Amazon is among the leading e-commerce websites, and due to this fact, they collect a large amount of data on a regular basis. In order to manage this data, Amazon uses Big Data analysis technology.
However, customers may be curious as to how Amazon uses Big Data, and how it works. If you’d like to learn more about this, keep reading this article to learn what I found out!
How Does Amazon Use Big Data In 2023?
Amazon uses Big Data to analyze their customer base, meaning they keep a record of what customers search for and purchase. By recording this customer data, Amazon is better able to determine and recommend other products that customers may be interested in purchasing, which in turn enhances Amazon’s sales by convincing consumers to purchase.
Continue reading through this article if you’d like to learn more about how Amazon’s Big Data analysis works, which ways Amazon uses Big Data, along with other useful tips and information!
How Does Amazon’s Big Data Analysis Work?
When Amazon uses Big Data Analysis, they collect individual data on each customer’s use of the website, such as what they look up, what they purchase, which items they view, the reviews they leave, and their location.
By using Big Data analysis, Amazon is able to better cater the website experience to each individual user, which results in increased sales due to the positive results from customer’s shopping.
For example, by collecting the information on a customer’s location, they are able to better choose which warehouse to ship orders from, which cuts down on shipping times and results in a more positive customer experience.
Which Ways Does Amazon Use Big Data?
Amazon is able to collect user data in a number of different ways, as they regularly collect and store customer information when their website and website accessories are used.
Listed below are some of the ways that Amazon is able to collect this data:
1. Alexa Voice Recordings
Amazon Alexa is a voice command device that customers use to gather information on the weather, news and other basic facts.
Customers simply have to ask Alexa a question using their voice, and the device will respond with an answer.
However, when customers give Alexa voice commands, these commands are actually recorded and uploaded to Amazon’s servers.
By recording the voice commands, Alexa is better able to recognize voice patterns and identify them, which aids in providing more accurate responses.
While recording customers’ voices is helpful for Amazon’s data collecting, some customers feel that the practice is invasive towards their privacy.
Fortunately, though, Amazon does allow customers the option to delete each voice message by using the Alexa-enabled assistant.
2. Personalized Recommendation System
Amazon has built in a collaborative filtering engine (CFE) to their website, which records behavioural analytics when customers use the website.
This filtering system analyzes behaviour such as purchasing patterns based on previously purchased items, items in a customer’s cart and wishlist, reviews and ratings on products, and the products most searched for.
Once this data is collected, Amazon uses it to recommend products that customers would be most interested in. For example, customers who search for a classic novel may have other classic books in their recommendations.
This big data utilizes the power of suggestion to customers to encourage last-minute purchases. This use of suggestion has proven to be effective, as Amazon generates 35% of their sales from using this method.
3. One-Click Ordering
Due to the amount of competition for online ordering, customers will generally look for alternative products from other websites if the item they wish to purchase has a longer shipping period.
Due to this fact, Amazon has added One-Click Ordering options, which allows customers to add an item to their order without needing to clarify their shipping and payment information.
After using the One-Click method, customers have 30 minutes to remove the product, and then after that time has passed the customer’s account is automatically charged and the order is placed.
This One-Click method has brought many customers back to Amazon on a regular basis, as it enables them to have their order instantly readied for shipment, whereas the same product may take much longer to arrive from a competitor.
4. Anticipatory Shipping Model
Amazon’s Anticipatory Shipping Model is an additional method used to measure the types of products a customer orders, based on when they will receive the order and where it’s shipped from.
This model helps Amazon to better predict shipping and delivery times for customers, by basing the order off of the closest warehouse to where the customer lives.
By having a more accurate time stamp on orders, Amazon increases the chances of customers returning, as they are able to rely on Amazon’s shipping predictions more than other e-commerce websites.
5. Kindle Book Recommendations
Another method Amazon utilizes for measuring customer data is through Kindle e-Readers. Amazon has linked Goodreads to Kindle features, which allows customers to highlight Kindle pages and share them with others.
This social networking feature allows Amazon to regularly monitor the words customers highlight so that they can better cater their book recommendations to customers.
This method of creating recommendations has proven to be effective, resulting in increased book sales through the Amazon Kindle.
Which Big Data Platform Does Amazon Use?
Amazon has its own branded big data platform called Amazon Web Services (AWS) that they use to record customer data.
Amazon previously collected big data using Oracle, but they now operate completely with their own data analysis services.
How Much Big Data Does Amazon Collect?
Amazon collects a vast amount of big data due to the amount of website traffic and users they have.
Currently, Amazon collects over 2,000 historical and real-time data collections per order.
Additionally, Amazon also uses machine learning algorithms to prevent any fraudulent transactions from entering into their data collection.
The amount of big data that Amazon collects includes customer purchases, search history, and other customer activity involved in using Amazon’s website.
Does Amazon Gather Data on All Customers?
Amazon’s system automatically collects data on all activity conducted on their website. Therefore, all customers who shop on Amazon will have data covered on any purchase, search, review or other traces that they leave.
While Amazon uses this data to narrow down suggestions for their customers, some individuals may have privacy concerns about their personal information being recorded.
However, customers can be reassured that while Amazon records their data, they don’t share any personal information outside of the company, and use it purely for research reasons!
Customers who are concerned about their personal information being recorded can utilize tools such as the Alexa enabled assistant, which can delete recordings of their voice and other personal data.
Amazon uses big data to better cater product recommendations to customers.
Amazon records purchase history, search engine history, personal contact information, data from the Amazon wishlist as well as items customers have saved to their cart.
Amazon uses tools such as Amazon Alexa voice command, a personalized recommendation system, One-Click ordering, anticipatory shipping model and Kindle recommendations to record big data and overall enhance the customer experience.