Strategy question
How would you Improve customer revenue for Amazon?
- Amazon
- Strategy
- Easy
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What this question tests
Strategic thinking on revenue growth for a mature ecommerce platform, checking you propose a specific lever rather than a vague growth wishlist.
How to approach it
- Clarify what customer revenue means here, likely average order value and purchase frequency per customer, and confirm scope, Prime members versus all customers.
- Identify the main levers: increasing basket size per order, increasing purchase frequency, and increasing attach to higher-margin services like Prime or subscriptions.
- Propose the sharpest lever given Amazon's scale, likely deepening cross-category purchase behavior among existing customers rather than acquiring new ones, since acquisition is already near-saturated in mature markets.
- Propose a concrete mechanism, personalized cross-category recommendations at checkout or post-purchase, nudging customers who shop only in one category to try adjacent ones.
- Address a guardrail, ensuring this doesn't degrade trust through overly aggressive upsell tactics that hurt long-term satisfaction.
- Define success as revenue per active customer and category breadth per customer, confirming whether the interviewer wants a specific business unit in scope.
What a strong answer includes
- Names a specific lever, cross-category expansion among existing customers, as sharper than generic 'grow revenue' given Amazon's already-high market penetration.
- Proposes a concrete mechanism, personalized cross-category nudges at a specific moment like post-purchase, grounded in Amazon's existing recommendation infrastructure.
- Explicitly guards against over-aggressive upsell tactics that could erode long-term customer trust for short-term revenue gain.
- Sets a measurable metric, revenue per active customer and category breadth, tied directly to the proposed lever.
Common mistakes
- Proposing generic growth tactics like 'more advertising' with no specific mechanism.
- Not considering the guardrail against degrading customer trust through aggressive upsell.
- Ignoring Amazon's scale and market saturation context, proposing acquisition-focused tactics that are less relevant at this scale.
Likely follow-up questions
- How would you avoid these nudges feeling manipulative or degrading customer trust?
- Which customer segment would you prioritize first for cross-category expansion?
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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 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop