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Product management in e-commerce

Product management in e-commerce

Manu George

Wed, June 10

The future looks networked ... in the form of e-services. Everything has to be electronic and digitized. There are good reasons for this. One of them is the growing economy, in which processes have to run faster and more effectively. Waiting times were yesterday, up-to-date is today. Individual processes have to be better coordinated so that there are no delivery bottlenecks or similar problems. These areas can all be summarized in e-commerce . A person who specializes in this segment is referred to as a product manager.

Tasks of a product manager

What is the role of a person who has completed their training in this area? Why are people with e-commerce knowledge currently in such demand? Many companies are upgrading this division so that profits can be optimized. A product manager deals with everything the company's website has to offer in terms of products and services. He adjusts them directly to the customer and takes care of the range. It also includes taking a closer look at the market. After all, the prices must not be too high and deter potential customers. In the other direction, this aspect also plays an important role. Too low prices attract many customerson, but again minimize the profits. This is exactly what the product manager is there for to adapt e-commerce perfectly to the consumer and the company. Of course, taking into account the respective market circumstances.


Area of responsibility in product management

A product manager must be able to take care of all matters that arise in e-commerce.
Technical know-how for online shops
First of all, he has to have a certain technical know-how, because the online shop is included in his area of responsibility. There are many different online shop systems that need to be operated first. An understanding of how these are structured technically and how they work is mandatory.

Be familiar with leadership roles
In online retail , it is important to select the range with tact. Those who go shopping are always happy about full shelves. But these products have to come from somewhere. This is why management tasks are advantageous for successful product management. The “Product Manager” has to take care of the purchases, which also include negotiations with suppliers.

He should not only get a good price, but also have an overview of how many units of the respective goods are needed at all. Depending on the company, other employees do the shopping , but the selection of the range is always up to the product manager.
In contrast to the walk-in shop, the goods are not freely available in electronic commerce. In the online shop, consumers see small pictures that they can click on. These can be enlarged and present the goods at their best. This then results in the purchase decision.

Experience in market analysis

Of course, the company is happy when as many goods as possible are sold and the warehouse empties quickly. A product hardly sells and the warehouse bursts at the seams? The goods sell too quickly and there are delivery bottlenecks? If so, the product manager is to blame. He miscalculated and underestimated the market. His area of responsibility also includes analyzing the market. This does not only include negotiating with different suppliers. Competition stimulates business. Unfortunately, it can also contribute to a poor sale of your own goods. Therefore, a product manager must always have a look at what the competition is doing. As is well known, this never sleeps.

"Product Management" has to be creative

It is clear that e-commerce is shaped by many creative ideas . There are many online shops, but only a few have become real success stories. Some were able to distinguish themselves through an innovative advertising campaign, while others can boast a unique website design. No matter which strategy a company has: product management is responsible!

With its own creative ideas, it must help ensure that as many customers as possible find their way to the online shop. The area of responsibility does not only include developing new ideas. The product manager must ensure professional implementation. What is the best idea if it is hidden in a drawer? Therefore, this division has to take care of the entire planning, which of course does not exclude financing.

Product management - a new challenge every day

E-commerce is a fast business and changes its face every day. No wonder if a certain employee is responsible for every single aspect. The product manager has to overcome a multitude of hurdles and clear new problems every day.

When an online shop is finished, the work is far from done. Just because he's online doesn't mean he doesn't need any maintenance. Depending on the season, companies offer their customers different goods. As has already been clarified, product management is responsible for the selection of the exact goods including their number. You shouldn't lose sight of the website.


Note seasonality

Example: While a yellow design was very trendy in summer, it tends to scare customers away in winter. A consumer only buys when he feels at home when visiting the online shop. Therefore, the product manager has to carry out a regular qualitative check that does not only concern the range.

Seasons come and go, the same applies to sales. If an online shop sleeps through the winter, it may stay on its range. Because the competition is not long in coming when it comes to winter sales. Some retailers even announce their sales by countdown. This is exactly what product management is responsible for. It looks at the market and adapts its own website to the competition - but is always a tad better. Be it in design questions or in terms of price attractiveness. If you buy too expensive, you miss out on higher profits.

Pricing for optimal marketing and sales

A good product manager always takes care of his (price) negotiations with manufacturers and industry. Low purchase prices increase profits and make the board shine.

Commercial knowledge is required

Nothing works without commercial knowledge, this also includes several years of experience in online trading, as well as with other online retailers. Since the negotiations are conducted personally, linguistic knowledge and negotiation skills are essential. Industry experts are welcome, especially if they have the right feeling for new trends. Features that the "junior product manager" usually still lacks.

A high quality online shop must always list the right products. Nobody buys what is currently "out". Today's consumer wants to live trendy and be “in”. That is why every product manager needs an excellent nose for how the range should be designed.

When management calls for the report

E-commerce has its clear rules, but product management has a wide range of options. It takes a clear leadership position by taking care of the entire online shop. This includes all administrative tasks that arise in this area.

However, not every product manager is economically correct. Some of them are experiencing high losses because they have miscalculated on some orders or have gone against the trend. To ensure that this does not lead to the bankruptcy of a company, product management works closely with the management. The purchasing management is not neglected because it is responsible for the direct calculation of the required goods. It is therefore part of the job of the product manager to submit a regular report on his activities.

Integrated marketing: Every successful company can show a close cooperation between the individual departments. This also includes product management. Good conditions for sales can only be created if all departments can coordinate directly and “think inside” the customer.
Since product management is responsible for a large number of tasks, it should definitely make use of this help. In the area of trends and fashion alone, marketing strategists and social media experts who only deal with them have a great advantage. Because it is their daily bread to design effective strategies and reproduce them in targeted advertising.

However, how e-commerce is designed depends on the size of the company. If it is just an online shop of a single department store, a single product manager is completely sufficient. On the other hand, should it be a retail giant that lives from its online trade, product management should be designed at a similarly high level.

Nowadays, no company can avoid product management in e-commerce. The times in which one person took care of all administrative tasks have long been history.

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Author Info
Technogrips_blog

Manu George

Business Strategist | R & D | Blogger | Techie

Techie and Business Strategist with a showed history of working in the creative innovation items and administrations. Solid business improvement proficient ..

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