Sales data refers to the information collected about the transactions of products or services. This data typically includes details such as the number of items sold, the revenue generated, and the time and location of each sale. Businesses use this information to understand customer preferences and market trends. Analyzing sales data helps companies make informed decisions about inventory management, pricing strategies, and marketing efforts. By examining patterns in the data, businesses can identify which products are popular and which may need improvement, ultimately leading to better customer satisfaction and increased profits.