Amazon Buy Box Battleground: How Do Sellers Win the Buy Box War?
Every Amazon seller who wants to succeed on the e-commerce platform knows one thing: they must learn how to master winning the Amazon Buy Box.
According to Marketing Land, over 70 percent of Amazon’s customers shopped using a mobile device during the 2015 holiday season. This number is up by 10 percent since the 2014 holiday shopping season. This data indicates that Amazon sellers must think strategically about how to win the Amazon Buy Box when marketing to shoppers on mobile devices.
Amazon sellers who secure the first place spot in the Buy Box receive premium placement. This benefit is available to only one seller at a time. This advantage can help sellers increase sales.
Sellers understand it’s crucial they learn how to win the Amazon Buy Box if they expect to remain competitive in the marketplace. It is especially important that sellers understand the role mobile will play in their success – or failure.
On a mobile device, customers have to scroll vertically to view products, product info, and pricing. Because the Amazon Buy Box sits beneath the product image and price, buyers are less likely to leave the website without making a purchase. This means, buyers can make purchases without even seeing other products that might be available.If sellers are struggling to win the Buy Box, Chris Dawson of Tamebay.com says Fulfilment by Amazon may make it an easier task. Dawson says:
For retailers who sell sub $45 products on Amazon it makes Fulfilment by Amazon (FBA) somewhat less attractive. Whilst there are costs associated with FBA it gives access to the pool of Prime customers who will then still get free shipping. FBA also tends to make it easier to win the Amazon Buy Box, further increasing sales. However, you may self-fulfill and offer free shipping even if your item is below $45.
On the desktop version of Amazon, all product information for a particular item appears on one page, and the shopper is presented with a number of other purchasing options in addition to the Amazon Buy Box. Even though a shopper is still likely to buy from the Buy Box, the likelihood of this happening on a mobile device is significantly higher.
Negative feedback can affect how often a seller wins the Amazon Buy Box. Mary Weinstein of CPC Strategy says a seller rating of at least 75 percent is the bare minimum requirement for winning the Buy Box.
The Amazon website states “to give customers the best possible shopping experience, sellers must meet performance-based requirements to be eligible to compete for Buy Box placement.” Amazon’s scoring system included on-time shipping in its algorithm. A post on the Payoneer website explains how this works:
Much like pricing, how long an item takes to ship and the projected shipping vs. actual shipping time both impact your ability to win the Buy Box. For time-sensitive and perishable items, shipping varies, but Amazon generally weighs shipping based on the following time frames: 0-2 days, 3-7 days, 8-13 days and 14+ days.
If all else fails, lower prices will help sellers win the Amazon Buy Box, if they’re willing to sacrifice part of their profit margin. Nathan Grimm, of Multichannel Merchant says Amazon sellers who lower prices in an effort to win the Buy Box will only have more problems to deal with.
If you are a product company that sells through Amazon’s third-party marketplace, winning the buy box is critical for generating sales, but offering a lower price on Amazon than your retailers will cause major conflict. Even if you offer a similar price to your retailers, you’ll still be left with a problem if third parties continue to offer your product for less.
One of the easiest ways a seller can win the Amazon Buy Box is to provide good customer service, responding to all questions and inquiries promptly. The Box Boy algorithm factors in how long it takes for sellers to respond. Amazon wants sellers to respond to customers within 12 hours.
While there is no set formula for winning the Amazon Buy Box, there are many variables that factor into a seller successfully securing that premium position. What it all boils down to is: if Amazon sellers want to win the Buy Box, they must strive to provide their customers with the best buying experience.
[Image via Flickr/Mike Seyfang]