BIG DATA & E-COMMERCE

What is Big Data?

Even though Big Data, which we have begun to hear frequently today, is seen as a word that has emerged with the advancement of technology and usage areas. We constantly support this phenomenon without realizing it, and we also contribute to ensuring continuous data flow to this environment, which we call “Big Data”.

So what is the source that feeds big data? 

The interactions in the constantly used social media accounts, search engines and the traces left behind when searched, the actions made with the bank accounts, blogs, mails, sensors and all the interactions of the individual users with the internet. 

Why is Big Data Important? 

According to SAS (2020), big data focuses on what to do with it, rather than how much information it has. Data can be taken from any source and analysed to find answers that enable;

• Cost reduction
• Time reduction  
• New product development and optimized offerings
• Smart decision making

The Usage of Big Data on E-Commerce

Asling (2017) stated that ``Big data is proving to be a game-changer when it comes to ecommerce``. Here are some examples how big data can be used and how it can benefit e-commerce companies in order to guide e-commerce companies.

Help to customize easily; it is possible to collect and analyse user information and to offer a special shopping experience to the user with big data analysis.

Provides dynamic and variable pricing; if there are other companies selling the products sold on the website, a dynamic and variable price policy may be needed. Applying such price strategies in situations where competition is high allows businesses to catch the consumers looking for the best price on the internet.

Improves customer service; it is very important that CRM representative can be directly involved in the subject by seeing the previous purchases of a consumer who contacted for any reason. In addition, having the user's personal information may change the support team's approach to this person.

References

Asling, D., 2017. 6 Ways To Use Big Data In Ecommerce - Dataconomy. [online] Dataconomy. Available at: <https://dataconomy.com/2017/07/6-ways-use-big-data-ecommerce/> [Accessed 16 May 2020].

Sas.com. (2020). Big Data: What it is and why it matters. [online] Available at: https://www.sas.com/en_us/insights/big-data/what-is-big-data.html [Accessed 16 May 2020].