How to Win the Amazon Buy Box

The “Buy Box” button on Amazon product pages allows users to buy the product immediately. The two types of sellers on Amazon are Amazon themselves and third-party sellers that list their products on Amazon. The same product can be sold by various vendors online. When that happens, and a customer clicks the “Add to Cart” button, the vendor who has the Buy Box gets the sale.

The buy box provides the customer with an instant buying experience without caring about who they are buying from. In 2020, Amazon sold $386 billion worth of products, out of which $320 billion came from the buy box. So as an estimate, 83% of all sales on Amazon happen through the buy box.

The buy box rotates between vendors who meet the eligibility criteria and have competitive prices selling the same product. The buy box also considers things like the new condition of the product and location as well.

Amazon does share the buy box with third-party sellers, but it doesn’t do so usually. The lowest prices don’t guarantee the buy box since the price is not always the factor determining the buy box.

How it Works

The buy box is based on a tedious algorithm based on seller history, prices, location, and variables sold of the same product. All sellers of the same product are analyzed, and then the buy box is rewarded to the seller that Amazon deems to be the best buying option for the particular product. Earlier, Amazon awarded the buy box to a particular seller, but now it rotates between multiple eligible sellers.

Factors for Eligibility

Amazon doesn’t publicly disclose the metrics of the buy box, but there are obvious likely factors that can help you if you’re an Amazon seller looking to win the buy box. A few factors in the checklist that every Amazon seller must tick to be eligible for getting the buy box.

It is all, in essence, about the customer experience. Fulfilling these requirements should be the top priority of merchants looking to score the coveted buy box.

1. Fulfillment Method: Fulfilment is the most important factor considered when it comes to the buy box. Amazon is very stringent on providing their customers with premium fulfillment of deliveries, with same day and next day delivery options available for Prime subscribers.

There are 3 ways a merchant can deliver orders on Amazon; FBA (Fulfilment by Amazon), FBM (Fulfilment by Merchant), SFP (Seller-Fulfilled Prime).
For obvious reasons, Amazon prefers FBA because it controls the entire process, including warehousing and shipping.

But SFP is sometimes given more priority than even FBA because SFP sellers are merchants that can reach prime customers without taking up inventory space in Amazon warehouses.

2. Landed Price: Landed price refers to the final price paid by the customer, including shipping and taxes. Sellers must take these factors into account while pricing their products on Amazon. Sellers make the mistake of thinking that lower prices alone will get them the buy box.

It is an important point, but not the all-important one. So, pricing your products appropriately will get you one step closer to getting a buy box.

3. Shipping Time: time spent shipping the products is an important factor from eligibility for the buy box. Shipping is arranged in 4 different brackets, including 0-2 days, 3-7 days, 8-13 days, and 14 days or more. These shipping time brackets can be seen on the product page. If you can get your shipping time to be as low as possible, you’d be increasing the chances of getting the buy box.

4. Stock Availability: If you have found yourself eligible for the box and run out of product inventory, the buy button will automatically go to another merchant. Similarly, you must maintain strong stock levels to have a smooth possession of the buy box.

5. Order Defect Rate and Returns: If your product is constantly returned because of the defect and other reasons, your chances of getting the buy box will be thin. You have to make sure that your deliveries are on time and the product is free from damage.

A late delivery rate is also something you must keep in mind. The late shipment rate is the orders that reach after the mentioned delivery time bracket. Similarly, you must keep your Delivered-on time rate high.

6. Feedback Rating: Customer feedback is one of the most important sources of credibility. Amazon provides full transparency, with customers posting actual pictures of the product, enabling the user to compare them from the product images.

Nailing these factors and more is highly necessary to ensure good reviews from your customers. Also, encouraging your customers to review your product on Amazon will help you get the buy box since more reviews mean more credibility.

The Amazon Buy Button is a great tool to reflect customer validation and authenticity on Amazon. It is also a great way to make sure that customers buy from you over your competitors who sell the same product.

For further information on Amazon, you may contact us or visit our website www.bmconsulting.in

*******This blog is compiled by Divyanshu Gupta*******

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