Metrics question

You are a product manager for Returns and Cancellations at Flipkart. You see that the number of returns in the mobile category has been gradually increasing over the past 3 months. What would you do?

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What this question tests

Root-cause investigation for an operational metric: can you separate product, seller, and customer-behavior causes for a rising returns trend in one category.

How to approach it

  1. Confirm the metric: returns as a percentage of orders in mobile category specifically, rising over 3 months, versus other categories flat.
  2. Hypothesis: product-listing issues, e.g. inaccurate specs/images leading to mismatched expectations (wrong color, storage variant).
  3. Hypothesis: seller-side, a specific new seller or SKU with quality issues driving a disproportionate share of returns.
  4. Hypothesis: customer behavior, e.g. a promotional campaign or a new financing/EMI option enabling more impulse buys that get returned.
  5. Segment the data: which specific sub-category, brand, or seller is driving the increase, rather than treating 'mobile' as one bucket.
  6. Recommend the next step: pull return-reason codes (damaged, wrong item, changed mind) to confirm which hypothesis holds before acting.

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