What is Amazon Buy Box? Factors Which Helps to Win Buy Box
What is Amazon Buy Box?
Being the most prominent e-commerce site, Amazon has provided many opportunities to its sellers. It provide opportunity to everyone to sell their products on Amazon.Trades of millions of products and the presence of thousands of sellers on Amazon have created a competitive environment for sellers. To reduce the competition, Amazon selects many sellers to rank on their top page and sell their premium services. Many merchandisers try to sell the same product on Amazon as their contender does.
Now the question arises which seller is best to fullfil the order in timely manner. To solve the problem, Amazon has introduced a system of the buy box. In this process, the seller has to win the buy box to enable its shopping cart . The buyer comes for the same product sold by many vendors and clicks on the right corner button to purchase. The buy box winner’s products pinning at the top help him buy the right product.
What are the Advantages of Buy Box?
There are many benefits of having a buy box on Amazon. Some of them are elaborated below:
- More Visibility
For the development of a business, visibility of it matters a lot. In other words, we can say, the more the visibility is, the more the trading will be. When the buyer clicks on the add to cart button, the first product shown to him by Amazon betters the progress of the business of the respective seller. The consumer not only inspects that product but also examines other inventory of that vendor. It is the crucial step to develop a positive impact across amazon and win buyer’s trust.
- Amazon’s Endorsement
Amazon always tries to be the best for it’s customers and want to create a great shopping experience. A happy happy customer increases the reputation of the e-commerce site. Thus top products reflect the trust of Amazon on that seller and recommendations to the customers for that product. Therefore the buyer prefers the commended vendor for that product. This endorsement of the Amazon elevates the sales of the merchant and helps him procure substantial income.
- Increased Opportunities for Seller
Amazon creates a listing of the number of merchants for the buy box and provides an opportunity to win. It compares the sales, feedback, and on-time shipping of the relevant products and entertains only selected sellers for the buy box. The more visibility of the products increases the chances of the sale and seller can generate more revenue by selling a maximum number of products. After winning the buy box, he needs not to compete for his product and has maximum chances to win clients’ belief. It is the primary reason for the buyers to lean towards amazon instead of other e-commerce sites.
All the three mentioned benefits of the buy box collectively act to boost the sales of the products. Let’s go deeper to acknowledge the factors for more sales of an inventory.
How buy box is a key to more sales?
If a seller has achieved the top rank, now the purpose is to make more sales. There are many factors to rack up sales.
- Top in Amazon Search Rankings
The product shown on the top attracts buyers first. The entrust of amazon on it helps the buyer to pick up the first product. After reviewing the properties and premium services, the customer purchases it. Thus the seller can boost his sales up to 10 times more and accomplish the required goal in a short time after winning the buy box. Top ranking is a critical factor for notching up the sales.
- Customers’ Feedback
If you have an excellent track record of handing over the quality products, the buyer will scrutinize your products. The positive feedback from various shoppers will assist him cop your product. Most of the people try to purchase those things that have good feedback from multiple clients. Good feedback ensures the quality of your inventory.
- Shipping on time
Except for noticing feedback, the client also focuses on the timely deliverance of goods. The good sellers always meet the deadline. If the merchant gives standard shipping services and has an on-time shipping record, the buyer will surely choose his inventory. These are the main factors leading to more sales upon winning the buy box.
These Are Basics to Win Buy Box
As Amazon has thousands of sellers, it creates a competitive environment for the buy box. To figure out this difficulty, Amazon has introduced eligibility criteria to apply for the buy box. The merchants fulfilling the following required rules are eligible for the buy box.
- Professional Seller Account
For buy box eligibility, the seller must have a professional seller account showing his experiences in this field. The professional profile highlights the capabilities of a seller, his serious approach to an e-commerce site, and his passion for retailing his inventory. In every marketing field of the world, professional behaviour is necessary for building a trusted impact. Everyone prefers professional sellers, and so does the Amazon.
- Buy Box eligibility Tag
Amazon always shows partiality toward those merchants having a positive impact on the market. Amazon leans towards the sellers possessing high standards of quality of the products and having spent a lot of time on Amazon. To entertain such merchants, Amazon sends them an offer to apply for procuring buy box. Amazon awards such sellers Buy box eligibility tag to rack up the buy box. This tag is disclosed only to the respective seller. All the sellers having such eligibility tags can only apply for the buy box while all the others are ineligible.
- New Inventory
To be eligible for the buy box competition, the seller must have new stock for selling. Amazon does not allow retailing of used inventory and discourages for old stock. So the sellers only with new stock can apply for the buy box.
- Available Stock
Those sellers having an adequate reservoir of inventory are eligible for the buy box. The sellers having insufficient storage cause problems during the delivery of the products, and this affects not only sellers but also the Amazon premium services. The buyer gets a negative impact of Amazon and prevents to purchase anything in the future.
How to check buy box eligibility status?
If a seller wants to determine buy box eligibility status, he must follow the given procedure.
- Tap the inventory tab and click the manage inventory
- Tap the preference tab and see the display column section
- Look at the buy box status. If you’re eligible, it will show eligibility label.
Only selected products are eligible for buy box, and you can apply for it. Some products do not qualify for buy box and not available for the buy box.
12 Factors which affect the buy box eligibility
The main ambition of the merchant on an e-commerce site is to vend his products as soon as possible. Thus every enthusiastic seller struggles to improve his product ranking and accelerate his sales. As the buy box fulfils all the necessities in one go, sellers put efforts to win the buy box. Here are some factors that affect the buy box eligibility and are necessary for its winning.
1. Fulfillment Method
There are two fulfilment categories in Seller Central on Amazon. One is fulfillment by Amazon (FBA), and the other is fulfillment by the merchant(FBM). As far as the buy box is concerned, the Amazon algorithm prefers fulfillment by Amazon to fulfillment by the merchant. Amazon focuses on the products from FBA not only in the buy box but also in the prime category. Generally, FBA sellers get top ranking on the product page. This factor matters a lot in achieving the goals on the Amazon.
2. Landed Price
The selling price of the product on Amazon is called the landed cost. The retail price of the inventory weighs a lot in buy box winning. Amazon scrutinizes the calculations of the sellers and compares it to other sellers’ metrics. If there are low metrics for sales, a low costed product can win the buy box by further decreasing the selling price. If the parameters are high, then the seller can raise the amount for the inventory to attain the chances of winning.
3. Shipping Time
As I already explained, on-time shipping is an integral part of positive reviews from the clients. Before awarding eligibility status to a seller, Amazon notices the shipping record of the merchant. If shipping is on time and clients are fully satisfied with service, Amazon leans towards such vendors.
4. Availability of Products
Some products are readily available for sales, while others are out of stock and will be available in the future. The ordering of out of stock items refers to a term called back-ordering. The primary purpose of a seller is to enroll his products in the buy box. The Amazon algorithm for the buy box favors only available products and neglects the unavailable items. So a seller must have an adequate supply and reserve of the inventory to achieve buy box tag.
5. Order Defect Rate
Amazon examines the feedback from the customers and differentiates the percentage of positive and negative feedback. If the positive feedback is enough to qualify for a buy box, Amazon selects the products otherwise reject it. The order defect rate also includes service chargeback rate and claim guarantee for an item. A dependable seller is chosen for the buy box after inspecting the overall feedback percentage.
6. On-time Delivery Rate
Amazon audits the on-time delivery of the products. If the seller is committed to a deadline, he surely will get the eligibility tag. The percentage of on-time delivery must fulfill the required criteria for the buy box.
7. Tracking Record
Before ordering an inventory, the seller gives his tracking information for the shipment. The seller jots it down and keeps it as a record. Before delivery, valid tracking information is provided to the shipment team. Amazon also inspects accurate tracking records to choose to buy box eligibility.
8. Response Rate
Some buyers get information after ordering a particular item. If the seller responds quickly and provides excellent customer services, amazon selects that ordered product for the buy box. Late responses to the clients or no answer can lose the chances to win the buy box and produce a positive impact on the market.
9.Inventory Supply
The higher the storage of inventory, the more the chances of buy box winning. If you are continuously maintaining the supply of items to your customers, you are getting more sales. Amazon algorithm also scrutinizes the inventory stock for client satisfaction.
10. Sales Volume
A new seller on the Amazon needs to advertise his products to speed up the sales. Several sales enhance sales volume. Higher sales volumes attract not only the buyers but also the Amazon.
11. Sales Landed Price
The selling price of the product on Amazon is called the landed cost. The retail price of the inventory weighs a lot in buy box winning. Amazon scrutinizes the calculations of the sellers and compares it to other sellers’ metrics. If there are low metrics for sales, a low costed product can win the buy box by further decreasing the selling price. If the parameters are high, then the seller can raise the amount for the inventory to attain the chances of winning. Sales volume is associated with an abundant supply of inventory.
12. Cancellation Rate
There are various reasons for cancelling the order. The seller may click the incorrect item or may cancel if he doesn’t require the product anymore. The cancellation rate creates a negative impact on the overall selling mechanism. Thus Amazon notes it for buy box qualification.
Lost Buy Box? Following changes Can help to Win it Back
Thousands of sellers attempt to get the maximum number of sales, and the buy box makes it possible effectively. Because a limited number of merchants are eligible for buy box, here is some guidance to win the buy box.
1. Revise the landed prices
Amazon notices the landed prices and compares it with other top sellers and selects as buy box winner. The customers visit Amazon for shopping at a low price and adequate quality inventory. Before purchasing anything, they scrutinize rates and prefer products with premium services and low cost. The seller must develop a strategy to revise the landed price of a product chosen for the buy box. It will help him compete with other rivals and attract both buyers and amazon. The low cost of a product always wins the buy box.
2. Keep high stocks of inventory
Backorder on Amazon comes under the category of negative impressions. If a seller is having back orders, try to fulfill them as soon as possible to stay in the competition. He must have extra storage of inventory to provide a continuous supply. High stocks of goods help the merchant win the buy box. If a seller runs out of the quantity and unable to meet the demands from customers, his orders become backorders. If he wants to win, he must buy more than enough inventory and complete the backorder. Extra storage of items has many advantages except winning the buy box. They generate more sales, and time shipping compels the buyer to give positive reviews.
3. Change Fulfilment Method
We already mentioned the types of fulfillment and preference of FBA and sellers prime by Amazon. If a seller is an FBM seller, he must change his fulfillment to FBA for some of the products. If he tries to provide superb customer service, Amazon will prefer his products, and he can speed up the chances of winning.
4.Quick Responses to Customers
When it comes to competition between the seller and buyer, Amazon leans towards buyers. So to attain Amazon’s trust, prefer the client and fulfill his requirements. Best customer service, quick reply to clients’ questions, and refund policy make the client satisfied. Always deliver goods on time with proper tracking information to win customer’s trust. Thus best customer service can help successfully win the buy box and produce a reputation on Amazon.