Profitability Analysis of Jordan Sneaker Resale Market Using Regression and K-Means Clustering to Support Sales Strategy
DOI:
https://doi.org/10.64803/jodsie.v1i2.34Keywords:
Data Mining, Random Forest, K-Means Clustering, Profit Prediction, Sneaker ResaleAbstract
The resale sneaker market has experienced significant growth and become an attractive business opportunity due to the difference between retail and resale prices. However, fluctuations in resale prices often make it difficult for sellers to determine the best selling time and sales channel to maximize profit. This study aims to analyze the profitability of the Jordan sneaker resale market using Random Forest Regression and K-Means Clustering. The dataset used consists of 5,000 sneaker transaction records containing retail price, resale price, profit margin, sales channel, sales date, and inventory duration. Random Forest Regression was applied to predict profit, while K-Means Clustering was used to segment products based on profitability characteristics. The regression model achieved a Mean Absolute Error (MAE) of 1.41 and an R² value of 1.00, indicating excellent predictive performance. Clustering results produced three product segments with different profitability levels. The findings show that resale price is the most influential factor affecting profit, Walk-in Retail generates the highest average profit, and May is the most profitable month for selling sneakers. These results can support data-driven decision making in resale sneaker businesses.
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