Amazon data analysis: comprehensive analysis from operations to product selection
Amazon not only obtains information from each user’s purchasing behavior, but also records all actions of each user on its website, including time on the page, whether the user views reviews, each searched keyword, and browsing products, etc. This high sensitivity and emphasis on the value of data has made Amazon far beyond its traditional business methods.
Data-driven applications
Recommended
Amazon’s recommendation function is very effective. For example, the recommendation function of “People who bought X product also bought Y product” seems simple, but the data analysis process behind it is very complicated.
Prediction
User demand forecasting uses historical data to predict users’ future needs. For hard-demand products such as books, mobile phones, and home appliances, prediction is relatively easy; while for soft-demand products such as clothing, it is relatively complicated.
Test
Every detail on the Amazon website is the best solution determined after multiple tests, including page layout, font size, color, buttons and other design elements.
Record
Amazon’s mobile apps and devices such as Kindle Fire tablets can record detailed behavioral data about users.
Data analysis in seller operations
Numerical analysis and visualization
A common application method of numerical analysis is to use the “Pivot Chart” in Excel to process the geographical location information in the order report. For example, the visualization chart clearly shows the main order source regions, such as California (CA), Florida (FL), and Texas (TX).
Time distribution and shopping habits
By analyzing the changes in order volume in different regions within 24 hours, operators can build a visual chart of users’ shopping habits.
Change in operating philosophy
Although data collection is important, you should not try to find inspiration from it, but should use it to verify inspiration. The correct operation process should be “get inspiration-operation practice-data changes-analyze data-verify inspiration”.
Seller data analysis method
Define goals and key indicators
Sellers need to clarify their analysis goals and key indicators of concern, such as sales, profit margins, etc.
Use Amazon Tools
Get information about product sales and business performance with sales reporting and data analysis tools provided by Amazon.
Analyze product sales and customer behavior
Optimize market strategies through analysis of product sales data and customer behavior.
Competitor analysis
Develop corresponding competitive strategies by analyzing competitors’ performance and strategies.
Data visualization and continuous learning
Use data visualization tools to help understand data and continuously learn to update data analysis skills.
Product selection data analysis
Use data to evaluate the market
Use data within the Amazon platform to assess market competitiveness.
Use product quantity to predict scale
Predict the market size based on the number of product reviews.
Competitor analysis
Predict your own advantages by comparing competitor prices and other information.
To sum up, Amazon’s data analysis is not limited to the above fields. For Amazon, data is an important basis for business decisions. Through data analysis, product and market strategies can be optimized to achieve better business results.