What is Amazon buy box, and what factors influence the ability to win the buy box?
Amazon, the leading online marketplace in the world with over 5 million sellers and billions of customers, today proved to be an incredible platform for sellers to take their business to new heights.
But do you really think it is that easy to sell on Amazon with this level of competition?
The answer is partially Yes!! The reason being that, if you follow the right technique to reach customers and meet up all the standards set by Amazon; then indeed it will be easy for you to become a leading Amazon seller while giving your best shot. But if you fail to do so, then you are going to be in dire straits.
Amazon values the efforts of sellers and bestows them with the best options to scale up their journey and “Amazon Buy Box” is one of the best services that Amazon provides to some selected sellers if they live up to the eligibility criteria.
So let’s begin the voyage of understanding the Amazon buy box and its eligibility criteria, including the factors that influence your ability to win the buy box.
What is Amazon Buy Box, and why is it considered as one of the best options for Amazon sellers?
Amazon buy box is the white rectangular box that appears on the right side of the product detail page. It was created to provide the best value to the customers in exchange for the money. So when a shopper begins to purchase an item through this box, at the very same time the Amazon sellers who ranked highest by Amazon will show up there, thus enabling the best sellers to make more sales than others.
And, it is considered as the best option because around 82% of sales on Amazon go through the buy box and in case of mobile, the percentage increases more.
What are the eligibility criteria to win the Amazon buy box?
By fulfilling the eligibility criteria, Amazon sellers get permission to compete to win the buy box. These are the criteria that need to be met:
- Professional Seller Account – The very first criteria is that the seller must have his/her own Professional Seller Account to compete to win the buy box. Individual or Basic seller accounts are not eligible.
- Buy Box Eligible – It is the status that is given to the experienced Amazon sellers and the one who performs the best. Earlier, it was known as Featured Merchant. It is not necessary that the seller will get the status for every product he/she sells; it depends upon the performance of the product in the marketplace. You can check your status on Amazon Seller Central account.
- New Items – A seller is required to sell new items instead of used one to be eligible for the buy box. For used items, there is a “used buy box”, which is separated from the main box.
- Adequate Inventory – The last but not least, you must have constant adequate inventory, to be eligible to compete for the buy box.
Now before moving further to learn about the factors that influence your ability to win the Amazon Buy Box, let’s look at how you can check your buy box eligibility status.
On Amazon, the “buy box” eligible feature is not shown by default. You have to switch it on by following steps-
Step – 1 - In Amazon Seller Central Click on the Inventory tab and select Manage Inventory.
Step – 2 – Select the preferences tab.
Step – 3 – From the column displays section, select buy box.
Step – 4 - Save changes
Factors that influence seller's ability to win the Amazon Buy Box-
Owing to the fact that Amazon strives hard to provide the best of the best services to its customers, it is quite difficult for the Amazon sellers to win this buy box.
- Orders Fulfillment Method – The way you fulfil product order is the most significant factor for Amazon. Amazon provides options to Amazon sellers to select the way by which they want to fulfil the orders. The popular shipping methods among all those methods are Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP) and Fulfilled by Merchant (FBM). However, while selecting the bestseller for buy box, Amazon algorithm gives preference to FBA and SFP sellers, making it extremely difficult for FBM and other sellers to win the buy box.
- Landed Price – The landed price refers to the price, that includes both shipping price and tax. Now, many Amazon sellers have this myth that by selling at the low landed price, they can win the buy box. But it’s true because the performance metrics of sellers influence their chances of winning the box. Meaning, even if you charge the high price you can win the buy box if your performance metrics are higher than others; similarly, even if you charge a low price, but your performance metrics is low you will not win the buy box.
- Shipping Time – The time sellers take to ship a product to the customer is known as shipping time. So lesser the time you take to ship an item, the higher the chances are to win the buy box. Thus, it has a high impact on your ability to win the buy box.
- Inventory Availability – It refers that sellers should manage constant adequate inventories. If not, then the buy box will rotate to other sellers. However, the backordered items can be featured in the buy box, but Amazon algorithms prefer the sellers who maintain adequate inventory consistently.
- Order Defect Rate (ODR) - ODR is used by Amazon to measure seller’s performance. It has three components which are Negative Feedback Rate, A-to-Z Guarantee Claim Rate, and the Service Chargeback Rate.
- Valid Tracking Rate – This rate refers to how often a seller has used the valid tracking numbers on the order that he has shipped. It is determined by Amazon to measure your performance, the prime reason for calculating this rate is to find out how much you care about the customer's expectations to track and their orders.
- Late Shipment Rate – This rate shows how many times the sellers had shipped the product late than the expected ship date. According to Amazon, it shouldn’t be more than 4%, and if it is, then you will lose the chance to win the buy box.
- On-Time Delivered Rate – This rate shows how many times you have delivered the product on time means the estimated delivery rate. Sellers should make sure that this percent remains 97% or higher.
- Feedback Rate – This rate refers to the feedback you receive from your customers. Naturally, the more customers mean, the more the feedback, leading to the more probability of winning the buy box. Amazon algorithm prefers recent feedback over the old one.
- Customer Response Time – It determines the time you take to respond to the customers and solve their queries. It is best to respond to the customers within 12 hours or max to max 24 hours but not more than that, or else it will affect your ratings adversely.
- Feedback Count – It means the number of feedback a seller receives. The higher feedback count increases the probability for the seller to win the buy box.
- Sales Volume/Inventory Depth – Amazon algorithm prefers the sellers who maintain consistent and adequate inventory on the marketplace without much fluctuation. If the frequency of getting out of the stock is more, then you will lose the chance to win the buy box.
- Cancellation and refund rate – It includes two components: first the number of orders gets canceled before the shipment and, the second is the number of orders returned after being shipped. The combination of these two determines your ability to win the buy box. It would be best if it was not more than 2.5%.
With the increased competition it is difficult for Amazon sellers to win the buy box because Amazon algorithm compares the performance of different Amazon sellers, meaning you have to perform more than your best to win the buy box.
To support the sellers, Amazon has its own Service Provider Network that assists the Amazon sellers in carrying out their business operations while complying with the guidelines issued by Amazon.
Evantage is one of the best Amazon Service Providers that supports this entire chain of events leading to marketing and demand generation for your Amazon store, excellently. We dispense the wealth of our experience to provide you with the best Amazon E-commerce solutions.
Lead your journey with us!!