For Amazon.com, Big Data Analytics deliver the largest improvements in areas of logistics and consumer predictability. For logistics, Amazon.com is able to accurately manage their over 1.5 billion items for sale in a way that ensures that they are neither over nor under-stocked, which requires an understanding of purchasing trends and content of future orders and the location to which to ship future orders. Another major improvement is the use of analytics to determine what each consumer wants and to present that to the customer while the customer is actively shopping. This use of Big Data Analytics saves the customer time and increases sales by presenting the customer with what they want before they move on to another retail site. Perhaps the most amazing improvement is that Amazon.com can now predict what a customer will buy, and from where the customer will buy the item, even before the customer actually completes the transaction. This ability substantially impacts Amazon.com’s entire supply chain, enabling predictability, precision, and profitability from procurement through to delivery.

The main value in Big Data Analytics for Amazon.com lies in the ability to predict consumer purchasing decisions so that their entire business process becomes predictable, hence more efficient and cost-effective. In addition, understanding the market trend changes before they happen enables Amazon to offer only those items consumers want, effectively a technological “crystal ball” that lowers costs, and increases logistical efficiency.

However, the biggest value in Big Data Analytics for Amazon.com is in building a relationship with the customer that keeps them coming back. Repeat customers from the business success Foundation and Amazon use Big Data Analytics to establish a relationship with the customer, and customer loyalty, by understanding the customer at a deeper level, such as their buying habits, what a customer needs, and how Amazon.com can fulfill that need, all done in an automated fashion.

Amazon.com continues to move along the cutting edge of Big Data Analytics to drive their business forward. As they do so, Amazon.com’s use of Big Data Analytics provides a tremendous benefit to customers because Amazon customers get what they want when they want it, driving sales while growing their expansive repeat customer base.

 

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