Metrics question

Imagine you are a PM in Amazon. How would you reduce the rate of returns?

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What this question tests

Tests diagnosing and reducing a costly operational metric (returns) by segmenting root causes before proposing fixes.

How to approach it

  1. Segment returns by cause: item not as described, wrong size/fit, damaged in transit, or simple buyer's remorse, since each needs a different fix.
  2. Segment by category, since electronics, apparel, and general goods have very different return-rate baselines and root causes.
  3. For 'not as described': improve listing accuracy via better photos, size charts, and seller-provided detail requirements.
  4. For 'damaged in transit': tighten packaging standards for fragile categories and hold sellers accountable via a packaging quality score.
  5. Define success: return rate reduction by category, paired with a guardrail that customer satisfaction doesn't drop (avoiding return friction just to suppress the metric).

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