• Big Data
  • 5 min read

How Amazon Used Big Data to Rule E-Commerce?

How Big Data Helps Giants Like Amazon To Lead ecommerce Industry?
Big data has blessed businesses with opportunities led by the technological revolution. Big data presents itself as a model for innovation and change as tech giants and big companies use big data due to increased data volumes. Companies are implementing modern technologies to reap the benefits of data science. 
Online businesses are seeking ways to engage and retain customers & enhance their experience. The competition in eCommerce is fierce, but you can overcome it if you use the right tools such as big data to deliver a seamless user experience. 
Big data facilitates businesses to enhance decision-making processes, improve their performance, gain a competitive edge, and streamline workflows. It allows the companies to gain an insight into their customers and marketing strategies. 
Moreover, big data being readily available these days, it's easy for eCommerce businesses to get overloaded with big data. Moreover, big data-based tools help companies detect fraudulent activities, create coupons, and a lot more in real-time. 

This blog will focus on the following things:

  • Introduction to Big Data
  • How Amazon makes use of Big Data 
  • How Big Data helps eCommerce Industry
  • Are you Ready to Implement Big Data in Your eCommerce Business?

Introduction to Big Data

Big data can be defined as a collection of massive & complex databases and volumes, which involves tremendous amounts of data, social media analytics, live data, and data management capabilities. 
Big data is the volumes and databases calculated in petabytes & terabytes. This data can be structured or unstructured. 
And this collection of data grows in size with time. With its exponential growth, it becomes impossible to store this data with conventional data management tools. This is where modern methods come into place with 'Big Data.'

How Amazon makes use of Big Data?

How Amazon makes use of Big Data - HData Systems

Everyone has heard about Amazon, the biggest eCommerce giant in the world. Amazon's founder, Jeff Bezos, is the richest person in the world today. This leading eCommerce platform offers us a lot apart from online shopping. It serves us various services, such as Amazon Pantry, Amazon Web Services, Alexa, Amazon Pay, and more.
Now, can you imagine the amount of data generated by this giant regularly? Tremendous right! To manage such a massive amount of data, Amazon has leveraged Big data technology. 
What businesses value the most? Customers. Because they are what turn a company into a brand. If a brand fails to meet the consumer's expectations, it will lead to a disastrous failure.
Management leverages big data technology that helps them store massive data volumes. Why do companies need to keep this data? Because data refers to vital information the company has about its consumers, competitors' strategies, and market insights. 
Amazon uses its data through its suggestion engine. Each time a user finds a particular product, big data pops up suggestions that might interest the user. This allows Amazon to 
improve their process of persuading their consumers into buying it. 
Amazon gathers the personal data of its consumers with regards to what they viewed, searched, purchased. They also notice their shipping address and feedback. Big data enables tracking stock through the manufacturer to ensure that the orders have been carried out quicker. 

Personalized Shopping

Amazon uses big data to analyze the customers' buying behavior, products in the cart, the items viewed, and most searched. This data is later used to suggest to users about other things. For instance, if users are buying shampoo, they are also suggested to shop for conditioner. 
This is how Amazon leverages big data to motivate consumers into shopping more items, and this works incredibly for Amazon as it earns 35% of the revenue yearly with this technique.
Delivery Model
Amazon leverages big data to project when a user is going to shop for a particular item, and the things are prepared for transportation so as soon as the order arises, it can be shipped. 

Amazon's Alexa

Everyone knows about Alexa, the virtual assistant that Amazon offers that includes speakers and a camera. Alexa is used to getting updates about weather, news, ordering toothbrushes, etc. But what we don't know is that these audio commands are uploaded to Amazon's servers. Amazon claims that these audio recordings assist Alexa in delivering a better experience. 

How Big Data helps eCommerce Industry?

How Big Data helps eCommerce Industry? HData Systems

Big data can help the eCommerce sector in a wide variety of ways, such as;

Customer analysis

Today, we must understand our customers better, especially with the increasing competition; if we don't deliver exceptional services to customers, it won't be late until they will abandon your brand and seek a new one. 
The big data tech renders prominent means to evaluate customer behavior, experiences, and requirements. Businesses can use data to recognize and forecast what product or service will better meet customer demands.

Reduces cost

This is another significant benefit which is why you should incorporate big data into your business. Big data entails huge advancements in every area of business, leading to a decrease in operational costs. 

Forecast trends

Every eCommerce retailer wants to know the latest trends before their competitors, and that is why you should implement big data in your business. By launching trend-predicting algorithms, online merchants can reduce the speculating process and forecast the trends. 

Renders personalized experience

Humans appreciate the personal touch. They feel more connected when they know they can get tailored services. This is exactly what Amazon does, it focuses on its customers, and this suit is followed by several other businesses as well.

Are you Ready to Implement Big Data in Your eCommerce Business?

Knowing what big data offers your eCommerce business, are you ready to incorporate this incredible tech into yours? Big data will not only help your business earn a lot of revenue but will help you flourish your business and keep your customers happy. 
If still in doubt, you can get in touch with our professional team to know how you can implement this technology into your operations and boost your revenue. HData Systems will help you make your business a hit with the latest technologies we use and our talented team.

Read Following:

Harnil Oza is a CEO of HData Systems - Data Science Company & Hyperlink InfoSystem a top mobile app development company in Canada, USA, UK, and India having a team of best app developers who deliver best mobile solutions mainly on Android and iOS platform and also listed as one of the top app development companies by leading research platform.

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