Product design question
How would you design a feature to reduce Amazon's order return rate.
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What this question tests
Product sense for reducing a costly operational metric by diagnosing root causes across the purchase funnel, not just adding a return fee.
How to approach it
- Break down why returns happen: wrong size or fit, not as described, changed mind, damaged in shipping, wrong item shipped.
- Prioritize the largest driver with rough assumptions; apparel sizing is typically the single biggest return category.
- Propose a targeted fix per driver, like a fit-prediction tool using purchase and return history for apparel, and clearer photos or specs for 'not as described' cases.
- Define the primary metric, return rate by category, and a guardrail, purchase conversion rate, since overly cautious UX can suppress sales too.
- Segment the rollout by category, starting with apparel, before generalizing.
What a strong answer includes
- Diagnoses root causes by return reason before proposing a fix, rather than jumping straight to a solution.
- Picks apparel and fit as the highest-leverage category with a specific mechanism, size prediction from return history.
- Balances the return-rate goal against a conversion guardrail so the fix doesn't just scare buyers away.
Common mistakes
- Proposing a blanket fix like a stricter return policy that ignores root cause and risks hurting trust and conversion.
- Not segmenting by category, when return drivers vary hugely between apparel, electronics, and books.
Likely follow-up questions
- How would you measure success without just looking at total returns dropping?
- How would sellers react to a fit-prediction feature flagging their listings as high-return risk?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop