To understand the question ‘what is Amazon Buy Box’, you need to understand that Amazon has two types of sellers – Amazon itself and third-party retailers or sellers. These sellers are also called resellers rather than sellers of proprietary items in private label selling. Since there are several sellers on Amazon, there is stiff competition for which seller will win the Amazon Buy Box.
What Is The Amazon Buy Box?
The Amazon Buy Box is the white box located on the product detail page’s right side where an online shopper can add his/her items for purchase to the cart. As a seller, if your product is represented in the Buy Box, it’s your product that will be added to a shopper’s cart.
However, not all sellers qualify to win the Buy Box. Only sellers with outstanding performance metrics are eligible to win this highly sought-after real estate.
Furthermore, it’s incredibly important to prioritize the Buy Box because 82 percent of all Amazon sales are processed through it. The numbers are even greater for mobile purchases.
How Does It Work?
Amazon uses a sophisticated machine-learning algorithm to evaluate the performance of all sellers before choosing a winner. The algorithm analyzes millions of data points when evaluating sellers to ensure that all Amazon shoppers get good value for their money.
In other words, the work of the Buy Box is to ensure shoppers get the lowest price from the best performing seller.
Amazon is always focused on offering shoppers the best possible experience. That’s why they brand themselves as a “customer obsessed” company. Hence, winning the Buy Box goes beyond just offering the lowest prices.
4 Main Metrics The Buy Box Algorithm Considers
While there are several variables that may influence your chances of winning the Amazon Buy Box, there are those that have the highest impact. Here is a list of the top four variables.
1. Seller-Fulfilled Prime
Sellers on the top-performing Fulfillment By Merchant (FBM) can enjoy the benefits of Amazon Prime and fulfill their orders. Sellers with heavy products can maintain control over their shipment and bypass FBA’s extra fees. The seller-Fulfilled Prime perks will greatly increase your chances of getting access to Prime members and winning the Buy Box.
2. Fulfillment By Amazon (FBA)
Your product’s fulfillment method can also influence your chances of winning the Buy Box. In fact, it’s the easiest and most effective way of increasing your winning chances because the fulfillment’s metrics are considered to be perfect. However, that’s not to say that FBM sellers can’t beat their FBA counterparts.
3. Landed Price
Landed price is the total price of a product on Amazon including shipping. Having a lower landed price for your products will give you a bigger Buy Box share.
You can maintain your Buy Box share with higher prices, if your performance metrics are better than those of your direct competitors. However, if your direct competitors have better metrics, you must price down in order to maintain your Buy Box share.
4. Shipping Time
The Buy Box algorithm also checks the shipping time that you promise to ship a product to a customer. The impact of shipping time on the Buy Box is even higher for time-critical products or categories such as perishable goods. Customers tend to request swift shipping on such products.
There is no one trick that can assure you of winning the Buy Box. There’s a complex web of performance metrics you need to monitor and improve to increase your chances of winning that coveted spot.
The most crucial variables you should focus on include understanding how pricing works, becoming an FBA seller, optimizing your customer service and having Prime-worthy products.