Why Big Data is So Important for eCommerce Businesses?

Big data is gaining more popularity in the e-commerce industry. It can be argued that big data holds the key to the uniquely wonderful future of the industry. With data volumes shooting up exponentially, e-commerce businesses are applying present-day technologies to harvest the power of data science.

Big data analytics in e-commerce involves using big data resources and technologies to gain a competitive edge, improve customer engagement, optimize and personalize the shopping experience, and increase sales. This article will take a comprehensive look at 5 reasons big data is important for e-commerce. To better understand big data in the e-commerce industry, feel free to read on the subject from EPAM Anywhere Business.

5 Reasons Why Big Data Is Important For E-commerce

E-commerce businesses can get access to customers’ data from various sources. These sources include web server logs, geolocation services, abandoned shopping carts, transaction receipts, and social media activity. Even though gathering customer data is great, analyzing the data gives e-commerce businesses a distinct and competitive advantage.


A large amount of data from the sources mentioned above can be overwhelming. Moreover, there is a need to filter out some unnecessary decision-making information. The big data applications in e-commerce can help attract and retain customers and increase sales and revenues, as well as get rid of unnecessary information that might not be valuable for your business.

Below, we discuss the reasons why big data is important for e-commerce. You can also see the results of a survey by BARC, which explores the usage of big data in companies across the world.

To Predict Trends And Forecast Demands

Knowing the best-selling products in the market before your competitors can give you a competitive edge as an e-commerce business owner. Big data helps e-commerce retailers track customer behaviors to understand their mindsets. Apart from customer behaviors, retailers can also track customer needs and personal information. Combining this information can give an idea of what customers will buy and when they will buy.

Furthermore, e-commerce business owners are used to compiling very large datasets. These historical data compiled from previous years can be used to forecast demand. With the forecasted demand, e-commerce business owners can plan inventory accordingly, stock up to anticipate peak periods, and streamline overall business operations.

For example, there are a lot of seasonal goods that are purchased during definite periods of time: mother’s day gifts, swimwear, Christmas decorations, and so on. Knowing when these goods become of the consumer’s interest and coming up with an excellent offer will definitely lead a business to a higher profit.

To Generate Increased Sales

Big data applications in e-commerce include using customer data to generate increased sales. Increased sales are usually a result of high traffic on e-commerce websites and apps, which results from a personalized customer experience. Therefore, e-commerce retailers must combine data from various sources to give their customers a personalized experience.

In addition, customer data can be used to run precise marketing campaigns, give appropriate discounts, and remind potential customers that they still have products in their carts. Big data could also be used to identify and remove hindrances that may be preventing potential customers from making purchases. Lastly, big data can also help e-commerce retailers measure which landing pages effectively convert potential customers into buyers.

An example of a big data application is Google Analytics. With the help of this tool, small businesses can measure the effectiveness of their online presence. Nevertheless, the provided information is limited to the set of tools Google supplied its users.

To Implement Targeted Personalization And Advertising

Personalization and targeted advertising are probably the biggest trends in e-commerce marketing. Big data is used in e-commerce to tailor products and promotions based on what customers buy or browse. It can also be used to understand the motivations and interests of customers and provide insights into their needs and product preferences.

To a great extent, millennials are interested in buying online, provided they will receive personalized suggestions. Therefore, retailers who understand the importance of timely, relevant, and personalized experiences already use big data technology to deliver more targeted ads.

The use of various AI algorithms during the shopping process might allow your business to provide personalized offers on the fly. The easiest way is to provide related products on a product page, or you may also like them during the ordering process. Here are the most trendy technologies involved: Big Data, artificial intelligence, and machine learning.

To Provide Elevated And Dynamic Customer Service

The best way to retain your customers is to satisfy them with exceptional customer service. Therefore, successfully implementing a well-defined customer service strategy can no longer be an afterthought. Big data plays a key role because it reveals problems in product delivery and customer satisfaction levels. Furthermore, big data analytics in e-commerce can identify the exact points in time when customer perception or satisfaction changed.

To Offer A More Secure Online Payment

Customers need to know that their payments are secure. Big data for e-commerce retailers enables greater security of online payment processes. Similarly,  many e-commerce businesses now offer several payment methods on one centralized platform on their apps and websites. Big data can discover which payment methods work best and are the most popular among customers.

Today, providing only credit and debit cards and Pay Pal payments is not enough. A lot of consumers prefer using cryptocurrencies as well. The research of preferred payment methods is mandatory if you would like to stay competitive.


This article has discussed 5 reasons why big data is important for e-commerce. It can be deduced from the points mentioned above that big data is a game-changer in the e-commerce industry.

Another key importance of harnessing big data is its ability to greatly assist in inventory management by using the reorder level formula. By analyzing and interpreting large volumes of data, businesses can determine the optimal reorder level for their products. The reorder level formula takes into account factors such as historical sales data, lead time, and customer demand patterns to calculate the ideal quantity of items to be reordered when the stock reaches a specific threshold. By using this formula, businesses can minimize the risk of running out of stock, ensuring that items are replenished in a timely manner to meet customer demands. This not only improves customer satisfaction but also prevents potential revenue losses due to stockouts. With the aid of big data analytics and the implementation of the reorder level formula, businesses can effectively manage their inventory and optimize the

E-commerce business owners are advised to implement effective big data strategies for their businesses. This will ensure that they reap the rewards of better customer experiences and bigger profits. We recommend that you browse the pages of EPAM Anywhere Business for services on e-commerce big data software solutions development.

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