Win Back Lapsed Amazon Marketplace Sellers on a Limited Budget
Company: Vedantu
Role: Product Manager
Category: Product Design & Strategy
Difficulty: medium
Interview Round: Other
You are the product manager for seller products at Amazon. For this exercise, treat Amazon as a pure marketplace: it sells nothing itself, and everything on the site comes from third-party sellers. Some sellers have churned, meaning they no longer use the seller products, such as catalog listing and inventory management. Your job is to bring them back, and your budget is limited. How would you approach it?
```hint Diagnose before you spend
Before picking any incentive, split the churned sellers into groups that left for different reasons, and ask which groups a unit of budget could actually bring back for good.
```
### Clarifying Questions
- Does "churned" mean a seller has stopped selling entirely, or that they may still have listings but no longer use the catalog and inventory tools?
- How large is the budget, and does it cover incentives such as fee credits, or only team and engineering time?
- Has churn jumped recently, for example after a fee or policy change, or is it a steady trend?
- Should the effort cover every category and country, or a specific one?
### What a Strong Answer Covers
- A working definition of a churned seller and a sizing of the problem before any fix
- Hypotheses for why sellers left, and how each would be confirmed with data or seller research
- Segmentation of churned sellers and a reasoned choice of whom to target first
- Win-back levers matched to the reasons for leaving and prioritized within the budget
- A primary success metric with guardrails, and the risks of the win-back program
### Follow-up Questions
- How would you decide that a churned seller is not worth winning back?
- If fee credits brought sellers back but most left again when the credits ended, what would you change?
- How would you stop active sellers from going quiet on purpose to qualify for a win-back offer?
Overview: A product strategy question about bringing back sellers who have stopped using Amazon's seller tools, with Amazon treated as a pure marketplace and the budget limited. It tests defining and sizing seller churn, diagnosing why sellers left, choosing whom to target, and measuring whether the spend brings sellers back for good.