The Buy Box is the holy grail for Amazon sellers. It’s your key to unlocking better sales and improved visibility on the platform. Unfortunately, with ever-changing algorithms and intense competition, winning Amazon Buy Box has become a daunting task. Still, with the right strategies and persistence, it is possible to secure the buy box position for your products.
In this article, we will discuss how the Amazon Buy Box algorithm works when you are a distributor (selling the same product with other sellers) and explore strategies on how you can win Buy Box in 2023. We will also see if there is anything different if you are the only seller of the product. Let’s dive right in.
The Buy Box is the section on Amazon’s product detail page that allows shoppers to add the product to their cart with one click. In the desktop view, the Buy Box is located above the fold on the right side of the page. Here is how it looks:
Credit: Amazon
The Buy Box appears just below the product image and the main product details section for mobile. Here is how it looks on mobile:
Credit: Amazon
The Buy Box is available to only one seller at a time. Only those that provide the best customer experience, as determined by Amazon’s algorithm, are selected for the Buy Box position. Other sellers will appear as a clickable list below the Buy Box, which is less visible to customers and can result in decreased sales.
Winning the Amazon buy box increases your chances of successful sales by 4 times. Studies suggest 82% of all purchases go through Amazon’s Buy Box. The number is even higher for mobile.
A presence in Buy Box will skyrocket your Amazon sales and bolster your visibility in no time, as your offer will be the default option for customers to purchase.
Also, Amazon uses Buy Box metrics to evaluate seller performance. Winning the buy box also means a higher ranking on the product listing page and better ad performance. Especially for sponsored ads, as Amazon only allows sponsored ads for sellers who win the buy box.
The Buy Box is based on Amazon’s proprietary algorithm that:
When allocating buy box positions for distributors, the Amazon Buy Box algorithm ensures that the sellers keep rotating from time to time to keep things fair, provided a better seller and offer emerges, whereas, if you are a sole seller, the algorithm awards you with the Buy Box if you meet all the eligibility criteria set forth by Amazon.
The Buy Box algorithm aims to ensure trusted sellers with reasonable prices and good customer service always win the Buy Box. This improves the consumer experience, resulting in repeat purchases and more orders for Amazon.
Amazon’s algorithm uses a variety of factors to decide the Amazon Buy Box seller. They include –
Amazon’s algorithm evaluates all these factors and assigns an individual score to each offer by a seller. The offer with the highest score wins the Buy Box.
To be eligible for buy box, Amazon sellers in India must:
You can check whether your listing is Buy Box eligible in your Amazon Seller Central dashboard.
The biggest pricing myth regarding Amazon Buy Box is – The lowest price always wins the Buy Box.
This is not true. While having a low price is undoubtedly a critical metric considered by Amazon, it is not the only factor to determine whether you win the Amazon Buy Box or not. The algorithm considers multiple factors like seller rating, inventory, and sales history to award you the Buy Box.
In fact, having a very low price might hurt your chances as it will indicate a poor-quality product. At the same time, raising prices too high can make your offer less competitive. You should instead make minor price adjustments that can help you maintain profitability and improve your chances of winning the Amazon Buy Box. Checkout our blog on pricing strategies for E-commerce and DTC brands.
The way Amazon displays offers from multiple sellers in the Buy Box has undergone significant changes over time due to updates in Amazon’s algorithms and increased competition.
Recently, Amazon in Europe made a decision to change the layout of the Buy Box in order to comply with agreements made to address antitrust concerns raised by the European Commission. Under this new rule, Amazon will now prominently display the offer from the second seller on the product display page. This rule is currently only in effect in Europe; however, it may be implemented in the United States and other countries in the future.
First and foremost, you need to become an FBA seller and outsource your order fulfillment to Amazon. This ensures that your products always reach the customers on time, as FBA Â is one of the fastest shipping options available. You need to send your products to Amazon fulfillment centers whenever a customer makes a purchase.
Having enough stock of the product ensures you can fulfill customer orders without delay. Also, by maintaining sufficient inventory, you demonstrate to Amazon that you’re a reliable and trustworthy seller. This can further increase your chances of winning the Amazon Buy Box.
Amazon considers a variety of metrics to determine a seller’s rating, such as shipping time, order defect rate(ODR), pre-fulfillment cancel rate, and late shipment rate. A good seller rating is a sign that you offer a great customer experience. Long story short, ensure that you fulfill orders accurately and on time and offer excellent customer service. This can make you an attractive candidate for the Amazon Buy Box.
It’s important to maintain a competitive price to increase your chances of winning the Amazon Buy Box. The price should not be set low when your performance metrics are poor, or your seller ratings are not good. If you have perfect performance metrics, you can always price your products higher and still win the Buy Box.
Here is a cheat sheet for you to win Amazon Buy Box in 2023 –
There are three popular pricing strategies that you can employ to improve your chances of winning the Amazon buy box. They are –
This repricing technique is all about setting up a set of rules and conditions that will automatically adjust your product prices on Amazon. The rules can be based on factors such as the prices of other sellers, your own cost of goods, and your desired profit margin. This is one of the most efficient and easy-to-adopt pricing strategies, but it doesn’t take into account real-time market conditions.
As the name suggests, this repricing method is all about manually adjusting your prices based on the prices of other sellers, cost of goods, and required profit margins. This strategy is not the most efficient one, as changing rules manually can be time-consuming, but it gives you immense flexibility to change the prices according to market conditions.
This is probably the most effective and efficient repricing technique out of the three, as it uses advanced algorithms and machine learning techniques to analyze market data and come up with accurate pricing decisions. The only flaw with the algorithmic pricing method is that it demands a significant investment in technology and expertise.
As you can see, each of these strategies has its own pros and cons. So carefully choose a strategy based on your resources, goals, and budget. But we recommend using automatic repricing tools like Repricer, Bqool, and Seller Snap to ensure that you are pricing your products competitively.
There could be several reasons why you are not winning the Amazon Buy Box depending on whether you are a sole seller or distributor on the platform.
Here are a few reasons you are not winning the prestigious Buy Box as a distributor –
Here are a few reasons for not being able to win Buy Box as a sole seller –
Fix all the above issues to improve your chances of winning the Amazon Buy Box in 2023.
The Amazon Buy Box is undoubtedly one of the most promising ways to improve your sales on Amazon. But if it evades you or you lose it after winning it, do not be dejected. You can still win the Buy Box by:
You can still win the Buy Box if you are a distributor:
If you are a sole seller, you can win Buy Box by:
If that doesn’t work, you can always try to be present in the Other Sellers section of Amazon. Now this section might not be as prominent as the Buy Box, but you still get good visibility over sellers who are not visible at all. But remember – to feature in this section, you must still meet all the eligibility criteria of Buy Box.
Credit: Amazon
Managing Amazon marketplaces requires expert knowledge and a deep understanding of how the platform works. Many D2C brands and E-commerce businesses find themselves in a challenging position to optimize their sales and profitability on Amazon. As a D2C enabler, ANS Commerce can help brands like yourself, by providing comprehensive marketplace services, including account setup, optimization, and management, ensuring a strong brand presence and maximizing sales potential on the platform.
By following the strategies outlined in this blog, such as analyzing pricing, improving fulfillment methods, enhancing product detail, boosting customer feedback, and increasing inventory, sellers can increase their chances of winning the Amazon Buy Box and boosting their sales on Amazon.
If you need further help on Amazon Buy Box or want assistance in setting up your e-commerce store, reach out to us by booking a demo.
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