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Selling Regulated Products: Code Ownership, Regulatory Compliance & Risk Management

Matthew Dares  |  November 8, 2024  |  Reading Time: mins

There are very few ecommerce and product information management (PIM) systems which can support the complexities of selling in a regulated market and are able to meet the compliance requirements these industries face. Both Pimcore and Shopware have major advantages for the firearms, alcohol, tobacco, and pharmaceutical industries. The advantages of code, solution, data, and implementation ownership, whether deployed on-prem, in the cloud, or with the platform SaaS offering is a major advantage of these platforms. Code and data sovereignty is an increasingly critical decision-making factor for our clients of managing risk and business continuity impacts from policy and regulatory change (both in the market and with the platforms our clients use).

Some Considerations for Managing and Selling Regulated Products Online: 

  • Identification of your data stewardship and master data management goals. 

  • Understanding of applicable regulations and taxes that can provide challenges in operationalization and often require complex workflows and approval capabilities in your ecommerce and product management.   

  • Identifying deplatforming risks in your current solution stack due to changing policies and regulatory compliance risk (and the importance of code ownership).

Managing Product & Master Data in Regulated Markets 

The importance of data management is often critical in regulated environments. In these industries, rules-driven workflow and product management are required to ensure regulatory compliance is achieved and maintained at all times. Proper data governance helps mitigate the risk of non-compliance, which can lead to significant legal and financial repercussions. 

One of the most significant challenges faced by businesses in regulated markets is maintaining the accuracy and consistency of product and master data across various systems. Ensuring data integrity is vital for meeting stringent regulatory requirements and avoiding costly errors or delays. The integration of automated systems that can handle data validation, auditing, and reporting can greatly enhance an organization’s ability to manage data effectively. 

Regulatory Compliance & Risk Management 

The technology systems and order processing partners you use need to be able to ensure the highest level of data stewardship and adherence to industry regulations to meet compliance requirements. With both Pimcore and Shopware, complex custom workflows, approvals, and data management are easily implemented. With both platforms you can fully control the deployment of your solution – if your security requirements require additional steps or separation, these platforms have you covered.  

Code & Data Ownership 

Code ownership allows ecommerce sites to proactively prepare for and quickly adapt to deplatforming threats. It offers these companies greater control over their online presence, enabling a more resilient and sustainable business model in an environment with unique regulatory and social pressures. 

  • Control Over Data & Infrastructure: With code ownership, companies can more easily transition their site to self-hosted or industry friendly hosting platforms when faced with a threat of deplatforming from current providers. Having a well-documented codebase you own means this risk is non-existent. 

  • Reduced Dependence on Third-Party Services: Many ecommerce platforms and payment gateways are wary of working with regulated industries, like firearms, due to policy restrictions or external pressure. Code ownership allows a company to build or integrate their own essential systems (like payment processing, product catalogs, and checkout flows) rather than relying on third-party solutions that might suddenly withdraw support. 

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TORQ is a certified preferred systems integration partner for Shopware and Pimcore. We would love the opportunity to discuss the specific needs of your business and our experience and expertise in your industry.

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