What if we told you that there was a tiny little box on Amazon that influenced 83% of all sales on the biggest online marketplace in the world? It may not look like much at first, but the Buy Box can put your business miles ahead of your competition.
What is the Buy Box hype all about?
The Buy Box is the section on the right side of any product page on Amazon, which allows customers to add items to their cart by clicking on the ‘Add to Cart’ or ‘Buy Now’ buttons.
But why does it matter so much, you ask? Think about how the average Amazon customer approaches online shopping. When searching for a product, they most likely use generic terms without specifying a brand. They’re also not going to spend too much time scrolling on the product page to find purchasing options. What’s more, they rarely have the option to choose the seller from whom they wish to buy goods.
So who decides which sellers are featured prominently? Amazon does. Using its algorithm, it displays the best offer for a specific product for that particular shopper, on that day. If you’re in a competitive category, you will realize just how valuable the Buy Box can be for your business – both in terms of visibility and sales.
So, how does it work? Can you just get a Buy Box?
The cut-throat competition for the Buy Box and Amazon’s customer-centric approach means that not every seller is eligible to win it. Sellers are constantly trying to win the Buy Box by offering better prices, customer service, discounts and deals, or through other incentives. But it’s never so simple. Amazon only chooses businesses based on select metrics and prioritizes those with the highest chances of success.
It’s important to note that the Buy Box algorithm works round-the-clock. This means that Amazon is always tracking and assessing your performance, and your competitors’. So, by understanding its algorithm and optimizing your seller metrics accordingly, you can boost your chances of winning the Buy Box.
Metrics that determine your chances of winning
In addition to the score based on the algorithm, Amazon also grades you on a few metrics. Here are some of the most important factors you should consider if you’re bidding for the Buy Box.
- Seller status: Only ‘Professional Sellers’ are eligible for the Buy Box, for which they pay an additional monthly fee on top of existing seller fees
- Performance metrics: The frequency of cancellations, refunds, late shipments, and other essential metrics also determine your chances of winning the Buy Box
- Customer feedback: Positive reviews play a big role in landing you the Buy Box as Amazon studies feedback from your customers from various durations (30/90/365 days)
- Pricing: The Buy Box considers many sellers of each product to determine which one offers the most competitive pricing, inclusive of taxes, shipping, and handling fees
- Product condition: The Amazon Buy Box is not eligible for used products; only new products that reach the shoppers untouched and undamaged are considered
- Product or order defects: Amazon evaluates your short-term and long-term order defect rates (ODR) and prioritizes sellers with <1% ODR
- Fulfillment options: Amazon tends to prioritize ‘Fulfillment by Amazon (FBA)’ when deciding your score, so if you’re not using this service it’s time to reconsider
- Inventory: If your product frequently sells out, your chances of winning the Buy Box are lowered, so prioritize inventory management
- In-stock consistency: Inventory management is also vital to ensure consistency in your inventory stock-keeping
- Shipping time: To ensure quick and reliable shipping to its customers, Amazon’s Buy Box algorithm compares your promised shipping time vs. actual shipping time
One more thing – the Buy Box functions as a rotational model
Just because you won the Buy Box once, it doesn’t guarantee you the spot again. The algorithm chooses eligible sellers in rotation and switches from one deciding factor to another – be it performance metrics, pricing, customer feedback, or any other. The Buy Box is shared proportionate to the number of contenders for a product. So how well you compete with your rivals determines how often you win the Buy Box. In some cases, the Buy Box can be shared by multiple sellers in a 24-hour window.
Boost your Buy Box wins with Tenovia’s analytics
If you’ve been attempting to win the Buy Box without much success, you might need a push with analytics. Through our analytical dashboard, we can determine your Buy Box percentage, study your competitors, and deliver insights on how you can improve your performance metrics. What’s more, our analytical support also extends to accurate forecasting to minimize inventory inefficiencies as well as operational expenses – ultimately increasing your profit margins and sales. Here’s how we helped one of our clients transform their online storefront and win the Buy Box many times over.
Want to get in on the Buy Box action? Get in touch with us and we’ll make it happen!
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