Performance Analytics - Tracking E-commerce growth

Introduction & Challenge Objective:

The e-store aims to achieve an average annual profit margin of 15% across all product groups, 20% annual overall sales growth with a higher target of 30% for the corporate segment, and at least $400K in annual sales for each market. The final report should not only visualize these KPIs but also provide actionable insights that can drive strategic decision-making for the e-store's future growth.

About the Dashboard:

This dashboard was created to analyze the performance of a global skincare and beauty e-store. It focuses on key business metrics such as total sales, profit, quantity sold, discounts, and profit margins across various product categories, customer segments, and markets. Additionally, the dashboard offers a "What-If" analysis, providing users with interactive features to simulate the impact of discount adjustments and sales growth scenarios.

About the Dataset:

The dataset includes 51290 records that contain data about orders, customer details, location, Market, Segment and Price details.

Tools Used:

Power BI

Data Preparation & Modelling:

The data was pretty much clean but it required little changes. The dim Date table was added and few basic changes were done.

Data Analysis and Visualization:

Dashboard Designing - I planned to create a 3 page dashboard, one page highlights the KPIs and the Top 5s based on the KPIs, another page - highlighting the crucial "what-if" analysis, metric view and the trends & forecast, and the final page that shows worldwide statistics. I wanted to go with a dark background and a little classy and hence extra effort has gone into creating the same.

Insights & Analysis:

• Total Sales: $6.52M (FY 2023)

Top Markets by Sales:

Asia Pacific and Europe lead in total sales, with $1.83M and $1.49M, respectively.

Lowest performing region: Africa with $0.84M.

Top Product Categories:

Body Care ($2.68M) and Makeup ($1.25M) are the top contributors to sales.

• Total Profit: $1.07M

Profit Margin: 16.35%

Top Customers by Profit:

AR-1082564 ($2.6K) and LS-172001402 ($2.4K) lead in profit.

Top Markets by Profit:

Europe ($0.33M) and Asia Pacific ($0.23M) lead the way, but there are opportunities to improve in lower-profit regions like Africa ($0.07M).

• The Corporate Segment dominates across all metrics: $3.8M in sales, $0.61M in profit, and 162K in quantity sold. Consumer Segment lags in both profit ($0.37M) and quantity (92K).
• Average Discount: 11.25%
• Discount Impact: Higher discounts might be affecting overall profitability, especially in regions where sales are high but profit is not growing at the same pace.
• Western Europe and Central America lead in regional performance across both sales and profit metrics.
• Africa shows consistently lower results across sales, profit, and quantity, signaling the need for better market penetration strategies.

What-If Analysis:

Scenario 1: 20% YoY Sales Growth Target

When applying a 20% growth scenario, total adjusted sales reach $7.82M, meeting the annual target.

Body Care and Makeup remain the dominant categories, and Asia Pacific and Europe still lead in sales performance.

Scenario 2: 30% Corporate Sales Growth Target

The corporate sales growth target of 30% yields significant results, particularly in regions like Western Europe and Asia Pacific.

Challenges & Opportunities:

Challenges:

Lower profitability in certain high-sales regions like Europe suggests potential cost or pricing inefficiencies.

Africa consistently underperforms in sales, profit, and quantity, presenting an opportunity for market development.

Opportunities:

What-If Analysis allows stakeholders to explore the potential impact of different discount rates or growth scenarios on sales and profitability.

High-performing categories like Body Care and Makeup present opportunities for expansion through new product offerings or targeted marketing.

Recommendations:

Corporate Focus: Prioritize efforts on growing the corporate segment, especially in high-margin categories like Body Care.

Profit Margin Optimization: Focus on improving profitability in regions like Europe where sales are high but profit margins could be optimized.

Market Expansion: Investigate opportunities for market expansion in Africa and other underperforming regions.

Customer Segmentation: Tailor marketing and pricing strategies based on customer segmentation to maximize profit margins without compromising on sales growth.

Discount Strategy: Utilize the "What-If" analysis to optimize discounting strategies and find a balance between sales growth and profitability.

Conclusion:

This project was a great experience in terms of understanding the domain as well as working on a few interesting analyses for the business. And of course, learning the nuances of Power BI is every bit interesting and exploring the vastness of DAX is truly amazing and rewarding.