Metrics question

What metrics would you look into when Amazon is losing 10% of its revenue monthly?

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What this question tests

Diagnostic metric-tree thinking for a revenue decline at scale.

How to approach it

  1. Break revenue into orders times average order value before speculating on causes.
  2. Check the orders side: traffic, conversion rate, by category and region.
  3. Check the AOV side: mix shift to lower-priced items, discounting, and returns.
  4. Check external causes: seasonality, a competitor promotion, or a macro spending pullback.
  5. Check internal causes: a checkout bug, a pricing or inventory issue, or a fulfillment problem.
  6. Narrow to the most likely driver and propose next steps.

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