Rebuilding a Revenue-Focused Metrics Set for an E-commerce Company From Scratch

Quick Overview

A metrics prompt in which an e-commerce product manager must rebuild a lost set of key metrics around a revenue goal. It tests defining revenue precisely, choosing 10 to 15 well-defined metrics tied to the drivers of revenue, adding counter-metrics for customer trust and profit, and deciding what to rebuild first.

Rebuilding a Revenue-Focused Metrics Set for an E-commerce Company From Scratch

Company: Amazon

Role: Product Manager

Category: Analytics & Experimentation

Difficulty: medium

Interview Round: Other

You are a product manager at an e-commerce company. After a series of mistakes, the data team has lost every key metric the company relied on, and you need to define from scratch what to track. Your goal is revenue. List the 10 to 15 metrics you would track as the PM, define each one, and explain how it connects to that goal. ```hint Start from how revenue is made Before naming any metric, write down how a shopper's visit turns into revenue for this business. Each metric on your list should explain a change in one part of that chain, or warn you when chasing it does damage elsewhere. ``` ### Clarifying Questions - What is the business model: a retailer selling its own stock, a marketplace earning fees from third-party sellers, or both? This changes what revenue means. - Does the revenue goal mean gross sales, net revenue after returns and discounts, or profit? - Am I choosing metrics for the whole company or for the buyer-facing product I own? - Do the raw order and event logs still exist, so that only the metric definitions and dashboards need rebuilding? ### What a Strong Answer Covers - A precise definition of the revenue goal and of the business model behind it - A structure that ties every metric to a driver of revenue rather than an unordered list - A list of the requested size in which each metric is defined precisely enough to compute (what is counted, over which population and time window) and justified - Counter-metrics that keep revenue growth from costing customer trust or profit - An order for rebuilding the metrics and a review cadence for each ### Follow-up Questions - If revenue dropped sharply in one week, which of your metrics would you check first, and in what order? - Which metric on your list could improve while the business gets worse, and how would you catch that? - How would your list change if the company earned its revenue mainly from seller fees in a marketplace?

Overview: A metrics prompt in which an e-commerce product manager must rebuild a lost set of key metrics around a revenue goal. It tests defining revenue precisely, choosing 10 to 15 well-defined metrics tied to the drivers of revenue, adding counter-metrics for customer trust and profit, and deciding what to rebuild first.

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Amazon
Feb 26, 2024
mediumProduct ManagerOtherAnalytics & Experimentation
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You are a product manager at an e-commerce company. After a series of mistakes, the data team has lost every key metric the company relied on, and you need to define from scratch what to track. Your goal is revenue. List the 10 to 15 metrics you would track as the PM, define each one, and explain how it connects to that goal.

Clarifying Questions Guidance

  • What is the business model: a retailer selling its own stock, a marketplace earning fees from third-party sellers, or both? This changes what revenue means.
  • Does the revenue goal mean gross sales, net revenue after returns and discounts, or profit?
  • Am I choosing metrics for the whole company or for the buyer-facing product I own?
  • Do the raw order and event logs still exist, so that only the metric definitions and dashboards need rebuilding?

What a Strong Answer Covers Guidance

  • A precise definition of the revenue goal and of the business model behind it
  • A structure that ties every metric to a driver of revenue rather than an unordered list
  • A list of the requested size in which each metric is defined precisely enough to compute (what is counted, over which population and time window) and justified
  • Counter-metrics that keep revenue growth from costing customer trust or profit
  • An order for rebuilding the metrics and a review cadence for each

Follow-up Questions Guidance

  • If revenue dropped sharply in one week, which of your metrics would you check first, and in what order?
  • Which metric on your list could improve while the business gets worse, and how would you catch that?
  • How would your list change if the company earned its revenue mainly from seller fees in a marketplace?