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Total orders per channel.
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Average Order Value (AOV).
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Revenue contribution per channel.
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Profitability by product subclass.
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Total orders and total sales are available by channel.
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Average Order Value (AOV) and revenue contribution are calculated.
1. Top-Performing Channels (Based on Sales Revenue)
- BEWAKOOF leads with ₹3,078,073.71 in sales (23.1% of total revenue).
- MYNTRA and its subcategories contribute significantly, with a total of over ₹6.84 million, making it the strongest marketplace collectively.
2. Underperforming Channels (Low Sales and Orders)
- SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have the lowest sales, with ₹36,722.50 and ₹49,732.00, respectively.
- Their low order volume and revenue share (<1%) indicate that they need either better marketing or pricing strategies.
3. Highest and Lowest AOV (Average Order Value)
- NYKAA_FASHION_BK_KOL_SHR has the highest AOV at ₹962.81, indicating premium product sales.
- SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have the lowest AOV (~₹420-₹456), showing a focus on budget-friendly products.
4. Profitability Insights
Highest Profit Margin (%)
- Bewkoof channel has overall 23% profit margin highest among all.
- MYNTRA channels have profit margins exceeding 11%, making them highly profitable.
- NYKAA_FASHION_BK_PROZO_BHIWANDI has a 6.7% profit margin, making it a strong channel for premium products.
Lowest Profit Margin (%)
- SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have profit margins of ~0.2%-0.3%, making them barely profitable.
- FLIPKART and FLIPKART_BK_BLR_SHR also show weak profit margins (~2%).
1. Expand Focus on High-Profit Channels:
- Invest in Myntra and Bewakoof, which contribute over 35% of total revenue and have strong profit margins.
- Explore higher-margin product listings on NYKAA Fashion, especially in the premium segment.
2. Improve Low-Performing Channels:
- Consider discounted bundles or marketing efforts for Snapdeal and POP to increase order volumes.
- Reassess pricing strategy on Flipkart, as its low profit margin (2-3%) might not justify the platform fees.
- Optimize Pricing for Underperforming Channels:
3. Increase prices on Snapdeal and POP while maintaining competitive positioning.
4. Adjust cost structures or promotional strategies for Flipkart channels to increase profitability.
BOM(Bill of Materials) Business Analyst Case Study Solution using Python, Pandas manipulation and Visualization Technique
Customer Acquisition vs Retention
- Objective: Assess how different marketplaces perform in acquiring and retaining customers.
- Key Metrics:
- Total orders.
- Unique customers.
- Repeat orders (Repeat Orders = Total Orders - Unique Customers).
- Retention rate (% of repeat orders among total orders).
Deliverables:
- A summary of retention metrics by channel.
- Observations on which marketplaces drive customer loyalty and suggestions to improve retention.
Marketplace Efficiency: COD vs Prepaid Orders
- Objective: Compare the operational and financial efficiency of order types (COD vs Prepaid) across marketplaces.
- Key Metrics:
- Total sales.
- Total profit.
- Average profit margin by channel and order type.
Deliverables:
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A detailed breakdown of these metrics by channel and order type.
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Observations on payment method efficiency and strategies to optimize COD or incentivize prepaid adoption.
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Bewakoof has the highest repeat orders, but its retention rate is still low (~0.3%).
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Flipkart and other marketplace channels have no repeat customers in this dataset, meaning all customers are unique.
Observations
- The low retention rate suggests that customers are not returning for repeat purchases. Suggestions:
1. Gamification & Loyalty Programs
- Introduce tier-based rewards (Silver, Gold, Platinum) based on repeat purchases.
- Offer "Spin & Win" discounts or reward points for every purchase to encourage repeat buying.
- Implement a streak-based discount (e.g., 10% off if a customer orders again within 30 days).
2. Exclusive "VIP Retention Offers"
- Provide "Early Access" to new product launches for repeat customers.
- Offer exclusive discounts to customers who have placed multiple orders in the past 3 months.
3. Subscription Model for Repeat Buyers
- Offer a subscription service for products frequently ordered (e.g., fashion, cosmetics, or essentials).
- Provide a 10-15% discount for subscribing to recurring purchases.
- COD orders tend to have a slightly higher average profit margin than prepaid orders.
- Bewakoof COD orders have a 52.1% profit margin, while Prepaid is slightly lower at 48.2%.
- Flipkart and other channels also show similar trends where COD is slightly more profitable.
Observations
- Since COD is more profitable, marketplaces should optimize logistics to reduce COD-related risks (e.g., non-deliveries).
Suggestions:
1. Instant Prepaid Discounts on COD Checkouts
- When a customer selects COD, show them a popup:
- "Pay Online & Get ₹50 Cashback Instantly!"
- "Prepay & Unlock Free Express Delivery!"
2. Hybrid COD-Prepaid Model
- Allow customers to pay a small advance online and the remaining amount on delivery.
- Example: "Pay ₹100 now & the rest on delivery"—this builds trust while reducing COD risks.
3. Gamify Prepaid Payments with Rewards
- Every prepaid order enters the customer into a lucky draw for a big reward.
- Example: "Prepay & Get a Chance to Win a Free Gift Every Month!"