Win the Amazon Buy Box, is the start of success. 83% of all Amazon sales happen through the Buy Box, hence it is necessary for you to know about how to win the buy box and how the Amazon buy box works.
What is the Amazon buy box?
There is no limit to the number of sellers who can use the Amazon platform, multiple merchants frequently sell the same item. As we all know, Amazon values and focuses on customers, hence they will always recommend the best product they think to customers. In this way, the Amazon buy box comes!
The Amazon buy box is a section on the right side of an Amazon product detail page where customers can add a product to their cart or “buy now”. A Buy Box on Amazon allows customers to make a quick purchase. Of course, if you win the Buy Box, you can expect to earn more sales.
How the Buy Box Works?
As for the how the buy box work, it is necessary to introduce the two parts: Eligibility Amazon’s Buy Box requires and Key Metrics That Amazon’s Buy Box Algorithm Looks For.
Part 1: Eligibility requirements
Amazon built its Buy Box algorithm on eligibility requirements.
You may find not all sellers are eligible to win the Buy Box. Yes, the Amazon Buy Box algorithm analyzes the product supported by all sellers and then chooses the best one they think to reward the buy box.
1. Professional seller account.
Only sellers who have purchased a Professional Seller account (in Europe called a Pro-Merchant account) are eligible. When you create an Amazon seller account, you can choose the individual plan or a professional plan. The professional plan charges $39.99/mo, however, there are a lot of privileges.
2. New products
The second one is that the product you’re selling must be new and available in stock. Because Amazon has to ensure shoppers receive undamaged, high-quality products as soon as possible.
Amazon’s Buy Box checks your order defect rate (ODR), late shipment rate, cancellation rate, and several other factors. In this way, you need to provide shoppers with a user-friendly experience and focus on improving your customer service.
How to Check Buy Box Eligibility?
If you want to check your eligibility for the Buy Box, Just follow these steps:
- Log in to your Amazon Seller Central account
- Select the Inventory tab and then click Manage Inventory
- On your product listings, you will see two columns: Buy Box Price and Buy Box Eligibility.
- If these columns don’t appear, click the Preferences tab and look for Buy Box Price and Buy Box Eligible in the Column Display section
- Choose Show When Available from the Buy Box Eligible dropdown
- Check the Buy Box Eligible column for your product SKU
Part 2: Key Metrics That Amazon’s Buy Box Algorithm Looks For
1. Fulfilment method
One of the most influential factors in Amazon’s Buy Box Algorithm is order fulfillment. Amazon gives FBA a perfect score for multiple variables including shipping method, on-time delivery and inventory depth.
However, it is not definitely that Fulfillment By Merchant (FBM) sellers can never beat FBA sellers. In 2015 Amazon introduced Seller-Fulfilled Prime. This plan allows FBM sellers to reach Amazon Prime members without housing the goods in Amazon’s fulfilment centre. Sellers enrolled in Seller-Fulfilled Prime will have a greater chance of winning the Buy Box than FBA sellers.
2. Landed price
The landed price is the total price for the product which including shipping and VAT (UK and EU only).
Generally, we think the lower the landed price, the greater the Buy Box share. However, it is not absolutely! If your seller performance is higher than your competition for a product, maybe you can win the buy box in the case of you raise your price.
3. Shipping time
Ship the products to shopper as soon as possible is always the rightest thing. For certain time-critical products and categories, such as birthday cards and perishable goods, the impact of this metric on the Buy Box will be even higher, since customers often demand swift shipping on such items.
4. Stock availability
If your products are not in stock, it is difficult for you to win the buy box. However, the product listed as “backordered” alongside a note on the product page maybe can win the boy box, because with backorders, customer orders the item with the understanding that it is not immediately available and will be shipped at a later date.
5. Order defect rate
Order defect rate (ODR) comprises of three different metrics: negative feedback rating, A-Z guarantee claim rate and service chargeback rate.
According to Amazon, the ODR should be below 1%.
6. Valid tracking rate
Valid tracking rate is the percentage of deliveries sent with full tracking information. It is considered on the basis of the last seven and 30 days.
And In order to protect your Buy Box eligibility, valid tracking numbers should be provided for 95% of packages shipped.
7. Late shipment rate
Late shipment rate is the number of orders shipped later than the expected ship date.
The target of this metric should be below 4%.
8. Delivered on-time rate
Delivered on-time rate is the percentage of orders that were delivered on time.
Sellers should aim for a percentage of 97% or greater.
9. Feedback score
Feedback score is the total of feedback the seller has received, the higher the score is better.
with the most recent feedback having the greatest impact.
10. Customer response time
Replying to customers within 12 hours increases your chances of winning the Buy Box.
If you take too much time, it will negatively impact your chances of winning the Buy Box
However, by marking as no response needed, the seller can save themselves from negative points.
11. Feedback count
Feedback count is the number of buyers who have given seller feedback. Obviously the more customers, the better.
12. Inventory Depth and Sales Volume
Having enough inventory consistently will put you in a better position than if you have big fluctuations in inventory. If you’re frequently out of stock, your chances of winning the Buy Box are slim to none.
13. Cancellation and refund rate
If sellers cancel on a customer who has made an order too often, it could have a negative impact on seller performance. It is better to keep your Cancellation and refund rate be below 2.5 %.
How to win the Amazon Buy Box?
Now you have known how the Amazon Buy Box algorithm works, I think you must find the method to win the buy box. Just Know your metrics, focus on the important metrics, Improving seller performance is necessary.
And there is something I have to emphasize:
Optimize your inventory management Please keep in mind, never lose your inventory. Once you lose your inventory, you will lose your buy box. To better manage your inventory, maybe you can use Captain BI to help you.
Be priced competitively: This does not mean having the lowest price. If you have don’t want to reprice manually consider using repricing software to save time and keep your price competitive.
Better know-how the Amazon buy box works and focuses on the important metrics, you will win!
Good luck to you!