Adjust the product price 2.5 million times a day, an average of 10 minutes to change the price once, how did Amazon do it?

Compared to Walmart or Best Buy (the famous retail system in the US), the number of Amazon product price changes is 50 times higher than 2.5 million times a day, an average of 10 minutes for a one-time price change.

On Amazon's website there are about 1.5 billion items and 200 million users, about 1 billion GB of data. If you copy all that 1 billion GB of data into a 500GB hard drive and stack it, it will be higher than Everest.

Adjust the product price 2.5 million times a day, an average of 10 minutes to change the price once, how did Amazon do it? Picture 1

Every 10 minutes, Amazon will analyze customers' shopping habits, prices from competitors, inventory, profit margins . combine them with the data available to change prices to ensure Amazon website prices are always competitive and profitable.

With a huge user database, Amazon has a lot of ways to make money from them. Based on the purchase history or view of a user's product, Amazon will "lure" them to buy other items by making suggestions such as "Customers Who Bought This Item Also Bought" (customers buy this product). also bought more .) or "Inspired by Your Browsing History" (inspired by the history of viewing goods). Even when you read books on Kindle and mark important phrases, Amazon also uses them to suggest products to you.

An example of a product suggestion based on a user's shopping habits, if you see 3 items including peanut butter, bread and jam purchased by millions of customers at the same time, you see peanut butter, cake The noodles in the Amazon basket will suggest themselves to buy more jam.

Adjust the product price 2.5 million times a day, an average of 10 minutes to change the price once, how did Amazon do it? Picture 2

Even with a patent called "Anticipatory Shipping Model", Amazon's shopping suggestion feature goes far beyond that. According to the description, Amazon can even ship the product right away to your warehouse when predicting you're going to buy something. This helps the product be delivered faster when you choose to buy them.

Indeed, data has an extremely large economic value, even "precious as gold".

See more:

1. 7 things Amazon Echo can do and Google Home does not
2. Instructions on how to buy online on Amazon
3. Some things to pay attention to when buying Amazon
4. 7 ways to make money on Amazon