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Comparing 500 and 1500 Token Chunk Sizes for Marketplace Handbook Retrieval Quality

Short answer: For a marketplace product handbook, 500-token chunks can isolate a relevant policy clause but omit its heading or exception; 1500-token chunks preserve more context but can bury the matching clause among unrelated rules. Start with heading-bounded sections, then compare both fixed sizes against them on the same questions and citation requirements. The winning unit is the smallest…

The report discusses the optimal chunk size for retrieving information from a marketplace handbook, specifically comparing 500-token and 1500-token chunks. It emphasizes that the ideal chunk size is not merely determined by token count, but by ensuring the retrieved passage contains the entire answer, including heading information, qualifying conditions, and citation locators.

The report advises creating a test fixture with diverse questions to evaluate retrieval performance and recommends preserving document identity, section headings, and revision identifiers during chunking. Overlapping chunks are suggested to recover any missing context, but duplicates should be avoided to keep the index size manageable.

The report stresses the importance of treating document revisions and chunk identities as audit fields and maintaining an exactly-once approach to evidence retrieval, rather than relying on a claim of indexing guarantees.

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