AMAZON AND DATA STATISTICS Contemporary Business I BUSI 3305-01 By: Kevin Serrano, Tara Lockard, and Adrien Tcherdakoff Company Background Amazon Inc., called before “Cadabra Inc.”, is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Created by Jeff Bezos, on July 5, 1994, he founded Amazon from his garage in Bellevue, in Washington and the start-up became the big multinational company that everyone know today. This company started as an online marketplace for books and quickly evolved and began to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. Amazon and Big Data Big Data are complex Datasets which size and type are beyond the ability of traditional databases to process efficiently. Amazon uses Big Data in order to improve their personalized recommendation system by creating a sort of profile about the customers. Ex. (Age, Location, Average Income, Past Purchases, Items viewed, etc) The recommendation system attempts to predict what you want to buy and persuade you into a purchase by using probability to guess your preferences. (Ex. favorite color, matching accessories, shipping speed, and price) Adaptation to Statistics Topics Amazon mainly utilizes probability, mean, and mode in their retail operations. ● ● ● ● Their recommendation engine possess an algorithm which uses probability to predict what a customer likes and convince them to make a purchase or more. Mean is what makes the algorithm highly efficient. By gathering averages such as total money spent per purchase/per object, the average shipping time, average satisfaction, and amount of items purchased, Amazon recommendations are more likely to appeal the costumer. Mode also plays a key role in the algorithm. The frequency of types of items, colors, brands, prices, and pretty much any factor that influences a purchase is taken into account by the system. Amazon's’ algorithm use of statistics efficiency is what makes it the biggest company in the world. Additional Statistics Topics Utilized Amazon also makes use of statistics topics such as mean and graphical display in their business operations department. Mean is used mostly used to calculate reports. For example, the average net loss per month, average quarterly profit, average people visiting the website per week, and other important information needed to be analyzed in order to maintain Amazon profitable. Graphical Display such as graphs, charts, scatterplots, etc, show a visual representation of Data which eases the understanding of statistics reported by the company. Communicating Information to Stakeholders Amazon constantly writes reports to stakeholders outlining the companies statistics and strategies. Reports include a large sum of visual statistics in order to facilitate the understanding of the data provided. These include: ● ● ● ● ● ● Graphs Bar Graphs Scatterplots Charts Pie Charts Tables All types of Visuals often viewed in a Statistics class. Types of Visual Data Used (Graphs,Charts,etc.) References Pathak, Ritesh. “How Amazon Uses Big Data?” Analytics Steps, https://www.analyticssteps.com/blogs/howamazon-uses-big-data “Amazon: Using Big Data to Understand Customers.” Bernard Marr, 12 Aug. 2021, https://bernardmarr.com/amazon-using-big-data-to-understand-customers/. “Amazon Statistics (2021).” Business of Apps, 5 July 2021, https://www.businessofapps.com/data/amazonstatistics/. “HowandWhat.net. “Stakeholders of Amazon.” Howandwhat, 4 Oct. 2020, https://howandwhat.net/stakeholders-amazon/. “Amazon Subscription Services Sales 2015-2021.” Marketplace Pulse, https://www.marketplacepulse.com/stats/amazon/amazon-subscription-services-sales-107.
