Metrics question

How would you regain lost sellers at Amazon without crunching its budget?

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What this question tests

Growth and retention thinking under a budget constraint, similar to a churned seller win back problem but framed around prevention and regain.

How to approach it

  1. Segment lost sellers by cause: uncompetitive fees, operational complexity, or better opportunities on competing marketplaces.
  2. Prioritize sellers lost to operational complexity or poor tooling, since that's fixable without spending on discounts or fee cuts.
  3. Favor low cost, high leverage fixes given the budget limit, like improved seller analytics dashboards or faster payout cycles instead of fee waivers.
  4. Propose a targeted campaign: personalized outreach highlighting a specific improvement relevant to why that seller left, paired with a small no cost trial period rather than a cash incentive.
  5. Test the campaign on a small cohort of lost sellers first to validate the win back rate before scaling.
  6. Define success as seller reactivation rate and their sales volume 90 days after returning, not just the initial signup.

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