This archive report was first published on 24 August 2020.
Big Data's Impact on Ecommerce ¶
As of 2021, the ecommerce industry is expected to reach $4.5 trillion, with 54% of millennials making online purchases compared to 49% of non-millennials, according to a Statista report published on August 24, 2020.
Big data plays a crucial role in ecommerce, with two main types: structured data, which is organized and easy to work with, and unstructured data, which lacks a clear format and is harder to collect and analyze.
Enhancing Shopping Experience ¶
By analyzing customer behavior, ecommerce businesses can create a better experience for their clients. Retail websites track clicks per page, average products added to shopping carts, and time between homepage visits and purchases.
Shopping Behavior Analysis ¶
Big data helps analyze customers' buying patterns, including popular shopping times and products often bought together. This information can be used to place targeted advertisements and adjust strategies accordingly.
Improving Customer Service ¶
Big data reveals problems in product delivery, customer satisfaction levels, and brand perception on social media. It identifies exact points in time when customer perception or satisfaction changed, making it easier to pinpoint problematic areas and potential problems.
Personalizing Customer Experience ¶
Big data is used for personalization to increase sales. Ecommerce businesses can establish a broad view of customers, categorize them based on demographics, location, and social media presence, and create personalized emails and targeted advertisements.
Securing Online Payment ¶
Big data helps recognize atypical spending behaviors and notifies customers as they happen. Alerts are set up for various fraudulent activities, such as a series of different purchases on the same credit card within a short time frame.
Optimizing Pricing ¶
Big data can be used to determine pricing based on different factors, such as time, supply and demand, and competitor prices. Ecommerce retailers can have dynamic pricing, which is when prices change based on variables like time and supply and demand.
