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Why Your Retail Business Needs a Data Warehouse?

Javeria Rahim

Associate Manager SEO

September 28th, 2021

The online retail giant, Amazon generated $386 billion in net sales in the year 2020. When most companies were struggling to survive amidst the pandemic, how did Amazon manage to beat the odds? The secret behind its success is DATA! If Amazon is ruling the e-commerce industry today, it is only because it has efficiently woven data in its fabric.  

This e-commerce behemoth analyzes profit margins, customers’ buying patterns, and inventory availability at a dizzying rate, which allows it to change its prices 2.5 million times a day, so that they always remain competitive. Data also helps Amazon maintain optimum inventory, sell more to customers by giving the right recommendations, and detect fraud beforehand.   

Amazon is not the only retailer that is leveraging data, all other retail giants that we know of such as Walmart and Costco utilize data at a rapid speed for seamless customer experience. Does that mean that data is meant for the big behemoths only? Well, these giants do have the resources to collect and analyze data on a large scale, but it does not mean that small and medium-sized retailers should ignore the importance of data collection and analysis.  

Given that today most of the sales have shifted online, it is imperative that data remains at the forefront of any retail company, regardless of its size. However, to efficiently use data as the retail giants do, a retailer needs to manage its data effectively. Otherwise, scattered data is as good as no data. The best solution for effective data management is a centralized repository, commonly known as a data warehouse, which allows users to retrieve, analyze data, and act instantly.   

The infographic below explains how a data warehouse can give a retailers business a competitive edge by helping them manage data in a more organized manner 

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Download Why Your Retail Business Needs a Data warehouse infographic. 

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