This is the continuation of the article, "Five Tips on How Analytics and Data Can Be Useful for e-Commerce Owners."
Predictive analytics and big data are two ways eCommerce sellers can identify fraud, which is becoming a pressing issue. According to the Global Fraud Report, almost three-quarters of online retailers (72 percent) agree that eCommerce fraud is a growing concern; moreover, 63 percent of them "have experienced the same or more fraud losses in the past 12 months."
Before the arrival of data analytics tools, eCommerce sellers utilize a sample of customer data for fraud analysis. This means spending a lot of time and money to investigate the entire sample because the analysis would have to be manual. Now that big data analytics systems are available, retailers can analyze all data for fraud much quicker. One way to battle eCommerce fraud with data analytics is to use predictive analytics. Here are the steps involved in this process:
As a result, it would be possible to reduce the amount of fraudulent orders by rejecting them and prohibiting fraudsters from making purchases.
Source: Global Fraud Report 2018, Experian
Before the arrival of data analytics tools, eCommerce sellers utilize a sample of customer data for fraud analysis. This means spending a lot of time and money to investigate the entire sample because the analysis would have to be manual. Now that big data analytics systems are available, retailers can analyze all data for fraud much quicker.
One way to battle eCommerce fraud with data analytics is to use predictive analytics. Here are the steps involved in this process:
Every eCommerce business has tons of customer data they now can take advantage of with approaches like big data analysis and business intelligence analysis.
As you can see, there are at least 5 ways you can benefit from data analytics and business intelligence, and they can help with achieving a competitive advantage. With so many retailers - especially the big ones - taking advantage of them as we speak, it's safe to assume that data analytics will soon become a must in eCommerce.
Copyright © 2023, InetSoft Technology Corp.