Data Analytics System Development for an eCommerce Company

• Project: Custom data analytics system to automate ecommerce data processing
• Service: Data analysis and automation
• Duration: 5 years/ongoing
• Technologies: Python 2.7, Python 3, Pandas, Tornado Web Server, Selenium, Python NLTK
• Target Audience: Company’s management

The Client is a US-based eCommerce business that sells automotive parts, protective gear, accessories, apparel, and more on Amazon and eBay.

Challenge

At some point, the number of goods the Client offers on Amazon and eBay reached around 400,000. As the company works with a network of distributors to supply products, they had to process enormous amounts of data on orders and logistics.

Back then, the company consolidated all information in a spreadsheet, then checked its accuracy, analyzed values, and updated prices according to their strategy — all that was done manually. Obviously, it required a lot of effort. Thus, it was the right time for the development of an advanced system that would help them leverage analytics, manage data more efficiently, and automate the process.

When they approached Velvetech, they required us to address the key challenges: eliminate manual data entry and upload, facilitate order and shipping management, and propel profit and loss analysis. And that’s when our team of data engineers and software developers came in.

Process

So initially, our team had to develop an eCommerce solution to help the Client streamline the process of updating data on marketplaces and improve pricing calculations based on profit and loss analysis.

As the project gained traction, another functionality appeared necessary — analyzing logistics costs and automating the selection of a distributor to place a supply chain order.

Thus, the process of project delivery was divided into several parts:

• Developing methods and scripts to work with pricing and product data in stores
• Implementing the system for profit and loss analysis
• Building functionality to manage orders and logistics

It was decided to deliver these solutions for the Amazon store first and then extend them for eBay as well.

Price and Product Management

Primarily, to ensure transparency and eliminate manual data entry, Velvetech’s team has developed scripts based on Python technology. Running these scripts allows the company to automatically parse information about products and costs from the distributors’ websites, calculate final prices, and then upload that data to the Amazon store. This way, the Client could finally escape monotonous tasks that are often associated with errors.

The next deliverable here was creating a tool that would help the company enrich its product catalog with new positions. The scripts go over existing goods offered on Amazon and suggest what else can be offered to customers. The list is compiled in a CSV file and provides the Сlient with insights on how to propel their business.

Profit and Loss Analysis

To help the company address the need to better monitor business performance and build more efficient pricing strategies, our team initiated the development of a data analytics platform. Its engine analyzes orders and calculates profits or losses, then summarizes data and highlights if any improvements should be made in each particular case.

The solution presents all data in a comprehensive form and assists the Client with informed decision-making on the pricing strategy. The company can easily tell now what positions are more profitable and what needs to be adjusted.

Order Management Kit

The last but not least essential part of the solution is the functionality that provides tools for order and logistics management. Using the API integration with Amazon, the system collects all orders and related data in one place. There’s a set of filters to choose orders by their location, supplier, and status. Here, the Client can also see and compare the profits depending on the product logistics — the part that was done manually before.

Usually, the Client works with several distributors that support various delivery options like shipping and dropshipping. The costs vary from distributor to distributor and affect the profits the company gets from selling a particular product.

To make the process more transparent and facilitate pricing calculations, the UI shows all possible options and terms so the Client can make the best decision. Then, with a click of a button, the order is placed, and the chosen supplier receives all information in a fraction of the time. Further on, this part will be advanced as well, and the system will automatically choose the best terms and place an order, leaving the Client to monitor the process.

In general, the solution also provides reports on pricing, inventory, and dropships that are available for download in a CSV file. The management can use them to have a better picture of their ecommerce operations and pricing strategy and to adjust the course of action.

Outcome

Eventually, the Client acquired the enterprise analytics solution that streamlined their ecommerce data management and pricing analysis. The system helps scrutinize orders, handle shipments, and build a pricing strategy based on the profit and loss analysis performed by the tool. As a consequence, it improves decision-making and elevates business efficiency.

What’s Next

Our team keeps perfecting the system to make sure profit calculations are efficient and take into account all tax rates. The next step is to add new functionality so the solution can perform as an end-to-end system.

It will be designed to go through all product distributors and define which of them have optimal prices and shipment terms as well as the fastest delivery time. Then it will automatically place an order, so the Client will only have to monitor the process and check if it follows the right strategy.