7 Ways Amazon Uses Big Data to Stalk You

NAME : JOVANKA HASLIM 林梵鈴 D0726903

TITLE : 7 Ways Amazon Uses Big Data to Stalk You

LINK : https://www.investopedia.com/articles/insights/090716/7-ways-amazon-uses-big-data-stalk-you-amzn.asp

 How Amazon uses big data has helped the brand evolve into a giant among online retail stores. However, what the company knows about you may feel a bit like stalking.

Personalized Recommendation System

Amazon is a leader in using a comprehensive, collaborative filtering engine (CFE). It analyzes what items you purchased previously, what is in your online shopping cart or on your wish list, which products you reviewed and rated, and what items you search for most. This information is used to recommend additional products that other customers purchased when buying those same items.

Book Recommendations from Kindle Highlighting

After acquiring Goodreads in 2013, Amazon integrated the social networking service of approximately 25 million users into some Kindle functions. As a result, Kindle readers can highlight words and notes and share them with others as a means of discussing the book. 

One-Click Ordering

Because big data shows that you shop elsewhere unless your products are delivered quickly, Amazon created One-Click ordering. One-Click is a patented feature automatically enabled when you place your first order and enter a shipping address and payment method. When choosing One-Click ordering, you have 30 minutes in which you may change your mind about the purchase. After that, the product is automatically charged via your payment method and shipped to your address.

Anticipatory Shipping Model

Amazon’s patented anticipatory shipping model also uses big data for predicting the products you are likely to purchase, when you may buy them, and where you might need the products. Amazon uses predictive analytics to increase its product sales and profit margins while decreasing its delivery time and overall expenses.

Supply Chain Optimization

Amazon's big data systems choose the warehouse closest to the vendor and/or you, the customer, to reduce shipping costs by 10 to 40%. Additionally, graph theory helps decide the best delivery schedule, route, and product groupings to reduce shipping expenses further.

Price Optimization

Big data is also used for managing Amazon’s prices to attract more customers and increase profits by an average of 25% annually. Prices are set according to your activity on the website, competitors’ pricing, product availability, item preferences, order history, expected profit margin, and other factors. Product prices typically change every 10 minutes as big data is updated and analyzed. As a result, Amazon typically offers discounts on best-selling items and earns larger profits on less-popular items. 

Amazon Web Services

Big data applications like clickstream analytics, data warehousing, recommendation engines, fraud detection, event-driven ETL, and Internet-of-Things (IoT) processing are through cloud-based computing. Companies may benefit from Amazon Web Services by using them to analyze customer demographics, spending habits, and other pertinent information to more effectively cross-sell company products in ways similar to Amazon. 

Comments

  1. Bradley NikolasJune 1, 2020 at 12:36 AM

    Very interesting article, before this article publish, i did not know that amazon are using big data to stalk their customer. because of this article too, it makes me think about buying at amazon. it makes me scared. companies usually use big data to improve their business rather than to stalk their customer. This article is very educational and very interesting. just need add more information

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