Strategy question

How would you Improve customer revenue for Amazon?

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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

  1. Clarify what customer revenue means here, likely average order value and purchase frequency per customer, and confirm scope, Prime members versus all customers.
  2. Identify the main levers: increasing basket size per order, increasing purchase frequency, and increasing attach to higher-margin services like Prime or subscriptions.
  3. 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.
  4. 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.
  5. Address a guardrail, ensuring this doesn't degrade trust through overly aggressive upsell tactics that hurt long-term satisfaction.
  6. Define success as revenue per active customer and category breadth per customer, confirming whether the interviewer wants a specific business unit in scope.

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