Building Real-Time Analytics for High-Volume E-commerce

Nov 15, 2023

When I joined the Analytics team at Shopify, our merchants were facing a common challenge: they needed real-time insights into their store's performance during high-traffic events like Black Friday. Here's how we built a system that now processes millions of events daily while maintaining sub-second latency.

The Challenge

Our merchants needed to:

  • Monitor sales and conversion rates in real-time
  • Detect inventory issues immediately
  • Track promotional campaign performance
  • Identify traffic patterns as they happen

System Architecture

We implemented a three-tier architecture:

  1. Event Collection Layer
  • WebSocket connections for real-time updates
  • Redis pub/sub for event distribution
  • Event batching for efficiency
  1. Processing Layer
  • Stream processing with automatic scaling
  • Pre-aggregation for common metrics
  • Cache warming strategies
  1. Serving Layer
  • GraphQL subscriptions for live updates
  • Multi-level caching
  • Fallback mechanisms

Performance Optimizations

The biggest challenge was maintaining performance during peak traffic. Here are some key optimizations we implemented:

// Example of our caching strategy
const getStoreSummary = async (storeId: string) => {
  const cacheKey = `store:${storeId}:summary`;
  
  // Try Redis cache first
  let summary = await redis.get(cacheKey);
  
  if (!summary) {
    // Fall back to pre-aggregated data
    summary = await db.getPreAggregatedSummary(storeId);
    
    // Warm cache with short TTL during high traffic
    await redis.setex(cacheKey, 300, JSON.stringify(summary));
  }
  
  return JSON.parse(summary);
};
Xia Lin