Amazon interview question

How would you roll out Amazon Go?

Interview Answer

Anonymous

Jan 11, 2018

Here is how I would answer the question. I will first confirm my understanding of how Amazon Go works. Basically, Amazon Go enables Amazon customers to visit an Amazon Go grocery store, pick the grocery items they like, and walk away with the units without having to go to check out. Amazon Go’s computer vision and sensors automatically detect the person and the items purchased and automatically charge the customer. Given that the new service is a very different than existing solutions, I think the goal of the launch should be to test the service, processes, customer experience from beginning. Use this opportunity to learn about the good and bad things about Amazon Go as much as possible and tweak out the details before launching the product at a large scale. Here, I’m assuming the product has not been launched yet and is being launched for the first time. Given the goal described above, here are my strategies for the launch: – pick a small geographical location – I suggest a place close to the head office to enable project employees to visit store and see first hand how things are going. Downtown Seattle can be a good choice. – target users can be people who are busy and appreciate time saving via no-check out. One particular demographic that comes to mind is Amazon customers who are professionals in their 30’s. I suggest we focus on this demographic during the pilot Now let’s think of ideas to launch this service: At pre-launch phase, here are some of the activities I recommend: – start promoting the launch of the service via Amazon website and with press release – to drive attention of the Amazon customers to the program and to help the public see Amazon as the leading innovator in retail – Select products based on frequency of purchases by looking at some of the existing convenient stores such as 7-11 – In the grocery business, freshness of the grocery is very important. Ensure the groceries are always fresh by developing an algorithm that keeps track of the time a grocery has been in store. Once it passes certain number of days, it should inform the staff so that they can remove it from the store – Partner with grocery distribution companies that can deliver high quality fresh groceries to the stores at a highly frequent basis During launch phase, here are my suggested activities: – provide a few staff at the stores to ensure they can gather list of questions and concerns from customers – enable product managers / customer experience team to closely monitor how customers make purchases / points of friction / etc – promote launch via Amazon website / app to target demographic – publish press release to share the story with the media outlet – leverage opportunity to position Amazon as a leading innovative retailer – create landing page, videos, content on the Amazon website to introduce the program and its benefits Post launch, here are the list of suggested activities: – measure retention rate (what % come back to Amazon Go to purchase), impact on average spending per month (does it increase participating Amazon customer’s spending per month?), time to visit shop (compare to traditional numbers to determine if you’re solving a real problem), impact on Amazon.com and Amazon app purchasing behaviour, etc. – complete surveys to obtain customer feedback and opinion on the program, ways to improve it, etc – measure number of customers per square footage at various times of the day to ensure that the store size, design and number of units on the shelves match with the customer demand – Use new information to improve Amazon Go You can see more PM questions and answers at ProductManagementExercises.com I hope you find this useful.

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