A Guide to the Role of E-commerce Product Manager

February 23, 2024
blogs
5 min read

Online shopping has long become part of daily life, and it is no accident why the experience appears fluid and hassle-free. Behind every successful e-commerce site is an aspiring professional ensuring everything goes on like clockwork: the e-commerce Product Manager. The task revolves around making an online shopping experience that meets and exceeds customer expectations.

The increasing number of businesses migrating online operations increases the demand for professional eCommerce Product Managers day by day. But what does the position entail? Is it different from other forms of product management, and which skills are required to perform well in this position? In this blog post, we will explain all you need to know about the role. We will break down topics from daily responsibilities to the challenges of the role. Whether you’re considering a career in this field or are simply just interested in what exactly happens behind the scenes, this blog will offer you a clear picture of what exactly it takes to be successful in e-commerce product management.

Key Takeaways:

E-Commerce Product Managers are the people who ensure that the process of building an online shopping experience is efficient.
They work hand in hand with several teams of an organization which ensures that the product does not only meet the needs of the customer but also yields business goals.
Data-driven decision-making and user experience optimization are central to their role.
The unique challenges of an eCommerce business are high competition, dependency on technology, and the expectations of customers.
It requires a combination of education, experience, and continuous learning to become an eCommerce product manager.

In this article

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What is an E-commerce Product Manager?

The eCommerce product manager’s role is to make sure that online stores function properly. They take care of everything from how the online store’s website looks and feels to how smoothly customers can find and buy what they’re looking for. As opposed to a regular product manager, who would be working on some form of tangible product, an eCommerce Product Manager does this kind of work within the digital domain. Their core focus is to build a customer-friendly shopping experience as seamless and hassle-free as it can be.

eCommerce product managers coordinate activities across teams, including marketing, design, and customer support, while working in their roles. Their goal is that the product meets the needs of the company while adding real value to customers. For example, an eCommerce Product Manager may be responsible for streamlining the checkout process so fewer customers leave their carts before finalizing a purchase.

Responsibilities of an E-commerce Product Manager

A good eCommerce product manager does both big-picture thinking and day-to-day work. Here are some responsibilities of an e-commerce product manager:

Creating Product Strategy: Not a single useful eCommerce product can be designed without the strategy. This is a basic outline of the product made after studying the needs of customers and business objectives. The strategy can include new features meant to increase the sales volume or a way to attract more people to the site.
Improving User Experience (UX): A major role of e-commerce product managers is just to make sure that the website or application is user-friendly and attractive. Perhaps it’s getting work done with designers to make sure that the site is optimized in structure or that checkouts are more accessible for a larger number of people to complete purchases.
Analyzing Data: An eCommerce Product Manager will usually be looking at the data for most of his time to see how the customers are using the site. For example, if people leave during checkout, it means that a Product Manager might be required to find out why that happens to come up with solutions.
Working with Other Teams: the whole process of eCommerce success depends on teamwork. A Product Manager collaborates with a marketing, design, IT, and customer service team to satisfy the needs of customers and businesses. For example, they might work with the marketing team when talking about a new feature recently placed on the site.
Managing the Product Roadmap: A roadmap is like a plan that outlines what features or updates will be worked on and when. The Product Manager creates and keeps up a product roadmap as a reminder of what to keep an eye on to ensure the right people are on track and continuously moving the product forward.

E-Commerce Product Management vs. Regular Product Management

While there are similarities between eCommerce Product Managers and regular Product Managers, there are also some key differences:

Focus on Digital Products: E-commerce product managers focus on digital products or products being sold online, be it a website or an application, while the more traditional Product Manager deals with actual physical products. This means there automatically arises a necessity for understanding web technologies and online marketing strategies.
Direct Customer Feedback: The eCommerce Product Manager will get direct feedback from customers about the products through reviews, surveys, and other general interactions on the platform. Regular Product Managers will largely be dependent on market research and third-party feedback.
Speed of Updates: In the digital world, changes can be made quickly, and their effects can be seen almost immediately. An eCommerce Product Manager might launch a new feature and get feedback within days. In contrast, changes to physical products can take much longer to implement and evaluate.
Data-Driven Decisions: Almost all the decisions made by eCommerce Product Managers are based on data. For example, they can experiment with different layouts for a product page to see which is more likely to result in a higher number of sales. Their regular counterparts would not have access to the same real-time data.

What Are the Unique Challenges of eCommerce?

Managing an eCommerce product comes with its own set of challenges. Some of these challenges include:

High Competition: The eCommerce space is pretty cluttered. Many businesses sell the same kinds of products. Therefore, the eCommerce Product Manager has to stay innovative and optimize things constantly to lead in the market. For instance, they could introduce innovative features to attract and keep customers, like personalized shopping experiences.
Customer Expectations: The online shopper expects fast, convenient, and reliable service. Unless a website is fast and easy to use, a customer is likely to leave and shop elsewhere. This calls for ongoing improvements in site performance and user experience management.
Reliance on Technology: An eCommerce website depends a lot on technology. If there is some issue on the website or in the application, then sales will be lost, and customers will get unhappy. Thus, eCommerce Product Managers need to work together with the IT teams for stability and security of the platform.
Logistics and Supply Chain: Logistics and supply chain management in eCommerce is much larger than a physical store. It involves working with a set of suppliers, maintenance of inventory levels, and ensuring that deliverables are in place on time. Any delay in logistics and supply chain may adversely affect customer satisfaction and sales levels.

Best Practices for E-commerce Product Management

To be successful as an eCommerce Product Manager, it’s important to follow best practices that help manage products effectively:

Put the Customer First: Always focus on the customer first. This means gathering feedback, analyzing user behavior regularly, and making decisions that will best benefit the customer.
Use Agile Methodology: Adopting an agile approach to product development allows for flexibility and quick adjustments. In other words, the team can offer a quick response to changes in customer needs or to the market.
Focus on Key Metrics: The key metrics to track include conversion rates, average order value, and customer lifetime value. These provide insight into how the product is performing and where there is room for improvement.
Keep Learning: The eCommerce industry is always changing. You must keep track of trends, technological advancements, and customer preferences. This may mean attending webinars, reading industry reports, or networking with other professionals.
Collaborate with Teams: Work closely with other departments like marketing, sales, and customer service. A successful eCommerce product relies on the effort of an entire organization.

How to Become an E-commerce Product Manager

Becoming an eCommerce Product Manager requires a mix of education, experience, and skills. Here’s a step-by-step guide:

Educational Background: Most eCommerce product managers hold a bachelor’s degree in business, marketing, computer science, or related fields. A few companies also prefer candidates holding an MBA or specialized degrees in product management.
Gain Relevant Experience: Get started with experience in related fields like digital marketing, UX design, or web development. Work in those fields and master as much knowledge as you can get from the relevant areas of eCommerce.
Develop Key Skills: An eCommerce Product Manager needs to acquire skills in data analysis, project management, UX/UI, and knowledge of different types of web technologies. The soft skills implied during this process are communication, leadership, and problem-solving.
Build a Portfolio: Show everyone what you’ve accomplished by creating a portfolio of your work that shows off the projects you have worked on and the impact you have had in past roles. Examples of things you may put in it include case studies, user journey maps, products managed, and so much more.
Certifications: Consider earning certifications in product management, digital marketing, or UX design. These can enhance your resume and show your commitment to the field.
Network: Join professional groups, attend industry events, and connect with other product managers. Networking can open up opportunities and provide valuable insights from experienced professionals.

E-commerce Product Manager Salary in India

The salary of an eCommerce Product Manager in India can vary widely depending on factors like experience, location, and the size of the company. Here’s a detailed breakdown:

Entry-Level (0-2 years of experience): ₹6-10 lakhs per annum
Mid-Level (3-5 years of experience): ₹12-20 lakhs per annum
Senior-Level (6+ years of experience): ₹20-35 lakhs per annum or more, depending on the company and responsibilities

Location Impact: Salaries also vary by location. For instance, product managers at eCommerce companies earn more in bigger cities like Bangalore and Mumbai as compared to smaller cities.

Industry Impact: The industry also plays a role. Companies in the technology sector or large eCommerce platforms like Flipkart or Amazon tend to offer higher salaries compared to smaller startups.

Source: PayScale, Glassdoor

The role of an eCommerce Product Manager is crucial in shaping the online shopping experience. It requires a blend of strategic thinking, technical knowledge, and a strong focus on customer needs. As businesses increasingly shift to online platforms, the demand for skilled e-commerce Product Managers continues to rise. By understanding the responsibilities, challenges, and best practices outlined in this blog, you can take meaningful steps toward excelling in this field.

Frequently Asked Questions

1. What qualifications are needed to become an eCommerce Product Manager?

Typically, a bachelor’s degree in business, marketing, or a related field is required. Additional certifications in product management or digital marketing can be beneficial.

2. How does an eCommerce Product Manager differ from a traditional Product Manager?

An eCommerce Product Manager has a focus on digital products and user experiences on an online platform; while a classic Product Manager may take work in physical products or services.

3. What are the most important skills for an eCommerce Product Manager?

Core skills consist of data analysis, UX/UI design, and project management, as well as a basic knowledge of web technologies. Moreover, one needs to have a strong communication and leadership skills profile.

4. What challenges do eCommerce Product Managers face?

Challenges include: sustaining high competition, managing customer expectations, reliability of technology to keep up with innovations, and issues with logistics and the supply chain.

5. How can I advance my career as an eCommerce Product Manager?

Furthering your career involves continuous learning, experience in eCommerce, networking with professionals, and advanced degrees or certifications.