A successful online shopping experience hinges on the quality of product information available to consumers. High-quality images, detailed descriptions, specifications, and customer reviews form the foundation of a customer's decision-making process. Product information management (PIM) software ensures that all this information is accurate, consistent, and up-to-date across all platforms. This uniformity is crucial because inconsistencies can lead to confusion, distrust, and ultimately, lost sales.

By centralising product data, PIM systems allow retailers and brands to manage and distribute product information efficiently. This centralisation reduces errors and saves time, as data needs to be updated only once and can then be disseminated across various channels, including websites, mobile apps, and social media platforms. Furthermore, advanced PIM solutions can personalise product information to cater to different regions, languages, and markets, enhancing the global reach of a brand.

Building trust and reducing returns

Accurate and comprehensive product information is vital for building trust with online shoppers. Detailed descriptions, clear images and reliable customer reviews help consumers make informed purchasing decisions. When customers know exactly what they are buying, the likelihood of returns decreases. This is particularly important for products that are complex or have variations, such as electronics or clothing.

Returns are costly for retailers, both in terms of logistics and reputation. A high return rate often indicates dissatisfaction and can damage a brand's image. PIM software helps mitigate this risk by ensuring that customers have all the necessary information to make confident purchasing decisions, thereby reducing the incidence of returns.

Digital Product Passports

By 2026, the stakes will be a lot higher as Digital Product Passports (DPPs) mandated by the European Union are introduced for the first time. Retailers and brands must gather and maintain even more detailed information about their products' lifecycle, from raw material sourcing to production processes and end-of-life disposal. Each product must have a unique identifier linked to a digital passport; mandatory data must include both static and dynamic information; and, management of access rights must be specified for various users such as consumers, recyclers and authorities.

The changes will facilitate a circular economy by making recycling, resale and reuse easier, thus reducing waste. While the timeline is still unclear, 2026 is the target for 7-14 product groups (batteries, textiles, construction, electronics, plastics, chemicals and automotive).

Greater sustainability and transparency in the supply chain will also build greater trust with consumers. This transparency is increasingly important to them as they become more conscious of the environmental and ethical implications of their purchases. As Franck Le Moal, CIO of luxury conglomerate, LVMH said recently, “The world of luxury is challenging, we face many issues in terms of counterfeit, explaining the true story and origin of products. The DPP is a strong complementary enabler to follow the products from the beginning to the end and demonstrating to customers that they can trust us.”

The role of PIM

A seamless integration between DPP and PIM enables the creation and management of digital passports using product data, enhancing compliance with regulatory requirements so that retailers and brands can drive sustainable innovation by showcasing a commitment to environmental practices. Gartner has already confirmed that, “PIM is imperative to drive the standardised information required for DPPs. This standardised information enables DPPs to be easily accessible.”

DPPs will also act as a growth lever by turning regulatory compliance into a business advantage. Of particular interest therefore to retailers and brands is the fact that DPPs create new channels for direct engagement between brands and customers, enhancing the omnichannel experience and improving conversion rates.

• Drive innovation and differentiation - encourage sustainable innovation by highlighting commitment to environmental practices

• Embrace impact management - improved productivity and quality of resources

• Enhance consumer trust - take advantage of sharing compelling marketing information

• Impact your industry - first-mover advantage when moving ahead of the regulation

• Facilitate circular economy - enable easier recycling, resale, and reuse, reducing waste

• Bolster brand image - improved transparency of sustainable product benefits

Moreover, the data collected through DPPs can help businesses identify areas for improvement in their supply chains. By analysing the environmental impact of different stages of production, companies can implement more sustainable practices, reduce waste and lower their carbon footprints. This not only benefits the environment but can also result in cost savings and improved operational efficiency.

Future-proofing businesses

As regulations around sustainability and consumer protection continue to evolve, having a robust PIM system in place positions retailers and brands to adapt quickly. The ability to efficiently manage and update product information ensures compliance with new laws and standards, reducing the risk of fines and reputational damage.

With the introduction of Digital Product Passports in the EU, PIM systems also become vital tools for managing sustainability data and improving supply chain transparency. By investing in robust PIM solutions, businesses can future-proof themselves against evolving regulations and consumer expectations, ultimately driving growth and success in the competitive ecommerce landscape.