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🛒 Shopify Marketplace Pricing & Inventory Analysis

From Offline Shelves to Online Signals
Pricing, discounts, vendors, and inventory behavior in a Shopify-based marketplace


📌 Overview

This project analyzes sample product data from a Shopify Partner development store to understand how pricing, discounting, vendor behavior, and inventory risk interact when offline retail businesses move into an online marketplace.

The dataset is interpreted as a simulated digital marketplace, allowing structural risks to be identified before real customers are exposed.


🎯 Problem Statement

Retail digitization often introduces new challenges instead of eliminating old ones:

  • Inconsistent pricing across categories
  • Reactive discounting
  • Inventory accumulation
  • Vendor-driven competitive pressure

Key Question

How do pricing, discounts, vendors, and inventory signals interact when products are onboarded into Shopify using standardized CSVs?


📂 Data Source

Core Fields price · compare_at_price · discount · inventory · vendor · category · product_type

Data is simulated onboarding data (no real sales or customers).


🧠 Analytical Flow

Marketplace Signal Pipeline

Data Cleaning
Category & Vendor Segmentation
Robust Pricing (MAD)
Price Tiers
Discount & Inventory Risk Analysis

Method Notes

  • Median Absolute Deviation (MAD) controls price outliers
  • Extreme prices treated as strategic exceptions
  • Focus on structural signals, not prediction

📊 What the Notebook Covers

Focus Area Purpose Figures
Category & Vendor Mix Competition & dependency Fig 1–2
Price Behavior Signal vs noise Fig 3–4
Price Tiers Value positioning Fig 5
Discounts Competitive pressure Fig 6–9
Vendors Strategic discipline Fig 10–13
Inventory Hidden price driver Fig 14

🔍 Key Insights (“So What?”)

  • Price is a signal, not just a number
  • Discounts indicate pressure, not generosity
  • Inventory risk drives discounting
  • Vendor discipline shapes perceived value
  • Positioning matters more than volume

⚠️ Limitations

  • No demand, conversion, or seasonality data
  • Patterns reflect onboarding assumptions
  • Insights are directional, not causal

📚 References


✍️ Author

By: Bhanu Pratap Singh

About

This project examines how pricing, discounts, vendors, and inventory interact when offline retailers transition to Shopify-based marketplaces. Using simulated onboarding data, it surfaces hidden competitive and inventory-driven pricing pressures early in the digital setup process.

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