Week 8: Amazon has Nailed Big Data!

Amazon Has Nailed Big Data!

We are well aware that technology is becoming seamlessly integrated into our everyday lives. We use technology as a means to make living as convenient as possible alleviating any unnecessary effort. The transition to online shopping has been steadily increasing over the last decade. However, the global pandemic has been a massive catalyst to accelerating this transition and it is safe to say that online shopping is at an all time high.  Where fears of contagion has spread across the globe, it has emerged as the easy solution to attain shopping needs whilst keeping socially distant. Many of us find ourselves scrolling endlessly through infinite products and services addicted to the search for our next purchase. Nobody is loving this more than online powerhouse Amazon who are fine tuned to enticing repeat customers to make another purchase. This lies at the crux of what makes them so successful, they seem to know what you yearn for before we even realise ourselves! But how do they do it you ask? The answer is Big Data! 

Let me explain a bit more...Amazon has thrived using an 'everything under one roof' model. However, when faced with a diverse range of products consumers can be left daunted by the challenge of filtering through what best suits their needs. They effectively become data rich, with a multitude of options, but lack insight, with little idea what would be the best purchasing decision for them. 

 

To surmount this, Amazon utilises Big Data which is information collected from customers while they browse which allows them to assemble and fine-tune its recommendation engine. Therefore, the more information you give, the better they can predict what you so desire. Once Amazon knows what you might want, it can streamline the process of persuading you to buy it! 

So how does Amazon structure their big data?

Using 'predictive analytics', Amazon collates data from users as they navigate the site, this allows them to 'structure the unstructured' data such as analysing the time spent browsing each page. This extensive data collection allows Amazon to build up a 360 degree view on you as an individual. Amazon can then use this data to assimilate  consumers who fit analogous customer niches to make successful recommendations for purchasing behaviour.

But, there is always a catch!

Whilst it may seem convenient to have products and services that directly target your deep desires, there is a potential for our privacy to be breached. When we allow our digital footprint to be closely followed by brands that are attempting to capitalise on our cravings we risk these brands manipulating and maliciously guiding our interests. More notably, the 'filter bubble effect' could be impeding on your ability to diversify your needs when you're simply previewing products that have been statistically computed for you rather than your own disposition.

Are you a frequent Amazon user? Have you felt your privacy has been breached when products are tailored to your niche needs? Do you feel as though you're merely a commodity in the world of Big Data? 

I'd love to hear your thoughts in the comments below!