Online marketing is constantly evolving as new technologies, new services, and new marketing tactics gain popularity and become the new norm. E-commerce site owners are one of the segments affected by these constant changes. For these business owners to survive and thrive, they need to be able to make better decisions faster. This is where Analytics comes in.

E-commerce analytics is a key part of the digital transformation of businesses. It allows you to track the customer journey through an omnichannel touchpoint and gain insight into what drives revenue.

With Analytics, companies can better manage all phases of inventory, from supplier management and manufacturing to pricing and delivery. It also enables fraud detection, an in-depth understanding of customer expectations, and better business decisions.

To stay ahead and succeed, companies need in-depth knowledge of inventory, markets, user preferences, and buyer behavior. An e-commerce site produces data, which must be analyzed to gain the insight needed to make quick business decisions.

E-commerce data analytics is used to help companies better understand the data and use it effectively for customer-centric initiatives, including:

• Improving conversion rates
• Multi-channel merchandising
• In-store promotions
• Artificial Intelligence-based commerce
• Inventory planning
• Supplier management
• Customer service improvement
• Cost reduction

Through the analysis of eCommerce data, organizations can identify areas of opportunity, predict important trends, and realize efficiencies that can lead to business growth.

Analytics in E-commerce enables to:

1. Produce data-driven insights to inform strategy

Data analytics helps eCommerce companies better understand what is happening in the business and helps highlight important market trends and risks.

2. Better understand your customers to tailor individual experiences

Understanding how consumers interact with a brand makes it worthwhile to determine the types of content, formats and channels that match key demographics. Analysis of e-commerce data can also help to optimally position the product range and improve the customer shopping experience.

3. Optimise pricing, inventory, and upselling

Data analysis allows organizations to gain a granular picture of what drives prices for each customer segment. This insight helps determine the best prices at the product level to achieve maximum revenue.

4. Analyse patterns and trends for accurate forecasting

Analytics also allows organizations to understand how their businesses are performing and how they are likely to perform in the future. These forecasts can tell you everything from sales and hiring targets to ensuring the right products are available at the right time to meet customer expectations.

5. Measure the effectiveness of sales and marketing campaigns

Data analysis helps to measure the effectiveness of marketing campaigns, achieve greater omnichannel traction and improve decision making.