Data science is the processing and analysis of large
structured and unstructured data sets. These algorithms have been used for
years and has led to the growth of several sectors. Find some ways how it can
help drive revenue for e-commerce companies
below.
Price optimisation
Historically, retailers set the price of their products using specific data points such as profit margins, cost of goods sold, competitors’ pricing, and manufacturers’ suggested rates. However, today, merchants decrease and increase prices based on a lot of factors such as seasonality, demand, customer location, and frequency of purchase. For merchants to decipher the appropriate rate, they should look at all these variables which data science will help them access.
Historically, retailers set the price of their products using specific data points such as profit margins, cost of goods sold, competitors’ pricing, and manufacturers’ suggested rates. However, today, merchants decrease and increase prices based on a lot of factors such as seasonality, demand, customer location, and frequency of purchase. For merchants to decipher the appropriate rate, they should look at all these variables which data science will help them access.
Market basket analysis
This is not a new concept. Retailers have been relying on it for years. It is based on the fact that if a client purchase an item, he/she is more likely to buy a related product. Merchants traditionally get expensive reports from research companies to get this insight. As such, they can devise specific strategies to increase sales. However, now there is another option to obtain this information. Online businesses can have a look at their customers’ purchase history to recommend similar products in the checkout process.
This is not a new concept. Retailers have been relying on it for years. It is based on the fact that if a client purchase an item, he/she is more likely to buy a related product. Merchants traditionally get expensive reports from research companies to get this insight. As such, they can devise specific strategies to increase sales. However, now there is another option to obtain this information. Online businesses can have a look at their customers’ purchase history to recommend similar products in the checkout process.
Design prices according to data science
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