It is absolutely correct to attach importance to data analysis, and some practical applications of data analysis are not as complicated as we think. Next, let me show you several applications of data analysis:

1. Use data analysis to find high-quality products in the store

Before explaining this case, let's first look at a formula:

Sales = Traffic * Conversion Rate * Average Customer Price

This formula is well known in the e-commerce circle, and there are several variant formulas. Everyone is very interested in how to improve the various factors of the formula to ultimately achieve the goal of increasing sales. In particular, they are keen on how to improve search rankings to obtain higher traffic, etc. Such courses are numerous.

In fact, for platforms like Amazon, their considerations for sellers focus more on the conversion rate factor. Amazon does not care how much traffic you get, because the traffic on the platform belongs to Amazon. No matter which product the traffic is assigned to, it will not change the total traffic. So from Amazon's perspective, traffic is a quantitative rather than a variable. Amazon only cares about your conversion rate. In order to obtain higher GMV, Amazon's choice is to give as much traffic as possible to products with high conversion rates.