May 4, 2023

Winning the Amazon Buy Box: Tips and Tricks to Increase Sales

Increase your sales on Amazon by winning the Buy Box! Learn valuable tips and tricks to boost your chances of winning this coveted spot and drive more sales. Read our guide now.
Winning the Amazon Buy Box: Tips and Tricks to Increase Sales
Winning the Amazon Buy Box: Tips and Tricks to Increase Sales

Amazon has set itself as an undisputed leader in the ecommerce space with millions of products sold at low prices. 

Did you know that more than 80% of Amazon's sales come from the Amazon Buy Box? 

If Amazon FBA sellers must increase Amazon sales, understanding how to win the Amazon Buy Box is pivotal. 

In this article, we will look at how Amazon Buy Box works as well as some tips for Amazon Buy Box success. 

What is the Amazon Buy Box?

Have you ever noticed a white box on the top right of a product listing? This white box contains an “Add to Cart” button. What's interesting is that if an Amazon seller wins the Buy Box, they automatically get the sale when a shopper clicks on the Add to Cart button. 

The Amazon Buy Box allows customers to make a quick purchase without considering the seller. 

Amazon rotates the Buy Box among sellers who are eligible and competitively priced. 

With over 80% of Amazon sales coming from the Buy Box, winning the Amazon Buy Box is one way to move your sales up. 

How does the Amazon Buy Box work? 

Firstly, the Amazon Buy Box algorithm begins by analyzing offers from all sellers of a product. The algorithm considers each offer looking at various factors including the seller's history, price, and many other variables. 

After analyzing all sellers, Amazon awards sellers that meet the Buy Box eligibility requirements amongst other factors. 

Today, Amazon no longer awards the Buy Box to one seller but rotates it among multiple sellers. 

If a seller is 60% stronger than other sellers based on different variables, the seller will have the Buy Box for 60% of the day while the other seller holds it for 40% of the day. 

Requirements for the Amazon Buy Box

While there are no sure formulas for winning the Amazon Buy Box, there are a few requirements you must meet to compete for the Buy Box. 

Here are a few Buy Box eligibility requirements sellers must meet: 

  1. Professional Amazon seller account

Maximizing sales with Amazon FBA Buy Box starts with having a Professional Amazon Seller account. 

The Professional Seller account is a subscription-based service that requires a monthly fee of $39.99 as well as other Amazon selling fees. 

  1. New products 

To become eligible for winning the Buy Box rotations, sellers must offer new products. This means that if you sell used items, you will not be able to compete for the Buy Box. This is to ensure that customers are confident and buy products that are not damaged. 

  1. Available inventory 

If you don't have available inventory, you won't be able to secure the Buy Box. However, more than this, Amazon favors sellers that have maintained consistent levels of inventory. 

As an Amazon seller, it is important to keep an eye on your Inventory Performance Index (IPI) and ensure products are always in stock. 

  1. Efficient delivery 

As an Amazon seller, you can fulfill inventory through three different methods - Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP). 

If you are using Amazon FBA, you won't have to worry about this as Amazon is responsible for the shipping process. 

To get yourself a spot on the Amazon Buy Box using FBM or SFP, you need to have a strong performance and a track record of meeting customers’ expectations. 

  1. Good seller metrics 

The Amazon algorithm analyzes your seller metrics to determine if you qualify for Buy Box rotation. These metrics include your Order Defect Rate (ODR), cancellation rates, and late shipments rates. 

As an Amazon seller aiming for the Buy Box, it is important to keep an eye on these metrics which you can find on your Amazon Seller Central. 

  1. Good customer service 

When considering customer service, Amazon looks at your customer response time and dissatisfaction rate. Responding to customer queries within 12 to 24 hours will help increase your chances of winning the Buy Box. 

You can check your Buy Box eligibility status on your Amazon Seller Central inventory reports. 

5 tips and tricks to win the Amazon Buy Box 

Winning the Amazon Buy Box could be a bit more complex in practice. However, you can increase your chances of being awarded the most coveted spot on Amazon by employing a few Amazon FBA strategies. 

Here are a few Buy Box optimization techniques to help you win the Buy Box:

  1. Check your eligibility status
  2. Use Fulfillment by Amazon (FBA)
  3. Maintain low prices 
  4. Deliver fast shipping 
  5. Have good seller ratings 

Check your eligibility status 

To win the Buy Box, you need to first be eligible. As we've mentioned earlier, Amazon considers several factors for eligibility. 

Some of which include having a professional seller account, your selling metrics, and having available inventory. 

To check your eligibility status: 

  • On the inventory tab, click on “Manage Inventory
  • Next, click on Preferences and select Buy Box Eligible in the drop-down column.  
  • Lastly, Save Changes

Use Fulfillment by Amazon (FBA)

To drastically increase your chances of winning the Buy Box, consider using Fulfillment by Amazon (FBA). Here's why. 

For Amazon FBA sellers, Amazon handles everything from packing, shipping, and customer service. Ultimately, you can maintain perfect scores for Shipping Time and On-Time Delivery Rate. You also qualify to sell to Amazon Prime customers and offer fast shipping. 

You can still win the Buy Box with FBM and SFP. However, it may be difficult. Sellers need to have fantastic seller metrics among other factors to qualify to win the Buy Box. 

Maintain low prices 

Every customer loves to get quality products at the most affordable prices and Amazon makes this a priority. If you are competing to win the Buy Box, you simply cannot ignore pricing. 

The lower the prices of your product, the higher your chances of winning the Buy Box. However, the golden rule is to find the perfect balance between maintaining low prices while keeping your business profitable.

You can employ various pricing strategies for improving Amazon Buy Box performance. We will go through these pricing strategies in detail shortly. 

Deliver fast shipping 

Amazon will look at your shipping performance based on your projected shipping time and actual shipping time. 

Amazon FBA sellers have a great advantage here as Amazon handles the shipping. 

In general, Amazon evaluates shipping based on the following time frames:

  • 0-2 Days
  • 3-7 Days
  • 8-13 Days
  • 14+ days

To stay on top of your game, remember that your customers want free and fast shipping. You want to ensure customer orders get to them at the fastest possible time. 

Have good seller ratings 

Every seller has a rating. Amazon uses the 0-100 rating system to rate Amazon sellers. Amazon Seller ratings are based on several factors including: 

  • Order Defect Rate (Target = < 1%)
  • Negative Feedback Rate
  • Filed A to Z Claim Rate
  • Service Chargeback Rate
  • Return Dissatisfaction Rate (Target = < 10%)
  • Negative Return Feedback Rate
  • Late Response Rate
  • Pre-Fulfillment Cancel Rate (Target = < 2.5%)
  • Late Shipment Rate (Target = < 4%)
  • Refund Rate
  • Valid Tracking Rate, etc. 

Amazon monitors each of these metrics and favors sellers with a high seller rating. As an Amazon seller, it is important to keep an eye on these metrics and ensure you stay on top of your game. 

Amazon Buy Box pricing strategies 

Amazon sellers are constantly optimizing their prices to gain a competitive advantage. For some sellers, only a few cents can make all the difference. 

Here are three main pricing strategies for optimizing your prices on Amazon: 

  • Manual repricing
  • Rule-based repricing
  • Algorithmic repricing 

Manual repricing

Manual repricing is a strategy that involves manually setting your prices by looking at competitors’ products and adjusting SKUs. You can do this through your Amazon Seller Central account or third-party platforms. This method gives you control over your prices. However, it can be an impossible task if you have a large portfolio. 

Manual repricing works best for sellers who sell few products, make their own products, or do not have much competition. 

Rule-based repricing

Rule-based repricing is one of the most widely used pricing strategies. It is common with automatic repricing tools and involves setting your own parameters. 

With this strategy, you can change prices while ensuring you maintain a good profit margin. You can set parameters to ensure your profit margin never drops below 10%. You can also set conditions where your prices drop below the lowest-priced competitor. 

To get the most out of the rule-based repricing strategy, ensure they are set to meet your business needs. 

One disadvantage of rule-based repricing is that it can lead to price wars between sellers, affecting overall profitability.

Algorithmic repricing

Algorithmic repricing tools use machine learning to come up with their own set of rules to help you win the Buy Box and maximize profitability. 

These tools take into account several other factors apart from price to find the perfect spot between winning the Buy box and maintaining profitability.

If you have a large portfolio, the Algorithmic repricing strategy may work best for your business. However, algorithmic repricing tools can be expensive. 

Final thoughts 

With the majority of sales coming through the Amazon Buy Box, winning the magic Buy Box can increase Amazon sales and revenue. To win the Buy Box, ensure you meet all eligibility requirements and maintain high performance on Amazon. 

You can go through our tips and tricks above to help increase your chances of winning the Amazon Buy Box.

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