Quantum Supply is a leading e-commerce platform specializing in high-quality tech products and gadgets. Since launching in 2018, it has become a top choice for tech enthusiasts, offering a carefully selected range of premium electronics—including gaming monitors, headphones, and laptops—from brands like Apple, Samsung, and Bose. With global shipping, competitive #, and a constantly refreshed lineup of new products and loyalty program offers, Quantum Supply delivers an exceptional shopping experience for tech lovers everywhere.
The dataset contains detailed records of sales transactions from 2019 to 2022 including the user id, product, purchase date, region, country, currency, and purchase platform.
The full ERD of the sales dataset can be found here.
Cleaning of the dataset was required before analysis, you can view a change log here(link).
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From 2019-2022, the company generated $28M from 108k total orders, 2019 saw the lowest annual revenue at $3.8M with a peak annual revenue reaching $10M in 2020.
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Annually the largest sales growth occurred between 2019 and 2020 at 163% (YoY) , while 2021 to 2022 experiencing a 46% decline in sales year over year.
- North America, particularly the U.S., accounted for over 50% of revenue, with $14M in sales from 50k orders.
- The 27-inch 4K Gaming Monitor, Apple AirPods, MacBook Air, and Thinkpad Laptop contributing 96% of total sales, amounting to $27M combined.
- By 2022, spending by loyalty and non-loyalty members reached equilibrium, but non-loyalty members spending declined.
- Loyalty members showed consistent growth in Average Order Value (AOV), surpassing non-loyalty members by 2021.
- The overall refund rate across all transactions is 6%.
- The MacBook Air had the highest refund rate at 11%, followed by the Apple iPhone at 8%, and the Apple AirPods at 5%.
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September and December saw the highest number of sales ($2.7M and $2.8M) with February and October generating the lowest sales ($1.9M each).
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Sales and order count growth were aligned, with the highest month over month increase occurring in March 2020 at 50% and the steepest decline in October 2022 at -55%.
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When looking in aggregate by month from 2019-2022, we saw that our highest sales occurred in January, September, and December at a peak of $1.2M sales in December of 2020.
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The lowest sales occurring in February and October at a low of $178k in sales October of 2022.
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A majority of sales are coming from North America accounting for $14M in total revenue, with Europe, Middle East, and Africa accounting for $8M, combined show for over 80% of the total revenue.
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When looking into product sales, the best performing products are the 27In Gaming Monitor, Apple Airpods, Macbook Air, and ThinkPad Laptop accounting for 96% of all sales.
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By brand, Apple is responsible for more than half of all sales, with Airpods generating $8M and the Macbook $6M.
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In 2020, the Macbook Air drove a significant spike in revenue, with its share of revenue increasing by 84% from 2019, generating an additional $2.3 million in sales, including 255 orders in Q2 alone, totaling $392,260 with an average order value of $1,538.
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While the top-performing 27in 4K Gaming Monitor experienced a 19% decrease in its percentage of total sales for that year.
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From 2019-2022 the quarterly average of 98 Macbooks sold and generating an average quarterly sales of $155k. (Question 1)
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Apple AirPods emerged as the most popular product across all regions, with the highest total orders in North America (18,574), EMEA (11,227), and Unknown (12,466). Notably, the LATAM and APAC (4,226) region recorded the lowest orders at 1,911, indicating variability in product popularity across different markets.
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The loyalty program launched in 2019 with a slow rate of adoption where Non-Loyalty members outspent Loyalty Members during the first two years of the program. However in 2021, Loyalty Members began to outspend Non-Loyalty Members by over $500,000 as well as reaching a steady AOV of $245 versus $214 for Non-Loyalty Members.
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Initially only 11% of all orders were made by Loyalty Members, however by 2021, over half of all orders were placed by members of the loyalty program.
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Loyalty members on average took 49 days to purchase an item after creating their account, 30% quicker than Non-loyalty members that took 70 days to purchase.
| loyalty_program | days_to_purchase | months_to_purchase |
|---|---|---|
| 0 | 70.5 | 2.3 |
| 1 | 49.3 | 1.6 |
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The overall refund rate is 5.91% which is much lower than the industry average of 17% for ecommerce brands according to Shopify Ecommerce Returns Data.
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When looking further into Apple product returns, the Macbook Air had the 2nd highest return rate of 11.43% more than double the return rate of the Airpods at just 5.45%.
| Row | product_name | orders_placed | refunds | refund_rate |
|---|---|---|---|---|
| 1 | ThinkPad Laptop | 2916 | 342 | 0.1173 |
| 2 | Macbook Air Laptop | 3964 | 453 | 0.1143 |
| 3 | Apple iPhone | 288 | 22 | 0.0764 |
| 4 | 27in 4K gaming monitor | 23408 | 1444 | 0.0617 |
| 5 | Apple AirPods Headphones | 48404 | 2636 | 0.0545 |
| 6 | Samsung Webcam | 7197 | 186 | 0.0258 |
| 7 | Samsung Charging Cable Pack | 21923 | 294 | 0.0134 |
| 8 | bose soundsport headphones | 27 | 0 | 0.0 |
| Row | supplier | orders_placed | refunds | refund_rate |
|---|---|---|---|---|
| 1 | Circuitworks | 28949 | 1645 | 0.0568 |
| 2 | Novatech | 66397 | 3248 | 0.0489 |
| 3 | Electronics Emporium | 6906 | 269 | 0.039 |
| 4 | Zenith | 5875 | 215 | 0.0366 |
- Circuitworks had the highest refund rate of 5.68% over 28k orders, versus Novatech which had a refund rate of 4.89% over 66k orders.
2022 did not have any recorded returns indicating there may have been an issue when gathering the data.
- Create a marketing campaign that can recapture lost customers who bought items in 2020 and 2021 when sales were the highest. If a customer has already purchased from the platform, they are more likely to purchase again and need to be retargeted for potential future purchases.
- Look further into what is causing the Macbooks to be returned twice as often as AirPods, additionally locate the return data for 2022 transactions.
- Invest more into marketing the loyalty program and create more incentives for customers to join the program, Loyalty members take less time to make their first purchase after creating an account, and on average spend more than non-loyalty members.
- Increase the number of products that can be sold in the Gaming Monitor and Laptop categories as only 3 types products make up the majority of sales for the platform. For example offering keyboards, headsets, mice, microphones in that category to increase potential add-on purchases.
- During surges of demand offer slight discounts to purchases and bundles made on the platform for popular products, this can increase profit as the volume of sales will make up for the reduction in price.
- Investigate potential growth opportunities in APAC and LATAM regions examples could include offering region specific products or conduct more research into the needs of the region.