What Is Big Data?
Big data is data that contains greater variety arriving in increasing volumes and with ever-higher velocity. This is known as the three Vs.
this definition was given by GARTNER in circa 2001.
Big data is used to analyze data, extract information from a complex set of data especially derived from new sources. traditional data application software seems difficult while getting information from a large set of data with acceptable time and value, in this scenario big data is used. Some challenges faced in big data includes the collection of data storage, analysis, searching, sharing, querying, the security of information, source.
As per the study of Lattice Engines, 4 in 5 said they feel somewhat (57.4%) or very (24.3%) challenged by the amount of data available, 9 to 10 agreed that their sales representative was unable to get and understand all the sales report so their ecommerce business has missed opportunities it is difficult to bridge a gap between data availability and data usefulness.
volume, variety, velocity is the three key concepts associated with big data.
The size of collected data referred to as volume which will be stored and managed by an organization and delivery of data to its end-user. it focuses mainly on data storage capacity while doing present and future planning of storage. Data volume is measured in MB, GB, TB, PB.
It’s very surprising to know that Facebook has more users than the population of India, user uploaded photos are around 240 billion with 350 million photos adding every day. The Fb data handling team is using 7 petabyte storage gear on monthly basis. With this example, we know there is a vast volume of data available.
Velocity is referred to the speed of data that will be collected analyzed process. Big data are usually available in real-time. How fast the people are uploading photos on Facebook every single day and how it is processed, shows the velocity.
Data are different on different applications mostly big data are unstructured. It’s a long time ago when the data was just about rows and columns, the time is changed so the data. Unstructured data are doesn’t fit on databases and spreadsheets.
Data can be structured, unstructured, semi-structured, and can include all.
Benefits Of Using Big Data Analytics In eCommerce Marketplaces
1. Understanding The Needs Of The Customer
Big data is tremendously helpful in getting information about the latest trend earlier. How customer pattern work and what affects their decision while making a purchase. Ecommerce businesses can create a more likable product and new service by acknowledging the needs of customers.
2. Price Formation
Formation of the price also becomes an easy process while doing big data analytics product survey, the demand for the product at what price customers are willing to pay.
3. Prediction Of Trends
Changes in trends can be understood by surveys and doing analytics with big data. Early prediction of trends will help in improving the overall performance.
4. Early Identification & Protection From Fraud
Fraudulent activities are increasing in e-commerce while customer purchases the product and make online payments. Fraudsters are a threat to online business. Early identification of fraud with big data analytics protects from online fraud.
5. Improves Decision Making
Quick access to the information and choosing the right option as per the situation.
How Big Data Affects The eCommerce Industry
1. Use Of Social Media For Research
Mass public generation use the social media platform as it’s very approachable for a survey and getting qualitative, quantitative information. The collection of big data is perfect to get a large number of different people to give different opinions.
2. Personalization Of Services
By analyzing big data business houses are getting a clearer idea regarding the preference of customers. By sending email regularly to customers and by showing them the product as per their history of buying preferences.
3. Dynamic Customer Services
Customer services are getting improved by the information received in big data analytics. If a customer gets a satisfying response from ecommerce business, it will boost the overall growth of the ecommerce business.
Business.com states that loyal customers spend up to 67% more than new customers, acquiring new customers costs 5 to 6 times more than selling to an existing one.
4. Increase In Sales
Sales will be increased if big data is effectively used by the e-commerce business houses. By understanding and making changes in product or services and by following the trends sales will boost.
5. Secure Online Payments
More secure payment is initiated with big data analytics by setting up an alert when multiple payment methods are used with the same IP (internet protocol) address.
One centralized platform is used by several ecommerce businesses for multiple payments.
Now ecommerce businesses are using bill me later payment method or payment with credit cards to save from cart which is abandoned.
6. Supply Management & Logistics
Doing effective and maximum utilization of resources improves the overall performance of the ecommerce business. in SCM customer behaviour analysis, trend analysis, and demand prediction, big data analytics has a wide range of applications. BDA identify the gap in this application and predict future changes.
The logistic process is also proven to be impacted by big data analytics by tracking logistic delivery.
7. Prediction Of Trends & Demand Forecasting
Whether enough stock is available or not for completing the future demand of the product. Correct stocking of inventory for the future is significantly important for ecommerce business. When ecommerce sites give a discount for a limited period, what to offer at what prices depends on big data analytics for example amazon starts a discount offer with a limited period of amazon’s big billion days.
8. Optimized Pricing
Optimize the price and charge the fairest price on customers for the product, which will boost the ecommerce business sales. Early access to sales may be received by more loyal customers. location and where they work also affects the prices consumer have to pay for the product.
So, now you know that big data is constantly changing the ecommerce industry and one should know the benefits of using it before hiring a reputed ecommerce development company. So, keep up with the various ecommerce trends and it will result in amplifying the profits of your ecommerce business.