Data Science in E-commerce

According to e-commerce expert Gary Hoover’s research, just in the last 14 years, the growth of eCommerce companies has skyrocketed across the board.

Right now, people who are around the world are having some tough moments due to coronavirus. Not just in health also in economic as well. However, Amazon company drove sales far higher even during the coronavirus. This news made me think again about e-commerce business. How does data science help e-commerce business? In this article, I will try to explain some points that help it.

Amazon Company

Amazon.com is an American technology company based in Seattle, the USA that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon was founded by Jeff Bezos in Bellevue, Washington, on July 5, 1994. It is the part of one of the Big Four technology companies along with Google, Apple, and Facebook.

Many companies need to understand metrics at business decisions. Data science helps businesses gain insight into the customers and it has a significant impact on the eCommerce industry. Data science can make personalized product recommendations, make forecasting, determine customer behavior and shopping patterns, and improve customer experience the eCommerce businesses with the help of data collected. Let’s look deeper.

How does Data Science help e-Commerce?

  • Recommendation system

Recommendation engines are the most important tools in a retailer’s world. If businesses want to increase their sales, providing recommendations help a lot. Businesses gather data and thanks to data, businesses can understand what the user wants. How does it work? Basically, with a filtering system. It serves users the product that similar people have purchased before and it tries to build a profile of users while they search.

  • Determine customer behavior

Of course, customers influence for some reason. That is why a behavior is an essential key in order to understand what influences consumers’ buying decisions. According to some researches, young people more likely to discover new products from social media such as Facebook, Instagram, Youtube… etc.

Also, predictive analysis helps in this situation because it is based on past buying patterns as well as social media analytics and predictions.

  • Improve customer experience

According to researches, the experiences a company provides are as relevant as its products and services. In the past, to get feedback from customers, businesses reached out to people through phone or e-mail. However, it is undeniable fact is that today’s world is different and data is the key role in order to get valuable insights to help customers provide better services.

I am sure many people have heard about ‘Sentiment Analysis’. E-commerce businesses can identify and resolve issues in products and enhance the overall customer experience. In order to do that product reviews are good resources.

Conclusion

This article only gives you basic insights and areas where data science has an impact. There are many areas…

References

https://en.wikipedia.org/wiki/Amazon_(company)

https://medium.com/dataflair/how-data-science-has-taken-amazon-on-top-360043e146ec#:~:text=How%20Amazon%20uses%20Data%20Science%3A%2D&text=Through%20this%20technology%2C%20it%20gathers,customers%20to%20purchase%20the%20products.

https://medium.com/@ODSC/5-amazing-ways-data-science-will-transform-the-ecommerce-business-a63948bb61eb

https://www.mygreatlearning.com/blog/applications-of-data-science-in-e-commerce-industry/

Leave a Reply

Your email address will not be published. Required fields are marked *