Over the last few decades, e-commerce has seen a massive change and overhaul of the data landscape. In no shorter terms, data makes the world go round. E-commerce enterprises of yesteryear had the first movers advantage but that is no longer the case. Without the capabilities to navigate and leverage the sea of data, companies lack performance visibility and the capacity to compete in this hyper-competitive industry.
Amazon’s constant expansion can be measured down to the minute. The corporation raked in more than $830,000 in revenue each minute of 2021’s first quarter, according to CNBC Make It. Regardless of where product seekers end up making their final purchase, 79% of online shoppers start their product search on Amazon.
Furthermore, it’s imperative that e-commerce businesses that want success on Amazon have a strategic approach and comprehensive understanding of data to navigate the black-box algorithm implemented by Amazon. In 2021, Amazon FBA aggregators raised over $12 billion by analyzing data on existing Amazon brands and products using software available in the market. Reviewing data and shifting strategic approaches through patterns found in reports such as Share of Voice reports or Category Best Seller can help e-commerce businesses maximize value.
Advancing the world at a rapid pace is machine learning and artificial intelligence. Research shows that 48% — or nearly half of customers — prefer to engage with businesses through live chat, which provides instant answers and eliminates hours of waiting to speak with customer service on the phone. Furthermore, advancements in augmented and virtual realities allow businesses to provide every customer with a convenient, personalized shopping experience by allowing consumers to try on products from the comfort of their own homes. The e-commerce sector is among many industries that benefit from vast amounts of consumer data. However, the value of this data is not recognized when it comes to gaining meaningful insights that increase conversion rates and personalize the customer experience. Last year alone, companies lost $756 billion due to poor personalization in e-commerce. At any cost, the future success of e-commerce will and currently relies on fast data processing and real-time reporting, allowing businesses to make faster and more effective decisions.
Simply put, data has the power to mature e-commerce businesses, but not only with the operational aspects of cost reduction, increased efficiency and better-informed decisions. Data puts your business on the front lines with consumers, giving you a better understanding of their online behavior through the foresight of patterns, trends and personalization so your products will stand out in the saturated markets of today.
About the Author
Raphaël Menesclou is the Head of Marketing & Growth at DataHawk, an e-commerce analytics and optimization software that provides tools for Amazon and Walmart sellers, vendors and agencies to help increase sales, optimize margins, boost productivity and gain insights.
Sign up for the free insideAI News newsletter.
Join us on Twitter: @InsideBigData1 – https://twitter.com/InsideBigData1
Hi,
I really enjoyed reading your blog post on the impact of data in the e-commerce industry. I was wondering, what are some of the most effective ways for e-commerce businesses to collect and use data to improve their operations?