Data interpretation and segmentation: Jonathan Bellwood’s predictions part 1/3

Jonathan Bellwood's predictions for data interpretation and segmentation
Jonathan Bellwood's predictions for data interpretation and segmentation

To really succeed in eCommerce and to push ahead of the competition, Pureplay eCommerce companies, retailers, and brands need to get smart. The key areas that our founder Jonathan Bellwood thinks companies playing in the eCommerce field will start to push for is interpreting the volumes of rich data they have to work with, and identifying a niche, segmented marketplace for them to flourish.

1) Data interpretation is key, not just presentation

As we said in our previous post about eCommerce trends for 2015, data is becoming more valuable than water to a fish. Many eCommerce companies have more data than they know what to do with and that’s exactly the problem - they don’t know what to do with it. For the most part, they use third party software like Qlik to present the data, but interpreting it into something useful is just not happening.

Jonathan says ‘Interpreting this data will allow companies to calculate exactly how many people they need in their eCommerce warehouse for different functions based on order volume, order density and how quickly they have to be picked and despatched. Unfortunately, for humans this interpretation requires no less than a Ph.D. and so companies are not making the most of it.

‘Think about buying. Currently, eCommerce companies tend to look at historical data on sales combined with actual inventory levels during a certain period. Using this method they might see that one item sold particularly well while another didn't, but this does not take into account whether the former item was in stock at the time. What companies should really look for is the conversion rate for items during the time it is in stock. This will give a more accurate analysis of what to buy more of in the future.’


We predict that more and more companies, like Ometria, will start to focus on providing a solution to interpreting data for eCommerce companies. The same will also likely happen for eCommerce warehouse systems because, as we've shown, the data is incredibly valuable.

2) Segmented marketplaces will appear and attract the brands that are scared of current marketplaces

The way it currently stands, eCommerce companies and retailers buy from brands and sell on Amazon and eBay. However, brands have no control over the prices on marketplaces which affects their overall revenue. As a result, the only way to stop their products being sold for less on eBay and Amazon than on their own website is to stop retailers and eCommerce companies selling their product on these marketplaces.

[Related: How your warehouse can increase website conversion]

‘I predict that leaders in specific industries, such as sport or luxury, will start to create their own segmented marketplaces for all brands within that industry that don’t like selling on eBay and Amazon,’ says Jonathan. ‘This way, the brand does not get devalued as it will be on a high-quality, exclusive marketplace without having to lower margins or promote their products.’

However, without the logistics of Amazon to ship their products, brands will have to get smart on distribution and make sure that their order fulfilment from an eCommerce warehouse is top quality. See our blog for two ways to fulfil orders like Amazon.

[Related: The future of eCommerce warehousing: Jonathan Bellwood's predictions part 2/3]

Author: Jess Lawrence