In today’s technologically powered world, e-commerce is playing a major role in our lives. Today’s e-commerce industry is said to be worth around $22.1 trillion globally and the only direction where this number is heading towards is up! This massive industry is ruled by China and is followed by the US and Japan.
However, the string that holds this all together in today’s world is data analytics. Like many industries, e-commerce industry ceases to exist without data analytics. With growth rate reaching more than 50%, e-commerce websites are becoming more and more competitive each day. And one weapon that every e-commerce provider holds in their arsenal is, data analytics.
No doubt, when used wisely, data can provide new opportunities and options for your business. It can not only help your business grow, but can also help in pointing out the problematic areas in your business. Here are a few ways how data science can revolutionize your business:
It can help you gain a competitive edge in the market:
It is quite common for competing businesses to get into price wars. To compete, one business tries to lower their product prices to attract customers. Looking at this, the other businesses follow suit and go a step further. This often results in both businesses going through large losses and sometimes even facing extinction.
In situations like these, data analysis can help you grow and build a competitive edge at the same time. It helps you understand your competitors’ target consumer group. With crucial information like these in your hand, you can easily outsmart your competition. The better knowledge you have of your competitor, the easier it is to leave them behind. Apart from competitor information, data analysis can also help you identify the loopholes in your current market. This will enable you to turn your competition’s problems into opportunities.
It can help you produce and launch more appropriate products:
For an e-commerce brand, production and launching of a new product is never an easy task. The idea that looked good on paper can go flop if it is now launched without due research. According to Nahar Geva, CEO of Zik Analytics, many newcomers in e-commerce industry follow the current product trends and don’t pay attention at the bigger 360-degree picture. This results in 66% new products failing within two years and 80% products failing to stay on shelves for more than 2 years.
Data analytical firms can be your saviors in such situations. With emphasis on data analysis, you can get insights on ground requirements of your targeted consumers. Moreover, with the right data analytics, you can also understand what will be the right time to launch your perfectly designed product.
It can help in selecting the right supplier and vendor:
It is rightly said, your business is what your vendors and suppliers are. Bad quality products with late deliveries can easily become reasons for death of your online business. With the number of options available, it is not easy to select the right vendor these days. But with enough data, this hectic task can become a piece of cake.
Firstly, data analytics can help you identify all the vendors in your industry. Then it can segregate the good ones by overlooking at a number of factors like their customer reviews, prices and many more. Once this is done, data analytics can help you compare two suppliers by figuring out the difference in the services offered by them. With all this done, you can be sure that the products your consumers receive are at par and on time.
Making your customer happy is the only path to success when it comes to e-commerce business. But what makes your customers happy is always a big question. Data analytics is just the thing that can give you an answer to this question. It is the bridge that connects you to your customer’s mind who is sitting across continents.