROI of PIM and Magento
The open nature of Magento helps control costs and ensures compatibility with existing systems, minimizing additional software investments. You can see an immediate increase in team efficiency and productivity, with increased efficiency achieved within the first year, depending on training and education.
Revenue gains come from leveraging multi-channel marketplaces and multiple websites, increasing customer acquisition and lifetime value (LTV). Retaining customers through improved service and experience, facilitated by a PIM and Magento's user interface, also contributes to ROI. Finally, enhanced customer satisfaction leads to recommendations, creating a growth flywheel effect.
The Future of PIM Technology
First, there is a generational shift. Baby Boomers and Millennials interact with businesses differently. Baby Boomers value networking and face-to-face interactions, while Millennials prefer digital and mobile communication. Businesses need to understand their customers because the new generation represents a larger share of the market.
Broader technological changes are also affecting business. We are moving from Industry 3.0, which focuses on the digitalization of product data and cloud infrastructure, to Industry 4.0, which includes augmented reality and artificial intelligence. PIM and cloud ERP are important elements of Industry 3.0 technology. Once implemented, businesses will benefit from the achievements of Industry 4.0. Businesses that actively use digital technology, using cloud ERP systems, PIM systems, and modern e-commerce platforms like Magento will be better prepared to use artificial intelligence and other technologies in the future.
Harris Web Works specializes in B2B eCommerce solutions and provides scalable, customizable systems that improve the online shopping experience for manufacturers and distributors. Their services include ERP integration, order management, back-office tools, and analytics. Headquartered in Woodbridge, Connecticut, they are a valued partner in the B2B commerce industry.
Conclusion
Integrating PIM with Magento is a strategic step for businesses looking to improve data management, operational efficiency, and customer satisfaction. Investing in PIM becomes critical as businesses scale, requiring accurate, consistent, and centralized product information to manage large volumes of data and complex omnichannel operations. The ROI of integrating PIM with Magento is seen in cost control, increased efficiency, and higher revenue through improved customer retention and acquisition. As technology advances, businesses must keep up with digitization to effectively drive future growth.
