Sales Analysis of E-Commerce Websites using Data Mining Techniques

Abstract

the emerging global economy, E-commerce is a strong catalyst for economic development. The rapid growth in usage of Internet and Web-based applications is decreasing operational costs of large enterprises, extending trading opportunities and lowering the financial barriers for active ecommerce participation. Many companies are restructuring their business strategies to attain maximum value in terms of profits as well as customer's satisfaction. Business tycoons around the globe are realizing that e-commerce is not just trading of products and information over Internet, rather it provides an opportunity to compete with other giants in the market. Data mining (DM) is used to attain knowledge from available information in order to help companies make weighted decisions. An organization needs to invest only on the group of products which are frequently purchased by its customers as well as price them appropriately in order to attain maximum customer satisfaction. The objective of this paper is to evaluate, propose and improve traditional pricing strategies by using web mining techniques to collect information from e- commerce websites and apply data mining methods to induce and extract useful information out of it. The proposed strategy can be generated by optimizing decision trees in an iterative process and exploit information about historical buying behavior of a customer. Keywords-Commerce, Data Mining, ID3 Algorithm