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The Impact of Big Data and Analytics on eCommerce

What exactly is big data and analytics? Big data is large and varied sets of data that are both structured and unstructured. According to SAS, these sets of data need to be analyzed using non-traditional software. This is because big data is so complex it would not be feasible to use regular methods to process it. Big data technology is used to analyze big data and make it applicable for business purposes.

By using analytics, businesses can find out what are commonly occurring patterns and leverage them to be lucrative. eCommerce is driven by data, making big data and analyzing it extremely necessary. By looking at past data, improvements can be made to fix what was not working. The use of big data is one reason why eCommerce has seen the amount of growth it has.

How does this impact eCommerce?

Personalized Shopping

With gathered data, the shopping experience can be modeled to more accurately measure up to consumer interests. The data can identify more details about the customer, making them more likely to purchase products. Products can be recommended based on what else the customer has viewed or bought in the past. This makes it possible to predict what this shopper is looking for, and display items they are most likely going to buy.

This can be done with time periods as well, not just products and services. The time periods where traffic reaches its highest can be paired with sales promotions or new product releases. If you have multiple types of customers who shop for different products at different times, this can help reach each group effectively. Without data usage, it will be hard to compete with others already using the information to grow their eCommerce business.

Demand and Trends

Big Data Analytics can give guidance on what trends will increase and which will decline. This will be good to look at when deciding on which products are worth having in stock. New products that match trends can be added to the store, and products predicted to have losses can be removed. This information will outline a plan for your eCommerce strategy and is able to change as new data is received. Inventory predictions will help manage additional costs by not having to carry more inventory than what is needed.

Automated Service

Customers want quick service and oftentimes service that is automated can be more convenient. Using chatbots can provide customers with speedy, accurate, and consistent responses for questions they want immediate answers for. They add an element of personalization to the shopping experience by acting as a human and giving personalized shopping recommendations. Chatbots can redirect customers to a live agent if they have a more complicated issue they can not resolve. Websites that do not have chatbots might lose potential customers due to the inability of getting answers to their customers easily.

Improved Customer Service

The way big data and analytics affects eCommerce the most is through improvements in customer service. Personalization, trends, and chatbots all serve the customers’ wants and needs. The data makes it possible to persuade customers based on their own interests, making online shopping even more personal than in-store shopping could be. An employee can assist customers with purchases, but is unable to recommend items as accurately as data can. This is an advantage eCommerce has over in-store shopping, which may not have as uniform service.[/vc_column_text][/vc_column][/vc_row]