A Predictive Analytics Model for E-commerce Sales Transactions to Support Decision Making: A Case Study

Abstract

Given the significant growth in electronic commerce, firms are seeking technological innovations and innovative capabilities to deal concurrently with the data’ volume generated and gaining insights from it for better decisions. Although recent studies identify predictive analytics as becoming the keystone of all business decision making and a crucial aspect in firms by it is a possible means for driving strategic decisions. Significant inroads into the interrelationships between capabilities and the execution of a pathway to an analytical capability to many Egyptian e-commerce businesses have yet to be made. Therefore, this paper aims to shed light on the importance and the role of using predictive analytics models in the Egyptian e-commerce firms where these tools became dominant resources for gaining valuable knowledge for better decision making by precautionary measures from prediction rates and different applications that have been applied by global e-commerce firms. The aim of the paper was achieved by building a predictive analytics model for sales forecasting by tackling to one of the e-commerce company in Egypt, and the online transaction dataset has been analyzed. The result obtained from the model has been displayed, and some insights extracted from the prediction model have been explained.