COVID-19 has continued to devastate the world, forcing people to isolate and stay away from their loved ones. Countries were forced to adapt quickly to continue being productive, such as using artificial intelligence (AI) and big data to innovate ways to fight the spread. While the pandemic has brought a lot of hardship and suffering to the entire world, it has led to a sharp surge in one area: online shopping.
With most people restricted to the confines of their homes, they’ve turned to online shopping to get what they need without even leaving their couch. E-commerce brands have skyrocketed in popularity and success due to the influx of online orders. However, the pandemic has also encouraged those who lost their jobs to start their own online stores, making the e-commerce market more crowded than ever before. If you’d like to get ahead of the competition, data analytics can help you maximize your profits and outperform other businesses. Here’s how data analytics can help you:
Improve Product Recommendations
According to a report by Barilliance, around 31 percent of e-commerce revenue is because of personalized product recommendations. This is further supported by Amazon’s sales, of which 35 percent were driven through the personalized product recommendation algorithm. Data analytics can help you tailor your product recommendations to match your users’ purchasing histories and increase their chances of adding more items to their carts.
Predict Product Trends
Anticipating a top-selling product is the ultimate goal for every e-commerce business. Enterprises labored by investing in endless hours of market research while diving into trending keywords to determine product trends, but big data can accelerate this process. It takes the guesswork out of the equation by immediately identifying the next best-selling product.
With processes like ad-buying and sentiment analysis, online retailers can predict popular products in specific categories. You can also take advantage of trend forecasting algorithms to see what the next big thing will be. You’ll also want to make sure you buy enough of each item to ensure you stay liquid while having the correct quantity.
Analyze Buying and Customer Behavior
The pandemic has left businesses with an even smaller margin for losses. Fortunately, working with data analytics companies gives you access to information that can help you analyze and determine buying and customer behavior. COVID-19 has undoubtedly changed consumer behavior, so knowing how to predict these changes can help you stay on top, especially as restrictions on movement and social gatherings fluctuate according to the severity of variants.
Optimize Product Prices More Accurately
Data analytics can help you price your products more reasonably by removing the time-consuming aspect of it. Using AI can also help you pinpoint factors that affect pricing, like preferences, sales, trends, and the current economic situation. You can develop a more fine-tuned pricing strategy with this insight instead of applying a standard discount across broad categories and locations. You can even automate the data-crunching to optimize your prices further.
Improve Product Assortment
Lastly, AI and big data can help you improve your assortment by tracking user behavior, furnishing you with a heat map on the most popular areas on your website. You can A/B test your products to see which rakes in more views and organize your inventory accordingly, helping you increase your sales.
Conclusion
Investing in data analytics services will give you access to a treasure trove of information that, when leveraged correctly, can skyrocket your profits and launch you to the top of your field. Using data analytics can improve your product selection, anticipate trends, and enjoy a competitive edge in a crowded market.
TnZ International is an IT solutions company offering data analytics services, IT consulting, cyber security services, custom website design, and more. We can give your e-commerce brand the IT support it needs to create a new, well-designed website while supporting you with various offerings, offering you an all-in-one package. Contact us today to learn more about what we can do for you!
