Quick drillMedium15 minE-commerce

Where did the basket go?

A root cause drill question from a product manager interview, set at Bazaario, a fictional value e-commerce company.

The question

You're a PM at Bazaario, a value e-commerce marketplace. Average order value (AOV) fell 10% month on month. Find the root cause.

What you're told upfront

Skills this case tests

Rate vs mixHoldoutsUnit economics

A starting metric tree

AOV = items per order × average price per item

How to approach this case

AOV is a ratio with two parts, so split it immediately into items per order and price per item and find which moved. If price per item fell, the key question is rate versus mix: are the same products selling for less, or are buyers choosing cheaper products? Those lead to different owners, pricing on one side and merchandising, ranking or campaigns on the other. Check like-for-like prices, discounts and coupons before settling on either. Then look at which buyers and categories moved most, and ask what changed in what they are shown. If any change was rolled out with a holdout group, that group is your proof. A strong close covers NMV and contribution per order, not just AOV, because delivery cost doesn't shrink with the basket.

The full method for quick structuring drills · A worked example answer

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