E-commerce utilizes customer data to drive sales by analyzing purchase history, browsing behavior, and preferences to tailor marketing strategies. This data-driven approach enables businesses to segment their audience effectively and deliver personalized recommendations, increasing the chances of conversion. E-commerce platforms use tools to track user interactions, allowing for real-time adjustments in promotions and product offerings. Additionally, understanding customer trends helps businesses optimize inventory management and improve the overall shopping experience. By leveraging data insights, e-commerce companies can enhance customer satisfaction, foster brand loyalty, and ultimately boost revenue in a competitive market.