The Use of Big Data in E-Commerce

Blog written by: Raghav Natarajan, Sagar Kumar, Ibrahim Malik, Lalit Singh.

Markets in the E-commerce industry are developing really quickly through the use of Big Data. With a large online user base, the E-commerce industry has been gathering big data in order to analyze past trends and performances to help markets grow, and increase customer satisfaction. Big data is used to track a customer’s journeys through online markets. Many websites use cookies to track what customers are looking at on the website. Through this data, customer preferences are segmented according to individual customers and this can help customers be more efficient in browsing items. Data consists of structured and unstructured information. Structured information is basic information about a customer while unstructured information consists of social media trends from Facebook, Twitter etc. Collecting the data from day-to-day operations helps the E-commerce industry analyze customer data in real time, enabling them to be more efficient in customer service. In order for the E-commerce industry to expand, customer experience needs to be built. Customers expects E-commerce businesses to treat them nicely, which in turn could help keep customers satisfied and loyal. Using Big Data, companies can use Predictive Analytics to predict what customers might buy. Amazon is one of the only companies to have perfected this method and has had great success in doing so. Due to real time analytics, Pricing can be changed constantly in order to keep up with the competition in the market. The management of supply chain would also become a lot easier through the use of Big Data as it can help track outsourced services. Big data analytics increasingly provides value to e-commerce firms by using the dynamics of people, processes, and technologies to transform data into insights for robust decision making and solutions to business problems. This is a holistic process which deals with data, sources, skills, and systems in order to create a competitive advantage. Leading e-commerce firms such as Google, Amazon, eBay, ASOS, Netflix and Facebook have already embraced big data analytics and experienced enormous growth. Through its systematic review and creation of taxonomy of the key aspects of big data analytics, this study presents a useful starting point for the application of big data analytics in emerging e-commerce research.

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