Big data and eCommerce are no strangers, but we’re seeing a big shift in the way they’re used together. Companies seem to be getting better results and it shows no sign of slowing down. If you have a store and you’re not using big data effectively you could be in trouble.
It won’t take long until the big players sweep everyone else under the carpet. To understand how it’s evolving you should look at the ways large eCommerce stores are staying ahead of the curve. Here are a few examples to help you understand what it could do for your business.
The Use Of Dynamic Pricing
Everyone knows dynamic pricing is extremely valuable because it’s already been the cause of a multimillion dollar SAP lawsuit. It’s also been said you can counteract it, but eCommerce stores are using it in a different way.
They’re not trying to maximize the price of their products. They will search the web and quite happily adjust their price 10 times per day until it’s the cheapest because they know the lowest price will equal the most sales.
Showcasing Your Favorite Products
If you run an online store your favorite products aren’t the ones you’d love to own. They’re the products that will earn you the most money, which might change frequently if you always have new stock.
You have to choose the products you offer on your homepage based on some kind of data you’ve gathered. Big data will be able to determine your ideal customer and show them what they’re likely looking for.
Making More Accurate Predictions
You could easily compare a small online store like Bikerringshop to any massive jewelry business. Those large businesses will have other companies buying their products to sell, so they’ll be able to reinvest the money back into stock.
A small jewelry store won’t have the same luxury, so they can’t grow quickly without risking everything buying too much inventory. Accurate predictions will allow any small store to know what they’ll be safe stocking up on.
Getting More Out Of Advertising
The great thing about eCommerce stores is the ease in which you can make money. In theory, if you spend X on ads you should be able to bring in even more. It’s always been difficult to maximize your ad spend in the past.
Big data will let you come up with laser-focused ads to make sure you’re getting the best positive ROI possible. This will allow stores to scale at speeds we’ve never seen before because they won’t waste money.
Advanced Personal Recommendations
Personal recommendations are nothing new to SAP, but they’re going to become a lot more advanced over the years. Amazon are one of the only big online stores you would say are doing this right with their ‘customers also bought’ feature.
On most websites, you’ll get basic recommendations which will boost conversion rates, but there is so much room for improvement. With enough big data stores should be able to know exactly what their customers need or want.
A Great Time To Own A Store
It’s a great time to own an eCommerce store at the moment, but only if you’re taking advantage of big data. You won’t be able to avoid using it if you want to be successful. It will be too hard to compete with everyone else if you’re still working in the dark ages.