This project analyzes the sales data of a Brazilian e-commerce store from 2016 to 2018. The primary objectives are to understand sales trends across different states, identify states with declining or increasing trends, perform a root cause analysis for their performance, and provide actionable recommendations for improvement.
For each year and state, calculate the following metrics:
- Sales
- Customer Acquisitions
- Total Number of Orders
Analyze if these metrics show similar trends or disparities.
Identify the top 2 states with:
- Declining trends over the years
- Increasing trends over the years
Use the most suitable metrics among sales, customer acquisitions, and total number of orders for this analysis.
Conduct a detailed analysis for the identified states using various metrics:
- Category-level sales and orders placed
- Post-order reviews
- Seller performance in terms of deliveries
- Product-level sales and orders placed
- Percentage of orders delivered earlier or later than the expected date
Perform the above analysis for the top 2 cities contributing to the trends in each of the identified states.
Based on the root cause analysis, suggest ways to improve the performance of the identified states and cities.
- Total Sales: $13.59 million
- Total Orders: 96K
- Average Order Value: Approximately $141.46
- Total Customer Acquisitions: 96K, indicating each order corresponds to a unique customer.
- The top 5 product categories are:
- Health & Beauty
- Watches
- Bed & Bath
- Sports & Leisure
- Computers
- Sales for these categories range from $0.91M to $1.26M, suggesting they should be prioritized in marketing and inventory planning.
- Top 3 States by Order Volume:
- SP: 51.89%
- BA: 20.86%
- MG: 8.52%
- Targeted marketing campaigns in these states could be beneficial.
- Most Popular Payment Methods:
- Credit Cards: 78.34%
- Boleto: 17.92%
- It is crucial to maintain and perhaps expand these payment options.
- Peak Period: October
- Significant Drop: December
- This suggests a strong sales period during Q4, likely due to holiday shopping, followed by a post-holiday decline.
- Notable price increases in categories like "Health and Beauty," "Houseware," and "Watches" in 2017 indicate potential market trends or shifts in consumer preferences.
- Top State: SP shows significantly higher total sales compared to others, indicating it is the most lucrative market.
- Underperforming States: ES, PE, and BA show considerably lower sales, suggesting potential areas for growth.
- Dominant State: SP (51.89% of orders), followed by BA and MG.
- There is a significant drop-off in orders in other states, indicating either market saturation in SP or untapped potential elsewhere.
- Credit cards are overwhelmingly preferred, with minimal use of debit cards and vouchers.
- Exploring incentives for alternative payment methods might diversify preferences and potentially increase sales.
- Orders peak in October and drop sharply in December, suggesting a need for strategies to boost post-holiday sales.
- Popular categories like health and beauty, watches, etc., should be heavily stocked and promoted in SP, BA, and MG.
- Enhanced Marketing Campaigns: Tailor promotions to target states and cities with declining trends.
- Improved Logistics: Optimize delivery routes and reduce fulfillment times.
- Customer Feedback Loop: Regularly collect and analyze customer feedback to address issues promptly.
- Product Assortment: Adjust product offerings based on regional preferences and demand.
- Local Partnerships: Collaborate with local businesses to boost brand presence and customer trust.
- Data-Driven Decisions: Utilize sales data to make informed decisions about inventory, pricing, and promotions.
By implementing these recommendations, the e-commerce store can enhance its performance across different states and cities, leading to increased sales and customer satisfaction.