MixedHard40 minE-commerce

Is Price Assist working?

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

The question

You're a PM in Bazaario's Pricing team. Bazaario is a value e-commerce marketplace with 0% seller commission. Three months ago we launched "Price Assist": when a seller's price is higher than the same product on TrendKart or ShopMela, we nudge the seller to drop it, and if they opt in, we auto-match the competitor price, never going below a floor the seller sets. Leadership review is next week. The dashboard says price competitiveness (share of product views where Bazaario is cheapest) went from 58% to 71% and orders are up 6%, but NMV is flat, and Finance says net revenue per order is down. The CEO asks you: is Price Assist working, what's going on, and what do we do next?

Skills this case tests

Marketplace dynamicsExperimentsRevenue

A starting metric tree

NMV = orders × average order value × (1 − return and cancellation rate)

How to approach this case

Start with what Price Assist was meant to achieve and which guardrails were agreed at launch, then define NMV and net revenue per order exactly. Price competitiveness is an input, not the outcome, so don't let the 58% to 71% jump anchor your answer. Decompose NMV into its parts and see which moved and by how much. In a marketplace, ask where the extra orders came from: brand-new demand and orders moving between sellers look identical on a top-line dashboard. Ask how the experiment was set up and at what level its results were read. Segment by category, because buyers respond to price very differently across product types. With 0% commission, trace how a seller's price change feeds back into Bazaario's revenue. A strong close gives a clear keep, change or stop call, a category-level success metric and guardrails on both sides of the marketplace.

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