Impact of data in the e-commerce industry

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Over the past few decades, e-commerce has seen a massive change and reshaping of the data landscape. In other words, data makes the world go round. The e-commerce businesses of yesteryear had the first-mover advantage, but that’s no longer the case. Without the capabilities to navigate and leverage the sea of ​​data, businesses lack visibility into performance and the ability to compete in this hyper-competitive industry.

Amazon’s steady expansion can be measured down to the minute. The company raked in more than $830,000 in revenue every minute in the first quarter of 2021, according to CNBC do it. Regardless of where product seekers end up making their final purchase, 79% of online shoppers begin their product search on Amazon.

Additionally, it is imperative that e-commerce businesses that want to succeed on Amazon have a strategic approach and a comprehensive understanding of the data to navigate the black box algorithm implemented by Amazon. In 2021, Amazon FBA aggregators raised more than $12 billion by analyzing data on existing Amazon brands and products using commercially available software. Examining data and modifying strategic approaches through patterns found in reports such as Share of Voice or Category Best Seller reports can help e-commerce businesses maximize value.

Moving the world forward at a rapid pace is machine learning and artificial intelligence. To research shows that 48% – nearly half of customers – prefer interacting with businesses via live chat, which provides instant responses and eliminates hours of waiting to speak to customer service on the phone. Additionally, advancements in augmented and virtual realities allow businesses to provide every customer with a convenient and personalized shopping experience by allowing consumers to try out products from the comfort of their own homes. The e-commerce sector is one of many industries that benefit from large 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 all costs, the future success of e-commerce will depend on and currently relies on fast data processing and real-time reporting, enabling businesses to make faster and more efficient decisions.

Simply put, data has the power to mature e-commerce businesses, but not just with the operational aspects of reduced costs, increased efficiency, and better-informed decisions. Data puts your business on the front line with consumers, allowing you to better understand their online behavior through predicting patterns, trends and personalization so your products stand out in today’s saturated markets.

About the Author

Raphaël Menesclou is Marketing & Growth Manager at DataHawkan e-commerce analytics and optimization software that provides tools for Amazon and Walmart sellers, vendors, and agencies to help increase sales, optimize margins, increase productivity, and gain insights.

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