Strategy question

How can you increase Amazon's revenue (focus on the e-commerce space)?

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What this question tests

Strategic prioritization for a mature e-commerce business: can you narrow a broad revenue question into a specific, well reasoned lever.

How to approach it

  1. Break e-commerce revenue into its core components: more customers, more orders per customer, and higher value per order.
  2. Assess where the biggest realistic headroom is, assume customer acquisition is largely saturated in mature markets, so the bigger opportunity lies in order frequency and value.
  3. Prioritize a specific lever: expanding fast, reliable delivery to underserved regions, since delivery speed has a proven direct effect on Amazon purchase frequency.
  4. Propose a second lever: better personalized bundling and subscribe and save expansion for recurring categories, which raises both frequency and order value.
  5. State the trade off, logistics investment is capital intensive and slow, while personalization is faster to iterate, so recommend starting with personalization while logistics investment continues in parallel.
  6. Define success as revenue per active customer and order frequency, tracked together to ensure gains are not just pulled forward from future purchases.

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