Business Sales Analysis - A Comparative analysis

I am excited to share my recent work on e-commerce business inspired by @Shahriar's Sight Academy focusing on sales for 2023/2024

Problem:

As a data analyst tasked with analyzing the business performance of 2024 compared to 2023, I noticed several key challenges that needed addressing. In 2023, sales, customer engagement, and overall market penetration were below expectations. Certain product categories underperformed, and key cities failed to generate the anticipated revenue. This posed a significant threat to the company's growth and long-term viability.

Key Insights:

By diving deep into the data, I developed a comprehensive strategy that addressed these issues head-on. Here’s how I turned the situation around in 2024:

Sales and Revenue Growth:

• Overall Sales Increase: The total sales in 2024 rose to $689K, reflecting a 37.2% increase compared to 2023. This growth was a direct result of targeted efforts in high-performing product categories.
• Category-Specific Success: Clothing, Furniture, and Electronics showed significant improvement. Clothing sales accounted for 57.28% of total sales in 2024, compared to 42.72% in 2023. Similarly, Furniture sales jumped from 41.59% in 2023 to 58.41% in 2024, and Electronics from 41.08% to 58.92%.

Enhanced Customer Engagement:

• Customer Growth: The number of customers increased by 14.3%, from 509 in 2023 to 582 in 2024. This growth was most pronounced in cities like San Jose, New York, and Los Angeles, where each city contributed over $80K to the total sales, representing an average increase of 36%.
• Top Performing Cities: San Jose and New York led the pack, each generating $80K in sales, representing a 36% and 39% increase from 2023, respectively.

Improved Order and Quantity Metrics:

• Orders: The total number of orders in 2024 reached 1,255, a 36% increase from 2023. This surge in orders is a testament to the improved customer experience and the effectiveness of targeted marketing campaigns.
• Quantity Sold: The total quantity sold across all categories rose by 38.1%, reaching 7,019 units. This indicates a strong consumer demand and an effective inventory management strategy.

Why This Matters:

Falling short of sales targets and customer engagement not only limits immediate revenue but also hinders the company’s ability to invest in new opportunities and maintain a competitive edge. With a rapidly changing market, I knew that reversing these trends was crucial to safeguarding the company’s future. The performance in 2024 needed to show a marked improvement to ensure the company stayed on a growth trajectory

Recommendations:

1. Double Down on High-Performing Categories: Given the success of Clothing, Furniture, and Electronics, I recommend further investment in these categories. Enhancing product lines, introducing new items, and creating targeted marketing campaigns will help sustain and potentially increase this growth.
2. Expand Efforts in Top Cities: San Jose and New York have shown exceptional growth. I suggest launching localized promotions, events, and partnerships in these cities to capitalize on this momentum. Additionally, exploring untapped potential in similar markets could yield similar results.
3. Enhance Customer Experience: The increase in orders and quantity sold reflects a positive response from customers. To maintain this trend, focus on improving customer service, streamlining the purchasing process, and offering personalized recommendations. A loyalty program could also be beneficial in retaining and growing the customer base.
4. Monitor Underperforming Areas: While the overall picture is positive, it’s crucial to keep an eye on any underperforming categories or cities. Regularly revisiting the data and adjusting strategies accordingly will ensure that any emerging issues are addressed promptly.

By following these recommendations, I am confident that the company will not only continue to grow but will also solidify its market position, ensuring long-term success.