Working Backwards: Insights, Stories, and Secrets from Inside Amazon

by Colin Bryar

Identify the Correct, Controllable Input Metrics This step sounds easy but can be deceptively tricky, and the details matter. One mistake we made at Amazon as we started expanding from books into other categories was choosing input metrics focused around selection, that is, how many items Amazon offered for sale. Each item is described on a “detail page” that includes a description of the item, images, customer reviews, availability (e.g., ships in 24 hours), price, and the “buy” box or button. One of the metrics we initially chose for selection was the number of new detail pages created, on the assumption that more pages meant better selection. Once we identified this metric, it had an immediate effect on the actions of the retail teams. They became excessively focused on adding new detail pages—each team added tens, hundreds, even thousands of items to their categories that had not previously been available on Amazon. For some items, the teams had to establish relationships with new manufacturers and would often buy inventory that had to be housed in the fulfillment centers.