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No matter if you are a medium sized online shop or a massive brand, if you are selling online, then somewhere your competition is either right behind you or have already surpassed you.
In the fierce and competitive market online shops are facing today, having the right data is key to gaining significant competitive edge. It seems that everyone today is talking about data or already collecting BIG data, the question however, remains: what data are you collecting and how are you using it.Here are four important factors to consider when employing big data for ecommerce
See the full picture
Larry Page once said , when it comes to ecommerce this is especially relevant. Users are becoming more aware and more tech savvy and for them switching to the next online shop is as easy as sending a text message – your competitors are closer than you think.
On top of that the ecommerce world is a global market, more and more sellers are shipping worldwide so that the competition is not limited to your geographical location anymore.
For e-tailers this means that the competitive landscape is extremely dynamic and keeping up with the competition requires looking at .
Product level data
Not all products are created equal, some products perform well, and others remain in the very long tail of online products. Looking at the big picture (i.e. category level data) may hide the very important factors that turn one product into a success story and another to failure. The factors that creates these High Runners are various, it has to do with the product itself (price, description, image) and with how it is promoted and found by shoppers (marketing channels, keywords).
This means that when examining your competition’s performance you need to easily identify these high runners and analyze the factors that made them successful.
There are many ecommerce researches and analysis available online. When choosing one always ask yourself what are the sources of this data? Do they really represent your market and your competition? Always be wary when looking at data provided by the online shops themselves, they have an incentive, and same goes for brands telling us about their performance. When looking into independent research companies, see where are they getting their data from? What methods are they using and if using a user panel how big is it and is it truly representative of the market? Survey, another popular method for generating insights, often create highly biased results. Think of the last time you answered a survey, how authentic were you?
Getting to data today is easier, however getting the and analyzing correctly requires statistical professionalism.
Respond in time
Ecommerce is a dynamic market. “Hot” products rise in a day and others never peak as expected. Quarterly reports may provide a good analysis, but in many cases they are like post mortem, too late to make a difference. The need to know what goes on NOW was never more important. Don’t compromise on quarterly or monthly reports, a good insight engine needs to provide daily insights, allowing you to respond in a timely manner. Whether it is changing prices, updating product assortment, adjusting your marketing campaign or replenishing your inventory, it needs to be done NOW, otherwise by the time you wake up you may realize you are already dead.