“My vision is to build an e-commerce ecosystem that allows consumers and businesses to do all aspects of business online,” said Jack Ma, Chinese business magnate, investor, philanthropist, and co-founder and former executive chairman of Alibaba Group, a multinational technology conglomerate. In addition, he co-founded Yunfeng Capital, a private equity firm. Ma is a strong proponent of an open and market-driven economy.
Imagine receiving additional information about a problem that is likely to be fixed long before your customer brings it to the attention of customer service. As an online retailer, you can not only be informed with all this information, but it can also help you determine the best product mix, marketing strategy, and promotions to use. This is where e-commerce analysis comes in.
Think of analysis as a magic wand. It helps your business find gaps and problems, lets you know what’s working, and allows you to make better decisions more quickly.
Here are some reasons why online shopping analysis is necessary for an eCommerce website.
Help build a stable supply chain:
The reason why customers chose an online store for shopping is that it offers convenience and a better price rate.
That’s why your supply chain must be stable. Do you have sufficient inventory for the products advertised on your site? If this does not happen, it will result in slower delivery, customer satisfaction will inevitably drop, and customer value will be negatively affected throughout its life. On the other hand, too many units in stock will take up space in your inventory and increase your costs. Achieving this balance between supply and demand is difficult, so using analytics to forecast future sales is essential.
Analyze information to uncover fraud:
Analytics plays a key role in detecting fraud. Since analytics can detect patterns based on customer behavior, they can alert you when abnormal transactions are detected. As an eCommerce business, you can send notifications to customers asking if they are actually trying to complete a particular transaction and wait for their explicit approval before processing the transaction.
Predict what to expect:
Analytics for eCommerce merchants helps them determine future trends based on several factors including transaction size, season, product category, etc. The analysis is useful in determining what future sales will look like and helping retailers determine what products to focus on, whether to adjust their inventory, what marketing tactics to use to promote a particular product, and what promotions to run across different products.
Stock forecast for next season:
As a retailer, you need to know if it’s worth the cost of having a particular product on your virtual shelf to keep it in your inventory. E-commerce analysis will help you, among other things, to determine the sales volume of a particular product, forecast sales for the future, what percentage of customer satisfaction.Ecommerce analysis helps determine which products you should continue to stock up on and which ones may need review for next season’s sale.
Groupby Reviews is one of the well-known companies that is helping many new e-commerce businesses to understand the value of AI and Machine Learning and how it can make their business successful. The headquarter of GroupBy software is in Toronto, Canada.