10 min read

A complete guide to e-commerce product performance analysis

Oleksandr Drok
A complete guide to e-commerce product performance analysis

What is eCommerce product analysis?

eCommerce product analysis is an analysis performed on data, that is directly related to your store products. The various sets of data collected for the same products allow you to get a clear and precise picture of the actual state and determine trends.

Shopify Reports are an essential tool for product analysis, offering detailed insights into sales performance, inventory levels, and customer preferences, which help in making data-driven decisions to optimize your store's offerings.

Why and when do you need product analysis?

The key tasks of product analysis are:

  • Get an actual picture of the current state
  • Determine trends
  • And most important - split products into two categories "good" and "bad" products

Determining what products are good, allows concentrating efforts on the right products and forgetting about bad products.

There are a few conditions to classify a product as good:

  • Product with good current metrics
  • Product with predicted good metrics, in other words, high potential product

Key kinds of analysis

In the common cases, analysis types can be split by kind of data:

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  • Based on sales data
  • Based on customer behavior data
  • Based on SEO data

Or by scope:

  • Overall store
  • By a set of products (i.e. by collection/category, vendor, product type, etc)
  • Particular products

In different cases, different scopes are applicable. But still, the analysis starts from the top-level (store, category) to the bottom (particular product or even product variant) and you need constantly compare the top (average for a set of products) metric value with the low (product level) metric value.

Engagement Analysis

Engagement analysis is mostly performed on web analytics data, like Google Analytics. And it includes drilling through the eCommerce sales funnel.

  • Impressions
  • Views
  • Add to cart events
  • Checkouts
  • Transactions

And then the derivation of derived metrics:

  • Impression-to-view rate
  • View-to-cart rate
  • Cart-to-checkout rate
  • Abandonment cart rate
  • Checkout-to-transaction rate

For example, a low view-to-cart rate for particular products compared to other products may alert different problems, like bad product description or illustrations, not competitive price, or even non-competitive products compared to similar products.

A low impression-to-view rate, alert non-competitive products, worse illustrations, or bad short description.

SEO Analysis

Search engine optimization analysis and SEO itself is a huge scope of modern e-commerce life.

There are thousands of articles that describe all SEO aspects and hundreds of different tools.

From common free tools that are available, look at Google Search Console, which provides priceless information about the actual state: impressions, clicks, search terms, and average positions. Also you can check fully-featured tool that provide best in class SEO Monitoring and Testing functionality for Shopify stores.

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Even an overview investigation of that data, allows you to determine traffic potential for product/category, hot search terms, and underperformed terms (by click rate).

As result, you can slightly adjust product SEO: title, description, heading, etc, and get tons of benefits.

ABC Analysis

ProductsNameProduct VariantsNameProduct VariantsSKUProduct Variant AbcGradeInventory LevelsTotal AvailableOrdersTotal Sales
Abominable HoodieBlue / XSMH09-XS-BlueA200$4,066.32
Abominable HoodieRed / XSMH09-XS-RedA54$3,925.87
Adrienne Trek JacketGray / XSWJ08-XS-GrayA65$2,205.73
Adrienne Trek JacketOrange / XLWJ08-XL-OrangeB23$1,969.64
Abominable HoodieBlue / SMH09-S-BlueC671$1,961.57
Abominable HoodieGreen / XSMH09-XS-GreenC460$2,816.08
Adrienne Trek JacketOrange / XSWJ08-XS-OrangeC72$1,336.50
Adrienne Trek JacketPurple / SWJ08-S-PurpleC87$3,769.86
Aero Daily Fitness TeeBlack / XSMS01-XS-BlackC12$1,351.80
Aero Daily Fitness TeeBrown / XSMS01-XS-BrownC231$974.90
report generated with mipler.com

ABC Analysis is an unbelievably powerful approach to determining "right" products and detecting "bad" products.

In a few words, we split all products into three categories: A, B, and C.

Products from group A generate 70% of revenue, group B - another 20%, and group C - all others.

For different stores, the number can vary, but typically:

  • Class A (70% of revenue) includes only 10%-20% of products
  • Class B (20% of revenue) - 30% of products
  • Class C - 50%.

In other words: 10%-20% - super "right" products, 30% - near to be "right", 50% - to forget.

FSN analysis: Slow-moving, fast-moving, and dead products

FSN analysis is based on inventory moving and is commonly mostly useful for inventory planning. It the principally similar to ABC, except it is based on quantity and segregating products into Fast-moving, slow-moving and non-moving groups.

For example, the fast-moving group includes the stock that moves too quickly compared to other products and as result requires more attention (replenish ratio is high).

Order or cart level analysis

This kind of analysis includes various things that customers made: sequence of purchased products, returns, commonly purchased sets of products, etc

Products bought together

Customers often purchase few products together and selling more increases average order value (AOV)

Determining what products are often purchased together (in one order or in a few orders by the same customers) allows for improving products recommendations (Cross-sell, Related, and Upsell products)

Bought TogetherProduct ABought TogetherProduct BOrdersNumber of orders
Josie Yoga JacketPrimo Endurance Tank14
Antonia Racer TankSparta Gym Tank12
Tiffany Fitness TeeZoltan Gym Tee12
Augusta Pullover JacketProteus Fitness Jackshirt11
Autumn PullieAtomic Endurance Running Tee (Crew-Neck)11
Balboa Persistence TeeMars HeatTech™ Pullover11
Olivia 1/4 Zip Light JacketMona Pullover Hoodlie11
Desiree Fitness TeeTristan Endurance Tank11
Rocco Gym TankGobi HeatTec® Tee11
Maya TunicJuno Jacket11
Typhon Performance Fleece-lined JacketChaz Kangeroo Hoodie11
Bella TankMinerva LumaTech™ V-Tee11
Argus All-Weather TankRyker LumaTech™ Tee (V-neck)11
Josie Yoga JacketMiko Pullover Hoodie10
Layla TeeBalboa Persistence Tee10
Layla TeeBeaumont Summit Kit10
Layla TeeEos V-Neck Hoodie10
Layla TeeStellar Solar Jacket10
Lucia Cross-Fit BraRadiant Tee10
Lucia Cross-Fit BraSelene Yoga Hoodie10
Maya TunicSelene Yoga Hoodie10
Minerva LumaTech™ V-TeeChaz Kangeroo Hoodie10
Minerva LumaTech™ V-TeeTaurus Elements Shell10
Minerva LumaTech™ V-TeeZoltan Gym Tee10
Olivia 1/4 Zip Light JacketAbominable Hoodie10
Olivia 1/4 Zip Light JacketBalboa Persistence Tee10
Proteus Fitness JackshirtAbominable Hoodie10
Selene Yoga HoodieHelios Endurance Tank10
Olivia 1/4 Zip Light JacketZoltan Gym Tee10
Ariel Roll Sleeve SweatshirtHelios EverCool™ Tee10
Atomic Endurance Running Tee (Crew-Neck)Orion Two-Tone Fitted Jacket10
.........
report generated with mipler.com

Products return rate

Comparing return rates for different products or sets of products, can insight into problems with description, delivery, quality, and so on.

Inventory Planning & Forecast

Inventory planning is another huge scope of analysis and forecasting. More detailed you can read about it here: Shopify Inventory Planner Reports

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