The Facebook Shops team is discussing: should we add more product categories with basic features, or fewer categories with advanced shopping features?

Introduction

The Facebook Shops team is facing a critical trade-off: should we expand our product categories with basic features, or focus on fewer categories with advanced shopping capabilities? This decision will significantly impact our product strategy, user experience, and business growth. I'll analyze this trade-off by examining key factors, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share how our product category coverage compares to major competitors like Amazon or Shopify?

Why it matters: Helps understand competitive landscape and potential market gaps Expected answer: We're behind in total categories but competitive in certain niches Impact: Would influence whether to prioritize breadth or depth of offerings

• Business Context: Based on our revenue model, I assume we're primarily focused on increasing GMV and ad revenue. Is this correct, or are there other key revenue streams for Shops?

Why it matters: Aligns solution with primary business drivers Expected answer: Correct, with additional focus on payment processing fees Impact: Would help prioritize features that drive transaction volume vs. ad impressions

• User Impact: I'm curious about our user segments. What percentage of our users are power shoppers vs. casual browsers?

Why it matters: Helps tailor features to most impactful user groups Expected answer: 20% power users generate 80% of GMV Impact: Might lean towards advanced features if power users dominate

• Technical: Considering our current architecture, how easily can we scale to support more product categories?

Why it matters: Assesses feasibility and resource requirements Expected answer: Relatively easy to add categories, more challenging for advanced features Impact: Could influence timeline and resource allocation

• Timeline: Is there a specific market event or competitor move driving urgency for this decision?

Why it matters: Helps prioritize speed vs. perfection Expected answer: Holiday shopping season approaching in 4 months Impact: Might favor quicker implementation of basic features across more categories