US retail e-commerce sales have shot up to $211.5 billion, up from $160.4 billion in the first half of 2020. Pandemic has certainly contributed to this boost in e-commerce sales. The retailers want insights into what issues are likely to crop much before your customer brings it to the notice of the customer service department. This is how eCommerce analytics comes into the mainstream.
Ecommerce analytics is the process of collecting data from all areas that have an impact on your online store and use the same information to understand the trends and the shift in consumers’ requirements to make data-driven decisions that will drive more online sales.
Let’s understand how E-commerce analytics improves your online business.
Build to rebuts supply chain:
Customers shop online for only two reasons that are for convenience and better prices. That’s why your supply chain needs to be robust. Striking the balance, between supply and demand is tricky, and this is why using analytics to forecast future sales is vital for growth.
Analyze information to detect fraud:
It plays a key role in the detection of fraud. As analytics can easily detect patterns based on customer behavior, it can aware the customer by sending a notification asking them if it is them who are trying to conduct a particular transaction and await their approval before processing the transaction. This will create trust between you and the consumers.
Personalized recommendations are a great way to gain the attraction of your customers, by providing that is relevant according to their search. Recommender systems are also great because when the same customer returns to the retailer’s website, they can see upfront what’s relevant for them, based on their previous shopping history.
It is a tough task to maintain everyday inventory details. With the help of an e-commerce analyst, you determine the volume of sales of a particular product, what sales are predicted for the future, what has been the customer satisfaction rate, among other factors.
Optimize pricing of the products:
The price of a product is determined based on the demand for a product, its availability in the market, and how competitors are pricing the same product. With the use of predictive analytics, you can analyze pricing trends and determine what the optimum price for a product should be to maximize profit.
How Ecommerce customer analytics can improve the strategies of online shopping
is the best example of an online retailer that uses predictive pricing.
The best way to understand your analytics is by digging in. Once you take a closer look at the data, you can start making more informed business decisions about what’s working and what changes the business should make for future growth. Groupby Inc., an e-commerce and media provider is the leading service provider mainly working with AI and Machine learning to provide better solutions to their customers with the GroupBy software and help them generate traffic and increase the sale of products.