Optimizing Discounts, Pricing, and Customer Engagement for E-Commerce Success


🚀 Introduction: The Pricing Dilemma on Amazon

Imagine you’re shopping on Amazon, scrolling through pages of products. Two items catch your eye—one is priced at $50 with no discount, while the other is 40% off, bringing it down to $30.

🤔 Which one would you buy?

💡 Now, what if I told you the discounted product has lower ratings, while the full-priced one has excellent reviews? This is the pricing paradox Amazon faces daily.

Amazon’s marketplace operates on a delicate balance between price, customer ratings, and discounts. But do deep discounts always increase sales?

✅ What if strategically pricing products could boost sales and engagement without unnecessary markdowns?

✅ Could small, high-quality brands compete without having to slash prices aggressively?

This project explores Amazon’s pricing strategies using data-driven insights and Tableau visualizations.

👉 Check out the interactive Tableau dashboard here!

https://public.tableau.com/views/InsightsfromAmazonSales/Sales_Dashboard?:language=en-US&publish=yes&:sid=&:redirect=auth&:display_count=n&:origin=viz_share_link


🎯 The Business Challenge: Balancing Pricing & Engagement

Our research explored four key business questions:

🔎 1. How can Amazon enhance its pricing strategies by recognizing connections between product categories, customer ratings, and sales?

🔎 2. Is there a correlation between customer ratings and discount pricing across different product categories?

🔎 3. Do certain types of products, like electronics and clothing, respond differently to discounts in terms of customer engagement?

🔎 4. Can Amazon enhance customer ratings and reviews by optimizing the gap between listed price and discounted price?

📊 Methodology: We used Tableau to analyze Amazon’s sales, pricing, discount strategies, and customer ratings from the Amazon Product Sales Dataset (2023).