What is the ETL? How to build a simple ETL process using Python?

akatekhanh
3 min readMar 11, 2023

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ETL — Extract Load Transform

1. Explanation and importance of ETL process

Extract, Transform, and Load (ETL) is a process of collecting data from multiple sources, transforming it into a usable format, and loading it into a target system. The importance of ETL processes lies in its ability to help organizations to gather, clean, and organize large amounts of data from disparate sources, so it can be used for various purposes, including data analysis, reporting, and decision-making.

Python, with its powerful libraries like Pandas, Numpy, and SQLite3, is an excellent tool for building ETL processes. This post will provide a step-by-step guide on how to build a simple ETL process using Python. We will cover the three main steps involved in an ETL process, including data extraction, data transformation, and data loading, and provide examples of how to use Python libraries to accomplish each step.

By the end of this post, you will have a good understanding of how to build a simple ETL process with Python, and the knowledge to apply these techniques to more complex ETL scenarios.

2. Example use case and implement simple ETL with Python Pandas

Let’s say we have a CSV file that contains data on customer orders. The file includes columns for the customer name, order date, order amount, and payment method. We want to extract data from this file, transform it by adding a new column that calculates the tax on each order, and load the transformed data into a new CSV file.

Simple ETL process

2.1 Extract data

We can use the Pandas library to read the CSV file and store it as a Pandas DataFrame.

import pandas as pd

# Load data from CSV file
df = pd.read_csv('customer_orders.csv')

2.2 Transform data

Next, we can transform the data by adding a new column that calculates the tax on each order. We can define a function to calculate the tax, and then apply it to each row in the DataFrame.

# Define function to calculate tax
def calculate_tax(amount):
tax_rate = 0.1 # 10% tax rate
tax = amount * tax_rate
return tax

# Apply function to each row
df['tax'] = df['order_amount'].apply(calculate_tax)

Now, we can review the “tax” column

print(df)

2.3 Load data

Finally, we can load the transformed data into a new CSV file using the Pandas to_csv() function.

# Write data to CSV file
df.to_csv('customer_orders_with_tax.csv', index=False)

With this ETL process, we have successfully extracted data from a CSV file, transformed it by adding a new column, and loaded the transformed data into a new CSV file using Python.

3. Conclusion

In conclusion, ETL (Extract, Transform, Load) is a critical process in data warehousing and analytics. In this process, data is extracted from one or more sources, transformed into a suitable format for analysis, and then loaded into a target system.

Python provides a variety of powerful libraries and tools for building ETL pipelines. In this article, we explored a simple example of an ETL process using Python and the Pandas library to extract data from a CSV file, transform it by adding a new column, and load the transformed data into a new CSV file. We also discussed the importance of data validation, error handling, and performance optimization in ETL processes.

By using Python for ETL, data analysts and engineers can automate the process of extracting, transforming, and loading data, saving time and effort in data analysis and management. With the right tools and techniques, ETL can be made more efficient, scalable, and reliable, making it an essential component of any data-driven organization.

4. Github repository

The code and sample data can be found in my github repository

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