Staying competitive is important as a marketplace seller. Consider the positioning of products on places like Amazon; your products are placed next to competitors even when users are on your product detail page.
Accentuating this problem is the Buy Box; the system that chooses whether your inventory will be selected or a competitor when a customer is viewing products from multiple resellers. By owning the Buy Box, you almost guarantee that you’ll get the purchase over a competitor. As such, it’s important for many Amazon sellers to do whatever they can to win Buy Box positioning. In this post, we’ll explore how to do just that, including everything you need to know about this prime spot of advertising real estate.
Key takeaways
- The Amazon Buy Box, also called Featured Offers, can be a great way to advance your brand positioning and increase sales via varied Amazon advertising strategies.
- Buy Box placement is competitive but worth it; most purchases are made via Buy Box placement.
- You can do many things to increase your odds of a win, including using dynamic pricing and always having stock on hand.
What is the Amazon Buy Box?
The Amazon Buy Box, now officially called Featured Offers, is one of the most important places for products to be highlighted on Amazon.
The Buy Box refers to ad space on the right side of an Amazon product details page. Located above the Buy Now button, this feature essentially dictates which seller's product is highlighted as the primary purchase option.
- When customers click Add to Cart or Buy Now, they choose to purchase the item that won the Buy Box, regardless of the seller.
- If other products meet the same criteria, they can be found by clicking the "New & Used" button located below the Buy Box. However, many shoppers don't know this is an option and assume whatever is listed in the Buy Box is the default purchase choice.
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Why is the Buy Box so important for Amazon sellers?
In most cases, winning the Buy Box almost certainly means winning sales. Most buyers think they're getting the best deal by choosing the default option delivered by Amazon's algorithm and don't hesitate to add the product to their cart or buy it immediately.
Only those who are looking for other options will take the time to scroll through the rest of the page to look at what other choices are available. For shoppers who tend to choose the Buy Box offers every time—the overwhelming majority—this means easy money for the winning seller.
7 steps to win the Amazon Buy Box
Winning the Buy Box is a huge deal for sellers, but getting there requires strategic decision-making. Not every seller is eligible, and many aren't competitive enough to see regular wins. To maximize odds, it's important to understand what the algorithm prioritizes when choosing a winner.
1. Have inventory
Inventory is a key part of winning the Buy Box. You need to maintain a consistent level of products in stock because that's one of the best ways for Amazon to determine whether you can deliver on customer orders. Selling out of things customers need doesn't provide a desirable experience, so keeping inventory at a stable level can increase your odds significantly.
2. Use Amazon FBA
Using Fulfillment by Amazon (FBA) is a big part of Buy Box wins. Because being a trusted seller relies on thorough supply chain management for every order, FBA can guarantee this in a way other sellers might not be able to. And, because all FBA products are Prime-eligible, they're automatically more enticing to shoppers.
While not all Buy Box wins are FBA, most are. To qualify as a brand that manages fulfillment independently, sellers must qualify for SFA, or seller-fulfilled Prime. This isn't easy to obtain, however; to join the program, sellers need an impeccable track record of sales and ratings.
3. Fast shipping times
Fast shipping is an absolute must for Buy Box wins because this is what customers expect. Amazon's image is tied to the Prime brand, and a Prime subscription means two-day shipping or, in some areas, one-day or same-day shipping. Customers want their purchases on their doorstep as soon as possible, and if they can't get them, they're likely to look elsewhere to make a purchase. As such, Amazon requires a history of prompt shipping times for consideration.
4. Strong seller rating
As mentioned, Amazon's abilities to deliver quality and speed are among the tentpoles of its business model, so it stands to reason Buy Box placement is all about what can be delivered to customers. A poor seller rating indicates a seller that can't meet expectations, and that can stunt the chances of winning the Buy Box. Amazon maintains an internal ranking of 0-100 for all sellers, and the higher, the better.
Prioritize growing a base of reviews across your products, fulfilling purchases quickly, and providing quality products with every order to boost your seller feedback score.
5. Use dynamic pricing
Buyers appreciate a good deal, so product pricing is a major factor in how Amazon algorithms determine Buy Box placement. However, as many customers would be surprised to learn, pricing is only one piece of the puzzle—but it's a big one. Dynamic pricing on Amazon can be an important strategy here, as this allows for pricing to change with market shifts, keeping you competitive in organic searches and Buy Box wins.
6. Excellent customer service
Offering great prices and fast shipping times is a good start to customer satisfaction, but sooner or later, a buyer will inevitably have complaints or questions. When this comes to pass, it's critical for you to provide a good experience. This can mean prompt responses, comprehensive ways to make good if a customer is unhappy, and easy access to questions about your Amazon brand and products.
7. Maintain a low defect rate
A high defect rate can be a red flag for Amazon, as it indicates there's something wrong with merchandise. A large number of product returns or chargebacks is a problem, as it indicates to algorithms that people are unhappy with the buyer experience, and the last thing Amazon wants is to offer products that are regularly substandard.
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Amazon Buy Box metric requirements
Amazon uses a blend of metrics to determine seller ratings and Buy Box opportunities. Some of these are things sellers can actively manage, while others are subject to history on the platform. Key metrics include, but aren't limited to:
- A targeted order defect rate of under 1%.
- Low rates for negative feedback, A to Z claims, chargebacks, negative returns, and invalid rejection rates.
- A targeted return dissatisfaction rate of under 10%.
- Buyer-seller contact rates under 25%.
- A targeted response time under 24 hours of 90%.
- A targeted late response time under 10%.
- Pre-fulfillment cancelation rates of under 2.5% and a late shipment rate of under 4%.
- On-time delivery at a target of 97%.
- Satisfactory refund and valid tracking rates.
How this ultimately plays out will differ from seller to seller, but strong metrics across the board can sharply increase your odds of a Buy Box win.
Who's eligible to win the Amazon Buy Box?
To be eligible for Buy Box placement, Amazon has four general criteria sellers must meet.
- A Professional Seller account: Amazon offers two different kinds of accounts sellers can use. Individual accounts are free but limit opportunities, while Professional accounts cost $39.99 monthly.
- Meets metrics eligibility: To qualify to win placement, the aforementioned metrics and points of consideration need to be met. This is why sellers can qualify for Buy Box placement on some items and not others.
- New inventory: Buy Box positioning requires inventory to be sold new. Used or resale items are automatically eliminated.
- Available inventory: No inventory means no Buy Box. If a product can't be delivered to a customer ASAP, with the exception of back-ordered stock, it can't be featured in a Buy Box.
Why am I losing the Buy Box?
Being eligible for Buy Box and actually winning the Buy Box can be two very different things, much to the chagrin of some sellers. However, it's important to keep in mind there is an extreme level of competition to win this placement; your competitors are likely working just as hard as you are.
If you're not winning the Buy Box or aren't winning it very often, the most likely culprit is a low seller rating. This can be quite frustrating because Amazon doesn't make these ratings known, so it's hard to pinpoint what specific metric is dragging you down. This said, some factors under your control can make a big difference right away:
- Ensure consistent inventory levels,
- Enroll in Fulfillment by Amazon,
- Employ dynamic pricing to stay competitive with market fluctuations,
- Improve seller performance by leveraging eCommerce tools to analyze seller metrics.
How many people use the Buy Box to purchase?
In short, most shoppers will choose the Buy Box option when available. Over 80% of sales are made through the Buy Box, which makes winning a huge deal. In fact, many shoppers prefer the ease of shopping via this section, and simply click Add to Cart for whatever listing is positioned first. With the importance of the impact of customer buying habits, winning regularly can be critical.
How to calculate your Buy Box percentage
Buy Box percentage refers to how often your product appears in the Buy Box per 100 views. So, if your product wins the Buy Box 70 times out of 100 views, your Buy Box percentage is 70%. The Buy Box rotates often, so if you sell the same product as four other sellers, you'll likely all see percentages around 25%, though individual seller metrics can impact this. If you have a higher seller rating, your product will outrank the competition.
Strong Buy Box rate
What defines a strong Buy Box rate depends on the competitive nature of a category. Niche products without much competition can hope for a majority of Buy Box wins, while spaces with a lot of players can mean a lower win rate. In most competitive spaces, a rate of 2-5% would be considered a solid footprint.
How come my product doesn't have a Buy Box?
Not all products have Buy Boxes, but seeing your product on a page without one can be a little frustrating. After all, you'd be in a prime position to win. While it's not always clear why, but these are some of the most common culprits:
- Dramatic price changes: When prices vary rapidly, Amazon's algorithms can exclude products from Buy Box placement as a safeguard against very inexpensive counterfeit goods. The fear of counterfeit goods can also impact product categories that have seen a recent surge in fraudulent sales.
- Price variability across numerous sites: If your product's price on Amazon is notably different from other listings, sellers might be penalized.
- A change in seller ratings: If your business stops meeting Amazon's standards, for example, experiencing an influx of returns or complaints, your product may not qualify for placement.
Does Amazon rotate the Buy Box?
Yes, Amazon rotates the Buy Box; winning the Buy Box isn't assigned to one single seller for a particular item. This may feel like a change to legacy sellers who were used to a single winner, but this system is fairer for all sellers and allows for fluctuations as seller reputation shifts and new players enter the market.
One common fear among third-party and private label brand sellers is that products sold by Amazon always or are most likely to win the Buy Box, but this is a myth. Amazon competes with sellers using the same metrics, so if your brand is outperforming Amazon's own products, you're going to come out on top.
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Win the Buy Box with Trellis
Winning the Buy Box can involve a lot of strategy, particularly across numerous products and categories, but the right resources can help. With Trellis, you can do the research needed to improve your odds of winning—and continuing to win—Buy Box placement. Whether you're looking for a way to optimize ads or make sure your bases are covered to maintain the highest seller score possible, our full suite of AI-driven tools can be the leverage you need to come out on top. Connect with us today to learn more.