5 Examples Of Application Of Big Data In The E-commerce Industry

Big data holds the key to the great future of the e-commerce industry. Big data is an extensive collection of customer information. E-commerce businesses primarily use big data to determine which product, price, and advertising are best to maximize sales and revenues.

Big data’s analytical capabilities in the industry are causing a significant change. For example, big data analytics in e-commerce involves using big data resources and technologies to gain a competitive edge, improve customer engagement, optimize and personalize the shopping experience, and increase sales.

This article will delve into five examples of the application of big data in the e-commerce industry. If you want to know more about big data in e-commerce, EPAM Anywhere Business provides insight into this.

5 Examples Of Application Of Big Data In The E-commerce Industry

The application of big data analytics is helping e-commerce businesses stay one step ahead of the game in the industry. Arguably, all e-commerce businesses need valuable data and insights to function in their business operations. E-commerce businesses can access data from various sources such as web server logs, abandoned shopping carts, transaction receipts, etc.

Gathering customer data is great, but proper analysis and application of the data give e-commerce businesses a distinct advantage. Moreover, when it is almost impossible to filter out unnecessary information. With big data applications in e-commerce,  retailers can attract new customers, retain existing customers, and increase sales and revenues.

Below, we discuss five examples of the application of big data in the e-commerce industry. You can also see the results of a survey by BARC, which explores the usage of big data in companies across the world.

1. Logistics and Supply Chain Management

Big data applications in e-commerce include the area of logistics management. From planning to scheduling and delivery, big data technologies can bring new efficiencies to e-commerce businesses.

Here, big data plays a crucial role in reducing the costs involved in logistics and operations.

Furthermore, e-commerce businesses use big data to analyze and manage product supply chains.
Nowadays, supply chain management in e-commerce would not exist without big data. The supply chain operations of e-commerce businesses get expanded in time and complexity as these businesses operate in the global markets.

Thus, e-commerce big data solutions provide abundant process improvement opportunities in supply chain management.

With proper solutions set, it is possible to resolve supply chain issues at operational and strategic levels.

2. Pricing Optimization

The product’s price is the primary determiner of the product’s sales. People tend to seek lower prices for the product. Thus, e-commerce business owners must choose the correct prices for their products by analyzing various sources of information. It is a time-consuming process without which it is impossible to stay competitive.

Today, it is possible to rely on big data information to solve this challenge. Big data from e-commerce helps to optimize pricing and choose the correct prices, thus resulting in more sales and revenues by analyzing various sources of information. These can be multiple price navigators, coupon solutions, online catalogs, competitors’ websites, etc.

There are a lot of tools to scrape the web, but fewer solutions that can analyze the obtained details. Before the technology solved this issue, retailers employed analysts and check price changes and watch their competitors.

It is evident that having big data tools in play can help retailers with this challenge and save them thousands (and sometimes millions) of dollars on this research.

3. Demand Forecasting And Trend Prediction

Big data helps e-commerce retailers track customer behaviors to understand their mindsets. Apart from customer behaviors, retailers can also track customer needs and personal information. Combining this information can give an idea of what customers will buy and when they will buy.

If you are running a big company, it’s not enough to watch Google Trends or other behavioral platforms since you might not be aware of some decisions your consumers might have in mind. Moreover, watching each market trend or purchase decision is almost impossible.

Furthermore, e-commerce business owners are used to compiling very large datasets. These historical data gathered from previous years can be used to forecast demand. With the forecasted demand, e-commerce business owners can plan inventory accordingly, stock up to anticipate peak periods, and streamline overall business operations.

There is no need to create a vast analytical department with big data solutions in place. Everything is done on the fly.

4. Offers Personalization And Enhanced Customer Experience

Personalization and targeted advertising are probably the most prominent application of big data in e-commerce marketing. Big data is used in e-commerce to tailor products and promotions based on what customers buy or browse.

Therefore, retailers who understand the importance of timely, relevant, and personalized experiences already use big data and AI technology to enhance customer experience.

In other words, creating “check also” and “other customers bought” cards on product pages and in the shopping cart is the result of intelligent AI and big data applications that might bring a lot of benefits to a business owner.

5.  Secure online payment

Customers need to know that their payments are secure. Big data for e-commerce retailers enables greater security of online payment processes.

Similarly,  many e-commerce businesses now offer several payment methods on one centralized platform on their apps and websites. Big data can discover which payment methods work best and are the most popular among customers.

Currently, PrestaHero also provides modules to help PrestaShop websites improve security during the payment process. Want to learn more?

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Conclusion

This article has discussed five examples of the application of big data in the e-commerce industry. It can be deduced from the applications mentioned above that the success of any e-commerce business depends on data-centricity. Therefore, E-commerce business owners are encouraged to harness e-commerce big data solutions to drive change across every aspect of their business.

By harnessing the power of big data solutions, e-retailers will reap the rewards of better customer experiences and increased revenues. We recommend that you browse the pages of EPAM Anywhere Business for services on e-commerce big data software solutions development.