Product Information Workflow: How to Streamline for E-commerce
Listen to a summary of this article, powered by NotebookLM:
- E-commerce businesses face product information workflow challenges like data silos, manual processes, and lack of version control.
- Using ERP systems alone has limitations for managing detailed product information across multiple channels.
- Implementing a unified PIM and DAM solution creates a cohesive workflow.
Share This Article:
In this Article
Why does product information matter for eCommerce?
Product information is a valuable resource for e-commerce businesses. Yet, creating and managing it is more complex than you might expect. This challenge was recently highlighted in an exchange on Reddit, where a user questioned the practice of creating product information on e-commerce sites and then importing it into an ERP.
The original poster (OP) argued that since products can be sold through various channels, creating them in the ERP system would make more sense. Other users echoed this sentiment, emphasizing that if a product doesn’t exist in the ERP, it doesn’t matter if it exists on the eCommerce site because the rest of the business can’t fulfill it. Another user suggested that choosing the two approaches depends on the industry and the specific business.
What really is the issue here? Observing the exchange keenly reveals that the users face a product information workflow challenge. In other words, what is the most effective strategy for product information management across multiple e-commerce channels?
One user captured the short answer to this question aptly. The user said: “No ERP is a PIM!” As expected, the discussion ended with a consensus that the OP should obtain a PIM.
So, what makes a PIM the tool for the correct workflow? This article provides the answers, starting with an explanation of product information workflow in e-commerce.
Understanding Product Information Workflow
The main issue in the Reddit exchange is the proper workflow for creating products for online selling. The best way to unpack this issue is to begin by understanding the basics: product information workflow.
What is product information workflow?
Product information workflow is the series of steps involved in collecting, managing, enriching, and distributing product data across various channels and platforms. It encompasses all the processes that ensure product information is accurate, consistent, and up-to-date, from the initial creation to its final presentation to customers.
A typical workflow involves the following steps:
- Data creation: This involves sourcing and aggregating product details, such as descriptions, specifications, pricing, images, etc., from various internal and external sources.
- Data enrichment: Collected product data is cleansed, standardized, categorized, translated, and enhanced with additional attributes, tags, and metadata to meet business requirements.
- Data management: The enriched product information is stored in a centrally managed repository. This master repository allows versioning and governing the information to enforce the desired level of accuracy and completeness.
- Data syndication: Once ready, product data is published and distributed to different sales channels, such as e-commerce sites, marketplaces, and catalogs.
Why is a well-defined workflow critical?
Creating products for your online shop never follows a linear path. Instead, you’ll regularly switch between the “system of record” and the online store. This happens mainly because data is constantly being refined and updated.
The challenges compound when the process involves multiple stakeholders, from product managers and marketers to IT specialists and sales teams. Each stakeholder ensures product information flows smoothly through the system, meeting the business’ and customers’ needs.
Customers demand detailed product information and avoid those who can’t meet this need. According to a Digital E-Commerce 360 survey titled The Shopper Speaks Report, product descriptions topped the list of the necessary information on e-commerce sites. However, the catch is that customers want the descriptions to provide granular details of the product and that the information must present the actual characteristics of the item on sale.
In other words, brands must find ways to overcome the complexity of product information workflows to provide product data that attracts shoppers. This means creating a well-defined workflow.
To emphasize why your product information workflow must be streamlined, here’s a table outlining the negative consequences of a disjointed workflow and the positive impact of a streamlined approach.
The Impact of workflows
Impact of disjointed workflow | Impact of streamlined workflow |
Inconsistencies and errors arise from scattered product information across spreadsheets and internal systems. | Improved data accuracy and consistency. |
A disjointed workflow often involves manual data entry and updates across multiple systems, which can be a colossal waste of time and resources. | Increased efficiency and productivity |
Inaccurate or incomplete product information frustrates shoppers. | Customers enjoy the shopping experience because they can make purchase decisions quickly. |
Difficulty launching new products | Faster time-to-market for new products |
The Challenges in Product Information Workflow
Despite the numerous benefits of a well-defined product information workflow, achieving it is often easier said than done. Brands have to surmount multiple headwinds to reach the desired level of operational efficiency. These challenges range from technical hurdles to organizational complexities, and addressing them is crucial to optimizing the product information lifecycle.
However, before we discuss these challenges in detail, let’s examine how a typical unoptimized product information workflow unfolds.
An illustration of an inefficient product information workflow
A power tools manufacturer is facing a product information management nightmare. Their current workflow looks something like this:
The company first creates new products, like the “Thunderbolt Hammer Drill” or the “Cyclone Saw,” within their Shopify store. The product team enters basic information here, such as product names, descriptions, and prices. This is also the platform where customers place orders online.
Then, this product data is supposed to be exported to their NetSuite ERP system, which handles inventory, orders, and fulfillment. However, this process often has delays and errors. Also, there have been instances where products exist in the store but are missing from the ERP system.
The product story doesn’t end there. High-resolution images of the Thunderbolt Hammer Drill in action and detailed user manuals are stored separately in various folders across Google Drive and Dropbox. These assets are essential for marketing and customer support but are disconnected from the core product data.
The engineering team maintains technical specifications for each tool – voltage, RPM, torque, etc. – in spreadsheets. These spreadsheets are the go-to source for technical details but are not integrated with the rest of the product information.
To make matters worse, the company sells its products on other platforms besides Shopify. The Shopify store focuses on the direct-to-consumer (DTC) strategy. In-store sales are also available at their retail locations and partner stores, as well as wholesale orders from distributors and contractors.
This workflow defines inefficiency and surfaces multiple challenges, which we will discuss shortly.
1. Data silos
Creating products without a robust system fragments the workflow. In the case of the company in the previous illustration, critical product information is split across multiple systems: product details reside in Shopify, inventory data in NetSuite, digital assets in cloud drives, and technical specifications in spreadsheets.
This fragmentation creates a disjointed workflow where information is inaccessible or synchronized. For instance, when a customer orders the Thunderbolt Hammer Drill on the e-commerce site, the inventory in NetSuite might only reflect the sale after a while, leading to overselling and customer dissatisfaction. Similarly, the marketing team might struggle to find the latest product images or specifications, causing campaign delays and potentially missing out on sales opportunities.
Data silos also make it challenging to maintain data consistency. The product description of the Thunderbolt Hammer Drill might vary slightly between Shopify and NetSuite, creating confusion for customers and internal teams alike. This absence of a single source of truth creates opportunities for errors, delays, and decreased overall efficiency.
This challenge has consequences that could collapse the business. For example, inconsistent product information across different sales channels confuses customers and erodes trust. If a customer sees a different price for a saw on the website compared to the in-store POS system, it can lead to frustration and potentially lost sales.
2. Manual processes
If your workflow involves creating products in the e-commerce store first, it involves much manual work. For instance, you might hire a data entry contractor to type the descriptions and specifications into the store manually. This information must then be manually uploaded to the system of record, be it an ERP system or a series of spreadsheets.
This picture has debilitating flaws. First, manual processes often suffer errors and delays, which can cause problems with inventory management, order fulfillment, and customer service. Second, manual processes limit scalability. As the business grows and the product catalog expands, creating and managing information becomes increasingly challenging. The expenses also grow exponentially if you rely on contractors for data entry.
3. Lack of version control
Without proper version control, tracking changes made to product data becomes challenging. In the case of the company in the illustration, the fragmented approach to managing product information exacerbates the version control issue. Teams cannot maintain a clear audit trail of changes made to product details.
For instance, when the engineering team updates a product’s technical specifications in a spreadsheet, there may be no systematic way to communicate or synchronize those changes with the corresponding product records in the store’s catalog or ERP system. As a result, different channels may display conflicting information, which creates confusion for shoppers.
Furthermore, suppose the company relies on contractors to enter data into the e-commerce site. The company cannot track changes, let alone automate the process. How will they know who made specific changes, when they were made, and what information was modified? This lack of visibility undermines collaboration, leads to redundant efforts, and makes it difficult to pinpoint the source of inconsistencies or errors.
The consequences of poor version control extend beyond just inconsistencies. It can also impact regulatory compliance, as businesses may struggle to provide auditable records of product information changes, potentially exposing them to legal risks or fines.
Moreover, as the company introduces new products or updates existing ones, the lack of version control can slow down the time to market. Teams may spend valuable time reconciling conflicting information or manually updating multiple systems rather than focusing on more strategic initiatives.
ERP and E-Commerce: The Traditional Approach
In the Reddit exchange cited earlier, some users agreed that the best way to handle a product information workflow is to start from the Enterprise Resource Planning (ERP) system and then export to the e-commerce site. But as we know, there was a strong suggestion that an ERP is not a product information management (PIM) tool.
However, let’s set aside the PIM tool and examine how the workflow looks when the ERP is the system of record. After all, some companies likely have a similar setup. So, learning about it and its challenges is crucial to creating the perfect workflow.
How are ERP systems used in e-commerce?
A typical business has two systems for product information management or other processes. The first set is the technology and processes that comprise the backbone of business operations. These are the backend systems and internal processes that ensure, for example, product data flows seamlessly from one end to the other. The second set is the technologies and processes that make product information customer-facing.
Inventory management systems, such as ERPs, are the main backend technologies. ERP systems manage core processes like finance, inventory, and order fulfillment. In e-commerce, they are a potential solution for streamlining product information workflows. The rationale is simple: since ERPs are the central repository for product data like SKUs, pricing, and inventory levels, why not use them as the starting point for product information management?
In this approach, you create new products within the ERP system and then export this information to the e-commerce platform. This approach typically follows a specific workflow:
- Product creation: Designated teams or departments enter new product information into the ERP system.
- Data management: The ERP system consolidates core product details in one place, allowing businesses to avoid the pitfalls of walled data elements. This makes it easier to maintain data accuracy and consistency.
- Data integration: Businesses can connect ERP systems with their online shops. This integration allows them to export product information when it is ready for publishing.
- Order processing: When customers place orders on the e-commerce site, the information is synchronized to the ERP system for inventory management, fulfillment, and other related processes.
The rationale behind this approach is that ERP systems are designed to be robust, scalable, and capable of handling large volumes of data. But while this solution seems logical, ERP systems are not robust product information management systems.
Limitations of using ERP for product information management
ERPs’ first and most crucial limitation is that they were designed for internal use. They store and manage data primarily for logistical purposes. This information is often foundational and can be illegible to outsiders.
Secondly, the product data creation process in the ERP skips very critical steps, such as enrichment, which helps to make the details customer-facing. In other words, the systems do not care about the customer, which means they cannot be used for product information management tasks.
ERP systems may not be ideal for internal product information management either. Product information management requires input and collaboration from various teams, including product managers, marketers, content creators, and subject matter experts. However, ERP systems are not designed with collaboration in mind, making it difficult for cross-functional teams to work together seamlessly on product data. This can fragment data and create communication gaps and inefficiencies in the product information workflow.
Furthermore, ERPs are not optimized for multichannel distribution. They may be unable to easily format and export product data to different e-commerce platforms, marketplaces, or marketing channels. This can result in manual workarounds, increasing the risk of errors and inconsistencies.
While ERPs are excellent for managing operational data, they need more specialized features and flexibility for effective product information management.
So, if ERPs are not the tool you should be looking for to create a cohesive workflow, what next? The answer lies in dedicated PIM and DAM software.
PIM and DAM are the Perfect Tools for a Cohesive Product Information Workflow
What is PIM software?
A PIM centralizes all product-related data. It pulls details from inventory management systems, including ERPs and spreadsheets, creating a single source of truth. Unlike an ERP system that only stores product details helpful for internal teams, a PIM is specifically designed to centralize, manage, and distribute product information across multiple channels and systems.
PIM platforms are built with robust capabilities for:
- Consolidating product data from various sources into a centralized repository
- Enriching product information with additional attributes, tags, etc.
- Enabling collaboration and workflow management among cross-functional teams
- Ensuring data quality, consistency, and governance through validation rules and approval processes
- Syndicating finalized product information to multiple sales channels (e-commerce, catalogs, marketplaces)
What is DAM software?
While PIM focuses on managing structured product data, digital asset management (DAM) software specializes in organizing and distributing files and documents related to the products. It provides features for:
- Organizing and storing digital assets in a centralized location.
- Metadata management and tagging for efficient asset discovery and retrieval.
- Version control to ensure you're using the latest and approved assets.
- Asset editing and optimization tools.
How PIM and DAM address the limitations of ERP
PIM and DAM are built explicitly for creating products, managing the details and related assets, and syndicating them to channels, which means they are a step ahead of ERP systems. PIM and DAM platforms take scalability a notch higher: they offer extensive fields and capabilities for managing core product details and rich media. With these two as the backend, you can create compelling product pages that resonate with customers and drive conversions.
Also, most robust PIM solutions have robust collaboration tools, such as version control, commenting, and approval workflows. This enables teams to work seamlessly on product data, ensuring accuracy, consistency, and timely updates.
Additionally, PIM platforms are handy for merchants with multiple sales channels. They offer tools to easily format and export product data to various platforms, marketplaces, and channels. Those who choose a solution like Catsy and run Shopify storefronts have much more to love about PIM software. Catsy’s PIM connects to up to five Shopify stores, allowing you to centrally manage product information for multiple stores, a capability Shopify doesn’t provide.
DAM systems complement PIM software, centralizing digital assets. This ensures that images, videos, and other media are organized, easily accessible, and correctly linked to product records in the PIM, streamlining the process of creating visually appealing and informative product pages.
Unlike ERP, PIM and DAM allow you to enrich product data. In the PIM, you can provide additional information, such as customer reviews, ratings, and related products, and add metatags and alt-text to the files and documents in the DAM. The result is more comprehensive information and enhances the customer experience.
Final Thoughts
PIM and DAM software are ideal tools for streamlining and optimizing the product information workflow in e-commerce. However, their true potential is unlocked when their functionalities are integrated into a unified platform.
Imagine a single, centralized solution that handles every aspect of the product information lifecycle – from creating detailed product descriptions and specifications to managing and distributing associated digital assets. With a unified PIM and DAM platform, businesses can enjoy the full range of capabilities under one software license without needing multiple disjointed systems.
Such a unified approach eliminates data silos, reduces redundancies, and promotes cross-functional collaboration like never before. Teams can work together seamlessly, with consistent and up-to-date product information and assets accessible from a single source of truth. This enhances operational efficiency and ensures data accuracy, consistency, and governance across all channels.
Furthermore, a unified PIM and DAM solution streamlines the entire product content creation and distribution process. From initial data entry and enrichment to final syndication across multiple touchpoints, businesses can manage every step within a single, integrated platform. This level of control and visibility enables faster time to market, enabling businesses to adapt quickly to changing market demands and customer expectations.
A unified PIM and DAM solution is the most convenient tool for creating products for your e-commerce site and a competitive advantage.
FAQs
A robust product information workflow offers several critical benefits to e-commerce businesses. Firstly, it ensures data consistency and accuracy across all sales channels, fostering customer trust and satisfaction. Secondly, it enhances operational efficiency by eliminating redundant efforts, automating processes, and promoting cross-functional collaboration. Additionally, a streamlined workflow accelerates time-to-market, enabling businesses to respond rapidly to market demands. Furthermore, it facilitates data governance and compliance, ensuring product information adheres to relevant regulations and industry standards. Ultimately, an optimized workflow delivers a seamless omnichannel experience, strengthening brand loyalty and driving revenue growth.
While ERP and PIM systems handle product data, they serve distinct purposes. ERPs primarily focus on operational aspects, such as inventory management, order processing, and financial tracking. They provide a central repository for core product data like SKUs, pricing, and stock levels. However, they lack the specialized capabilities to manage rich, customer-facing product content, such as detailed descriptions, specifications, and digital assets.
PIMs, on the other hand, are specifically designed to manage and enrich product information. They offer a wide range of features for handling detailed product descriptions, marketing copy, technical specifications, digital assets, and more. PIMs excel at organizing and optimizing product data for multi-channel distribution, ensuring consistency and accuracy across various platforms and marketplaces.
ERPs are fantastic for managing inventory, order processing, and other back-office functions. However, they need more capabilities for comprehensive product information management in e-commerce. Here’s why:
- Limited features: ERPs may not offer the detailed fields needed for rich product descriptions, extensive specifications, or managing various digital assets.
- Focus on transactions: ERPs are built to process transactions, not to create compelling product content for online sales.
- Data silos persist: Even when used for e-commerce, ERPs can create data silos. Product information might still need to be updated in separate marketing or customer service systems.
A specialized PIM system bridges this gap, offering the necessary functionalities to create a robust product information foundation for your e-commerce success.
While PIM focuses on managing structured product data, DAM software organizes and distributes rich media assets like images, videos, and documents. Businesses can establish a cohesive and streamlined product information workflow by implementing PIM and DAM as a unit. PIM manages the core product data, while DAM handles the associated rich media assets, ensuring consistency and efficiency across all product content operations. DAM solutions offer capabilities like central asset repositories, metadata management, version control, workflow management for creative processes, and distribution of digital assets across various marketing and sales channels.
It offers the following benefits. First, it ensures that all product data is accurate and consistent across all channels, which enhances the customer experience and builds trust. Second, it streamlines managing and updating product information, reducing the time and effort required for data entry and maintenance. Third, it improves collaboration among different teams, leading to more efficient and coordinated efforts in managing product information. Additionally, a cohesive workflow allows businesses to respond more quickly to market changes and customer demands, improving agility and competitiveness.
