How E-commerce Industry Benefit Through Data Analytics

How E-commerce Industry Benefit Through Data Analytics

In all around the world, the e-commerce market play a massive role. According to latest UNCTAD estimates, the e-commerce market worth around $22.1 trillion globally where China is the world's largest (B2C) e-commerce market, both in terms of sales and in a number of online shoppers, followed by the US and Japan. The E-commerce in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014. The Indian E-Commerce field is booming says that the market size has grown from $600 million two years ago to $2.3 billion. The growth in e-commerce provides an enhanced benefit for both the consumers and the purveyors from all over the world.

Online Mega E-commerce Stores

The mid-nineties to 2000’s internet brings the new ways to do businesses in e-commerce. With the advent of secure payment gateways, speed and availability of gadgets in the today's markets, The online buying and transaction have become simpler over the years. The world largest online retailer Amazon, launched online bookstore in 1995 and currently Amazon offers not only books but it covers office and home needs products, video games, electronics, apparel, food, toy, etc. Apart from Amazon, there is numerous E-commerce has grown on online shopping. So, the most e-commerce stores begin adopting the BI tools to turn millions of raw data into actionable insights.

Big Data

The E-commerce companies have now turned to Big Data Analytics in order to get focused on customer group targeting, evaluating campaign and maintaining a competitive advantage, especially during the festive and high shopping season. For eg: based on historical big data analysis and comparison, Electronics, Gadgets, Automobiles, and Clothing get the highest sold during the festival times; Hence, by analyzing and demand forecasting the inventory stocking before the sales period can be utilized to give optimum discounts, thus increasing the revenue.

Big data analysis process

Analytics Role in E-commerce Industry

  1. The eCommerce business is to connect buyers with suppliers, The analytics helps the supplier to determine efficiency, pricing as compared to other suppliers. Pricing is effectively managed using a predictive analytics that looks at historical data for products, sales, customers, and more.
  2. E-commerce businesses have faced lots of problems in supplying the duplicates of products. Though the product was sent by the supplier, the brand name will be sold by (E-commerce name) where this causes a loss of trust. The trust is the major success for every business. The analytics helps to keep a track of issues causing loss of trust and take necessary actions to resolve them at the earliest.
  3. The consumer analytics pay a great way for the marketers to identify the most sales product and also helps to their brand with respect to the competitors and it provides great assistance to customize the consumer experiences based on their preferences to increase retention rate.
  4. Needed to track the product arrives on working days from the place of order. The supply chain management can be easily analyzed and corrected to produce the amazing customer experience.
  5. The fraud management using analytics is to identify potential fraud before the customer completes the transaction, resulting in reduced chargeback and also reduced labor and fees required to process the chargeback. E-Commerce is moving towards by adopting the analytics tool to detect frauds and also prevent from negative impact that is caused towards the business.
  6. Product specific analysis is the most crucial to comprehend the customer satisfaction and to forecast the sales of a product.

To make the analytics even more easier, a few companies have already started to adopt voice analysis method. Once you have started using this advanced analytics approach to analyze the e-commerce industry then you will get easy answers to your questions and this helps the e-commerce enterprises to grow their businesses in a most successful way. The proper use of analytics helps to drive business is on the rise, across industries. The senior management through the e-commerce dashboard gets the deeper insights on the business objectives, product managers get the insights on the product sales and whether the sales are drawing an optimum profit. Hence the overall e-commerce management can be done easily with analytics.

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