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 | 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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