For Faire's pre-order program, should we emphasize a wider selection of products or faster shipping times for retailers?

Introduction

The trade-off we're examining for Faire's pre-order program is whether to emphasize a wider selection of products or faster shipping times for retailers. This decision is crucial for balancing the platform's value proposition between product variety and fulfillment speed. I'll analyze this trade-off by considering its impact on retailers, suppliers, and Faire's business model, focusing on key metrics and potential experiments to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Faire's pre-order program is relatively new. Could you confirm if this is an existing feature or a new initiative we're considering launching?

Why it matters: Helps determine if we have historical data to analyze or if we're starting from scratch. Expected answer: It's a new initiative in beta testing. Impact on approach: If new, we'd focus more on market research and small-scale experiments.

• Business Context: Based on Faire's marketplace model, I'm thinking this trade-off directly impacts our take rate and GMV. How does this align with our current revenue priorities?

Why it matters: Helps prioritize the solution against business objectives. Expected answer: Increasing GMV is a top priority for this quarter. Impact on approach: Would emphasize solutions that drive higher order values and frequency.

• User Impact: I'm considering both retailers and suppliers as key users here. Are there specific segments within these groups that are more critical for this program?

Why it matters: Allows us to tailor the solution to our most valuable or strategic user segments. Expected answer: Mid-sized retailers and emerging brands are our target segments. Impact on approach: Would focus on features that particularly benefit these segments.

• Technical Feasibility: Expanding product selection might require changes to our inventory management system. What's our current technical capacity for handling a wider product range?

Why it matters: Determines if we need to factor in significant tech development. Expected answer: Our current system can handle a 50% increase in SKUs without major changes. Impact on approach: Would influence the scope of product selection expansion we consider.

• Timeline: Considering Q4 is typically crucial for retailers, what's our target timeline for implementing changes to the pre-order program?

Why it matters: Affects the scale and type of experiments we can run. Expected answer: We aim to have changes implemented by early Q3 to capture Q4 demand. Impact on approach: Would prioritize quick-win solutions that can be tested and implemented rapidly.