The Pareto Principle tells us that just 20% of products generate 80% of profits. In other words, every sale adds to your overall revenue, but not every product contributes equally to it.
You need to identify the products knocking it out of the park in terms of sales volumes, and those not getting off the ground. It lets you fine tune your product lineup to match customer demand and improve business performance.
The Sales by Product (Existing Products) report by Report Pundit breaks down your sales performance by product. It packs a ton of crucial data like Product Type, Vendor, Returns, Discount and relevant financial data.
With this report, you can sell the right product at the right time for the right price.
How the Sales by Product (Existing Product) Report Works
Let’s look at Tony’s example to study how this report works:
Tony is a superhero fan on a mission to fill every home with collectible merchandise. His Shopify store sells a variety of superhero themed products like toys, clothing, mugs, hats, posters, etc. Whether a buyer wants a Spiderman mug or a Superman backpack, Tony’s got them all.
The superhero-loving community recognized Tony’s passion and showered him with sales. But Tony wasn’t exactly celebrating; he was missing product-specific sales data, something a multi-product seller like him can’t do without.
He wants to cash-in on an upcoming superhero movie frenzy by discounting that character’s merchandise. But he’s unsure if it’ll work out as he’s got no data to validate his idea.
He also wants to add a new superhero character’s toys to his lineup, but is in the dark about details like pricing, inventory, purchase timing, etc.
Tony turned to the Sales by Product report for help. Analyzing its data points gave him insights into each product’s performance.
He now knows how he profited in detail from past superhero movie trends. To repeat that success, he’s offering a 15% discount on products related to the upcoming movie.
He learned that toys are the largest slice of his revenue share, followed by T-shirts and posters. So he’s decided to focus on promoting and selling more of them.
Tony is also stocking the new superhero character merchandise at a competitive price point that won’t upset his fans or profit margins. Using this report’s insights into product sales, Tony is delivering excellent customer satisfaction, making him a superhero to his customers.
Tony’s example shows that this report helps:
- Assess Each Product’s Performance
Categorize your products based on how fast they’re selling. Identify the ones to focus on to improve performance.
- Increase Market Awareness
Fast-selling products indicate market trends; ride that wave and sell more. Analyze the report’s data to learn what makes your target audience tick and predict upcoming trends.
In Tony’s case, his analysis showed the connection between upcoming superhero movies and increase in sales of relevant merchandise. He capitalized on it to grow his sales and brand value.
- Manage Inventory Better
Optimize your stock keeping by noting when your top-performing products sell best. Avoid low and no-stock situations during similar periods in the future. Cut your losses by not buying excess stock of poorly-selling products.
- Develop / Stock New Products by Demand
Develop or purchase new products based on local preferences and trends. Customize the report to give location-specific product data.
- This report doesn’t provide the applied shipping amount for a product’s sale.
- This report only provides data on your currently-listed products; excludes deleted ones.
Data Fields in the Sales by Product Report
The standard fields in this report are:
Product Title: name of the currently listed product
Vendor: name of the vendor who sold you the product or whose product you’re selling
Product Type: category of the product. Example: clothing, toys, electronics, etc
Net Quantity: actual quantity of product sold over a specific period. Calculated as Ordered Quantity – Returned Quantity
Gross Sales: revenue excluding returns and discounts. Calculated as Number of Units Sold * Product Price
Discounts: total discount applied on the product over a specified period. Differs from Order Discount, which is applied on the overall order
Refunds: refunds issued (if any) for products in the order. Includes both full and partial refunds
Net Sales: actual revenue made for each product over a specific period. Calculated as Gross Sales – Discounts – Refunds
Tax: total taxes applicable per product during a specific sale period. Calculated as a percentage of the product’s Net Sales amount
Frequently Asked Questions
- Why use the Sales by Product Report?
The Sales by Product report is needed to:
- measure the performance of each product.
- analyze the demand of each product in various seasons.
- understand the best selling product and its strategy for insights into new product development.
- How does this report extract my store data compared to the Sales by Product report in the Sales and Order category?
The Sales and Orders version presents current and past (deleted) products data which the Existing Products version does not.
- Can I identify my top selling product by number of units and net sales?
Yes, it’s a simple process. Sort the Net Quantity/Net Sales column in descending order to bring up your top selling product. You can also contact us at firstname.lastname@example.org and have our experts set it up.
- Why isn’t this report showing products I’ve sold earlier?
As the name suggests, the Sales by Product (Existing Products) report only shows data on products currently listed in your store. For data on past/deleted products, refer Sales by Product report under the Sales and Orders category in Report Pundit Library.
- How can I run the Sales by Product (Existing Products) report in Report Pundit?