Lazy loaded image
Business
Lazy loaded imageProduct-Level Sales Analysis Framework
Words 388Read Time 1 min
May 9, 2020
May 10, 2025
type
status
date
slug
summary
tags
category
icon
password

Product-Level Sales Analysis Framework

1. Category and Sub-Category Performance

Key Metrics:
  • Total sales and revenue by product category and sub-category
  • Units sold by category
  • Sales contribution percentage of each category to total revenue
  • Average order value per category
Visualizations:
  • Pie chart for revenue share by category
  • Bar chart for sales volume by sub-category
  • Treemap for product line performance distribution
Business Insights:
  • Identify top-selling and underperforming categories
  • Understand where most sales volume is concentrated
  • Inform category-level decisions on product investment or discontinuation

Category
Sales
Profit
Sales Contribution (%)
Profit Contribution (%)
Gross Margin (%)
Furniture
741,999.80
18,451.27
32.30
6.44
2.49
Office Supplies
719,047.03
122,490.80
31.30
42.77
17.04
Technology
836,154.03
145,454.95
36.40
50.79
17.40
notion image
 
notion image
notion image
 

2. Profitability Analysis

Key Metrics:
  • Total profit by category and sub-category
  • Gross margin percentage: (Profit / Sales) × 100
  • Profit-to-sales ratio
  • Profit contribution percentage by category
Visualizations:
  • Bar chart comparing profit margins
  • Scatter plot of sales vs profit by category
  • Bubble chart with category size by revenue and profit
Business Insights:
  • Identify categories with strong revenue but weak profitability
  • Highlight high-margin product lines worth promoting
  • Evaluate impact of discounting or cost inefficiencies
notion image
notion image

3. SKU-Level (Product-Level) Performance

Key Metrics:
  • Top and bottom products by:
    • Revenue
    • Units sold
    • Profit or margin
  • Return rates (if available)
  • SKU activity duration or sales span
Visualizations:
  • Ranked bar charts of product performance
  • Bubble plots showing revenue vs margin with units sold as bubble size
Business Insights:
  • Spot high-impact products to promote or bundle
  • Flag low-performing SKUs for review or phase-out
  • Benchmark top products as models for development
notion image
 

4. Time Series Trend Analysis (Sales Over Time)

Key Metrics:
  • Monthly sales by category and sub-category
  • Month-over-month and year-over-year growth
  • Moving average or trendline smoothing
Visualizations:
  • Line graphs for sales trends by product group
  • Heatmaps showing category performance across months
Business Insights:
  • Identify seasonal demand patterns
  • Prepare for promotional events or high-demand periods
  • Use patterns for forecasting and inventory planning

5. Price Band Analysis

Suggested Price Segments:
  • Low-end: under $50
  • Mid-range: $50 to $150
  • High-end: over $150
Key Metrics:
  • Revenue, volume, and margin by price tier
  • Average margin per band
  • Conversion rates if marketing funnel data is available
Visualizations:
  • Box plots for price vs margin distribution
  • Stacked bar charts of revenue by price band
Business Insights:
  • Evaluate performance of budget vs premium products
  • Tailor marketing based on customer price sensitivity
  • Adjust pricing strategy and assortment accordingly
notion image

notion image
 

6. Product Lifecycle Analysis

Key Metrics:
  • First and last sale date per product
  • Monthly performance curve per SKU
  • Categorization into lifecycle stages:
    • Introduction
    • Growth
    • Maturity
    • Decline
Visualizations:
  • Product sales timelines
  • Sales curve plots over product lifespan
Business Insights:
  • Support product launches with early-stage marketing
  • Extend the life of mature, stable SKUs
  • Plan clearance or replacement for declining products
notion image

7. Product Contribution Matrix

Axes:
  • X-axis: Revenue contribution percentage
  • Y-axis: Profit contribution percentage
Quadrants:
  • High sales, high profit: Star Products
  • High sales, low profit: Volume Drivers
  • Low sales, high profit: Niche Winners
  • Low sales, low profit: Phase-Out Candidates
Visualizations:
  • Scatter plot with quadrant lines based on mean or median thresholds
Business Insights:
  • Focus investment and marketing on star products
  • Improve profitability of volume drivers
  • Nurture niche winners through targeted sales
  • Discontinue phase-out candidates after evaluation
notion image
notion image
notion image
 
上一篇
Optimizing Business Strategy: ABC Classification, Pareto Principle, and Concentration Analysis
下一篇
E-commerce Data Analysis Framework