How Amazon uses big data to boost its performance - Delhi

Before getting into the logistics of Amazon’s advertising program, it’s important to understand what makes the platform different from other marketplaces: data.



Consumer data may be Amazon’s most valuable asset. And Amazon has a lot of it. As Neel Mehta, Parth Detroja, and Aditya Agashe wrote for Business Insider,
Amazon has] 1.5 billion items listed for sale and 200 million users. Amazon has one billion gigabytes of data on their items and users. If you put all that data on 500-gigabyte hard drives and stacked them up, the pile of hard drives would be over eight times as tall as Mount Everest. Now that's some big data.



Amazon’s goal is to learn as much about consumer shopping habits to deliver better experiences to customers. Amazon knows which products are popular, when they purchase it, how much they pay, and more.



Amazon uses data to boost its performance through three main measures.



First and foremost, it uses data to adjust prices and capture more margin via a high-runner strategy.



Second, Amazon uses consumer data to power its advertising business. In 2018, Amazon made $10 billion USD in revenue from advertising alone. This made Amazon the third-largest advertising business that year. For comparison, Facebook made $16 billion on advertising in 2018 and Google sold $135 billion worth of ad space.



This is a powerful number, and it makes Amazon nearly impossible to ignore as an advertising space in its operating markets.

Reference : omniaretail