Practice in Time Series Analysis: How I Screen Out Seasonal Product Categories
In e-commerce, data analysis is vital for driving business growth and optimizing strategies. Identifying seasonal trends in product categories helps develop targeted upselling strategies for increased revenue.
Recently, I was asked to find out the categories or products that have seasonality in sales. So that the commercial team can make use of those insights to boost sales on our e-commerce platform. As there are several hundred categories and several thousand products on our website, it is not efficient to check the sales chart for all categories using eyeball. Therefore, I decided to design a simple approach to complete this task.
In this article, I will walk you through a step-by-step approach to how I screen out the categories (or products) that have seasonal effects on our e-commerce website.
Data Acquisition & Transformation
I queried the monthly sales for each product within the last 3 years from the database. The dataset was desensitized and looks like below:
