Big Data consists of large sets of structured and unstructured data that you can analyze using software and systems to reveal patterns and trends that focus on understanding human interactions and behavior.
Most organizations generate and receive large volumes of data on a regular basis. Not only do they have a huge volume but they are also complex. In addition, they come from numerous distinct data sources. Big has become a core part of almost every business sector including finance, banking, retail, manufacturing, media, and logistics.
The Grand View Research predicts that the Big Data market alone will reach US$12,323 billion by the year 2025.
Among the many industries that it has paved its way into, it has immensely impacted the e-commerce market.
Learn why Big Data Database is important for Business.
Big Data in E-commerce
E-commerce or electronic/internet commerce is one of the largest and most widely used industries today. It deals with purchasing and selling services and goods via the internet along with transferring data and money in order to execute and keep a track of these transactions.
The use of Big Data along with the Machine Learning technology in the e-commerce industry is gaining popularity day by day. Online vendors use e-commerce development services such as online stores, business-to-consumer (B2C) marketplaces, business-to-business (B2B) trade portals, bidding platforms, e-commerce aggregators, and booking and ticketing solutions in order to intertwine Big Data tools into their marketplaces and e-shops and avail the following benefits:
- Back-office processes optimization.
- Enhancement of the operations used by the customers.
- Well-organized supply chain management.
- Identification and prevention of fraud in customer transactions.
To learn Big Data and enhance your e-commerce company, you must register for an online Big Data course.
Now, let’s check out the ways in which Big Data can boost the e-commerce business.
Impact of Big Data in the E-commerce Field
According to Statista, with the speed of growth of the E-commerce industry, it will hit US$4.5 trillion by 2021.
As per a research organization, BARC, Big Data has improved strategic decisions by 69 percent, increased control over operational processes by 54 percent, and reduced business cost by 47 percent.
Big Data has made a huge impact on e-commerce with advanced applications. These use cases of Big Data in e-commerce organizations can help you implement various operational changes and make noticeable improvements in your e-commerce business.
Cost is one of the key features that drive the buying decisions among various online courses. It acts as a factor for the success of your organization. You can calculate the appropriate cost based on various analytical techniques like target strategy, market segmentation, and competitor analysis. For these methods to work and increase business efficiency, you must rely on the organization’s tangible data.
With the predicting abilities of Big Data, you can find the correct price of the service or the product in which people will purchase, and at the same time, you will gain profit. Big Data Analytics tools allow you to retrieve data from various consumers and sources to determine the best suitable price and offer a good deal to the customers and simultaneously maintain a high-profit margin. Moreover, you can work on these calculations in real-time with the help of defined parameters and algorithms, allowing you to make strategic and well-informed decisions.
Effective and Personalized Customer Experience
The success of any business is largely dependent on customer service. Organizations that meet or out-perform customer expectations show an increase in the conversion and retention scores while generating greater profit. The competition in this line of business is growing tremendously and also, encouraging more consumer demands.
Online companies and businesses that succeed in engaging their buyers and potential customers, understand the requirements of their consumers and offer them the necessary services quickly. In order for you to gain customers in a similar manner, you must also gather, analyze, and make sense of the relevant data.
With Big Data analytics, you can understand the needs of the customers and create offers on their basis. You can get detailed information on consumer preferences via various websites, social media pages, and browser searches. Further, you can use this data to learn the buying behavior of the customer, popular brands, products they generally look for, shopping trends, etc. to identify the pattern and generate or modify offers.
Learn about the difference between Data Science, Big Data, and Data Analytics on our blog on Data Science vs Big Data vs Data Analytics.
Easy and Secure Online Transactions
To offer a good shopping experience, you must ensure that the consumers realize that their payments are secure. With the help of Big Data Analytics, you can identify and track irregular spending patterns and alert the customers in such cases. Organizations generally set up notifications for possible fraudulent activities.
Today, most e-commerce websites integrate a number of payment methods under a centralized platform using Big Data. Big Data Analytics allows you to understand and determine the payment methods preferred by the customers by measuring their effectiveness and frequency of use.
Enhanced Analysis of the Shopping Pattern
You can use Big Data Analytics to understand the shopping behavior of the consumer and predict future patterns that will help you come up with improved business strategies. Further, with this, you can detect preferences of the customers, products that consumers search for the most but your company does not offer, brands they like, spikes in product demands, during which time of the year do they shop more often, etc.
Regular Advances in Mobile Commerce
On a daily basis, there is an increase in the number of people who utilize smartphones. It has reached a point where scientists have predicted that desktop computer systems will become obsolete soon. Big Data makes it possible for brands and organizations to collect information from various sources and analyze the behavior of the customer via mobile technology.