Did you know that over 83% of sales made on Amazon come through the Buy Box? This is an incredible statistic you cannot miss on!
Many consumers buy items through the Buy Box section on the desired product page. When a consumer buys the product through this section, the merchant, which is highest ranked by Amazon at that time, will show up there as a Buy Box winner.
The winner will go on to make more sales than any other merchant for that product.
Thanks to neck and neck competition and Amazon’s customer satisfaction priority approach, only businesses with excellent seller metrics have a chance to win.
Today, we will learn what Amazon Buy Box is, how to become eligible for it and the best tips to win Amazon Buy Box including pricing strategies.
Let’s dive in!
Learn Amazon Buy Box
The Buy Box refers to the white box on the right side of the Amazon product detail page. Customers can add items from that side for purchase to their cart. This Buy Box has a high impact on conversions. This is the main reason why it’s the goal of most sellers.
Understanding how Amazon Buy Box works and its competition for certain products has been and will continue to be an essential strategy. This might be a challenge for some sellers. But we will explain to you the best tips to win the Buy Box.
Become Buy Box Eligible
What are the requirements for competing for the Buy Box?
There are four minimum criteria you must meet if you want to run!
- Subscribe to Professional Plan. Only sellers who have purchased a Professional Seller Account are eligible to win the Buy Box.
- Add new items. Your items have to be new. Used items aren’t eligible for the Buy Box.
- Availability of your items. Without any stock, the Buy Box will simply rotate to another seller.
- Select the best fulfillment option. There are two fulfillment options; in-house and Fulfillment by Amazon(FBA). Sellers using FBA get a perfect order fulfillment score.
Follow Our Best Tips to Win Amazon Buy Box
“If you’re that one lucky seller who gets the ‘Buy Box,’ you make all the sales,” says assistant professor Christo Wilson, lead researcher of the Northeastern University study. This shows that there is a great win when you win the Buy Box!
- Switch to Fulfillment By Amazon
Fulfillment by Amazon(FBA) offers great value when it comes to competing with Amazon. This is because by using FBA you can increase your performance metrics. This is very important to win Amazon Buy Box.
FBA can help you to deliver the exact shipping time and order fulfillment. Therefore you can diminish your hesitations that may occur in the future.
- Use Pricing Software
Professional sellers on Amazon need to work with automated pricing software. This is because price wars are intense on Amazon. You need to track and monitor your competitors’ prices and take action immediately.
Pricing software can allow you to offer better prices and get closer to winning Amazon Buy Box. You can reprice your products automatically and compete with your rivals with your desired profit margins!
- Focus on Your Reviews
If you want to win the Buy Box you have to communicate with your customers after the purchase. This is because you need to improve your review management system. The moment when you have high ratings on reviews you can consider it as a positive sign.
You can work with review management software that can enable you to get more reviews. This strategy will not only enable you to win Amazon Buy Box, but also create a long-term relationship with your customers. You can increase customer retention rate and higher profits!
- Monitor Your Performance Metrics
Last but not least, you have to consistently track your performance. This is especially important to win Amazon Buy Box. Review your performance metrics daily. Check your cancellation, refund and order defect rate.
First, investigate the reasons behind and then you should check if they’re below standards. You can also ensure you have accurate listings, and accurate and on-time shipping. Remember that, shipping orders in a timely manner, meeting all estimated delivery dates obtaining high ratings and earning Amazon Buy Box-eligible status.
Quick Tip: One of the best ways to optimize your seller performance on Amazon is to have optimal performance indicators.
Your performance rate should include an order defect rate below 1%, a cancellation rate below 2.5%, and a late shipment rate below 4%. The volume of orders has to be at an optimal level. But you should know that the required volume changes depending on the product category.
Pricing Strategies That Can Enable Buy Box
One of the best methods of pricing for many sellers has been to lower their prices beyond that of their competitors’ prices. This is considered to increase their chances of securing the Buy Box.
However, this may not always turn into higher profits. You should be aware of the competition and reprice accordingly.
Automatic Repricing
Automatic repricing allows you to track various factors before determining the price such as tracking competitors’ prices, observing their price changes, getting the tracking summary and tracking the stock information of your competitors.
Monitoring a wide range of factors enables you to reprice your products in the right balance by taking market control. You can have an enhanced way of pricing that can make you get closer to Amazon Buy Box and higher profits.
Taking data-driven actions can deliver higher ROI than you can do with minimum effort and yield better results.
Rule-Based Repricing
There are various repricing strategies and they are essential. This is because repricing allows them to streamline their business operations, attract target customers, and offers a higher profit.
Rule-based repricing is a model that examines the prices of the competition and reprices according to predefined rules.
Let’s say that you set a rule that beats your competitors by a certain percentage. And you can also assign the lowest level of price therefore, you can keep the minimum level of your price.
Rule-based pricing is a lot easier than manual pricing. By starting this pricing model you can start to create price wars. This is because most of the sellers on Amazon tend to lower their prices which is ultimately driving profits for other sellers who are competing as well.
Takeaways
There is no one secret to winning Amazon Buy Box, but rather a complex web of metrics to monitor and improve upon. Hopefully, this article will help you better understand how the Amazon Buy Box algorithm works. After reading our piece you can start improving your seller performance by following the tips we have mentioned. Then you can get closer to winning the Buy Box and increase your sales to the maximum level possible.
#amazon#amazonbuybox#buybox#pricingstrategies
