Interviewer view · keep this screen to yourself

Same GMV, different revenue

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Two illustrative online players in Europe each have GMV of EUR 1 billion a year. Player A is a marketplace: it takes a 12 percent commission and earns another 3 percent of GMV from sellers' advertising. Player B is first party and sells at a 20 percent gross margin. What is each player's revenue and gross profit, in EUR millions?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Revenue and gross profit by model
- Marketplace: revenue = GMV x take rate; gross profit is close to revenue, minus payment and hosting costs
- First party: revenue = GMV; gross profit = GMV x gross margin

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Marketplace take rate
What a strong candidate does: Commission plus advertising.
Take rate (percent): 12 + 3 = 15
Step 2: Marketplace revenue
What a strong candidate does: 15 percent of EUR 1,000 million.
Marketplace revenue (EUR millions): 1,000 × 0.15 = 150
Step 3: First-party revenue
What a strong candidate does: The full value of goods sold.
First-party revenue (EUR millions): 1,000 × 1 = 1,000
Step 4: First-party gross profit
What a strong candidate does: 20 percent gross margin.
First-party gross profit (EUR millions): 1,000 × 0.2 = 200

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Player B shows almost 7 times the revenue of Player A, yet its gross profit (EUR 200 million) is only a third higher than A's EUR 150 million of revenue (and A's gross profit is a little below that, after payment and hosting costs), and B must fund stock and carry the risk of unsold goods. Compare gross profit and contribution, not revenue, when models differ.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.