Metrics question

How would you optimize Amazon’s product recommendation algorithm to increase conversions?

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What this question tests

Ability to define the right optimization target and guardrails for a recommendation system, avoiding a naive click maximization approach.

How to approach it

  1. Clarify the current objective the algorithm likely optimizes for, clicks or add to cart, and why it may not equal purchase conversion.
  2. Propose shifting the ranking objective closer to purchase probability, not just click through, since clicks can be gamed by clickbait thumbnails.
  3. Add guardrails: return rate and customer satisfaction for recommended items, since maximizing conversion alone could recommend high return products.
  4. Propose an A/B test comparing the new conversion weighted model against the current one on a held out traffic slice.
  5. Define primary and guardrail metrics clearly: conversion rate lift as primary, return rate and repeat purchase rate as guardrails.

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