Win the Buy Box & maximize your Amazon store’s profit

What is the Amazon Buy Box?

Buy Box is the box on the right of a product on the product detail page, by clicking on which customers can add the product to their cart and purchase it. It’s all about winning this Buy Box, because out of innumerable sellers of the same product, only the ones with the Buy Box have the maximum conversion and visibility.

Not all sellers are qualified to win the Buy Box.Thanks to the grainy competition amidst the Amazon sellers to increase sales, only those merchants/sellers meeting first-rate seller metrics get through the race and win this valuable asset.

With an expected 82% of Amazon sales (higher for sales through mobile) going to the Buy Box holder, it’s crucial for Amazon sellers to get to the nitty-gritty of Buy Box and help Amazon sellers to increase sales and profits.

Buy Box Overview

  • As mentioned, 82% of the sales swifts through the Buy Box. So every seller wants to be there and become an Amazon affiliate.
  • Having the lowest price doesn’t guarantee a place in the Buy Box. There are various other factors which play an important role.
  • A seller is not guaranteed the Buy Box position forever. It keeps rotating between the eligible sellers.
  • Location of the seller plays an important role.
  • Buy Box is applicable only for new items (in new condition).

Important factors to know how to become a profitable Amazon seller, win the Buy Box and maximizing your Amazon store’s profit!

Well, there is no precise formula disclosed by Amazon to win the Buy Box, but there are certain factors which definitely have an impact on your chances of having or not having the Golden Box.

Order Fulfillment

Fulfillment is one of the elements given crucial importance by Amazon. There are 3 ways in which a seller can undertake an order fulfillment. 1. FBA (Fulfillment by Amazon) 2. FBM (Fulfillment by Merchant) 3. SFP (Seller-Fulfilled Prime).

FBA sellers have an edge over the FBM sellers, where sellers ship their products to Amazon’s fulfillment centers and then Amazon employees take responsibility of its picking, packaging and shipping to the end consumer.

Seller-Fulfilled Prime enables the seller to reach Amazon Prime members without stocking the goods in Amazon’s fulfillment center. Sellers with heavy goods can make use of this facility and save on the shipping cost. However, to fall under the SFP category, a seller must have outstanding performance metrics and a verified record of meeting the customer delight. So, if you are looking to save on your shipping cost involved in being a FBA seller and you rank highest in all the Amazon seller metrics, SFP is the way to go.

Optimize your pricing

Whilst the fulfillment method is important, understanding the pricing metric holds equal importance. Though it’s not necessary to lower your price to win the Buy Box, but selling on Amazon requires your prices to be highly competitive all the time.

There are two prices on Amazon, the price at which your product is listed and the landed price which includes shipping and VAT (EU and US only). These elements are important to be considered while deciding your prices on Amazon.

Even if you have prices higher than your competitor, you can still own the Buy Box if your shipping time is lower, your feedback count is higher, your seller rating is higher when compared to your competitors.

Buyer experience

Though Amazon’s algorithm looks at various seller metrics to decide who gets the Buy Box, but not all the metrics are under your control. The performance of certain metrics depends on your buyers.

Hence, as an Amazon seller, you have to ensure a seamless experience for your customers. The ODR (Order defect rate) should be below 1% to avoid being penalized by Amazon platform. The ODR comprises of 3 components which Amazon considers to find how many orders were defective – negative rating, service chargeback rate, and A-Z guarantee claim.

For a delighted customer experience and to give a personalized feel, send personalized and customized notes to your customers and build a relationship.

It may feel like a lot of work on your plate in order to be an Amazon seller. For this purpose, there is automation tools, one of it being ePrizer – which ensure your products are competitively repriced continuously.

You can even try opting for Enterprise Resource Planning Systems (ERPs) which not just reduces your burden of handling things manually but efficiently undertakes tasks better than you could sole-handedly.

Sufficient Inventory to meet the same volume

In order to win the Buy Box, a seller has to ensure that his inventory is healthy and sufficient enough to fulfill the huge number of orders which are placed through the Buy Box.

If your inventory is consistently low or 0, your chances of getting into the Buy Box are almost negligible.

Shipping time/Late Shipment rate

Amazon calculates the late shipment rate as the number of orders which were shipped later than the set ship date. Late shipment rate below 4% is considered to be a good mark and helps sellers to win a share of the Buy Box.

Delivery on time rate

This is the amount or percentage of orders which the buyers received on time, as per the delivery date set. The higher the percentage, better the chances of winning the Buy Box.

Feedback rating

This is the consolidated feedback score the seller has earned in the past few months and a year. The recent ones are given utmost importance.

Customer response time

A seller needs to be prompt in getting back to his customers. Customer queries which are responded within 12 hours are highly considered for giving away the Buy Box to that respective seller.

Amazon keeps a count of the responses for the last 7, 30 and 90 days of all the sellers, comparing them to learn about their performance in this metric.

Consistent delay of more than 24 hours in replying to the customer can lead the seller into Amazon’s negative books.

Feedback count

Feedback count is the number of feedbacks a seller has received from his buyers. A higher number gets a seller closer to the Buy Box.

Cancellation and Refund Rate

This rate includes the number of orders cancelled by the buyer before being shipped to them and the ones returned back. Cancellation and refund rate higher than 2.5% puts your chances of winning the Buy Box in a fix.

Tracking rate

This is a new addition to the Amazon seller metric list. Tracking rate is the percentage of total packages shipped with genuine and strong tracking. It’s reflected through the tracking of the orders in the last 7 and 30 days.

Key Strategies

Focusing on these key strategies would increase your chances of owning the Buy Box and increasing your profit margin. Learn how to become a profitable Amazon seller with some of these key factors.

  • Don’t ignore the crucial metrics – Know your Amazon seller metrics thoroughly and focus on the ones with the highest impact. Feedback ratings, Inventory volume etc.
  • Improve performance periodically – Learn from your information dashboard and work on the areas where your performance is weak.
  • Competitive Pricing – Not necessary to have the lowest price. Use repricing software and get your prices managed automatically.

Last words!

Winning the Buy Box is the top-most priority on Amazon but equally important is increasing your profit percentage.
You can increase your prices and consequently profit percentage, and still hold the Buy Box position. Meet your Amazon seller metrics and keep improving your performance to be the buyer and Amazon’s favorite seller.

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