What caused the sudden 50% decrease in new item listings on Letgo's marketplace last week?

Introduction

The sudden 50% decrease in new item listings on Letgo's marketplace last week is a critical issue that demands immediate attention. This drastic drop could significantly impact user engagement, platform liquidity, and overall marketplace health. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term fixes and long-term strategies to prevent future occurrences.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent product update. Has there been any significant change to the listing process in the past two weeks?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, we updated the listing flow last week. Impact on approach: If yes, we'd focus on the new flow; if no, we'd look at other factors.

• Considering user segments, I'm curious about the distribution of this decrease. Is the 50% drop uniform across all user types, or is it more pronounced in certain segments?

Why it matters: Helps identify if the issue is global or segment-specific. Expected answer: The drop is more significant among new users. Impact on approach: If segment-specific, we'd tailor our solution to that group.

• Given the marketplace nature, I'm wondering about seasonality. How does this week's listing volume compare to the same week last year?

Why it matters: Rules out normal seasonal fluctuations. Expected answer: It's significantly lower than the same period last year. Impact on approach: If seasonal, we'd consider cyclical factors; if not, we'd focus on recent changes.

• Thinking about potential technical issues, have there been any reported problems with the app or website, particularly around the listing creation feature?

Why it matters: Technical issues can cause sudden drops in user actions. Expected answer: No major outages, but some users reported slow load times. Impact on approach: If technical issues are present, we'd prioritize fixing them.