Location & Order Traffic Analysis
👈 Part II-III| TOC | Part II-V 👉
In this post (Part II-IV), I will do some analysis on location of user & seller and the effect to order traffic in our ecommerce.
To start, let’s look at the purpose of our analysis :
- Where is the customer and seller located? What about the distribution of their location?
- What about the frequency of purchase on each state?
- Which logistic route that have heavy traffic in our ecommerce?
Background
Location is one of the most important aspect when formulating a business decision. Running an ecommerce doesn’t mean that location don’t matter anymore. Where we live, the environment, and local custom still affect the what customer usually buy including online commerce.
One of the easiest way to understand the characteristic of customer in specific location is by analyzing our existing customer as it can be one of the most useful source of information for our next new customer.
Not only that, one of the strategy in ecommerce called geotargeting only can be done after we understand user demographic. Because geotargeting is often used in combination with other kinds of targeting, using other kinds of demographic data or even psychographic data we can understand more on buyer motivation and prevent us to target customer demographic that most likely not going to use our service.
The difference location between customer & seller might also hinder the logistic process. By understanding the geolocation of our ecommerce user, we can make better business decision like improving facilities to the states that have a good growth or improving ads quality to focus on lowering new customer gate for low growth states.
Before we do our analysis, I would like to assume that most of the user & seller would be from Pulau Jawa (especially Jawa Barat & DKI Jakarta), because the technology there have really surpass many states. For the purchase frequency itself, I feel like most likely transaction around Pulau Jawa will also be the most crowded.
Distribution of customer & seller
To answer that question, I will try to give a interactive map dashboard to view number of user & seller on specific state. This dashboard will use information provided by user (most likely from order delivery location) & seller (registrated location)
From what we can see in user map the number of user is mostly concentrated in Pulau Jawa (with the most concentration in Jawa Barat & DKI Jakarta), followed by Pulau Sumatera (distributed quite well, but still heavily concentrated in Sumatera Utara)
Meanwhile from the seller map itself, we can see that nearly all our seller is from Jawa Barat, DKI Jakarta and Bandung.
Frequency of Purchase in Each State
From order destination, we can see that the top 5 destination states located in Pulau Jawa.
Meanwhile from order origin, we can see that most of the order origin states (where seller are located) are in Pulau Jawa. But surprisingly about 8.7 % from our seller located in Kalimantan Timur. This fact alone further prove our hypothesis that most likely order happen between seller & customer from Pulau Jawa.
To understand more about our ecommerce order traffic between city, I create a map that shows the logistic route path for analyzing order that have different states. (To make it easier for our eyes to infer the data, I seperate the different states order into 10 parts (using quantile), so that we can see which logistic path is heavily used and which is slightly used)
By using above route plotting, we can see the categorization of logistic based on order frequency (with Q1 is the lowest frequency while Q5 is the highest frequency). In Q10 category, we can see that most of the time, the item is either from states in Pulau Jawa (especially Jawa Barat & DKI Jakarta) to other states. Q8 ~ Q9 is similar with Q10 routes, with some of states in Pulau Sumatera and Sulawesi also indicating that there are many transaction using from this route.
When trying to improve the time needed to transport the item to user when ordering / purchasing, starting by focusing on the most traffic routes might be a good ways to improve the estimation and time needed to deliver the product.
Insight
As final takeaway, here are the things that we need to look out for :
- The distribution of user is mostly concentrated in Pulau Jawa (with the most concentration in Jawa Barat & DKI Jakarta), followed by Pulau Sumatera (distributed quite well, but still heavily concentrated in Sumatera Utara)
- Meanwhile nearly all our seller is from Jawa Barat, DKI Jakarta and Bandung
- Same as the distribution for user, most of the time order is delivered to user located in Pulau Jawa, especially big states like DKI Jakarta, Bandung, Jawa Barat, Jawa Tengah and Surabaya
Recommendation
Based on insight that we get from the geolocation analysis, we can recommend few things:
- Most of the time, order from different states are either from seller in Pulau Jawa (especially Jawa Barat & DKI Jakarta), Pulau Sumatera (especially Sumatera Utara) to other states. If we want to improve the speed and quality for shipping process, focusing on this common route might be a good thing.
- When looking to expand our ecommerce, we have 2 option. First, we can try to just focusing on Pulau Jawa, because all of our transaction happen here. Increasing the delivery time, customer service on specific area might increase the popularity of our ecommerce instantly in Pulau Jawa. Second, we also can try to expand to Pulau Kalimantan and Pulau Sumatera. Both of this area have quite promising prospect and focusing those area might create new customer-seller cluster similar to Pulau Jawa (which is a good thing!!)
