Big Data in eCommerce: Benefits to Adopt And Pitfalls to Avoid

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eCommerce industry is evolving, and it processes tons of data required to do business successfully. And to work with a large amount of data efficiently, you need to use Big Data tools since they give you lots of advantages and win-win solutions. Let’s check out all the benefits of Big Data in eCommerce and what challenges you may face adopting it. 

6 benefits of Big Data use in eCommerce

In 2019, retail e-commerce sales worldwide amounted to 3.53 trillion, according to Statista. It is quite impressive, yes? Millions of customers visit such huge eCommerce websites like Amazon, Wal-Mart, eBay, and so on.

Respectively, all these users create a lot of information per day. And the more customers visit, the more the data appear. Well, you may forget about it, and do your business as you did it before. However, you may use this data and use it in favor of your business. And the second option will let you take your business to the new level and solve many problems. 

That is why we will list all strong sides of Big Data in eCommerce you need to know:

Prediction of trends

Special Big Data algorithms extract data from various social media and other sources about all the latest trends in eCommerce world. Thus, you can find out what users want to get and meet their requirements. Besides that, you can get information about future trends that will appear soon. It will help you stay ahead of your competitors. Besides, Big Data algorithms make it possible to process negative and positive requests regarding different products, to build a more efficient business approach. 

Price comparison

Of course, as an entrepreneur, you should know that you cannot make very high prices since your customers will find lower prices competitors provide them with. But how can you know that your price is excellent? That is where Big Data algorithms come to rescue. They collect the prices for the indicated product from global networks, and you can compare them and put the best and optimal price to compete with other market participants. 

Demand forecast

It may be somewhat complicated to buy the precise number of products that will be purchased by customers. As a rule, not demanded products are kept on warehouses, and business owners have to pay the rent for storage of remained products. But if you use Big Data, you will be able to keep up with the information about the demand forecast. And you will purchase or manufacture only the required number of products. 

Meet customers’ personal needs

Each customer wants to be treated in the best way. And they want to find all the products they need on your website. To provide users with a more personalized approach, you can monitor the preferences of your potential and existing customers and give them what they want. Thus, users will use your eCommerce store more often since you will provide them with their favorite and preferred products. Besides, you may send customers suggestions based on their purchase history. 

Permanent improvement

As we noted above, personalized experience and optimal prices will make customers increase more trust for your website. So Big Data systems are a perfect option to gain the lead, stay ahead of your competitors, and provide customers with high-quality and reliable services. And remember – you have only one chance! Otherwise, the customer will find another service provider. 

Growth of sales

Using Big Data analytics, you will be able to reach a high level of sales since your customers will be pleased with your services. That is why Big Data plays an integral role in the achievement of top results in your eCommerce business. 

Pitfalls you should be prepared for when adopting Big Data

Unfortunately, there are always some dark spots you should take into account when you adopt something new in your business. You should make sure that you are prepared for all the barriers and you will bypass them easily when you start taking Big Data in eCommerce. Be ready to find out all of them!

Big Data is not a magic wand

It means that Big Data integration won’t solve all your problems by waving a hand. You receive useful information, and your task is to use it efficiently for your business. 

Lack of experience

To sort out how Big Data works, you need to spend a lot of time and learn to deal with the information you receive. You will need to build correct requests and formulate your ideas properly. Also, sometimes Big Data analysis may seem weird, like the sales of tobacco was higher when Pluto in Aquarius. But it doesn’t mean that these two facts are connected, so you will need to screen the information. 

Security threats

For example, if you plan to create a marketplace website, and you intend to use Big Data algorithms to succeed, you should also take into account the protection of personal data of your customers. Big Data collects all personal data, and malefactors can hack it. That is why an improper approach to security measures may become a severe problem for you. 

The analysis is not so important

Remember – data collection is only the beginning. The most significant thing is the analysis, however many entrepreneurs consider it something unimportant. But you need to pay more attention to analytics tools which will help you analyze all the information you received and use it efficiently. 

Improper equipment

Low-quality hardware, along with weak software, will not allow you to work with Big Data expertly. To store data and process it, you need vast technical capabilities and reliable software. Otherwise, you won’t be able to fulfill your tasks as you should. 

However, if you know about these issues, nothing will stop you from doing your business well and working hard. At the same time, we recommend making use of the services of software development companies that will help you customize your Big Data software and set it up. So adhere to the wise approach and may the luck be with you!


This is a guest post by Sergey Lypchenko. Sergey has got 3 years of experience working as a technical writer for a leading IT company. Topics he writes about include software design and development, product reviews, innovations and latest trends in the IT-sphere.

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