Selling on Shopify has numerous advantages, including a full-featured website builder, simple setup, a customized online store, and an extensive marketplace to meet the needs of any Shopify store. The question is, however, how merchants can better translate these advantages into sales and grow their businesses.
Shopify sales analytics gives merchants the tools they need to track and grow sales. In this blog, we'll look at some of the most important Shopify sales reports and metrics to keep an eye on. These reports can help you gain valuable insights into sales data, develop effective sales strategies, and make better decisions.
1. Monthly sales trend
When you hear the term "sales analytics," the first thing that comes to mind is most likely the company's total sales. The Monthly Sales Trend Report compares current month sales to sales from the previous month. This helps merchants understand sales trends and validate sales strategies and commonly held assumptions.
Aside from historical sales analysis, forecasting sales for the coming months is critical. Sales forecasting helps Shopify merchants prepare their resources, set realistic goals, organize inventory, and establish a baseline for the next course of action. Using Zoho Advanced Analytics, businesses can precisely forecast (dotted line) Shopify sales numbers or any other KPI.
2. Sales by Source
Visitors to an online store will arrive from various sources, such as social media, affiliate programs, search engines, and others.
Assume John owns a Shopify online lifestyle store and works as a drop shipper. Customers come into the store through a variety of channels, and John is unsure which of these channels the company should prioritize in terms of time and money.
The Sales by Source report comes in handy here, assisting John in understanding sales across channels. This informs John about which channels are performing well and where he should focus his business efforts.
3. Sales by product category
The Sales by Product Category report summarizes sales by product category. By analyzing the top performing product categories, merchants can make decisions such as which product categories to market better, which products to stock, and much more. This report can help dropshippers understand the product categories in which they should consider investing.
For example, if John discovers that apparel is a profitable product category, he may decide to increase his investment in it. John could also invest in accessories or products that can be cross-sold with clothing.
Drilling down into this data to understand finer details, such as the best-selling products in a product category, would be more interesting and useful for an online seller. You can quickly access these finer insights with Zoho Advanced Analytics' drill-down feature.
In the previous example:
1. Right-click on any data point in the Sales by Product Category report to select it.
2. Select Drill Down, followed by Products, to learn about the best-selling products in a specific product category.
4. Sales in the Regions
The Sales by Region report details how sales are physically distributed. Unlike traditional charts, the geo map is a powerful visualization that allows merchants to instantly spot sales hotspots by analyzing the size of the sales bubbles. The larger the bubble, the greater the increase in sales in that area. You can learn about the sales figures for each region by hovering over the bubbles.
This report might be useful:
- Increase sales in high-performing regions through geotargeting.
- Marketing effort coordination
- Inventory needs to be optimized.
- Make an effective supply network.
- and a lot more
If John identifies New York as a sales hotspot, the store may want to tailor their marketing campaigns to include a regional flair.
These are some of the Zoho Advanced Analytics options that can provide powerful insights into your Shopify sales data. These reports can assist Shopify businesses in meeting their objectives more quickly and optimizing their efforts.