Today, Big Data is everywhere, but the key problem is – it is too big to tackle and, too complex to evaluate and draw insights from. Also, Big Data Analytics relatively being a state-of-the-art concept, there is a lack of copious knowledge and expertise in the field of Big Data, which is often leading most organizations to misuse their data.

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2. Today, Big Data is everywhere, but the key problem is – it is too big to
tackle and, too complex to evaluate and draw insights from. Also, Big
Data Analytics relatively being a state-of-the-art concept, there is a lack
of copious knowledge and expertise in the field of Big Data, which is
often leading most organizations to misuse their data.
The ideal way to discover how companies can use Big Data to the
fullest is by keeping a close attention on those companies/businesses,
which have already implemented such practices successfully. One such
company that strikes instantly in our minds is ‘Amazon’.
In this article, we are going to figure out how Big Data Analytics has
fueled Amazon to grow vigorously in the global e-commerce market.
The Secret behind Amazon’s Success
using Big Data Analytics

3. The Recommender Systems
Undoubtedly, Amazon is one of the key visionaries in the realm of Big
Data technology, which has conveyed several successful methods of
collecting, analyzing, and implementing data analytical reports for
generating business revenues. According to the Digital Stats Market
report, Amazon has 300+ millions of users, with all their information it
has profoundly developed a huge customer database.
Since years, Amazon is using such data strategically to build effective
recommender systems. It is the recommendations approach that paved
a strong success track forAmazon across the globe in no time.
If you have an Amazon account, which you use on a regular basis, then
you can observe that all the recommendations that are displayed on
your homepage, such as offers, discounts, products are based on your
previous purchasing activities and browsing history.

4. Though today, most of the online retailers are offering
recommendations to its customers, but it was Amazon, who has
started the trend of ‘recommender systems’.
Similarly, it was also Amazon, which has started the trail of
offering customized buying recommendations that provoked the
customers to buy more. Using Big Data Analytics, Amazon kindled
to offer every user with a personalized homepage filled with
recommendations, based on their previous browsing activities.
Supply Chain Management
In 2012, Amazon has filed a patent for an algorithm-based system,
officially known as ‘method and system for anticipatory package
shipping’, a technique using which the online retailer can ship
products before an order is placed.

5. What is this algorithm? Is Amazon going to possibly predict what the
customers want?
This is where the algorithm comes in to the picture. As per the
patent, this algorithm is based on Big Data Analytics, which uses the
customer’s prior shopping cart and purchasing activities, on-site
duration, links hovered and clicked, and wish lists, along with some
real-world information like telephone inquiries and responses to
marketing activities for providing ‘decision support for speculative
shipping of products’.
Amazon’s Anticipatory Shipping Process Model

6. Although, Amazon with its prime service, is delivering the shipments in
one or two days, it still acknowledges their drawbacks to Brick & Motor
store – customers need ‘it’ now.

7. Price Optimizations
In retail industry, it is highly important to get the pricing strategy done
correctly. Amazon uses Big Data for regular price optimizations, to attract
more customers and boost their profits margins.
If you have noticed anytime, prices of the products on Amazon’s website
typically varies for every ten minutes, and are purely set according to your
activity on the website, product availability, competitor’s pricing, purchase
history, product preferences etc. As a result, Amazon offers exciting
discounts on the best-selling products and earns higher profits on the less-
popular products.

8. For example, if the cost of a Wi-Fi router on Economic Times bestselling
routers list may be 10% less than the retail price, while a router not on the
list my cost 10% more than the price sold by the competitor.

9. Amazon Web Services
Amazon offers remote computing services, via Amazon Web Services (AWS)
to its customers. Though AWS was launched in 2002, Big Data Analytics
were added to it in the recent times. The intent was to offer tools that
support data gathering, data storing, data computing, data sharing, and
data collaboration. Accordingly, Amazon developed Amazon Elastic
MapReduce, an advanced platform built around Big Data Analytics and
Hadoop framework, which is highly used by big companies like Adobe,
Dropbox, Netflix etc.

10. At AWS, Amazon also hosts different Public Datasets that can be accessed
for free-of-cost. Using AWS centralized data repository, anyone can have
access to these datasets, and can use public datasets like Common Crawl
Corpus project or 1000 Genome project covering data of more than 5 billion
webpages.
Though Google and Facebook might have more customer data, Amazon
appears to be having a clear understanding of ‘what to do?’ and ‘how to do?’
with its available data.

11. Because, building a massive data repository in business environment
does not makes any worth, rather knowing how to deploy the data
correctly makes the real value. Following is the market share of the
online retailers in US, where it can be easily noticed that Amazon with
its progressive business approach is leading the market with great
occupancy.
Leading Online Retailers in US (2016)

12. The Amazon’s simple and yet powerful business strategy of
implementing Big Data Analytics has taught the business world a
remarkable lesson of how to make maximum utilization of the available
data, for better customer relationships and enriched market success. Big
Data Analytics for Amazon has really worked out the way it has expected,
now ensure that it works the same way for you, join Big Data training
from Kovid Academy to handle your data more efficiently.

13. Contact Us:
support@kovidacademy.com
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Kovid Academy.
Website: https://kovidacademy.com