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Understanding Amazon’s Data Science Strategy

It’s no surprise that Amazon, an American multinational technology company, is an e-commerce establishment that also deals with great innovations of data science. Through its innovation, the company is always two steps ahead in understanding its customers. Let’s understand how Amazon implements a data science strategy to attain success. The company uses a recommendation-based system (RBS) to gather data from their customers which in other words is termed as big data. More data means more understanding of customer behavior which is later used to streamline the process to encourage the purchase cycle.

Amazon implements a data science strategy to understand the needs and instead of the customers searching for similar products, it provides the products in the recommendation. This is done with the help of collaborative filtering. It tries to build a profile of you while you search for the products. It has many such profiles and through the help of collaborative filtering, it serves you with the product that similar profile people have purchased.

The data innovation helps Amazon keep track of almost everything- starting from customers’ needs, what they have searched, what they might need in the future, their personal details. Using the address, it also tries to understand the income level of the user, so that it can understand what products to offer and what not. Amazon also keeps a check on the feedback habits and studies that as well.

Amazon tries to understand the habits and the time one devotes to each platform for browsing. The external database is also being used. All this is handled from its central data warehouse of Amazon.

Using data science, the company has made the process of shipping a lot easier. Through the help of big data analytics insights, it has reached through a position where it can predict who will order what and when. This has increased the experience of online shopping. The reason for this is that Amazon wants to be able to deliver products faster.

This shows how data science is taking over and how commercial companies can make predictions that are accurate. The products which one will order will be delivered to him/her in no time.

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