Amazon drives more than 40% of online sales annually, and over 83% of those conversions happen using Amazon’s Buy Box. So every seller wants to know the secret to unlocking Amazon’s Buy Box formula.
Most Amazon sellers can be classified into two types:
1. The first type is Amazon itself, which sells a wide range of products.
2. The second category is third-party sellers, who typically sell one or more specialized products.
There is no limit on the number of sellers who can sell on the Amazon platform, and multiple merchants frequently sell the same product. When multiple sellers are selling the same item, there is competition for which seller will win the Buy Box. This article will explain everything you need to know about the Amazon Buy Box!
What Is The Buy Box On Amazon
The Buy Box is the magical place that gives you sales because most customers on Amazon only buy from the Buy Box.
The Amazon Buy Box is a feature on the right side of the Amazon product detail page, where customers can add a product to their cart for purchase with a highly visible box that says, “Buy Now.” It is unique because only a few sellers are eligible for this feature, and the Buy Box seller is more likely to make the sale.
Playing by Amazon’s rules will allow you to work toward improving your performance on relevant variables, ultimately increasing your chances of beating the competition and winning the Buy Box.
Why Is The Buy Box Essential To Sellers
People shop online increasingly nowadays. Buyers do not pay much attention to the Buy Box, but it is crucial for businesses. Buyers rarely check other sellers unless they are looking to purchase a product used before. They usually click on the product listing, check if it meets their needs, and tap “Buy Now” or “Add to Cart.” The Buy Box ultimately contributes to your sales and revenue goals and builds your brand awareness among the customers.
Another compelling reason to care about owning the Buy Box is that if you run Amazon ads within Seller Central and lose the Buy Box, your Sponsored Product ads stop running.
More buyers than ever are using Amazon’s mobile site. Unlike on a desktop or laptop, the mobile site displays the Buy Box directly under the image. Customers need to scroll far past the Buy Box to see the “Other sellers on Amazon” section and tap an arrow to open that information on a new page. If you care about converting mobile shoppers, that’s another reason to prioritize winning the Buy Box.
How Does The Buy Box Formula Work On Amazon
Amazon developed a formula for its Buy Box to provide buyers with the best possible experience. While there is no sure-fire formula to winning the Buy Box, there are a few minimum criteria you must meet if you want to be in the running. The winner of the Buy Box rotations may change over time because the factors determining Buy Box eligibility are unpredictable.
Seller Status: The Buy Box on Amazon is only available to professional sellers. Anyone can become a professional seller by paying a monthly fee on top of the selling fees.
New Items: As per Amazon’s Buy Box formula, only new items can win the Buy Box. Used items are not eligible for Buy Box, and it helps ensure that customers receive new, undamaged products.
Seller Metrics: When determining the Buy Box winner, Amazon monitors specific performance metrics, including late shipment, refund, and cancellation rates. To improve your performance metrics, you must provide the best possible service to customers.
Inventory Availability: Amazon also considers your inventory status before assigning the Buy Box. If you do not have any products to sell, the Buy Box will simply rotate to another seller. We recommend you monitor your Inventory Performance Index (IPI) score.
Pricing: Your business must offer a competitive price that includes shipping, tax, and handling. In short, the lower your landed price, the higher your chances of winning the Buy Box.
Fulfillment Options: If you are using a fulfillment option other than Fulfillment by Amazon (FBA), then Amazon will look at your promised and actual shipping times to decide if you win the Buy Box. Amazon considers FBA users to have a perfect order fulfillment score, which is why most businesses use the FBA service.
Order Defect Rates: Amazon’s algorithm looks at your short and long-term order defect rates (ODR) to determine if your product is eligible for the Buy Box. If you want to win the Buy Box, keep your ODR under one percent.
Customer Feedback: Amazon’s algorithm also reviews your customer response time and dissatisfaction rate. If you want to win the Buy Box, you need to respond to customer inquiries within 24 hours and get positive reviews.
Steps To Check Buy Box Eligibility
1. You first need to go to the “Manage Inventory” tab in your Amazon Seller Central account.
2. You need to check the top right-hand corner and click the “Preferences” tab, then “Buy Box Eligible” in the dropdown menu.
3. This will add another column that simply says yes or no for Buy Box Eligibility on your products.
Tips To Win The Amazon Buy Box
There is no fixed formula to win a Buy Box, following are the factors in winning Buy Box:
Switch To FBA: If you are not using FBA as a seller, consider signing up for the FBA program. Signing up for the FBA program lets Amazon handle the pick, pack, and shipping on your behalf. Though the FBA program does not guarantee Buy Box, it provides a perfect performance score for shipping times and order fulfillment.
Competitive Landed Price: Landed price is the product’s total price and is calculated by adding the listing price of the product and shipping charges. Make sure you always have a competitive landed price, and this does not necessarily mean you have to have the cheapest offer, but it has to be one of the lowest offers. It always makes sense to keep an eye on the competition. You can also use some automated repricing tools.
Adopt A Review Management Strategy: To win the Buy Box, you need to keep a record of positive customer feedback. We recommend you develop a review management strategy for your business, such as a daily schedule for checking and responding to customer feedback.
Inventory Management: Make sure that you are producing or receiving enough inventory to various Amazon warehouses to fulfill the demand of your customers. You can influence winning the Buy Box by maintaining adequate product stock.
Monitor Performance Metrics: Watch your seller performance metrics regularly and develop strategies to improve the score. Check your cancellation, refund, and order defect rate to see if they are below standards.
Winning the Amazon Buy Box can have tremendous value on your product performance. There is no specific strategy to get it but rather a complex series of metrics to be watched and improved upon.
The most critical factors for winning the Buy Box are becoming an FBA seller, having prime-eligible products, customer support, and understanding the various pricing strategies. The Buy Box can differentiate between making sales and sitting on the diversion.