Shopify E.commerce Data Analysis
🔍 Overall Purpose
This analysis investigates the performance of an e-commerce business from multiple angles using historical order data to uncover insights and support data-driven decisions for improving profitability and efficiency.
📊 Key Analyses & Findings
- Historical Sales & Profit Trends (Analysis 1)
- Data from multiple years is used to track total sales and profit year-over-year.
- A projection model is likely applied to predict next year’s performance.
- Observation: Sales and profit fluctuate across years, possibly indicating changing customer behavior or market conditions.
- Reasons for Sales & Profit Decline (Analysis 2)
- A detailed category-level breakdown shows which sub-categories underperform.
- Example: Furniture shows high sales but low profit, suggesting high cost or discounts.
- Data analysis pinpoints unprofitable product segments to reassess.
- Shipment Impact (Analysis 3)
- Evaluates how shipment days vary by ship mode and category, affecting sales and customer satisfaction.
- Optimization strategy is hinted—likely reducing shipment days while maintaining cost-effectiveness.
- Segment-Category Profitability (Analysis 4)
- Measures average sales and profit per customer across Consumer, Corporate, and Home Office segments.
- Helps in targeted marketing and pricing strategies.
- Discounting Strategy (Analysis 5)
- Identifies categories (e.g. Furniture) with high discounts but lower profit contribution.
- Recommendation: Limit discounts for low-margin categories and invest in high-return ones like Technology.
- Regional Demand (Analysis 6)
- Aggregates order quantities by region and month, revealing demand hotspots.
- Strategy: Allocate inventory and marketing spend to high-performing regions.
- Year-over-Year Growth (Analysis 7)
- Tracks YOY growth in sales, profit, number of orders, and profit margin.
- Provides insights into business health and seasonal variations.
- Profit Improvement Recommendations (Analysis 8)
- Combines sales, profit, and margin analysis at category and sub-category level.
- Provides clear recommendations to prioritize profitable segments and reduce focus on loss-making areas.
