The number of e-commerce websites is constantly growing. So is the data on each of them like the number of products, user comments and buying history. This information can be used as a source of countless insights on how to improve your business as well as how to boost your e-commerce resource popularity and monetization.
However, in its raw form, this data is unhelpful because you have to process and analyze it to gain insights. Big Data seems like just the right solution for this task. Since the data quantity is so huge today, regular tools for marketing analysis aren’t able to effectively handle it. Hence, Big Data steadily becomes a necessity concerning every field. Alternatively, you can ignore this opportunity and utilize a сut-and-try approach. However, Big Data allows you gaining precious info for decision-making in a fast, effective and automated way instead of doing it manually.
It’s interesting that preconditions for the emergence of Big Data have existed for ages but only know we are within an inch of the actual Big Data show up. In this article, we’ll fill your gaps concerning Big Data and its connection to the e-commerce app development. You’ll realize what benefits Big Data can bring to your business as well as what software solutions you can use to start implementing this technology right now.
Benefits of Big Data for e-commerce
Over the period from 2014 to 2018, the e-commerce sales have grown by two times. Also, Statista reports that the total number of Amazon’s active users amounted to 300M. However, concerning only September 2017, above 183M users visited it! Walmart and eBay received almost the same number of visitors at about ~86M for the same month. In addition, PayPal, a famous payment solution for e-commerce, had 200M of user accounts in the Q3 of 2017.
As you see, the online channel for making purchases is steadily growing along with the data quantity. So let’s examine the advantages of Big Data to better understand why this technology may be what you’re looking for.
This technology allows leveraging special prediction systems to gather info from every possible browser or social media platforms to determine future tendencies. Alternatively, Big Data enables to monitor marketing data. In this case, you’ll regularly receive info about tendencies that are only developing.
Another use case concerning this technology is analyzing different market factors to form your products’ prices. These factors include your product’s first cost, market demand, the prices set by your rivals and many others. This helps to form optimum prices real-time so that it would be neither too high or too low and relieves you from doing it manually.
If a product sells bad then you can definitely run into unwanted storage expenses to keep it. On the other hand, sales tend to significantly improve during holidays and sell-offs. Thus, Big Data is able to assist you by analyzing data concerning demand and following events. On the outcome, you will understand what products and in what quantity you should order for the following time period.
Before talking about e-commerce apps personalization, lets first realize how modern browsers operate. Browser isn’t only intended to visit a web-address you need but moreover it saves all history about user’s operations like visited websites, user preferences, etc. Thus, it uses this info to offer them products as well as websites according to their previous activity. Your e-commerce app or website should perform the same, e.g. monitor the goods favored by your clients to offer relevant products.
Personalization has been making a revolution in online shopping because it’s a win-win both for store owners and customers. It’s because customers receive personalized suggestions that save their time instead of manually searching for desired products. Due to a greatly improved user experience, they purchase more so it benefits you as well.
Better customer care
The competition in online shopping is bitter. It can be called even more fierce than concerning non-online because you have to compete not only with local websites but global ones too. In such conditions, the one who offers the best products for the best price with the best customer service wins. Customers have such a wide choice of e-Shops to choose from that even the slightest lack of attention and slow request processing may result in losing this client permanently! The data that you utilize to personalize the in-app experience can be also used to improve your customer care department effectiveness.
Of course, if you successfully implement Big Data analytics it will result in improving your most important indicator – sales. In particular, Big Data offers a solution to a trending problem of online cart abandonment. According to recent stats, above 65% of online carts were dropped off at the last step of shopping that is making a purchase.
How to implement Big Data in e-commerce?
You should choose a software solution taking into account different factors and one of them is whether it’s familiar to your employees or not. Certain platforms are simple and can be used by almost everyone and the others are more complex and require more technical expertise. You should consider whether your personnel is familiar with a software solution and what features and capabilities it has.
This platform provides you with an online dashboard to conduct Big Data analytics in e-commerce that is fully customizable. Dundas BI contains a wide range of features and also allows to create reports and work with an unlimited number of metrics. You can also link Dundas BI to work in cooperation with other tools and apps. This platform offers the API interface for programmers and has a flexible pricing system.
Oracle Advanced Analytics
Oracle brand has developed several solutions for Big Data analytics. The major platform contains Oracle Data Mining and Oracle R Enterprise while both of them are compatible with Oracle Databases. If combined together it becomes a massive tool for discovering market trends, competitors activity and even cases of scam. The biggest pro of Oracle is it provides a wide range of out-of-the-box tools to extend the functionality of their platform.
The acquaintance with this solution is more challenging because it demands a certain level of programming skills. Cloudera supports the Hadoop which is an open-source software library for data handling. Cloudera is also an open-source platform so it can be tuned according to your specific needs by a skilled programmer. The сreators of Cloudera call their platform easily extendible, well-protected and powerful tool for Big Data analytics
The platform provides three major products:
- Vertica Enterprise is a tool with quick loading and querying characteristics, in-depth analytics as well as various functions for data management.
- Vertica in the cloud is a cloud Big Data solution which is available to run on Amazon Web Services, VMware clouds, and MS Azure. It provides high-performance enterprise-class analytics and every feature you need to work with Big Data.
- There’s also a Vertica’s solution for dealing with SQL on Hadoop. A trial period is available for this solution.
Drawing the line
Big Data is finally arriving in the e-commerce field, though it was neglected throughout the years. It is a useful way to realize the market state and causing factors to predict future trends and eventually boost your revenue. If you’re worried about the cost and pitfalls of implementing Big Data then we should note that this technology definitely provides much more gains compared to some minor time and money expenses on it. Don’t stay up with old and rusty methods of work in the e-commerce field. You should quickly embrace new technologies like Big Data to adapt to the modern customer demands and to outperform your competitors.
Author bio :
Nataliia Kharchenko is a Technical Writer at Cleveroad. It is web and mobile app development company in Ukraine. We are focused on helping startups, small, and medium businesses create competitive and winning software. I enjoy bringing a digital world closer to people and writing about technology, mobile apps, innovations, and progressive management models.