Amazon is the largest e-commerce marketplace in the world, which means that the inclusion of Amazon into your e-commerce strategy is essential.
But did you know that simply being present on the platform might not be enough? There’s a chance your products may not even show up on a consumer’s phone or computer screen, as a result of Amazon’s e-commerce algorithm. In order for your product to reach a wider audience, it needs to make it to the Amazon Buy Box.
What Is The Amazon Buy Box?
The Amazon Buy Box is Amazon’s e-commerce product algorithm. The box displays a product that a customer searched for on Amazon. Whichever seller holds the Buy Box at the time is the seller that will appear immediately for customers to see. In simple terms, the Buy Box is the ‘Add to Cart’ or ‘Add to Basket’ box.
The Amazon Buy Box is essential not only for customer conversion, but for exposure in general. When a customer is looking for a product on Amazon, they’ll use keywords in the search bar which will then bring forth the searched product and a yellow “Add to Cart” or “Add to Basket” button. In most instances, the customer will not go any further and just add that first item they see in the Buy Box to their shopping cart. There is actually a very low percentage of purchases made by buyers who scroll through additional sellers after seeing the product in the Buy Box.
The Importance of Winning the Amazon Buy Box
If a seller wants their product to be seen and purchased, then winning the Buy Box is essential. For an online retail business, being in the Buy Box can help increase sales. In fact, 80% of sales on Amazon go through the Buy Box.
Since multiple sellers can sell the same products on Amazon, the Buy Box is the key to getting your product shown over another seller’s. Though Amazon allows different sellers to get the Buy Box from time to time, not every seller will make it to the Buy Box. The algorithm at Amazon gives the spot to top retailers in a rotation, switching from one to another based on price, performance metrics, and other important factors. Having a high price or low-performance metrics will prevent you from winning the Amazon Buy Box.
Because the Amazon Buy Box is so important for increasing exposure and sales, it’s no surprise that Amazon sellers compete aggressively to meet the platform’s Buy Box requirements. Although it does not disclose specific targets, the company says the algorithm chooses sellers based on factors such as price, availability, fulfillment, and customer service. Sellers that don’t attempt to win the Buy Box may find themselves low on the search results page. Most Amazon users will never see the sellers that are lower on the page, thus decreasing their chances of making a sale.
Additionally, with more people shopping online, making it to Amazon’s Buy Box is becoming increasingly important. There has also been an increase in Amazon users shopping on their mobile device and through the free Amazon App. Consumer’s want quick and convenient, and the Buy Box provides that. The Buy Box makes it easy for consumers to type in their keywords and find exactly what they’re looking for. By holding a spot in the Buy Box, a seller has a greater opportunity to increase sales. However, the bigger the opportunity, the greater the challenge.
Amazon Buy Boxes are harder to win on smartphones, regardless of whether users are on the app or browsing the mobile site. On mobile devices, the “Add to Basket” button is prominently displayed below the product image and price (as well as a “Buy Now” button on the app), but the option to view other sellers is not readily visible. Therefore, if your product is not listed in the Buy Box on mobile, it has a much smaller chance of being seen than it does on the main site.
How to Win the Amazon Buy Box
The first step to winning the Buy Box is to become an eligible Amazon Buy Box seller. You must have the following in order to be eligible for the Buy Box:
- Maintain a professional seller account
- Have a successful track record of selling on Amazon
- Sell new products (used products have their own Buy Boxes)
- Keep stock on hand
- Meet performance targets
Once you’re an eligible Buy Box seller, you need to master the following performance metrics. These metrics will boost your position in Amazon’s algorithm and increase your likelihood of making it to the Buy Box.
Successfully Fulfill Orders
Successfully fulfilling orders is essential for winning the Buy Box. There are three options for fulfillment, FBA, FBM, and SFP. Fulfillment by Amazon (FBA) permits marketplace vendors to store and ship products from Amazon warehouses. Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP) enables sellers to ship orders from their own distribution centers with access to Prime customers. Amazon considers its own fulfillment services, such as expedited shipping and on-time delivery, to be the best. This gives FBA sellers a better chance at winning the Buy Box. To outrank FBA sellers, an FBM vendor must be enrolled in SFP or perform exceptionally well in all other areas, as well as offering a significantly lower price.
Free Shipping
Including free shipping as one of your shipping options will also help you sell more products. Managing your shipping options is possible in Seller Central by accessing your Current Shipping Rates and Settings page.
Landed Price
Amazon offers two prices: the price listed for the item and the landed price. The landed price includes shipping and taxes. If your performance metrics are poor, then the lowest price may not guarantee you the Amazon Buy Box, but it will still improve your chances. Therefore, you should research the competition before listing your goods and adjust the price accordingly.
Shipping Time
You have a greater chance of winning the Amazon Buy Box if your items ship faster. In general, the speed of delivery depends on the product. For example, oversized items take longer. You have to pick up your pace in order to compete with two-day shipping.
It’s also important to stay true to your listed shipping time. Having a longer shipping time than advertised can negatively impact your performance metrics, which will hurt your chances of appearing in the Buy Box.
Order Defect Rate (ODR)
The seller score given to you by Amazon can determine whether or not you make it to the Buy Box. Negative feedback, chargebacks, and A-Z claims are accounted when determining a seller’s score. You have a slim chance of winning the Buy Box if your ODR is 1 percent or higher. You may also lose your selling privileges if your ODR is consistently high.
Feedback
Your seller score is also determined by customer feedback. All of the positive, neutral, and negative customer feedback you received over the last 30, 90, and 365 days will be accounted for when determining your score. The number of reviews you receive relative to the number of sales you have made is also taken into account by Amazon. If you want to get the Buy Box, you need at least a 90% feedback score.
Response Time to Customer Queries
Sellers must respond to customer queries within 24 hours under Amazon’s Service Level Agreement (SLA). Your chances of winning the Buy Box are adversely affected by a late reply or no reply at all. To remain in good standing with Amazon, aim to reply to at least 90 percent of messages.
In-stock Consistency
To improve and maintain the overall customer experience, Amazon won’t promote your products if your inventory is frequently low, or if you have a high cancellation and refund rate. To meet any potential increase in demand, you need to maintain adequate stock levels for top-selling products.
Customer Service Rating
Every message you send to your customers is followed up with a survey from Amazon for the customer to complete. These responses can be downloaded and used to improve your service. Make sure you’re following Amazon’s performance metrics and providing a great customer experience on a regular basis by reviewing your Account Health Dashboard in Seller Central.
Customer Support
All of these metrics boil down to providing excellent customer support. Make sure you’re providing all of your customers with great customer service to generate positive feedback and increase your sales. Providing an excellent customer experience is the key to winning the Buy Box.
Conclusion
Prioritizing your metrics and staying on top of customer service will help you win the Buy Box. Winning the Buy Box not only increases your sales, but also means your customers will associate you with Amazon’s policies. You can expect that shoppers will trust your company to provide great customer service and top-quality products if your product appears in the Amazon Buy Box. As a team of sellers, execute your strategy step-by-step by delegating and sharing responsibilities. Doing so will help you succeed as a seller on Amazon.