So, What is an Amazon Buy Box ?
When multiple sellers offer the same product on Amazon, the platform decides which seller’s product appears in the “Buy Box,” now referred to as the “Featured Offer.” This is the default purchase option that customers see when they visit a product page. The selected seller’s inventory is what customers purchase when they click “Add to Cart.”
The Buy Box is essential for sellers because it significantly impacts visibility and sales. With the vast majority of sales happening through the Buy Box, being the Featured Offer can drastically increase a seller’s revenue.
Why is the Buy Box Important ?
Winning the Buy Box is crucial as over 85% of Amazon sales come from it. If you don’t have the Buy Box, customers need to navigate through extra steps to find and purchase your product. This can significantly reduce your chances of making a sale.
Amazon Buy Box Example:
Lets use an example of a garden hose to illustrate the importance of winning Buy Box. In this example, the Buy Box (Featured Offer) is highlighted in red and tells the customer who they’re buying from and by what shipping method.
The seller in the above screenshot is BC BestChess and it is being shipped from Amazon (FBA).
That means BC BestChess has listed the product on Amazon, has won the Buy Box over other potential sellers and has sent inventory to Amazon FBA, so when the order ships, it will come from Amazon.
This process of clicking the Add To Cart button and checking out isn’t that easy, if you don’t have the Buy Box.
With more than 85% of Amazon sales coming from the Buy Box (Featured Offer), it is incredibly important to win the Amazon Buy Box.
Here’s why: If you aren’t in the Amazon Buy Box, this is the complicated process that a customer would have to follow in order to buy from you.
1) The Customer Finds and Clicks The More Buying Choices Box
2) The Customer Finds an Offer Attractive To Them From The List, Then Adds To Cart
As you can see, without having the Amazon Buy Box, your odds of making a sale are significantly diminished.
How Does Amazon Choose the Buy Box Winner?
Amazon uses an algorithm to determine which seller wins the Buy Box. This algorithm considers various factors to ensure that customers receive the best possible shopping experience. Here are the key factors:
Order Defect Rate (ODR): This is based on customer feedback, A-to-Z Guarantee claims, and chargebacks. A lower ODR indicates better performance.
Customer Experience: This includes shipping speed, shipping options, competitive pricing, the use of Amazon FBA (Fulfillment by Amazon), and overall customer service.
Seller Metrics: Important metrics include sales volume, pre-fulfillment cancel rate, late shipment rate, and refund rate.
Seller Tenure: The duration that a seller’s account has been active and selling on Amazon.
Pro Merchant Status: Having a Professional Amazon Seller Account rather than an Individual Selling Account.
Amazon’s algorithm continually evaluates these factors to decide which seller offers the most compelling value to customers.
How to Check Your Buy Box Eligibility
To see if you’re eligible for the Buy Box, follow these steps:
1. Log in to Amazon Seller Central and navigate to the Inventory tab.
2. Select “Manage Inventory.”
3. Click on the Preferences tab to access your settings.
4. In the Column Display section, find the Buy Box Eligible field.
5. Choose “Show When Available” from the drop-down menu.
Your eligibility will be displayed as “Yes” or “No” in the Buy Box Eligible column. Being eligible is the first step towards winning the Buy Box, but maintaining high performance metrics is crucial to actually securing it.
Top 10 Strategies to Win the Buy Box
Here are some key strategies to improve your chances of winning the Buy Box:
1. Fulfillment Method: Using FBA (Fulfillment by Amazon) or SFP (Seller-Fulfilled Prime) can give you an advantage over those using FBM (Fulfillment by Merchant).
2. Landed Price: This is the total sale price of a product on Amazon, including shipping. Competitive pricing is essential, especially if your performance metrics are lower than competitors.
3. Shipping Time: Faster shipping times are preferred. Customers expect quick deliveries, and Amazon rewards sellers who can meet these expectations.
4. Feedback Count & Score: Positive customer feedback significantly impacts your performance. More feedback is generally better, and recent ratings carry more weight.
5. Availability: Keeping items in stock and avoiding backorders is crucial. Amazon’s algorithm favors products that are ready for immediate fulfillment.
6. Order Defect Rate: A low ODR, which includes factors like negative feedback rate, A-to-Z Guarantee Claim Rate, and Service Chargeback Rate, is critical.
7. Late Shipment & Cancellation Rates: Minimize late shipments and cancellations as these negatively affect your performance metrics.
8. On-Time Delivery: Ensure a high percentage of orders are delivered within the specified timeframe.
9. Customer Response Time: Promptly respond to customer inquiries. Delayed responses can harm your chances of securing the Buy Box.
10. Inventory Depth and Sales Volume: Maintain consistent inventory levels and a high sales volume. This provides a competitive edge over sellers with fluctuating stock levels.
Understanding the Buy Box Algorithm
Amazon’s Buy Box algorithm is complex and considers numerous variables. While the exact workings are not public, it balances seller performance with competitive pricing to offer customers the best value.
The algorithm assesses each eligible seller by breaking down their performance into various variables, comparing these to other sellers offering the same product. The weight assigned to each variable can fluctuate depending on the product or category, making it essential for sellers to adapt their strategies accordingly.
For instance, in the case of perishable goods like fresh flowers, delivery speed could be paramount. Therefore, a seller offering same-day delivery might gain an edge over a competitor with a two-day shipping schedule. Conversely, for durable electronic gadgets like smartphones, shipping time might be a less critical factor.
Amazon’s ultimate aim is to provide an exceptional experience for its customers, emphasizing a “customer-obsessed” approach. Thus, reducing the algorithm’s considerations to just pricing oversimplifies the matter. In reality, it seeks to determine the product offering that strikes the best balance between strong seller performance and competitive pricing.
Conclusion
Winning the Amazon Buy Box is not straightforward, but by focusing on key performance metrics and adhering to best practices, you can improve your chances. Understanding the factors that Amazon considers and continually optimizing your performance can lead to increased sales and visibility on the platform.
By implementing the strategies outlined in this guide, whether you’re an Amazon Seller Central seller, using Amazon FBA, Merchant Fulfillment, FBA Small and Light, or selling Amazon B2B, you can enhance your ability to secure the Buy Box and drive more sales.