Walmart's order return rate is increasing. As a product manager, what things would you look into to isolate the problem?

Introduction

Walmart's increasing order return rate is a critical issue that demands immediate attention. As a product manager, I'll approach this problem systematically to identify the root cause and develop effective solutions. My analysis will cover issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

• What's the current return rate, and how has it changed over time?

• Are there specific product categories or customer segments with higher return rates?

• Have we recently made any changes to our return policy or process?

• What's the breakdown of return reasons provided by customers?

Why these questions matter:

1. Understanding the magnitude and trend of the issue helps prioritize our response.
2. Identifying patterns in returns can point to specific problem areas.
3. Policy changes could directly impact return behavior.
4. Customer-provided reasons offer insights into potential root causes.

Hypothetical answers:

1. Return rate has increased from 8% to 12% over the past quarter.
2. Electronics and apparel have seen the highest increase in returns.
3. No recent changes to return policy, but we've implemented a new online return system.
4. "Item not as described" and "Incorrect size" are the top reasons given.

These answers would guide our investigation towards product description accuracy, sizing issues, and the new online return system's impact.