/Master the Amazon Buy Box: Proven Strategies for Success

Master the Amazon Buy Box: Proven Strategies for Success
Jul 19, 2022 17 min read

Master the Amazon Buy Box: Proven Strategies for Success

Dillon Carter
Dillon Carter
Co-Founder, COO at Aura

In this post we’re looking at the Amazon Buy Box for sales on Amazon, how it decides which seller’s product is shown in the ‘Add to Cart’ and what strategies to win the buy box to drive big revenue growth.

Key Points

  • Winning the Amazon Buy Box drives sales, 80%+ of transactions happen through it and $416 billion in 2022 revenue.
  • To be in the Buy Box sellers must meet specific performance requirements, low Order Defect Rate, competitive pricing and good customer service.
  • Using advanced strategies like repricing tools, advertising and regular performance monitoring can help you win and keep the Buy Box.

What is the Amazon Buy Box

The Buy Box on Amazon is a key piece, on the right hand side of the product detail page. It allows customers to add products to their cart from a chosen seller and connects shoppers with trusted sellers who offer good service at good prices.

Being a buy box winner is crucial for sellers on Amazon because of the visibility and sales volume. Most transactions on this platform happen through the Buy Box, so being the winning seller means big revenue gains.

But just knowing it’s important isn’t enough. To win this prime spot sellers need to understand how it works and what the requirements are.

Buy Box importance

The Buy Box is more than just a nice to have; it’s a sales driver. 80%+ of Amazon transactions happen through the Buy Box, so it’s a key to high sales volume. In 2022 $416 billion of Amazon’s revenue came from Buy Box sales, that’s a big deal.

Winning the Buy Box not only increases your product visibility but also builds customer trust, buyers associate the Buy Box with reliability and quality. This means higher conversions and more sales so the Buy Box is a must have for any seller wanting to be successful on Amazon.

Buy Box Eligible

To be in the running for the Buy Box sellers must have a status called “Buy Box eligible” which means they meet Amazon’s performance requirements. This means they must list their items as new and keep their products in stock. Not all sellers meet these requirements.

Sellers can check if they are Buy Box eligible by looking at the ‘Featured Offer Eligible’ column in the Manage Inventory section of Seller Central on Amazon. Meeting these requirements is the first step to winning the Buy Box.

How the Amazon Buy Box Algorithm Works

The Amazon Buy Box algorithm is dynamic and decides who gets the Buy Box. It favors sellers who are reliable and offer competitive pricing, and changes its decisions based on market conditions and seller performance.

Having a long history on Amazon and good performance metrics usually gives sellers an advantage. Understanding how this buy box algorithm works is key to sellers who want to develop strategies to win the Buy Box consistently.

Algorithm Metrics

The algorithm that decides Amazon’s Buy Box looks at a range of key metrics to determine who is eligible. Sellers must keep their order defect rate below 1% and manage their cancellation rate, late shipment rate and negative feedback rate and rating closely.

When it comes to the Buy Box, offering a competitive landed price (cost of the product + shipping) is key. Sellers with near perfect performance metrics have some wiggle room. They can charge more for their products and still be in the running for the Buy Box.

Customer Feedback

The Buy Box algorithm looks at customer feedback heavily and the last 30 days of feedback is a key factor in a seller’s chance of winning the Buy Box. A steady stream of positive feedback can make professional seller accounts you more eligible to win the Buy Box.

To keep your feedback rating high you need to provide great customer service and resolve any negative feedback quickly. Too much negative feedback can hurt your chances. So prioritizing a great or excellent customer service experience is key to staying box eligible.

Fulfillment Methods

The Buy Box algorithm looks at fulfillment methods heavily and Fulfillment by Amazon (FBA) or Seller-Fulfilled Prime (SFP) gives you a higher chance of winning the Buy Box because of guaranteed stock levels and fast delivery times.

For sellers using Fulfillment by Merchant (FBM) they need to streamline their inventory management and order completion process to keep their products in stock and stay eligible. Speed and reliability of shipping are also taken into account by the Buy Box algorithm.

Buy Box Eligible

To be eligible for the Buy Box on Amazon sellers must meet certain requirements. They must provide products in good condition which gives better ratings and increases their chances of winning the buy box. Sellers must note that only new items are eligible to compete for the Buy Box for new products. Keeping a low rate of late shipments and having a long selling history on Amazon also helps with Buy Box eligibility.

Winning the Buy Box consistently requires sellers to meet these requirements and also compete actively.

Professional Seller Account

Competing for the Buy Box requires a Professional Seller account which costs a monthly subscription but gives you important features and benefits.

Sellers without a Professional account can’t compete for the Buy Box and limit their sales potential. Getting this type of account is key to increasing sales and having an edge in the market.

Low Order Defect Rate

Keeping a low Order Defect Rate (ODR) of under 1% is key as it’s the rate at which customers receive defective or damaged products. A-to-Z guarantee claims, chargebacks and negative feedback all impact your ODR so it’s important to maintain high quality standards.

Using third party order management tools can improve efficiency and increase the Perfect Order Percentage (POP) score. This increase in POP score can give you a higher chance of winning the Buy Box. Monitoring your seller performance metrics and actively asking for customer feedback helps to keep your reputation good.

Competitive Pricing

Pricing is key to winning the Buy Box. Sellers need to monitor their competitors’ prices and adjust accordingly. A pricing strategy can really help you win the Buy Box.

To adjust prices according to market changes, sellers can use third party repricing tools that allow dynamic pricing. Don’t undercut prices too much which can hurt your overall profit margin.

Win the Buy Box

Optimizing is key to winning the Buy Box. Sellers should focus on good seller feedback first, on time shipping, fast customer response, FBA, competitive pricing and in stock inventory. These factors contribute to higher seller ratings and Buy Box metrics.

Providing good customer service and staying updated with Amazon policies is key to remaining current Buy Box winner and eligible. Use various types of Amazon Buy Box software to optimize and win the Buy Box.

Inventory

Having the right inventory is key to being Buy Box eligible as products out of stock can’t win the Buy Box. Amazon prioritizes products that can ship immediately so having enough inventory is a big factor in winning the Buy Box.

Using inventory management tools can help sellers to maintain ideal stock levels so they don’t run out and lose Buy Box eligibility. Managing your inventory well is key to being competitive and winning the Buy Box.

Fast Shipping

Fast shipping increases your chances of winning the Buy Box, Prime shipping gives you a tactical advantage by guaranteeing fast shipping and customer satisfaction.

Using Fulfillment by Amazon (FBA) means fast order processing and dispatch so many sellers prefer it. To show shipping reliability and improve your box eligibility, you need to have a 95% or higher tracking rate.

Customer Service

Good customer service is key to winning the Buy Box. Fast response to customer questions and messages increases satisfaction and feedback scores. To maintain high customer response time, sellers need to respond to customers within 24 hours.

Order defect rates, feedback scores and shipping on time affect your chances of winning the Buy Box. Meeting or beating expected delivery dates and providing high quality products are actions that improve seller metrics and overall customer experience.

Advanced ways to win the Buy Box

Using advanced tactics can give a seller control over the Buy Box, to be visible. Winning the Buy Box exclusively is possible by creating private label products or bundling products together, since owning an ASIN means you have full control of that specific product’s Buy Box.

Using resources like Amazon’s Product Opportunity Explorer allows sellers to find and exploit niche markets. Advanced pricing methods combined with Amazon’s analytics tools give you insights on how you perform on winning the Buy Box and competitor’s moves.

Repricing Tools

Pricing on Amazon is key and repricing tools are vital to this. They allow you to automatically adjust your prices according to market changes using an Amazon repricer. For those with few products, manual repricing works well but when you have many SKUs it becomes tedious and hard to manage.

Algorithmic pricing brings machine learning into play for price adjustments by considering multiple factors which results to a more refined pricing approach. These tools consider product profitability and various Amazon metrics to set prices at levels that will win the Buy Box.

Advertising

Using Amazon PPC ads can increase your chances of winning the Buy Box by increasing product visibility and driving sales.

Adding PPC ads to your overall strategy can drive traffic to your listings and increase sales volume which in turn affects your position in the Buy Box competitive landscape. Using strategic promotional tactics like sponsored productscan influence the algorithms that win the Buy Box.

Monitor and Adjust

Winning the Buy Box requires continuous monitoring and refinement of strategies based on performance metrics. By checking these metrics regularly sellers can make informed decisions to improve their Buy Box position.

Knowing your Buy Box Percentage is key to adjusting your marketing strategies to sales and customer interactions. Keep an eye on these metrics and you’ll stay agile and competitive in a changing market.

Problems and Solutions

Sellers struggle to win the Buy Box but solutions exist. Misinformation and myths can make your strategies fail so getting the right information is key. Illegitimate sellers and fake products can affect your chances of winning the Buy Box. Enrolling in brand protection programs like Amazon Brand Registry and Transparency is recommended.

Staying up to date with Amazon’s latest policies and monitoring performance metrics can help mitigate these issues. Using the right tactics will keep you eligible for the Buy Box and competitive.

Negative Reviews

Negative reviews can affect your Buy Box eligibility. This is often caused by bad customer experience which in turn can affect your seller rating on Amazon.

To reduce the chance of negative reviews and stay in Buy Box eligible status, it’s important to handle customer complaints quickly and ensure product delivery meets high standards. Managing your inventory well can avoid cancellations that can lead to negative reviews.

Buy Box Suppression

When the Buy Box is suppressed it’s because sellers aren’t meeting the eligibility or their prices aren’t competitive enough. To avoid suppression maintain the same price across all sales channels.

To have a competitive price and prevent the Buy Box from being suppressed use tools like SellerPulse to monitor competitive pricing benchmarks. If suppression happens Buyers will still see a list of sellers from which they can compare offers.

Competing with Amazon

Even with Amazon in the mix third-party sellers can win the Buy Box. Amazon doesn’t always win.

To compete with Amazon and other sellers you need to perform well, set competitive prices and deliver great customer service. By focusing on these key areas third-party sellers can outshine and win the Buy Box.

Monitor Your Buy Box

Performance and decision making relies on monitoring Buy Box success. Sellers who win the Buy Box can increase visibility and open up new sales channels through PPC ads.

Adjusting strategies by product price and product availability is key to performance evaluation. By using Amazon’s tools to track Buy Box metrics sellers stay competitive and agile to market fluctuations.

Buy Box Percentage

The Buy Box percentage is the frequency your product is displayed in the Buy Box when viewed. This gives you an idea how you’re performing against your competitors. This is calculated by dividing the number of times you won the Buy Box by the total page views.

Amazon provides two numbers for this metric: a recent one for the last 48 hours and an extended one valid tracking rate, for over 30 days. Monitoring these percentages will help you adjust your tactics to win the Buy Box more consistently.

Sales Data

Analyzing sales data is key to finding patterns and shaping your Buy Box strategy. This will show you trends that will help you adjust your pricing, inventory and marketing so you stay competitive. Regularly monitoring this data will allow you to make informed decisions that will improve your Buy Box and increase sales.

You need to stay on top of your game to stay ahead of the competition by adapting to market changes.

Conclusion

To understand Amazon Buy Box you need to understand the algorithm, meet the requirements and be a good seller. Focus on key metrics, set competitive prices, deliver great customer service and use advanced tactics to increase your chances of winning the Buy Box.

Winning the Buy Box is key to increasing product visibility, sales volume and consumer trust. Follow this guide and you’ll be on your way to long term success on Amazon. Monitor your progress and refine your approach to stay ahead of the game on Amazon’s ever changing marketplace.

FAQs

What is the Amazon Buy Box?

A special section on product pages where customers can add products to their cart and buy from selected sellers.

For sellers winning the Buy Box is key because it increases sales.

How important is winning the Buy Box?

Winning the Buy Box is important because it increases visibility and is responsible for over 80% of Amazon sales so it directly affects a seller’s success.

So this should be your top priority as a seller.

What affects Buy Box eligibility?

Eligibility for the buy box is based on competitive pricing, low order defect rate and using fulfillment options like FBA or SFP.

Following these requirements will increase visibility and sales in the market.

How do I win the Buy Box?

To increase your chances of winning the Buy Box focus on your seller metrics, manage your stock levels fast and free shipping up, speed up your shipping and deliver great customer service.

Following these will give you a big competitive advantage to win the Buy Box.

How do I monitor my Buy Box?

Use Amazon’s tools to monitor your Buy Box by tracking the Buy Box Percentage and sales data.

By doing this you’ll see how you compare to your competitors and find ways to improve.

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