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Amazon Logistics Optimization Analysis

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72%
Revenue from Merchant Channel
11.46%
Merchant Channel Failure Rate
2.50%
Amazon FBA Failure Rate
18.67%
West Bengal Failure Rate
Channel Performance Comparison
Geographic Failure Rate Analysis
Top Categories by Revenue
Revenue Distribution by Channel
🔍 Key Analytical Insights

Fulfillment Quality Risk (The "What")

The 'Merchant' fulfillment channel, which drives 72% of total revenue, was found to be highly unreliable with an 11.46% delivery failure rate (Undelivered, RTO, Lost). This compares poorly to the high-standard 2.50% failure rate of the 'Amazon' (FBA) channel.

Geographic Pinpointing (The "Where")

The average 11.46% failure rate was not uniform; it was primarily caused by severe bottlenecks in two states. The failure rate for the 'Merchant' channel was 18.67% in West Bengal and 17.14% in Tamil Nadu.

Product Exposure (The "Who")

By applying the Pareto Principle (80/20 Rule), the analysis showed the high-risk states were driven by sales of the most valuable products. The 'Set' and 'Western Dress' categories, which represent the top-ranking products by revenue, were the most exposed to the ~18% failure risk in the problem regions.

🚀 Actionable Recommendations

1. Logistics Re-routing

Immediately shift inventory of the highest-revenue categories (Set and Western Dress) from the low-reliability 'Merchant' channel to the reliable 'Amazon' (FBA) channel, specifically for orders shipping to West Bengal and Tamil Nadu.

2. Courier Audit

Use the 18.67% failure rate as leverage to renegotiate or replace the local courier partner for the 'Merchant' channel in the identified problem states.

3. Risk Mitigation Strategy

This targeted action minimizes risk for the most valuable products and directly addresses the largest source of logistical inefficiency, potentially saving millions in lost revenue and customer satisfaction.