Amazon - Using Data to Succeed

Ever wonder how Amazon became one of the top e-commerce sites? Data is what has helped set Amazon above their competitors. So, what data exactly are we talking about? How has this data helped Amazon to be the successful company that is today? Truth is, data is really how the company was formed.

There are several ways in which Amazon uses data:

1.     PRODUCT SUGGESTIONS

Amazon collects data every time a consumer makes a purchase. The customer’s contact information and address are submitted upon checkout, and the products that the consumer buys are also documented. Ever wonder how the company seems to know you so well in the suggested items? This is because Amazon has data on your account and the products you have purchased.

2.     TO DETERMINE PRICING

Additionally, Amazon uses data to determine their pricing. Products are compared to other store pricing, and Amazon will define the price that is within the same price range as its competitors, if not, cheaper.

3.     CUSTOMER FEEDBACK

Like most companies, Amazon uses customer reviews to understand their weaknesses, and improve on the feedback they received.

4.     MEDIA CHANNEL

As an Amazon Prime member, you can receive media streaming services to watch television shows and movies. Amazon collects data on the different shows you watch, and provides suggestions based on viewers who watch similar shows.  

Amazon wouldn’t really exist without data. Data has really shaped the company to become what it is today. Amazon has utilized this data to create new concepts in the company, and also improve their business as they evolve. 


Source: https://datafloq.com/read/amazon-leveraging-big-data/517