Amazon's Web Analytics Capabilities
Amazon. They’ve conquered e-commerce, changed the way we buy
groceries, and may now potentially change healthcare. With all of the data Amazon
has access to, how do they make sense of it? How do they take the raw data of
people’s past purchases, how often people visit the website and so much more? Let’s
dive into Amazon’s web analytics as well as their on-page SEO to gain a better
understanding.
At their core, Amazon’s mission has been to simplify the way
customers buy things. (Wills, 2016) The brand starts by using a comprehensive
collaborative filtering engine (CFE) to analyze which items a visitor
previously purchased as well as items that are searched for and in their
shopping cart, and uses an algorithm to recommend additional products that are
similar. (Wills, 2016) These product recommendations - and the outreach of
additional products users should purchase - have been able to increase Amazon’s
revenue by around 30% annually.
Big data is another component Amazon uses to make sense of
the customer data they have available to them. (Investopedia, 2018) Big data
comes from multiple sources and can arrive in multiple formats so it’s up to
brands to make sense of everything that’s coming through on their customers and
focus on the metrics that can make a difference. Amazon interpreted their big
data in a few different ways that allowed them to come up with unique features
of their service that have contributed to their success as an e-commerce site.
(Wills, 2016) Amazon found out that customers will shop somewhere else if their
products will arrive more quickly so that’s how they created One-Click
ordering. This allows customers to purchase items more easily on Amazon’s
website by making the entire purchase cycle extremely seamless. The brand has
also used big data to determine the prices of items on their website to ensure
they receive an optimal ROI. (Wills, 2016) Prices on Amazon are determined by a
particular user’s activity on the site, competitor’s pricing, order history and
several other factors.
Not surprising to most, Amazon chooses to host their
customer and e-commerce data in-house and mostly on the cloud. (Ann, 2016)
Amazon’s Elastic MapReduce is built on top of a Hadoop framework that allows
them to catalogue billions of their products as well as house their global fulfillment
center information on an Amazon S3 interface. (Ann, 2016) The product catalog
usually goes through about 50 million updates every week and is sent to Amazon’s
various data warehouses about every hour.
Looking at the menu options in your Amazon’s Account &
Lists menu gives the first glimpse in how the brand uses their data for their
on-page SEO structure. Hovering over the drop-down menu shows categories titled
“Your Recommendations”, “Your Pets”, and “Your Garage” show how unique and
tailored their data is to each individual user.
(Amazon, 2018)
Amazon can gain insights directly from these specific categories
and see how much traffic and revenue is generated from this menu. Another feature
that I’ve mentioned already is the “Product Recommendations” section at the
bottom of every product page. For example, looking at a smart coffee maker, if
you scroll down you’ll see other items Amazon recommends such as other coffee
makers and bags of coffee on the same product page.
(Amazon, 2018)
The brand also implements SEO best practices to ensure the
page ranks well even when someone is conducting a search on Google or Bing. After
clearing my cache, I opened up Google and typed in “Brewgenie Coffee Maker” and
Amazon had the first organic search result placement on Google’s first SERP. The
word Brewgenie is listed in the URL and all throughout the title and body copy
of the product page which makes it an excellent candidate for the first Google
organic placement.
We can’t talk about Amazon without mentioning their voice
assistant Alexa. Amazon’s Echo houses the voice of Alexa that can answer
anything from “What’s the weather?” to “How many ounces are in a cup?” The fact
that Amazon now has data on what people are actually asking and the natural language
people use opens up numerous possibilities for the brand. Amazon created their
own platform to track Alexa’s users’ activity on a skills metric dashboard.
(Blankenburg, 2017) The dashboard allows a brand to see how many people are
using a certain skill, peak usage time and the time of day the most people used
a skill. Brands can then use analytics from voice assistants like Alexa to gain
a holistic view of their customer’s experience so they can prioritize features
that will help increase their skill’s level of engagement.
Amazon Echo users are actually able to see the questions
they have asked Alexa in their device history and can delete certain queries or
the entire log history. The fact that Amazon saves these questions on a data
server has so much potential for how they can personalize a user’s experience. As
I mentioned earlier, Amazon’s home page looks different to every user and has different
menu options based on how they use the site. With information from Alexa,
Amazon can use the questions and other items users talk to the device about to tailor
the content the user sees on Amazon’s site. This will also tie back to all of
the brand’s on-page SEO efforts and how they ultimately use data to drive their
insights and how users interact with Amazon.
Amazon has and will continue to become a pioneer in a lot of
things because they use the data provided to them from their customers and turn
it into meaningful experiences for their users.
Amazon. (2018). Retrieved February 19, 2018 from https://www.amazon.com/
Ann. (2016). How
Amazon Uses Its Own Cloud to Process Vast, Multidimensional Datasets. Big
Data Zone. Retrieved February 19, 2018 from https://dzone.com/articles/big-data-analytics-delivering-business-value-at-am
Blankenburg, J. (2017). Leverage
the New Metrics Dashboard to Deepen Skill Engagement, Drive Retention. Amazon
Alexa. Retrieved February 19, 2018 from https://developer.amazon.com/blogs/alexa/post/2b3912a9-c6ec-4642-9c1a-55c42d0f14b6/leverage-the-new-metrics-dashboard-to-deepen-skill-engagement-drive-retention1
Investopedia. (2018). Big
Data. Retrieved February 19, 2018 from https://www.investopedia.com/terms/b/big-data.asp
Wills, J. (2016). 7
Ways Amazon Uses Big Data to Stalk You (AMZN). Investopedia. Retrieved February
19, 2018 from https://www.investopedia.com/articles/insights/090716/7-ways-amazon-uses-big-data-stalk-you-amzn.asp
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