Does the Success of E-commerce Rely on Data Science?
In this digital era, data is growing priceless, especially among various industries that rely on the data sets to improve their performance as well as to make suitable business decisions. Particularly, the retail and e-commerce industry solely depends on the data sets to obtain an insight into purchases, profits, losses and even convincing the customers to buy products by monitoring their behaviours. Generally, the retailers analyze data to understand a particular customer's preference and advertise their products accordingly, to induce the urge in the customer to buy the product. The Indian e-commerce industry has witnessed tremendous growth and is expected to stand second in the global e-commerce market by 2034. Also, the market is expected to reach $ 200 billion by 2027. Here is how e-commerce is using data science to enhance its business.
Utilizing Recommendation Engines
The popular online sites have refined recommendation algorithms that aid in driving the customers towards buying the products. By now, we would have come across several advertisements for the products we recently searched for. That is because the recommendation algorithms are composed of complex machine learning components and deep learning algorithms. These algorithms would trace the consumer's online activity and analyze their pattern to recommend the products based on this analysis.
Optimizing Prices
The sellers should fix the product prices that would be effective for both the retailers as well as customers. Also, the manufacturer should not just fix the prices based on the manufacturing charges alone, but should also consider the customer's ability to pay for that product, while comparing it with their competitor's prices. The manufacturers could analyze all these points using machine learning algorithms which would give them the insights of price flexibilities, varying prices based on location, customer's buying preference, competitor's pricing and more. Through these, the manufacturer could fix the optimal price to benefit all the parties involved.
Attractive Product Image
The companies are utilizing the image analysis to understand the customer's requirements. The product images play a vital role in attracting customers. Data science aids the companies to find the right combination of image quality, texture, color and more to create an attractive product image that is appealing to the consumers.
With the technological development, data science is playing a critical role in every industry. It provides crucial data analysis, especially for the e-commerce businesses that aid them in making effective business decisions to scale.
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