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Amazon — Add 'Z' Factor Gamification

Category
E-Commerce
Summary
Putting the 'Z' in Amazon Fashion
Duration
3 Months
Status
Done
ID
PCS-13
Tags
Business Model Product Strategy Product Teardown Competitor Analysis Product Analytics Metrics Customer Journey Map Product Roadmapping Wireframing User Research KPI
Scenario: Amazon has noticed a drop in repeat purchases among new customers, particularly in the fashion segment. While initial acquisition rates are high, many new users are not making subsequent purchases — affecting overall customer lifetime value.

Task: Develop a comprehensive case study presenting your solution for improving repeat purchases in Amazon's fashion segment.

1. Business Model Analysis

Amazon caters to a broad audience including individual consumers as well as businesses of all sizes.

Amazon Business Model

Source: Google

Amazon Fashion Overview

Source: Google

Amazon entered the fashion segment in 2002. Over the years it has expanded significantly, offering a wide range from everyday wear to high-end designer items. Innovations like Prime Wardrobe and StyleSnap (AI-powered visual search) have helped it become a major player in online fashion.

2. Business Value Proposition

Some of the possible reasons why there is a drop in retention on Amazon Fashion:

Drop in Retention Analysis
Why Should We Improve?Benefits
• Repeat purchases affect profitability
• Increases growth of customer base
• More attractive pricing for customers
• Increases Customer Lifetime Value (CLV)
• Improve competitive advantage for Amazon retailers
• Economies of scale for Amazon
• Reduce Customer Acquisition Costs (CAC)

Why should Amazon improve repeat purchases in fashion?

3. Mapping Outcomes

Product OutcomeBusiness Outcome
• Better personalized recommendations
• Increased time spent / user browsing fashion
• Community around fashion
• Reduction in customer churn rate
• Grow revenue
• Grow profit
• Grow margin
• Grow market share

4. Target User Segment

The general segment is women aged 18–45 who are digital natives — young working professionals, fresh university graduates, and mid-level career women. The identified target segments are:

User personas created for the target segments:

User Persona 1 User Persona 2

5. User Research Validation

A combination of qualitative and quantitative research was used to understand user needs in depth.

Gen Z & Millennial Fashion Behaviour

SegmentWho They AreFashion Preferences
Gen Zs Born 1997–2012. Fully digital era natives. Y2K fashion, gender-fluid styles, DIY fashion. Value uniqueness and self-expression.
Millennials Born 1981–1996. Analog-to-digital transition. Revamped old styles with modern twist — turn-up jeans, vintage-inspired looks.
User Research Data

Research Methods Used

CategoryMethodData / Insights
Qualitative Existing reviews & ratings Common themes: need for better fit, quality, and trendy styles.
Focus groups Importance of community, personalized recommendations, and social validation.
Quantitative Interviews Need for more engaging, interactive experience with styling tips and fashion feeds.
Surveys Significant interest in community features and gamification to enhance shopping.

Focus Group Interview Highlights

Q: "We noticed your last purchase on Amazon Fashion was 2 months ago — any reason?"

Ayush: "Ya, I tried out the Amazon Fashion website and bought a pair of jeans and a blue crop top which did not fit! I was very overwhelmed by the options and the website was very difficult to navigate. It took me about 3 hours to decide only to be disappointed! I'm not good at styling so I didn't know what to match the blue crop top with..."

Anuj: "I really don't like the UI plus the pieces there are really cheap in quality and not up to the fashion trends that I really want to get."

Q: "On a scale of 1–5, how would you rate your experience on our platform?"

Ayush: "2.5. I spent too much time browsing without getting apparel that works for my body size and preferred colors... I simply add things to my Wishlist and never really Checkout, unless there's a huge sale with over 70% discount."

Anuj: "1.5. Not happy at all with the user experience so far."

Q: "How can we improve your shopping experience at Amazon Fashion?"

Ayush: "Maybe I can give you a chance if you build a community of stylists or fashionistas who can advise people who struggle styling on what to wear, how to wear it and where to wear it."

Anuj: "You should improve the UI first, as it is a mess. It should have a really different dedicated corner for fashion trends based on Gen Z and millennial preferences."

6. Ideation & Decision-Making

Possible solutions were listed and evaluated on:

Ideation Whiteboard Ideation & Solutions Matrix Impact vs Effort Matrix

User personas and user journeys for Gen Z and Millennials:

User Persona — Millennial User Persona — Gen Z

7. Product Design

Wireframes built for the proposed solution (tablet view):

Product Design Wireframes Wireframe Screen 1 Wireframe Screen 2 View Full Figma — Ideation & Solutions ↗

8. Metrics & Analytics

Key metrics and analytics for the proposed solution:

AspectMetricDescriptionTools
Community Engagement Active users Track users actively participating in the community. Google Analytics, Mixpanel
User retention rate Percentage of users who return to community after first visit. Cohort Analysis, Retention Curves
Engagement rate Frequency and duration of user interactions within the community. Session Duration, Heatmaps
Content Interaction Posts & comments Count posts, comments, and interactions on fashion feeds. CMS Analytics, Social Media Analytics
Likes, shares, reactions Track engagement on posts and comments. Social Media Analytics, In-app Analytics
Gamification Participants Count users participating in gamified activities. In-app Analytics, Gamification Platform
Achievement & reward redemption rate Rate at which users achieve milestones and redeem rewards. In-app Analytics, Reward System Analytics
Repeat Purchases Repeat purchase rate Percentage of users making repeat fashion purchases. E-commerce Analytics, Purchase History
AOV of repeat purchases Average value of repeat purchases. E-commerce Analytics
Customer Lifetime Value (CLV) Total revenue generated by a customer over their lifetime. E-commerce Analytics
User Feedback Net Promoter Score (NPS) User satisfaction and likelihood to recommend. User Surveys, NPS Tools
Technical Performance Page load time Time for community pages to load. Google Analytics, Performance Tools

These metrics will help gauge the success of the proposed solution and make data-driven decisions to enhance user engagement and drive repeat purchases in Amazon's fashion segment.

References

  1. businessmodelanalyst.com/amazon-marketing-strategy
  2. Amazon Business Model — Medium
  3. iide.co — Amazon Case Study
  4. Amazon Fashion PDF — Fibre2Fashion
  5. Amazon AI for Fashion Shopping
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