Metrics question

Recently, there has been a drop in revenue metrics at Flipkart. What is the reason behind it?

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What this question tests

Root-cause diagnosis of a revenue decline, requiring the candidate to decompose revenue into its component drivers before speculating.

How to approach it

  1. Decompose revenue into its drivers: number of orders, average order value, and take rate/commission, to identify which component actually declined.
  2. Segment by category and region to see if the drop is broad-based or concentrated, e.g. a specific high-revenue category like electronics or a specific region underperforming.
  3. Check for external causes: increased competition (from Amazon or Reliance's e-commerce push in India), a change in discounting/promotions strategy, or a seasonal effect if outside a major sale period.
  4. Check for internal causes: a recent platform or logistics change, or a shift in seller mix toward lower-commission categories.
  5. Based on the localized driver, propose the next diagnostic step, e.g. a deeper look at competitive pricing if orders specifically dropped in a contested category.

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