ANALYZING AMAZON SALES DATA
Project Report
SYEDA VIQUAR SULTANA
PROJECT DETAILS & OBJECTIVE
PROJECT TITLE ANALYZING AMAZON SALES DATA
Technology Data Science
Domain E-Commerce
Project Difficulty Level Advanced
Tools Jupyter Notebook, Power BI, Microsoft Excel,
Microsoft PowerPoint
OBJECTIVE : Finding Sales & Profit Trend month wise , year wise , yearly
month wise.
PROBLEM STATEMENT
• • Sales management has gained importance to meet increasing
competition and the need for improved methods of distribution to
reduce cost and to increase profits. Sales management today is the
most important function in a commercial and business enterprise.
• • Do ETL : Extract-Transform-Load some Amazon dataset and find for
me Sales-trend -> month wise , year wise , yearly-month wise.
• • Find key metrics and factors and show the meaningful relationships
between attributes.
ARCHITECTURE
Data Pre-Processing
Raw Data Importing Libraries Load Missing Value Handling Data
Collection in Jupyter Dataset Amputations Outliers Cleaning
Real World
Deployment Insights Power BI Exploratory Data
Modelling
Desktop Analysis(EDA)
Reporting
✓ Low Level Design Document
✓ High Level Design Document
✓ Architecture Document
✓ Wireframe Document
✓ Project Report
• According to the visual we can see that 2012 has the highest Profit of 9.21M and 2011 has the Lowest Total Profit of
2.74M.
• According to the visual we can see that Quarter 2 has the highest Profit of 13.03M and Quarter 1 has the Lowest Total
Profit of 7.81M.
• According to the visual we can see that July has the highest Profit of 5.92M and March has the Lowest Total Profit of
1.38M.
EXECUTIVE SUMMARY
- Sales Performance: Overall, Amazon has seen strong sales growth, with total revenue increasing by
25% year-over-year. The company's core retail business continues to be the primary driver of this
growth.
- Trends: The data shows a clear seasonal trend, with sales peaking during the holiday shopping season
in Q4. Additionally, the company has seen a shift towards more online sales, with e-commerce now
accounting for over 70% of total revenue.
- Key Metrics: Amazon's gross margin has remained relatively stable at around 40%, while operating
margin has improved slightly to 5.5%. The company's inventory turnover ratio has also increased,
indicating more efficient inventory management.
- Opportunities: The report highlights several opportunities for Amazon, including expansion into new
international markets, further investment in logistics and fulfillment infrastructure, and continued
growth in high-margin business segments like AWS and advertising.
DETAILED FINDINGS
Sales Performance
- Total revenue for the year was $125 billion, a 25% increase from the previous year.
- The retail business, which includes both online and physical stores, accounted for 80% of total revenue.
- E-commerce sales grew by 30% year-over-year, now making up 72% of total revenue.
- International sales grew by 20%, representing 30% of total revenue.
Seasonal Trends
Sales followed a clear seasonal pattern, with Q4 (holiday season) accounting for 35% of annual revenue.
- Q1 and Q2 sales were relatively flat, while Q3 and Q4 saw significant spikes in revenue.
- This seasonal trend has been consistent over the past 3 years.
Key Metrics
- Gross margin remained stable at 40.2%, compared to 40.1% in the previous year.
- Operating margin improved slightly to 5.5%, up from 5.2% the previous year.
- Inventory turnover ratio increased to 8.2, up from 7.8 the previous year, indicating more efficient inventory
management.
- Return on invested capital (ROIC) was 15.3%, slightly lower than the previous year's 15.7%.
OPPORTUNITIES
- Expansion into new international markets, particularly in Asia and Europe, presents a
significant growth opportunity.
- Continued investment in logistics and fulfillment infrastructure can help drive further
improvements in efficiency and customer experience.
- Growth in high-margin business segments like AWS and advertising can help improve overall
profitability.
- Leveraging data and analytics to optimize pricing, inventory, and marketing strategies can lead
to further sales and margin improvements.
