Cost behavior in e-commerce firms

We conduct empirical research on the flexibility of operating costs of e-commerce firms. With an international sample of firms from different European countries, we find that e-commerce firms have a different cost structure than traditional retail firms, with a lower share of labor costs and cost of goods sold, but a higher share of other operating costs. While we find no significant different behavior in cost of goods sold and labor costs between the two types of firms, e-commerce firms are more flexible in adjusting other operating costs than traditional retail firms when activity decreases. Results are robust to different models, estimations methods and samples. The higher flexibility of e-commerce firms relies on other operating costs, but e-commerce creates qualified jobs with higher wages than traditional retail, with no additional exposure to labor uncertainty for employees.

Real-time user clickstream behavior analysis based on apache storm streaming

This paper presents an approach to analyzing consumers’ e-commerce site usage and browsing motifs through pattern mining and surfing behavior. User-generated clickstream is first stored in a client site browser. We build an ingestion pipeline to capture the high-velocity data stream from a client-side browser through Apache Storm, Kafka, and Cassandra. Given the consumer’s usage pattern, we uncover the user’s browsing intent through n-grams and Collocation methods. An innovative clustering technique is constructed through the Expectation-Maximization algorithm with Gaussian Mixture Model. We discuss a framework for predicting a user’s clicks based on the past click sequences through higher order Markov Chains. We developed our model on top of a big data Lambda Architecture which combines high throughput Hadoop batch setup with low latency real-time framework over a large distributed cluster. Based on this approach, we developed an experimental setup for an optimized Storm topology and enhanced Cassandra database latency to achieve real-time responses. The theoretical claims are corroborated with several evaluations in Microsoft Azure HDInsight Apache Storm deployment and in the Datastax distribution of Cassandra. The paper demonstrates that the proposed techniques help user experience optimization, building recently viewed products list, market-driven analyses, and allocation of website resources.

Real-time bidding campaigns optimization using user profile settings

Real-Time bidding is nowadays one of the most promising systems in the online advertising ecosystem. In the presented study, the performance of RTB campaigns is improved by optimising the parameters of the users’ profiles and the publishers’ websites. Most studies about optimising RTB campaigns are focused on the bidding strategy; estimating the best value for each bid. However, our research is focused on optimising RTB campaigns by finding out configurations that maximise both the number of impressions and the average profitability of the visits. An online campaign configuration generally consists of a set of parameters along with their values such as {Browser = “Chrome”, Country = “Germany”, Age = “20–40” and Gender = “Woman”}. The experiments show that, when the number of required visits by advertisers is low, it is easy to find configurations with high average profitability, but as the required number of visits increases, the average profitability diminishes. Additionally, configuration optimisation has been combined with other interesting strategies to increase, even more, the campaigns’ profitability. In particular, the presented study considers the following complementary strategies to increase profitability: (1) selecting multiple configurations with a small number of visits rather than a unique configuration with a large number of visits, (2) discarding visits according to certain cost and profitability thresholds, (3) analysing a reduced space of the dataset and extrapolating the solution over the whole dataset, and (4) increasing the search space by including solutions below the required number of visits. The developed campaign optimisation methodology could be offered by RTB and other advertising platforms to advertisers to make their campaigns more profitable.