Amazon Prime Growth Plan: Where a 20% Revenue Lift Would Come From
Company: Zendesk
Role: Product Manager
Category: Product Design & Strategy
Difficulty: medium
Interview Round: Other
You are a product manager for Amazon Prime, and your goal is to grow Prime's revenue by 20%. How would you get there?
```hint Break revenue into its drivers
Write Prime revenue as an equation, then ask how much of the 20% each term could realistically supply, instead of listing ideas one by one.
```
### Clarifying Questions
- Does "Prime revenue" mean membership fees only, or also paid add-ons, Prime Video advertising and the extra shopping members do?
- Over what period should the 20% be reached, and is it measured globally or in one market such as the United States?
- Are price changes and new paid tiers on the table, or must the plan leave the current membership price alone?
- Are new countries in scope, or should the plan grow Prime where it already operates?
### What a Strong Answer Covers
- A clear revenue definition, decomposed into paying members and revenue per member
- Sizing how much each lever (acquisition, retention, pricing and tiers, add-ons) could contribute toward the 20%
- Prioritized initiatives tied to specific member and non-member segments, with the reasoning behind the order
- The effect of each move on the link between membership and shopping, including churn risk from pricing
- Metrics and guardrails that track progress toward the target
### Follow-up Questions
- A price increase alone could supply much of the 20%. Why might you still not lead with it, and how would you test it?
- If your plan adds tiers, how would you keep them from confusing members or pulling existing members down to a cheaper plan?
- Which member segment would you expect to churn first under your plan, and what would you do about it?
Overview: Product strategy case on growing Amazon Prime's revenue by 20%. It tests defining which revenue counts, breaking it into members and revenue per member, sizing levers such as acquisition, retention, pricing, tiers and add-ons, and protecting member shopping with guardrail metrics.