How to implement a PIM system cost-effectively?

When do companies implement product data management systems?

Companies typically opt for Product Information Management (PIM) when the number of products and sales channels starts to exceed the capabilities of manual management. In practice, this means a point where product data is scattered across multiple locations – spreadsheets, sales systems, or files exported to business partners.

In the e-commerce industry and for manufacturers, product information management includes not only the basic parameters of items sold, but also photos, marketing descriptions, technical specifications, and translations. As the number of products grows, the need arises for centralizing this data. And that's when PIM systems emerge, offering a central information repository that allows for organizing product catalogs and streamlining data management processes. PIM allows all data to be stored in one place and conveniently distributed to various sales systems, online stores, or marketplace platforms – known as omnichannel.

Why isn't off-the-shelf PIM always cost-effective?

Many PIM tools are available on the market. The most popular ones, such as Akeneo PIM or the Pimcore system, are often the first choice for companies planning to implement a product information management system. However, sole PIM implementation doesn't always solve all problems.

When planning an implementation, it's worth noting several challenges that may arise when using ready-made PIM platforms:

1. Licensing costs – many tools operate on a subscription or licensing model that increases with the number of products, users, or integrations. As a result, as the company grows, so does the cost of maintaining the PIM system, which can significantly impact the organization's technology budget. The company is therefore dependent on the solution provider's pricing.
2. Technological limitations – SaaS PIM systems offer a wide range of features, but they don't always cover all business needs. In practice, this means the need for additional PIM system customization or building workarounds for functionalities not included in the standard configuration.
3. Vendor lock-in – one of the common challenges is a company's dependence on a technology provider. If a company's PIM system becomes a critical part of its infrastructure, changing tools can be difficult and costly, especially when data migration and integration with other systems are involved. We describe more about this phenomenon and its impact on e-commerce in a separate article: https://www.sagiton.pl/en/blog/digital-independence-in-e-commerce

As you've probably noticed, to avoid these and similar problems, PIM system implementation should be preceded by a thorough analysis of business needs and the long-term costs of maintaining the solution. Otherwise, even promising tools can eventually hinder a company's growth or generate unforeseen operational costs. For this reason, more and more organizations are seeking alternative approaches to product data management.

Custom Product Information Management Solutions

An alternative to ready-made platforms is to create your own product information management system. In such a case, a company designs its own PIM platform and adapts it to its data management processes.

One of the biggest advantages of this approach is not having to rely on a subscription model. With many SaaS tools, the cost of a PIM system increases with the number of products, users, or integrations, and can reach tens of thousands of euros annually in the form of subscription. In the case of a dedicated solution, especially one built using low-code or no-code tools, the cost can look completely different: the company pays a one-time fee for implementation (e.g., around EUR 8000), and in subsequent years, only incurs infrastructure and potential system maintenance costs. This allows the investment to pay for itself much faster. Additionally, low-code platforms allow for relatively quick creation of functionalities tailored to specific company processes – instead of adapting processes to the capabilities of an read-made system, solutions can be built precisely to the organization's needs.

While this approach offers great flexibility, in practice, several significant challenges can affect the cost and effectiveness of the entire project.

1. Lack of budget control – creating your own platform means not only implementing the system but also its long-term maintenance. This includes development costs, infrastructure, and ongoing system changes, which means the total project cost can increase as the company grows.
2. Loss of business focus – developing and maintaining an in-house IT system often distracts an organization from its core business. Instead of focusing on sales, marketing, or offer development, the team starts dedicating time to system development and resolving technological issues.
3. Dependence on an employee or vendor – for internally developed solutions, a company often becomes dependent on a specific specialist who understands the system's architecture. If the project is carried out by an external partner, there is a risk of dependence on the vendor responsible for the solution's development and maintenance.
4. Technical debt – every dedicated system requires continuous development and updates, for instance, related to new vulnerabilities (cybersecurity gaps). Over time, technological backlogs emerge, hindering further system development and increasing its maintenance costs. Such a dedicated product information system will, therefore, consume additional budgets for its maintenance over time.
5. Lack of documentation and system knowledge – in many projects, technical documentation is created only after implementation or not at all. As a result, knowledge about the system's operation is scattered, which hinders its development and the implementation of new features.

For these reasons, while a dedicated PIM platform offers significant control over data structure, in practice, its maintenance may prove more demanding and costly than initially anticipated.

However, whether it's worth implementing a custom product data management system should be assessed individually. During cost estimation for one of our clients, it turned out that due to complex company processes, building a PIM system from scratch would be the most cost-effective solution.

Using PIM automation and integration as the system's core

More and more e-commerce companies are starting to approach PIM differently – instead of building one large system, they are creating an architecture based on automation and tool integration. In this model, the PIM platform is not the sole center of the system, but rather one element of a larger ecosystem supporting product data management.

Automation acts as a layer responsible for the flow of information between tools. This makes PIM integration with marketplace platforms, sales systems, or marketing tools much more flexible – creating a star-shaped architecture, from which it's easier to detach tools. In practice, this means a company can use various solutions, with automation ensuring data synchronization between them.

This approach allows for the creation of a central data management system where automation, rather than a single technological platform, plays a key role. Below are 4 main reasons why companies are opting for such a PIM implementation strategy.

Lower System Maintenance Costs

One of the biggest problems with traditional PIM platforms is their high maintenance cost. In many cases, companies not only pay a one-time PIM implementation fee, but also incur monthly platform charges that can amount to several hudreds Euros per month.

In an automation-based model, infrastructure costs are often significantly lower. An automation server and subscriptions for no-code or low-code tools often cost around 300 Euros per month, which substantially reduces long-term PIM system maintenance costs. However, it's important to remember that the initial system implementation process can be more complex and require a greater investment during the architecture design phase.

Easier Tool Replacement and No Vendor Lock-in

In an automation-based architecture, a single system is no longer a critical element of the entire environment. If one tool stops meeting expectations or its costs increase, it can be relatively easily replaced with another.

This makes PIM data integration more flexible, and the company is not dependent on a single technology provider. Automation thus allows for building an architecture where changing a system does not necessitate rebuilding the entire technological environment.

Scalability and Feature Expansion

Automation also enables easy addition of new features. If a company needs additional functionality – for example, generating product descriptions or integrating with a new sales channel – it can be implemented by integrating with another tool. This way, instead of using native PIM system functionalities, companies leverage connections with other tools – such as DeepL for translations or Nano Banana for generating product images.

A PIM system built this way allows for gradual functionality development without needing to interfere with the platform's core. This also increases the PIM system's potential, as new elements can be added as the company and its product offering evolve.

Greater Control Over Product Data Publication

In an automation-based model, the system can be much better tailored to a company's specific needs and data management processes. Instead of adapting business processes to platform limitations, product publication logic can be designed to handle all scenarios within a given organization – including less typical cases that arise, for example, from the type of products sold.

This allows the PIM system to account for different product variants, specific requirements for individual sales channels, or additional information validation rules. Automation combined with AI can control whether product data is complete, meets company-defined standards (e.g., tone of voice in product descriptions consistent with brand communication), and is ready for publication in online stores and other sales systems.

In practice, this means greater control over how and when products appear in sales catalogs. Thanks to the PIM system and automation, a company can maintain organized product data and better manage its brand image across the entire e-commerce ecosystem.

So, how do you choose the right PIM system?

Therefore, more and more companies today are opting for an approach based on automation and system integration, or for dedicated PIM solutions built from scratch. In the first case, organizations combine existing tools into a single coherent ecosystem – automating data flow between sales systems, ERP, e-commerce platforms, or marketplaces, and product information management becomes part of a larger data architecture. This approach allows for streamlining product information management without becoming dependent on a single tool.

In the second case, companies opt to create a dedicated PIM system tailored to their business processes. Such a solution is particularly worth considering when the licensing cost of an read-made platform exceeds approximately EUR 8 000 per year. With the current development of low-code and no-code technologies, implementing a custom system can be relatively fast and cost-predictable – the company incurs a one-time implementation cost, and in subsequent years primarily pays for infrastructure and maintenance. In practice, this means that with high licensing costs, a dedicated solution can pay for itself within about two years, while offering greater flexibility for system development.

A well-designed PIM system implementation process should therefore not only organize product data but also build a flexible technology architecture that will support the company's long-term growth. 

If your company is facing the choice of a PIM system – contact us. We will help you select a solution tailored to your company's needs.