Big Data eCommerce – Definition, Example, Insights of 2024

Mai Xuan Truong

Big data eCommerce is gaining more traction each year. This type of commerce refers to the use of big data analytics and technologies to improve customer engagement, personalize the shopping experience, and increase sales. While there are many benefits to big data eCommerce, there are also a few challenges that need to be overcome. In this post, we’ll take a closer look at what big data eCommerce is, discuss some of the advantages and disadvantages, and provide insights into how it will evolve in the next five years. Stay tuned!

What Is Big Data eCommerce?

Big data eCommerce is a form of eCommerce that uses Big Data and Analytics to improve customer engagement, personalize the shopping experience, and increase sales. Big data eCommerce engages customers in two main ways: by providing personalized recommendations and increased visibility into product information. 

Big data eCommerce is a form of eCommerce that uses Big Data and Analytics

According to Wikipedia, Big Data also refers to any collection of data sets so large and complex that it becomes challenging to work with using traditional database management tools. The challenges include capture, storage, search, and analysis. Big data challenges include Big data as an architecture challenge, Big data as a technology challenge, and Big data as a talent and organizational challenge.

Example of How Companies Are Using Big Data to Increase Revenue & Decrease Costs

Big data eCommerce is typically flexible, scalable, and feature-rich. It helps eCommerce businesses support millions of visitors each day without worrying about losing data. Big data eCommerce can provide businesses with insights into their customers’ shopping behaviors in order to personalize the customer experience across all sites, devices, and channels.

Companies are utilizing big data in numerous ways to increase revenue and decrease costs. Here are some big data eCommerce use cases where companies leverage its functionalities to achieve their goals:

  • Targeted Marketing: By analyzing large volumes of customer data, such as demographics, browsing behavior, purchase history, and social media activity, companies can gain valuable insights into customer preferences and behavior. This information enables them to create targeted marketing campaigns that are more likely to resonate with specific customer segments. By reaching the right customers with personalized messages and offers, companies can increase conversion rates, generate more sales, and ultimately boost revenue.
  • Pricing Optimization: Big data analytics can help companies optimize their pricing strategies by analyzing various factors such as customer demand, competitor pricing, market trends, and historical sales data. By identifying patterns and correlations within this vast amount of data, companies can set dynamic and competitive prices that maximize revenue. Pricing optimization algorithms can adjust prices in real time based on factors like supply and demand fluctuations, competitor pricing changes, and customer behavior, ensuring that companies capture the maximum value for their products or services.
  • Supply Chain Optimization: Big data analytics can be used to optimize supply chain operations and reduce costs. By analyzing data from multiple sources such as suppliers, production systems, logistics networks, and market demand, companies can gain insights into inefficiencies, bottlenecks, and opportunities for improvement. Predictive analytics can help forecast demand more accurately, reducing inventory carrying costs and minimizing stockouts. Data-driven optimization of transportation routes and logistics can reduce fuel consumption and transportation costs. By optimizing the supply chain using big data, companies can enhance operational efficiency and achieve cost savings.
  • Fraud Detection and Prevention: Big data analytics can play a crucial role in detecting and preventing fraudulent activities. By analyzing vast amounts of data, such as transaction records, customer behavior patterns, and external data sources, companies can develop sophisticated fraud detection models. These models can identify suspicious patterns and anomalies in real-time, allowing companies to take immediate action to prevent fraudulent activities. By reducing fraud losses, companies can protect their revenue and decrease costs associated with investigating and resolving fraudulent incidents.
  • Predictive Maintenance: Utilizing big data analytics, companies can implement predictive maintenance strategies. By collecting and analyzing data from sensors and machines, companies can identify patterns and indicators of potential equipment failures. This enables proactive maintenance interventions, reducing unexpected downtime, minimizing repair costs, and optimizing asset utilization. Predictive maintenance can also extend the lifespan of equipment, reducing the need for premature replacements and lowering capital expenditures.

Advantages of Big Data eCommerce


There are many benefits to using Big Data analytics for online stores, including Personalization – Big data can be used to help retailers tailor their products and promotions based on what they buy or browse. 


For example, an online shoe retailer could use Big Data eCommerce to determine your shoe size based on past purchases, show you shoes that past customers who bought your size also viewed, or recommend other popular shoes similar to ones you have purchased in the past. It can also be used to understand customers’ motivations and interests, as well as provide insights into their needs and preferences. 

Big data allows companies to take a proactive approach to customer service by providing helpful information before customers even know they need it. Big data eCommerce provides users with a 360-degree view of each individual shopper.

Improve SEO

Big Data analytics can help improve SEO by giving retailers valuable insights into what customers are searching for, allowing them to optimize product pages so that these items appear at the top of search results. This ensures the product page is relevant, accurate, and up-to-date. Big Data can also be used for conversion rate optimization (CRO). 

Advantages of big data eCommerce: Improve SEO

For example, Big data could be used to identify and eliminate obstacles that may be preventing potential customers from making purchases. For example, Big data could be used to identify and eliminate obstacles that may be preventing potential customers from making purchases (e.g., long checkout pages, unclear product descriptions). In addition, Big data can help retailers measure which landing pages are most effective at converting visitors into buyers.

Manage Customer Relationships 

It enables retailers to better understand their customers’ shopping habits and key requirements. Big data software makes it easier for eCommerce companies to identify what features or products are most important to different types of shoppers, prioritize feature development plans based on the feedback they receive, and also respond quickly when competitors introduce new products or features by leveraging Big Data analytics across multiple channels in real-time.

Customer Service

Big data lets you know who your customers are, what they want, and when they want it. Big Data eCommerce will also help you to know how satisfied your customers are and exactly when and where they leave dissatisfied. 

Advantages of big data eCommerce for Customer service

Big data analytics can be used in customer service to identify common issues with the product, identify the root cause of a customer complaint and quickly resolve it, or determine which customers are most at risk for leaving and find a way to keep them engaged. Big Data eCommerce can also be used to help gather feedback from customers in real-time through chat sessions, surveys, phone conversations, etc. Big Data allows companies to identify potential road products or service processes, such as billing or delivery. Big data software may provide historical sales information to enable effective problem root-cause analysis and the development of attractive, targeted offers for customer retention.

Predictions of Big Data eCommerce for 2024 Based on Current Trends

As we look ahead to 2024, several current trends in big data eCommerce are expected to shape the industry. These trends, driven by advancements in technology and data analytics, have the potential to transform the way businesses operate, drive revenue growth, and deliver personalized experiences to customers.

A critical tool in customer acquisition

The use of Big Data for eCommerce is poised to revolutionize customer acquisition strategies. As technology advances, businesses are recognizing that Big Data is not just a resource, but a critical tool that can fuel their growth and success. By harnessing the power of Big Data, businesses are enabled to gain unmatched insights into customer behavior and preferences, allowing them to develop innovative and effective customer acquisition strategies.

Ability to unveil customer shopping habits and tendencies

Big Data’s role in acquiring new customers, identifying their shopping habits, and predicting what they might need, is becoming more and more important. Customers leave digital footprints in every click, search, and purchase they make, which can be analyzed to understand their preferences and interests. This wealth of information empowers businesses to predict customer needs with remarkable accuracy. 

Ability to unveil customer shopping habits and tendencies

By leveraging advanced algorithms and predictive analytics of Big Data, you are allowed to anticipate what products a customer might be interested in, thereby providing them with personalized product recommendations and enhancing the overall shopping experience.

Great assistant in improving customer understanding

The role of Big Data in improving customer understanding should not be overstated. In a world where customers demand seamless and personalized interactions, Big Data serves as the bridge between companies and their target audiences. Hidden patterns, preferences, and trends that would have otherwise gone unnoticed can be uncovered by sifting through vast quantities of data. This not only aids in the comprehension of customer behavior, but also in the customization of marketing campaigns, product offerings, and user experiences.

Capacity to recognize patterns in historical sales information.

This capability of Big Data goes beyond basic trend analysis, which is being further developed in the near future. By analyzing historical sales data, your businesses are allowed to identify complex correlations and hidden patterns that might drive future purchasing decisions. Therefore, you can make more informed decisions about inventory management, product launches, and pricing strategies. The ability to recognize these patterns will be a game-changer, enabling businesses to stay ahead of market trends and capitalize on emerging opportunities.

Delivery of personalized experience

The personalized experience delivered by Big Data-powered eCommerce is a significant driving force in customer engagement and loyalty. As customers are bombarded with choices, a personalized shopping experience will definitely make your brand stand out.

Delivery of personalized experience

By leveraging the analytics from Big Data, you can easily segment your customers into distinct categories based on demographics, behavior, and preferences. This segmentation lays the foundation for personalized recommendations, targeted promotions, and tailored product offerings that resonate with each individual customer.

Ability to offer a comprehensive understanding of the customer’s journey

Big Data’s potential goes beyond personalized recommendations; it provides businesses with a comprehensive understanding of the entire customer journey, from initial searches to final purchases. Every interaction leaves a data trail, and Big Data analytics enables companies to map this journey by identifying touchpoints, pain points, and improvement opportunities. Armed with this knowledge, you will know who your customers are, what they want, and when they want it, thereby optimizing your online platforms to best improve customer experiences.

Implication for strategic decision-making

Big Data Analytics is all about finding the value hidden, which can also assist companies with making strategic business decisions. Its ability to track and analyze a vast array of data points empowers your businesses to make informed choices regarding inventory management, marketing campaigns, and overall business strategies. 

To illustrate, Big Data Analytics can predict potential demand for a product before committing resources to its production. This proactive approach enables you to minimize the risk of overstocking or understocking, leading to better cost management and higher operational efficiency. This prediction capability is going to be more accurate in the future, which will become a great helper in your business management.

What You Should Do If You Want to Get Started with Big Data in Your Company Now

In the Big Data in Retail Market report by Transparency Market Research, it is expected that the big data market in retail will grow from $420 million in 2013 to $2.9 Billion by 2020 with a compound annual growth rate (CAGR) of 36.3%. The combination of Big Data and eCommerce can be a huge help for your business growth if you use it correctly. 

Get Started with Big Data in Your Company

While big data analytics has its complexities, there are some aspects of big data that you can leverage without diving too deep into the matter. 

Conduct A/B Testing with Big Data Analytics

A/B testing is a common type of testing that you could apply to your business. Big data analytics can help with this testing because it gives you an opportunity to use the Big Data available at your disposal to gather accurate results for A/B testing. You can then make changes based on these results, better preparing your business for success.

Integrate Big Data into Existing Business Intelligence Tools

You don’t always need to implement new Big Data tools when you use Big Data analytics. You can often integrate Big Data analytics into existing business intelligence tools so that you get the best of both worlds according to your needs and goals at any given time. This means that all aspects of Big Data analytics are open to you, but you are not committed to Big Data analytics itself.

Use Big Data Analytics for Predictive Modelling and Scoring

You can also use Big data to improve predictive models and scoring. With Big data, you have the ability to generate more accurate results for these processes and present them in a way that decision-makers understand. This benefits your business in the long term: making your business better prepared for different types of market conditions, various customer bases, and so forth.

Analyze Big Data Artifacts and Structured Data Sets to Find Actionable Intelligence

Big data is great for providing general intelligence about your business needs and goals that might be difficult to see otherwise. You can use Big Data analytics to gather this intelligence, understand it better than ever before, and find out what you need in order to improve in the future: both short-term and long-term. Big Data analytics can provide actionable intelligence when used properly — identifying problems quickly so you can solve them effectively and efficiently down the line.

Use Big Data Analytics to Improve Business Insights and Decision Making

Big data analytics is useful in helping businesses determine how to provide the best experience possible for their customers and interact with them on a more personal level. Big data gives you access to information like never before about customer behavior, which benefits both you and your clients when used properly.

In conclusion

Big data eCommerce is an umbrella term for all of the digital information that can be collected about consumers, businesses, and other entities. Data eCommerce refers to the process of using big data in order to better understand consumer behavior on a large scale.  From our findings, it appears as though 2024 will see even more growth in terms of how much data is available for analysis by marketers looking to make smarter decisions about their marketing strategy.

Shopify is one of the most popular eCommerce platforms that integrates big data into its platform and extensions in order to help merchants manage their stores effectively. If you want help incorporating big data into your Shopify stores, don’t hesitate to contact us or discover our list of web development services to gain more insight into our ability and professional skills. Check it out now!

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