An In-depth analysis of the relationship between Big Data and Ecommerce
Of late there has been a marked interest in learning what big data technology can do for Ecommerce companies regardless of their size, location, product profile etc. These Ecommerce companies have the advantage of accessing large volumes of data from several outside sources and storing them in their own databases. This helps them observe their customers, competitors, vendors in real time.
Big data helps transform the entire business model of these Ecommerce companies, thanks to the huge operative and strategic potential it carries. These changes have a positive effect on the important components like supply chain, costing, pricing, marketing, and management of the Ecommerce companies.
Ecommerce marketing and Big Data
Ecommerce or electronic marketing is nothing but the use of data (electronic) and applications for drawing up proper plans, and executing the concept, distributing, promoting, and pricing of products, services or even ideas. All these help in achieving the individual and company goals. With the Internet evolving as a powerful means, online efforts at achieving marketing goals are steadily increasing. Ecommerce companies are increasingly relying on Big Data for all their e-marketing tasks by helping the companies research the customers’ needs, likes, dislikes, preferences, need for advertising and studying pricing trends. The Ecommerce companies experiment on new concepts like “smart shops”, which are nothing but shops having digital screens and smart window displays that generate huge internet traffic leading to phenomenal sales.
Big Data and E-payments in Ecommerce
Most of the online business transactions rely on efficient e-payment systems which have emerged as viable alternatives to traditional modes of payment. However, there are a few problems being encountered in e-payment where fraud is rampant. Frauds like credit card fraud, identity fraud and return fraud are plaguing the industry. You cannot put it past fraudsters using stolen or lost cards for making online purchases. Return fraud involves either using a product and returning it, claiming either it is defective or of inferior quality, or in some cases the claim is that the product was never delivered, hence a refund has to be made. Big data can be used to analyze and verify ordering patterns of every single customer, frequency of purchase, shipping addresses etc, all of which help in identifying fraudulent transactions and controlling them. Big data helps in real-time detection of fraud and reduce it considerably.
Role of Big Data in Supply Chain
The major bane of an E-commerce company as far as supply chain issues are concerned relates to non-digital goods delivery not being optimized properly. There is no proper management or analyses of material flow or product flow. Supply chain management can be better understood through Big Data by predicting revenue from a particular product in the coming quarter. Inventory forecasting helps Ecommerce companies manage their inventory costs efficiently and not end up in a sorry situation where a prime product is out-of-stock during the most crucial period. Big Data also helps enhance supply chain visibility thus keeping the customers happy as they know the exact status of availability of products ordered by them, the location in transit, and the precise time when the actual delivery can be expected. There is perfect coordination between warehousing, transporting, and delivery, through big data that helps in efficient logistics management as well. To know more about the role of Big data in E-commerce and how it can help you contact Infognana, the multifaceted professional company offering lasting solutions in today’s busy world of online business.