Marketplace

Poor product data management: what impact for a Marketplace?

Poor product data management has an impact on the image of a marketplace. Find out how to remedy this and optimize your sales.

Stephanie Giczi
3/7/2023
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unifai-marketplace-product-data-management

Poor product data management has a major impact on a marketplace's brand image. As soon as you open one, you can't afford to have product errors on the part of your sellers. Transactions are affected when product data is poorly implemented. This is also the case when an item is in the wrong category, or when sellers' catalogs are of poor quality and untidy. Marketplace managers are constantly confronted with product catalogs with different formats (columns, categories, merchandise attributes dissimilar between seller and marketplace). Unifai helps marketplaces to ensure the reliability of product data in seller catalogs, to facilitate their integration into their marketplace. Find out more about these impacts and how to optimize your processes.

Contents

Poor product data management: impact on the image of a marketplace 

Poor product information management can lead to a high rate of returns, which causes frustration among online shoppers and leads to negative reviews. This undeniably has a damaging impact on your company's sales and reputation.

 

Disappointing shopping experience: the impact on the notoriety of an e-commerce 

E-marketers and retailers who run an online store must consider the negative impacts of inaccurate product information on their e-commerce site and sales platforms.

Abandoned cart rate still too high

The marketplace is not necessarily directly responsible for the error, as this is due to the initial seller's catalog being inadequate. Contrary to what one might think, product information - whether in the form of text or images - plays a crucial role in the purchase decision process. And, the way this information is managed has a direct or indirect impact on sales. 

According to the Fevad (Federation of e-commerce and distance selling), the rate of abandoned baskets is 75%, which means that three out of four prospects do not finalize their purchase. This index can vary depending on the sector of activity. 

Did you know that? In general, the conversion rate of an online store is about 2%.

Why is this rate so high?

There are several reasons why customers flee an online store. Here are some examples to illustrate this statement: 

  • Too expensive shipping costs;
  • Poor usability of the shopping path;
  • Or the obligation to create an account;
  • Incomplete product descriptions;
  • Product sheets not translated or poorly written in the semantics of the target;
  • Misleading visuals;
  • Obsolete and unattractive promotions;
  • Or cross-selling or up-selling that is not adapted to the customer's search (proposal of a replacement item). 

 These elements can be perceived as suspicious signals by the Internet user who gets discouraged and does not click on the shopping cart.

The impact on the conversion rate 

A consumer will more easily buy a product on the marketplace in question if the data on the product sheet is correctly filled in. He will trust the platform. 

As previously mentioned, according to FEVAD, about 70% to 80% of online transactions are abandoned, which represents a lost revenue of $4 trillion in 2021. The impact on the conversion rate is therefore considerable. 

A product description that is inaccurate, incomplete or lacking in detail can have serious financial consequences.

For example, a customer who receives an item that does not match the description given may be entitled to return it free of charge, depending on the e-retailer's return policy. However, returns represent a significant cost for the company, especially in transportation and repackaging costs, which can range from 15 to 25 euros per package. 

With an average return rate of 15-30% for online businesses, this quickly becomes costly for the company. In addition, dealing with complaints and negative feedback on the site can also tie up staff and customer service resources.

Involved employees

Your e-commerce runs thanks to the involvement of your employees. They manage tasks that quickly become time-consuming if they are repetitive and unrewarding. This inevitably affects their investment in the company.

 

These tasks include:

  • Product data management in various management tools such asERP (Enterprise resource planning, software for project management, compliance and risk management and accounting), CRM(Customer Relationship Management);
  • The management of these data in Excel tables by ensuring the validity of the information and avoiding duplication;
  • The adaptation of descriptions for the e-commerce site and marketplaces according to the promotions and constraints imposed;
  • The retouching of photos to diffuse them on the site and the marketplaces according to the sizes and the names of the images to respect; 
  • Translation and contextualization of information for international use;
  • Rapid integration of new ranges.

 

Data overload and the difficulty to process it leads to many human errors in the information delivered to prospects. This causes a loss of time and productivity as well as a demobilization of the teams. So, here is how to optimize all these processes!

Product data structuring: challenges

Building a reliable and simple taxonomy cements the foundations of an e-commerce.

The importance of a solid taxonomy

Indeed, the taxonomy is a structure that serves as a reference to categorize the products of a Marketplace. It is essential to allow sellers to create their catalog and to put their offers online (with prices and according to stocks), when they register on the Marketplace. 

It has the advantage of : 

  • To make the operator quickly understand the categorization of the products used;
  • To make the classification of products in the expected categories more reliable;
  • Facilitate e-merchandising; 
  • And, to reduce the time-to-market.

 

The categorization of the Marketplace is crucial, as it allows third-party sellers to easily integrate their products. This optimizes e-merchandising.

Our tips for building a reliable taxonomy

The operator must be careful not to create a categorization that is only suitable for his own offers. It must be stable, not be changed regularly and be different from the sales structure used in the front office of the Marketplace. 

 

We recommend that you limit the taxonomy to a maximum of three levels:

  • The product family;
  • Category;
  • And, the subcategory.

 To do this, you just need to be inspired by the big Marketplaces. 

Tip 💡

Draw up a comprehensive list of product features to avoid problems with incorrect sales data.

Finally, it is recommended that the responsibilities of each party regarding product data be clearly defined.

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Managing your e-commerce data with brilliance: our advice 

A marketplace can implement different solutions to optimize its data, here are some of them and the expected results.

Unifai to power your data 

To gain the competitive edge, it is important to stop being subjected to incorrect vendor data and to control it. Put an end to the errors and duplications that result. By controlling the quality of your product data, you'll see:

 

  • An increase in productivity of up to 80%, 
  • Faster time-to-market;
  • A better visibility of the commercial offer;
  • More compelling shopping experiences;
  • And, an increase in customer satisfaction.

 

To do this, feed your marketplace feeds with clean and enriched data: this will reduce time-to-market and improve the conversion rate. And, automate the tedious work of integrating and enriching product data. This frees up time for business teams who are overloaded with multiple product data sources.

Thanks to our supplier portal, the seller deposits his file on the Unifai platform. The latter is directly processed with the taxonomy of the marketplace.

The advantages of UNIFAI solutions for your e-commerce

By optimizing the onboarding of salespeople, you can increase your processes tenfold: a rapid integration of sales product catalogs without errors and with all the information you need saves your teams a lot of time and gives you greater peace of mind. No more :

 

  • Duplicates ;
  • Missing attributes;
  • Categories to check;
  • Etc.

 

You focus on your core business, which is to improve the conversion rate of your product pages. UNIFAI uses Artificial Intelligence to offer a unique solution: standardize, enrich and categorize simultaneously the product catalogs of e-tailers, retailers and marketplaces.

How does it work?

From a supplier portal, you import the product catalogs independently and intuitively. You ask your salespeople to do the mapping, which is the first step in automation. You can also do it yourself. To do this, the UNIFAI platform matches the columns of a source catalog to that of a target catalog. This mapping is essential, because it respects the taxonomy of the seller, it includes :

  • EAN(European Article Numbering);
  • Title;
  • Description;
  • And the category.

 

Then, once the data is mapped, it needs to be categorized so that the consumer has a unique and seamless user experience. That's why the product title, description and nomenclature require the full attention of the AI used by UNIFAI. 

Then, the content is enriched by extracting the attributes that are inherent to the product category. The more detailed it is, the more interested and convinced the prospect is. Which is great news for your conversion rate. 

Finally, the normalization tracks and eliminates errors. That's the end of the workflow, you download the result and you appreciate the automation of these very time-consuming processes without this solution.

What to remember ...

Poor product data management impacts the image of a Marketplace, as well as its conversion rate. The structuring of your product catalog is crucial to optimize your work and reduce the time it takes to put the sellers' catalogs online.

You can use an existing taxonomy known to your vendors to facilitate their integration into the Marketplace. You can also use automation solutions to simplify these steps.

Contact us to propel your marketplace and stop losing sales!

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