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What metrics would you look into when Amazon is losing 10% of its revenue monthly?

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Amazon generates revenue from E-Commerce operations, Cloud services, digital advertising, Amazon prime video platform. It also sells products such as the Alexa personal assistant and ecosystem, kindle e-reader and Fire TV.

Clarifying Questions

Is it Seasonal? No

Is it happening in Particular geography or globally? Globally

Is it happening in a particular vertical Such as E-commerce, cloud services or whole? Whole

 Describe the feature

Amazon Revenue is decreasing globally by 10 % in recent months.

Customer Journey

Because Amazon works in different Vertical such as E-commerce operations, Cloud services, Amazon prime video etc. Customer have different user journey in different verticals.

E.g., in E-commerce operations, Buyer and Seller have different user journey.

Cloud services and Amazon prime video is based on Subscription services. So, user will have different journey.  

User behaviours

Because Amazon and its product, operation and services are already in mature stage. I will see Engagement, Retention and Revenue stage of each user. I will see following metrics in each vertical.

E-Commerce

Phase

                                  Seller

                        Buyer

 

 

Engagement

# Of Seller uploaded item for Sale

# Of item uploaded for sale

# Of Seller responded to the sale

# Of item Sold

# Of Buyer Visited the site

# Of Buyer look the Item

# Of Buyer Purchase the Item

 

Retention

# Of seller who reloaded item for Sale

 

# Of Buyer revisited the site

 

 

Revenue

Total Revenue generated

Average Revenue per Seller

Average revenue per Item

Total revenue generated

Average revenue per Buyer

Average revenue per Item

 

 

 

Advertisement

Phase

                         Advertiser

                    Viewer

Engagement

 # Of Advertiser has registered with Amazon

    # Of Advertisement shown

# Of Viewer Visited the advertisement

# Of User end up purchasing the product

 

Retention

# Of Advertiser has again given advertisement

 

# Of viewer who revisited the advertisement site

# Of Viewer who repurchased the product from advertisement site

Revenue

 Total revenue generated

 Average revenue per Advertiser Average revenue per advertisement

Average Viewer per Advertisement

Average User purchasing the product per advertisement

Average revenue per Viewer

Average revenue per Viewer who Purchase the Product

 

Similarly, I will see  the metrics of Engagement, Retention and Revenue phase of Cloud and Amazon Prime services  

Prioritize Metrics

Here we will give priority to revenue phase of each vertical i.e.

Total Revenue generated From E-commerce

Average Revenue per Seller

Average revenue per Item

Average Revenue per Buyer

Total revenue generated from Advertisement

 Average revenue per Advertiser

 Average revenue per Advertisement

Average revenue per Viewer

Average revenue per Viewer who Purchase the Product

Summary

I would look at engagement and Revenue Metrics in detail for knowing the cause of loss of revenue.

 

 

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