What is an Amazon Buy Box and Why It is So Important?
From a seller’s perspective on Amazon, Buy Box is an important factor making an impact on sales of the products listed by him on the Amazon marketplace. Buy Box is the rectangular-shaped box appearing at the far right position of the product listing page offered by Amazon to make a faster purchase on the most competitive price and is offered to a seller that is most eligible for the Buy Box from the list of sellers selling the same product.
More than offering a preferred buying option to a customer, Buy Box presents a better opportunity for a seller to sell his goods as 83% of sale on Amazon is made through Buy Box. For as much time a Buy Box remains in possession of a seller as better chances he has for generating better sales.
Though the price is an important aspect in determining Buy Box eligibility for a seller, however, there are several other important factors as well on which Amazon Buy Box algorithm is based upon.
- Enough Inventory in Stock
- Faster Shipping Speed
- Quick Response to Customer Order
- Average Competitive Pricing
- Amazon Offered Fulfillment (FBA)
In order to secure Buy Box repetitively for its products, a seller is required to keep a regular watch on the above-mentioned factors and be informed through an alert system for any variation to make an impact over the ideal Buy Box price mechanism. To notice the buy box estimation factors, there are many Buy Box Monitoring software is available in the market. Make My Jungle is one such leading Buy Box Monitoring Tool offering immense Buy Box metrics handling capabilities to sellers.
Different Criteria to Attain Amazon Buy Box?
By Buy Box Monitoring based upon various metrics, a seller can improve its chances for obtaining Amazon Buy Box consistently to improve its performance and sales on the giant marketplace like Amazon.
- Real-Time Tracking of a Buy Box Winner
A seller by knowing about the competitor that is possessing a Buy Box for the same product sold by him improves his chances of winning the Buy Box. With an identification for a seller winning the buy box, he can identify the Buy Box winners, whether, he is not a hijacker, and can ascertain about the price difference that may be losing him the Buy Box frequently.
- Buy Box Price Tracking
A seller by having the exact assessment of price for which he should even list his products in comparison to other sellers is one the best ways to acquire Amazon Buy Box. He can constantly monitor the price variation between his listing and different Buy Box winners listing and can accommodate his price, accordingly.
- Numbers of Sellers Competing for Same Product
The next important parameter to improve the Amazon Boy Box performance is tracking numbers of sellers competing for the same Buy Box. A seller expecting an Amazon Buy Box can, individually, see the performance of every seller winning the Buy Box on price and other parameters and can accommodate, accordingly.
- Winning Rate Assessment
Another important Buy Box metric assessed by a seller is the average possession of Buy Box by a seller over a period of time. Having an insight into different Amazon Buy Box metrics on the basis of winning rate, a seller can accommodate his listing strategy.
- Price Difference Tracking
A seller should merely not focus upon the listing price of Buy Box winner and should also notice prices offered by other sellers as well. With the price variations beforehand, a seller can accommodate his average price with the opportunity to win a buy box.
- Hijacker & Product Suppression Knowledge
A seller should have knowledge about other hijackers that have stolen his buy box by selling his product at a lower price. These hijackers can be both authorized and unauthorized sellers. At times hijackers sell inferior quality products similar and exactly copied to a seller’s listings denting his reputation in the market.
- Inventory Levels
A seller can identify those products which are losing the Amazon Buy Box spot due to inconsistent stock levels. He should notice his inventory levels at regular intervals. He should reorder his articles/commodities at an accurate time so that he may not get trapped in a stock-out situation. It is an important parameter for a seller to acquire an Amazon Buy Box.
Amazon Buy Box Monitoring Ensuring Repetitive and Regular Sales
On the basis of the Amazon Buy Box Algorithm, a Make My Jungle Monitoring tool offers the following alerts with respect to the sales performance of a seller.
- Price Variations Alert
Keep a tab upon and keep on informing a seller about lower and higher buy box price variations with other sellers selling the same commodity as yours.
- Inventory and Stock Alerts
Informs a seller about the depleting numbers of inventory and stock levels.
- Hijacker Alerts
Tracking authorized and unauthorized sellers that are cutting your Buy Box winning chances.
- Fulfillment & Shipping Alerts
Inform a seller about the leakages in Supply Chain bridging the miscommunication between front and back-end teams.
Listing Changes After Receiving Amazon Buy Box Monitoring Alerts
As it is evident that different Amazon Buy Box tools available in the market that alerts about different data scenarios as obtained from the market for losing the sales on account of the unavailability of the Buy Box can be improved in different manners. A seller can make the following changes to a seller listing on Amazon.
Bring your listing out from the no-profit zone
There are certain product listing criteria for which Amazon itself leaves a product isolated and doesn’t do any marketing for it, in other words, Amazon doesn’t consider those products eligible for Buy Box. These products commonly happen to be:-
- Too heavy to ship
- Having a very low-profit margin
- Regularly out-of-stock goods
- Having a slower sales velocity
- Low order quantity rate
In order to get rid of no profit zone and improve one’s chance to win Amazon Buy Box, a seller can take the following steps:-
- A seller can restructure its product packaging to be shorter than the oversized label
- Bundle your products to price according to Amazon pricing and be different from other eCommerce sites.
- Adjustment into minimum order value according to Amazon preference
Effective management of inventory and logistics
Updated inventory availability is an important factor in awarding an Amazon Buy Box inventory to a seller. It just not detrimental to Amazon sales but at the same time makes an impact upon a seller’s relation with Amazon. Therefore, a seller should have an effective strategy for planning its inventory and logistics.
- Should have a plan B in the kitty in case a primary logistics strategy doesn’t work.
- Keep some inventory in reserve to meet out the demand of emergency orders.
- Should have inventory in advance to meet the demand for special occasions and festive seasons.
- Product distribution should be equitable with a limit for maximum purchase by a seller.
Managing product distribution effectively on Amazon
This includes the steps to control buyer behavior for a product by a seller on parameters like audience type, price, and geographic location. A seller can do it by the following method and activities.
- Structuring distribution agreements and reseller policies.
- Structure and implement an effective price policy into effect.
- Structure out a MAP or MRP with popular vendors.
What a seller should do when he has diminishing sales on account of losing Amazon Buy Box?
The very moment a seller realizes that he has lost the Amazon Buy Box, he should immediately jump to strategy to regain the Buy Box and sales. Singing up for Make My Jungle Amazon Buy Box monitoring tool is a seller’s first step to recover its sales on Amazon. The rest steps that he can take to restore his sales on Amazon include.
- Avoid lowering the selling price on Amazon
With lowering the selling price a seller will have to put the change even at all the units at fulfillment centers as well that is a big loss for him. Additionally, it will completely impossible for him to renegotiate the price with Amazon when the Amazon Buy Box will return to him.
- Limited promotion to regain sale
For a temporary surge in sales through the Amazon Buy Box obtainment, a seller can run a promotional campaign while lowering down the price without any need to re-negotiate rates. With competitive prices, a seller can easily win a Buy Box substantially.
- Search and prevent flaws in supply chain
As an immediate action to repair the supply chain, a seller should discipline authorized sellers that are undercutting his price as well as take action against authorized sellers and counterfeits in order to win again Amazon Buy Box.
- Sorting out certain logistical issues in the supply chain
As a part of the long term strategy for Amazon Buy Box possession, a seller should set an effective management system for reducing order processing time, while, letting a package to reach a customer’s doorsteps in the maximum possible time.
Amazon Buy Box FAQ (Frequently Asked Questions)
However, there are certain questions that keep on rolling in a seller’s mind while selling on the marketplace with the perspective of Amazon Buy Box. Here, answer to some most common questions has been tried to be answered around increasing sales on Amazon by following FAQ (Frequently Asked Questions)
What is the Amazon Buy Box?
Amazon Buy Box is a rectangular white box on the Amazon product page on the extreme right corner resulting in a response to a customer’s query. The Buy Box is a facility offered to a buyer to choose the best-rated seller by Amazon to make his buying experience more convenient and faster. The common criteria by Amazon to reward a buy box to a seller consists of the landing price of the product, customer response, fulfillment method, stock inventory levels, and faster delivery.
What is the importance of Amazon Buy Box for a Seller?
For a seller possession of Amazon Buy Box for a longer period of time or frequently is a boon for his sales. As an entitled privileged seller by Amazon, he has better chances of closing sales in comparison to other sellers in the market.
What are other different ways to Buy on Amazon other than Amazon Buy Box?
The other two methods than Amazon Buy Box to buy a product on Amazon are the ‘Buy Used’ radio button below the Buy Box and a scroll down the page for the additional offers line below a product feature section for a query.
Does each and every product on Amazon can have a Buy Box?
No, each and every product on the market place is not necessary to have an Amazon Buy Box, though, from many criteria to the most important one are, a seller not being awarded the Buy Box or all the sellers keeping the price for a product to be so high that the Buy Box may not be awarded to a particular seller.
How a seller become eligible for Amazon Buy Box?
An individual having a professional seller account is the most eligible candidate for Amazon Buy Box. In addition to a professional seller account, a seller account should be in a healthy stage containing performance features like products in new condition, competitive pricing, strong inventory levels, and positive seller feedback.
Does Amazon always get the Buy Box?
No, it is not necessary for Amazon to get the Buy Box every time. Amazon is also bounded by its algorithm. In instances, where, Amazon product prices are too low in comparison to other sellers it also gets an Amazon Buy Box.
Does FBA always get the buy box?
It is not necessary for FBA to always win a buy box, the other factors like price, package size, shipping time, customer response are factors responsible for rewarding an Amazon Buy Box to a seller.
How an Amazon Buy Box can be tracked?
With the help of Amazon Buy Box monitoring tools like Make My Jungle a Buy Box can be tracked for efficiency and consistency.