Cloud Computing, Data Analytics

3 Mins Read

Leveraging Data Analytics for E-Commerce Growth


Every business is going online, and everything can be purchased online. So many e-commerce websites sell every kind of product of every category.

This also increases the competition between the sellers because many websites sell the same category of products. So it is a challenge for the sellers to attract consumers and make them interested in using your websites and purchasing from them. In this case, data analytics can play a big role in keeping the consumer engaged and increasing user experience on your website. To improve your user’s experience, you can analyze the data available to you about the user’s interests, market analysis, trends in the market, etc. This will improve the interaction with your business.

Let’s talk about the challenges that e-commerce websites face and also about how they can be helped by analyzing the data.

Challenges faced by E-Commerce Organizations

  • Seasonality can bring huge fluctuations in the demands of the products in the market, and it challenges the sellers.
  • Capturing the right audience is a big challenge.
  • Showing the right advertisements to the consumer, which he might be interested in.
  • Reaching out to new customers is easy and important, but holding them is more crucial.
  • Detecting fraud is a big challenge as fraud causes huge losses to the business.
  • You are personalizing the user’s shopping experience according to their interests.
  • Optimizing the cost of the products according to the market.

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How Data Analytics can help in Overcoming these Challenges

  • Analyzing the previous data of the purchases during the current period helps predict the purchases of the users so that sellers can increase the products available in the stocks so that you don’t run out of the product. Such as, during the festivals, customers purchase certain products, so by analyzing last year’s data on what kind of products were purchased during this time, you can increase the stocks of the products in your warehouse
  • If your products or website is not reaching the right audience interested in your product, how can you increase consumers on your website. So you need to analyze what kind of audience likes what products. People’s preferences can differ according to the region, period, climate conditions, etc.
  • Every user have different needs and preferences it is important to analyze them before you show product advertisements to them. You can analyze their click streams and their recent searches of the products to show them your product ads.
  • You can bring new customers to your website through ads. Still, it is important to keep them permanent on your website because new customers can give your business legs, but regular customers are the backbone of the business. Because according to reports,80% of future revenue will come from 20% of your existing clients.
  • Analytics plays an important role in detecting fraud. As it can detect fraud according to the patterns of their behaviors and warn them in case of any fraud detected by sending notifications
  • When a customer enters your website, what is the first thing you want them to see is important. And it should be within their interests to keep them engaged as some customers search directly for books as soon as they enter your website, ignoring the home page and mostly purchasing books, so you should show books on the homepage to them.
  • Analyzing the market conditions and demands is important to adjust pricing according to the market. If you don’t analyse the market and current pricing of the product and the customer finds the same product in better price elsewhere, why would he purchase that from your website.


From this article, we can conclude that analytics can help your business organization in many ways to grow your business. You can track what type of customers you have and what products you should sell at what time. It also makes your business more productive to decrease losses.

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1. How will Data Analytics affect the future of E-Commerce?

ANS: – Data Analytics can solve most of the problems related to user experiences, gathering customers, and keeping them engaged with your website. This will increase the productivity and profits of your organization. You can give personalized recommendations to customers with the help of data analytics. This will increase your business in the future.

2. What is the impact of Data Analytics in E-Commerce?

ANS: – With Data Analytics, business owners can better value-extract information and choose their organizations’ best course of action. Data analytics is utilized in eCommerce to boost sales, forecast market trends, and assist business owners in better understanding their clients.

WRITTEN BY Shakti Singh Chouhan

Shakti Singh is a Research Associate (Infra, Migration, and Security) at CloudThat. He is a passionate learner committed to learning new things every day. Shakti enjoys sharing his knowledge with others. He likes singing and listening to music in his leisure time. 



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