You are the co-founder of a nascent e-commerce business. The revenue has declined 5% w-o-w. What do you think is the reason?

Introduction

A 5% week-over-week revenue decline in a nascent e-commerce business is concerning and requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Has this decline coincided with any particular season or event?

Why it matters: Seasonal trends can significantly impact e-commerce revenue. Expected answer: No significant seasonal event. Impact on approach: If seasonal, we'd focus on year-over-year comparisons instead.

• Considering the nascent nature of the business, I'm curious about recent marketing efforts. Have there been any changes in marketing spend or strategy in the past few weeks?

Why it matters: Marketing directly impacts customer acquisition and revenue. Expected answer: No major changes in marketing. Impact on approach: If marketing changed, we'd investigate the effectiveness of new strategies.

• Given the e-commerce context, I'm wondering about the product mix. Has there been any significant change in the products offered or their pricing?

Why it matters: Product availability and pricing directly affect purchasing decisions. Expected answer: No major changes in product offerings or pricing. Impact on approach: If changes occurred, we'd analyze their impact on customer behavior.

• Thinking about the technical aspects, I'm concerned about potential website issues. Have there been any reported problems with the website's functionality or user experience?

Why it matters: Technical issues can severely impact e-commerce performance. Expected answer: No significant technical issues reported. Impact on approach: If issues exist, we'd prioritize technical fixes and improvements.