Amazon and the Art of Analytics
In the world of analytics, it is quite well-known and well-acknowledged that Amazon has not only been an early adopter of big data, but also an advanced user far ahead of competition, and at the cutting-edge of emerging technologies. In a 2016 report by EKN Research, 80% of e-commerce giants stated that they lagged behind Amazon in analytics maturity. Today, in this short blog case, we provide five fast facts of how Amazon is using big data to make its billions!
Amazon is leveraging big data on its 200 million customer accounts by hosting 1,000,000,000 GB of data on more than 1,400,000 servers to increase sales through predictive analytics, and provide personalized shopping experience through sections on the homepage like – “Inspired by Your Wish List,” “Recommendations for You,” “Inspired by Your Browsing History”.
Amazon provides recommendations on inventory stock to sellers, suggestions on new product choices they should add to their inventory, the best delivery mode for particular products to meet on-demand deliveries, etc. On an average, a seller in Amazon might have 100+ suggestions in their queue on various product categories.
Dynamic pricing helps Amazon boost profits by 25% on an average and they stay competitive by monitoring the price 24×7, 365 days.
Amazon has obtained a big lead over its competitors by acquiring a patent for Anticipatory Shipping to make quicker deliveries.
Amazon has real-time links with manufacturers, tracks the inventory demand based on the data to provide same day or next day delivery options to its customers.