Product design question

How would you increase sales at Amazon?

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What this question tests

Broad strategic thinking on a mature e-commerce business: can you prioritize a specific lever instead of listing every possible growth idea.

How to approach it

  1. Break the problem into levers: more buyers (acquisition), more frequent purchases (retention and frequency), and higher order value (cross sell and upsell).
  2. Assess which lever has the most headroom, assume acquisition growth has slowed given Amazon's already massive reach, so frequency and average order value likely offer more near term upside.
  3. Prioritize personalized recommendations and bundling to lift average order value, since Amazon already has strong purchase history data to power this.
  4. Add a second lever, faster and more predictable delivery in underserved regions, since delivery speed is a proven driver of purchase frequency on Amazon specifically.
  5. State the trade off, investing in personalization versus logistics, and recommend prioritizing personalization first since it is faster to iterate on than physical infrastructure.
  6. Define success as average order value and purchase frequency per active customer, tracked together to avoid gaming one at the expense of the other.

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