How does Power BI improve e-commerce?
2021-06-02 BI Market

How does Power BI improve e-commerce?

The COVID-19 pandemic, which has been going on for nearly two years now, and the restrictions that have been put in place, have resulted in many new online shops entering the market. Figures released by Statista show that in 2020, more than two billion people bought goods or services online, and in the same year, e-retail sales exceeded $4.2 trillion worldwide. What can you do to breakthrough in this crowd with your offer? How to increase the profitability of e-commerce? There is only one answer - analyse data in Power BI!

Profitability of online stores - what does affect it?

Assortment available 24h / 7, free delivery, the possibility of comparing prices or getting to know other customers' opinions about a given product or service are one of the biggest advantages offered by online stores to their users.

However, without proper preparation of the e-store - taking care of both the technical aspect, as well as adequate stocking, customer service or deliberate promotion strategy, the sum of the aforementioned benefits will not be high enough to attract and retain customers

What areas of e-commerce is supported by data analysis and Power BI?

Anyone who runs an online store knows that analyzing data about website traffic or user behavior is essential for development. Based on the collected data, we can:

  • Determine the sources of traffic in the online store,
  • To know the demographic data of clients - age, gender, place of residence, hours of activity,
  • Choose the most effective communication and promotion channels,
  • Determine the products that generate the most profit for our e-business,
  • Find the reason for the abandoned shopping cart.

In order for data analysis to proceed properly, it is important to aggregate and segment them appropriately. It's worth using the Power BI system for this task, which allows you to collect all the data regarding your online store in one place and to analyze and visualize it in a transparent and interactive way. What's more, thanks to the use of Power BI, aggregated data is available to everyone in the company, regardless of place and time.

What data will you analyze using Power BI?

1. Sales and margins - analysis of the level of prices and sales of goods (also per SKU), market share, analysis of competition. Power BI provides insight into real-time sales data for individual categories or brands.

2. Inventory - Power BI helps to analyze inventory and performance indicators, including those concerning deliveries, which allows optimization of warehouse inventory management.

3. Marketing - website traffic, activity in social media, the effectiveness of promotional campaigns - all these data are analyzed by the Power BI system and thanks to the ability to visualize the impact of marketing activities on the e-store they help to make right business decisions.

4. Finance - analysis of cash flows give managers constant insight into the financial situation of the company and increases their ability to respond to possible crisis situations.

Correct data analysis guarantees a global view of your online store and helps you make smart business decisions. If you are interested in implementing the Power BI system in your e-store, please contact us. We will be happy to prepare a dedicated solution for your company.