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You’re a PM at eBay. If the checkout conversion rate is low, what steps would you take to address it?

Asked at Ebay
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Checkout conversion rate at e-bay is low -

  • Since when the issue exists? Last 1 week
  • Is it specific to any geography? Assume India
  • Is it specific to any platform? Web/ Android/ iOS No
  • Is it specific to any category of products?
  • Is it specific to a set of users? New v/s Returning
Looking into the order placement flow -
Search -> PDP -> Check price -> Add to cart -> Checkout -> Apply offers -> Select payment mode -> Payment initiated -> Transaction successful -> Purchase complete
 
Here, check out conversion rate means, % users who complete a purchase out of the users who clicked on checkout.
Add to cart -> Initiate checkout
Initiate checkout -> Shipping details
Shipping details -> Payment details
Payment details -> Purchase confirmed
 
We need to evaluate the dropoff rate for each funnel.
Hypothesis -
Product related -
  • UI issues
  • Page load error
  • Time taken to complete the overall process
  • Significant rise in checkout price from cart value
  • Out of stock
Payment related -
  • Payment method not found?
  • Payment method temporarily down?
  • Payment failure?
  • Payment details not saved?
  • No e-wallet option?
User behaviour related
  • User just wanted to compare price and got better price somewhere else
  • User changed mind to buy later
  • User wanted free shipping
Need to get data for arriving at the root cause. Based on that, will finalise the solutions to be priortised (Hig impact, Low effort)
 
Assuming there are multiple causes, a list of possible solutions could be -
Product related -
  • Revisit the entire flow and fix any bugs, if present
  • Replace any heavy componenets which might be taking more time to load
  • Real time update on stock/ price on checkout page
  • Prefill the shipping details with option to edit, if required
  • One step checkout
  • Clearly display shiiping and return policies to remove the perception of hidden charges
Payment related -
  • Increase payment methods
  • Introduce e-wallets
  • Introduce option to save card details securely and mark default payment option
  • Retry payment option in case of failure
  • One tap checkout for return buyers
Behavioural related -
  • Email/ App Nudges to complete transaction offering discounts
  • Introduce offers to complete transaction right away
  • Introduce loyalty points which can be redeemed during a later transaction
  • Show fast selling items notification
Measure metrics and iterate -
  • Checkout conversion rate
  • Cart abandonment rate
  • Revenue per user
  • Funnel wise drop rates
Summarsing the above discussion, in order to find the reason behind the drop in checkout conversion rate, we need to instrument the funnel, check drop at each rate, identify friction points, do relevant product/payment/trust fixes, test again for impacted metrics and keep iterating.
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