 students, welcome to module 196 of introduction to data science course in this module, we have a very interesting industry definitely, I believe that in today's world, almost everyone is using this and this is e-commerce, online shopping I am sure that all of you have already experienced it you have purchased something from different websites in today's world and every person has got some experience but how does this industry work, what is the system on its back end what is the mechanism, how does this work we will see this a little bit and then we will see that as a data scientist what role can you play basically the e-commerce has multiple ways whether it is physically a store, a factory or an office visit everyone has prepared their own, developed their own e-commerce based websites there are different portals, websites, they are interconnected so basically they are facilitating you to come at your time you should not go to a physical store you should go online, give your order, whatever your delivery is you should agree with it and you can have it in one, two, three days now if we have ordered something today then we will go to the website we have selected our size, color, payment, card, delivery so there are different methods of payment we agree with everything and we click it and on the second or third day, a writer comes to your house and he delivers your stuff so how convenient it is and in our life, it has touched almost everybody's life and there has been a big change in many things in life and many people have started spending more money that first you have to go somewhere, it was 10 times that I should not go, how should I go, what should I do if you like to open a mobile, click click and you are done and the second thing is that almost 40-50% of retail business, world over that has shifted to online conventional stores exist in their own place but in some cases, 50-40%, 60% of shopping physical sales keep, online that has been converted and that is all because of your e-commerce now there are 3-4 types of different relationships if I am a consumer in my individual capacity I buy things from the company, they are business so consumer to business is one business to business is like you work in wholesale there are different portal, you must have heard of Alibaba you must have heard of eBay, there are some companies they are registered there and each company their products are available and you can do your online business at B to B level then similarly business to consumer similarly your C to C is like I gave you an example similarly there are many websites world over UK has a famous site, gumtree.com you can say auction sites as an individual you go to your product you offer it for sale and some buyer will give you a price and if you agree, he will buy it so this is basically C to C there are 4 types of possibilities further then you can do it area wise, industry wise there are different mechanisms behind it integration with social media it is happening all these e-commerce products come to a larger extent you can see them separately but you can see them in e-commerce perspective again interesting and the most interesting and the common thing there are many changes in the world there is your internet everywhere the internet even telecom industry banking industry, retail industry your industry is 4-0 everything depends on it on internet or mobile and mobile companies are using internet they use their network but in parallel they are using internet also because the communication through satellite that is expensive and the submarine cable under the C cable physical infrastructure on land or sea that is economical that is cheaper than the satellite communication so internet is more preferred the media is used for internet the cost is less and more economical than the conventional the satellite communication global communication after this different technologies again there are n number of technologies involved as you go to any industry the biggest advantage of e-commerce is that you are not limited to one industry you are in automotive, fashion, shoes or anything else so the trading of internet or e-commerce we have seen there are 4 scenarios which cover almost every e-commerce transaction so it is applicable in any form and shape and that is what you need to learn and understand in which industry you are in what is the data produced and how to use it how to help the business as a data scientist again the different system the web site e-commerce based or web portal that is the center point of e-commerce business for any company you will see different customers or visitors they register themselves they order something and then they use it as a user you can see from the front end but on the back side of the system there is a complete inventory control system there is a complete financial management system warehouse management system a complete delivery system if you just look at these 2-5 systems imagine how much data there is a complete delivery system a person has given an order on the web site i need item abc the product details as a data scientist these are your variables product, size, color these are your variables the delivery time if you do not deliver in time then it is free the delivery time that is very very important for you you have to see how many deliveries are late how many penalties are there that is again very very valuable data for the e-commerce business the different orders from different geographical regions each delivery cost may be different based on that these deliveries are coming from north from center according to the delivery plan it is planned it is seen from where the delivery will be more economical how many products are sold the northern areas the winter season that is longer than the center or the south how many items are sold what stock is stored there what stock is stored here all this is done by a data scientist in e-commerce and again you do not know what is behind it but as a data scientist you understand where this item is where it came from where it came from where it came from there are n number of systems and processes behind one transaction which is happening on your internet through an e-commerce site e-commerce almost all of us we have experience as soon as you go and search on a search engine you search you have google search engine that is definitely one of the most popular in the world let's take example of google as soon as I go to google I will see so I have 10 examples I mean at least on one screen I will see 10-15 links I will see 10 links in front of it there might be few hundreds, few thousands may be you know in the number of lakhs the information which you see in the page break you will see how these things are read how it is done definitely they have available data there are paid and unpaid now let's suppose I went to a website I had written shoes I selected one shoe as soon as I selected you will see if you have not yet experienced please do it do it today as soon as you select one, two, three, four, five similar things in jent shoes even pictures which you have selected if I have selected a long coat then those related pictures will start coming you will say whatever I have bought I like it as soon as you go to purchase along with another message compare prices then you are stopping you don't know who is who is sitting in the world but using your information your interest they are recommending you different things first they have given you 8-10 links you have selected one then you have selected an item then you are going to pay you are buying it expensive do not make a mistake see here this thing is 2 rupees here this thing is 5 rupees in this way then and behind this basically one of your skills which is more in demand in the world as a data scientist the statistical inference which you use different statistical models they are used behind this your regression models your Monte Carlo techniques they are very complex methods and they are very simple methods based on your skill level and again in industry you are trying to make a complex model based on that and this recommendation engine everybody knows that I have given this example there are many examples where we come to know how the recommendation engine works you can take an example of hotel booking you can write XYZ you will get a cheaper hotel you will get breakfast 3 star hotel 4 star hotel same process as soon as you select one you will get another website compare prices you will do that and then you have selected a hotel you say that you will come immediately you need a taxi from airport to your hotel from hotel to hotel you will get some data you will get a ticket when you book 3-5 days it will recommend you immediately if you are going to Prague you are going to New York you are going to London if you want to stay in London you can go here the local attractions the local tourist packages they will sell you basically there are so many use cases there are so many possibilities I am sure that you will feel proud of your decision of being a data scientist when you go to any industry you go to e-commerce you go to industry 40 you go to telecom you go to banking everywhere you will find a lot of opportunities you will love it