Database management the key to e-commerce success – Business in 2021 and beyond
5 min readE-commerce ventures have changed our shopping experience and for the better. During the inception of e-commerce ideas and portals, a lot of confusion and doubts were prevalent. These were regarding the system stability, ease of access, and accuracy. There have been glitches in the past, and system breakdowns and server errors are still a part of running an e-commerce store. But, the current iteration of e-commerce ventures has come a long way, and it is all due to Big Data.
About Big Data
We are currently a part of the digital age. There has been an exponential increase in the usage and the capability of storing information. Big Data can be termed as the collection of all the relevant data, which has enormous implications for online retailing. However, when it comes to businesses, only a fraction of the information is at their disposal. The Big Data collected by organizations can be broadly categorized into structured (easily searchable) and unstructured (social media) data. This data is held within software systems and infrastructure set-ups. As an entrepreneur, you need to make the most of this stored data. And, that brings us to Big Data Analytics.
Big Data Analytics
The digital age has heralded an increase in computational and storage capabilities. This is allowing businesses, especially e-commerce ventures to extract insights from Big Data. Data handling requires three key processes, including annotation, labeling, and tagging. This data classification is a prerequisite when it comes to analysis and optimizations to deliver real-world value.
Customer Big Data can include everything; text documents, spreadsheets, browsing history, location, business data, social media posts, and e-mail records. Once analytics can tag every piece of data, AI and algorithm platforms allow identifying patterns and predicting trends. This shows that a more evidence-driven accurate analysis can replace the age-old practice of business speculation.
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Big Data in e-commerce
Retailers and e-commerce ventures build strategies and forecasts based on the insights derived from customer Big Data. No retail sector produces and requires handling Big Data like e-commerce ventures. So, there is no surprise that e-commerce ventures are pushing boundaries for data usage and management.
So, how is Big Data changing the landscape of e-commerce? Let us have a look.
Forecasting of demand
Right now, everything is sold online—clothes to appliances, and even medical supplies. As an e-commerce venture, you need to be aware of the constant market demand at all times. Remember that you cannot miss out on any bulk orders. So, when it comes to inventory, Big Data allows e-commerce ventures to maintain their stocks to avoid catastrophic failures in the marketplace. Big Data enables the detection of trends to enable you to overcome and reduce the risks from missed sales or housing unwanted stock.
Big Data for product development
Product development is always a nervy affair. There is a legitimate risk associated with the long-term plans for newer goods and perceived better services. However, with the help of Big Data, you can lower the risks associated with product development. Remember, there is a plethora of information at your disposal. This will allow you access to insights and demand areas within the market to design better products for the next cycle.
For pricing
Maintaining a uniform pricing strategy can be complicated for an e-commerce venture simply because of the many items in store. This is why e-commerce ventures mainly look to set item prices according to competitor prices and sales numbers. However, Big Data analytics can quickly assess the prices according to the value of products, for your entire inventory and within a few minutes. You can tailor the pricing according to all the market variables including, wholesale price-point, market size, competitor price, and customer willingness.
Dynamic pricing and special offers
Big Data doesn’t just allow you to build a customer profile to better ad placements and product management. The more you are aware of the customer behavior, the better placed you are when it comes to providing flexible pricing and discounts. Keep in mind discounts and special offers can boost your ratings and give a spike in interest. Customer data allows you to re-engage past customers through e-mails and push notifications about offers, incomplete purchases, and “wishlist” items.
Big Data to generate sales
One major flaw with online retailing is that the different choices of stores are just a mouse click and a URL away. You might find that customers regularly browse your products, choose from the recommended, build up a valuable cart, but check out and leave. This behavior might seem confusing, but with the help of Big Data management, you can analyze customer behavior on your site at all times. This will allow you to figure out better strategies for customer retention, personalized customer care, messaging, and recommendations to convert the leads into actual sales.
High-quality customer service
Some e-commerce sites tend to do better than others because of several reasons. It is not just about the price and ease of access. Some e-commerce services provide the best when it comes to customer support and assistance. With Big Data, you can monitor your response speeds, delivery times and provide better customer feedback management. The more you improve the overall customer experience, the better it is for your business reputation. And reputation breeds loyalty.
Management of supply chain
Businesses require a fully functional supply chain at all times to run effectively. Downtime hurts every concern, and this is where Big Data can play a crucial role. If you are looking to manage your supply chain effectively, then Big Data is your answer. Data analytics will allow you to identify the weak links in your supply chain, the potential problems you can face concerning your inventory, and all the pitfalls and delays. This allows you to remove a particular issue from the chain before your customer services and reputation is damaged permanently.
Big Data allows thousands of customers to find the right products and use the power of e-commerce to lead a better life. Long may it continue.
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