Why has the average order value on Rakuten Ichiba declined by 8% compared to the same quarter last year?

Introduction

The decline in average order value (AOV) on Rakuten Ichiba by 8% compared to the same quarter last year is a significant issue that requires thorough investigation. This analysis will systematically identify, validate, and address the root cause while considering both immediate and long-term implications for Rakuten's e-commerce platform.

Step 1

Clarifying Questions (3 minutes)

• Considering the timing, I'm wondering if there have been any recent changes to the product mix or pricing strategy. Could you provide insights into any significant shifts in inventory or pricing policies over the past quarter?

Why it matters: Changes in product offerings or pricing can directly impact AOV. Expected answer: Information about recent product or pricing changes. Impact on approach: If changes are identified, we'll focus on their specific effects on AOV.

• Given the 8% decline, I'm curious about the distribution of this decrease across different product categories. Can you share how the AOV change varies among major product categories on Rakuten Ichiba?

Why it matters: Understanding category-specific trends helps pinpoint problem areas. Expected answer: Breakdown of AOV changes by product category. Impact on approach: We'll prioritize investigating categories with the most significant declines.

• Thinking about user behavior, have there been any noticeable changes in traffic sources or user demographics during this period?

Why it matters: Shifts in user composition can affect purchasing patterns and AOV. Expected answer: Information on traffic source changes and user demographic shifts. Impact on approach: If significant changes are identified, we'll explore how they relate to AOV decline.

• Considering potential technical factors, has there been any recent update to the recommendation engine or search algorithms on the platform?

Why it matters: Changes in product discovery can influence purchasing decisions and AOV. Expected answer: Details on recent updates to recommendation or search systems. Impact on approach: If updates occurred, we'll investigate their impact on user behavior and AOV.