Insights on the Value of Securing the Amazon Buy Box
January 10, 2023
In 2021, Amazon had 6.3 million merchants, including an average of 1,824 new sellers every day. There is no question that the current epidemic added to Amazon's growth. The difficulty of gaining the coveted Amazon Buy Box increases as more and more brands and shops flood the world's largest online marketplace with their wares.
But what exactly is it, and why should every Amazon seller receive it for their items, you ask?
In this article, we'll answer all of these issues and show you the value of pricing intelligence solutions for securing the Buy Box.
Amazon's "Buy Box": What Exactly is It?
Unless you're an Amazon veteran, you're probably buying items that have the Buy Box without even realizing it. However, as an Amazon seller, this phrase refers to how well your items are selling. The Buy Box, which can be seen on the right side of a product page and features the Add to Basket and Buy now buttons, accounts for an estimated 83% of all sales on this marketplace.
How the Buy Box Benefits Vendors
Since this is where people go to make purchases, having it dedicated to your items gives you a leg up on the competition by increasing sales, expanding your market share, and allowing you to leverage pay-per-click (PPC) advertising to reach a wider audience. Since only one brand or store per product gets this special feature, some may be left out.
Tips for Getting the Amazon "Buy Box."
Sellers depend on Amazon's algorithm, which assesses who has had consistently strong sales success, to acquire access to this premium service.
If you don't now possess the Buy Box on Amazon, but match all of the following conditions, you will in the future due to Amazon's dynamic nature and the fact that both competitors and consumers are always shifting.
Better results may be expected from more generally good ratings and reviews. In this case, the algorithm values the vendor more than the commodity being traded.
Sellers that subscribe to Amazon's Prime program are given preferential treatment from buyers because of the premium service they pay for. Amazon Prime membership is restricted to those who use either Fulfillment by Amazon (FBA) or Seller-Fulfilled Prime (SFP). Both services will ensure prompt and dependable delivery to your customers.
Fast shipment: If your shipping times are exceptionally fast and successful, you may win the Buy Box even if you are not a Prime seller.
Controlling stock availability is crucial for outselling the competition and rising in the algorithm's rankings. You may wish to focus your efforts on recently released products since Amazon gives priority to new products over older ones.
The price of the product is a major factor, if not the most crucial one, in determining which products are given the coveted Buy Box. Amazon's goal is to provide low pricing to all of its customers, thus the winning products often have lower costs than their rivals but aren't always the cheapest. The landed price, which includes transportation costs, municipal taxes, and the retail price of the item, is another factor that retailers must take into account.
Eligibility for the Amazon Buy Box is determined by a delicate balancing act between all of these elements. Changes to the e-commerce platform increase uncertainty for business owners because their products may become obsolete or because they may lose market share to rivals.
Use Price Knowledge to Set Prices That Will Attract Customers
Win the Amazon Buy Box by being the price setter in your market. Sellers on a large online marketplace like Amazon often have a wide variety of items, and tweaking each item's pricing individually would be a waste of time and resources that might be better put to use elsewhere. The same holds true for keeping an eye on the costs offered by other businesses.
Businesses should utilize a competitor price monitoring tool to see what other sellers are charging for similar items on Amazon before making any changes to their own prices.
Once merchants have this picture, they may consult a dynamic pricing solution for advice on setting prices for the commodities in question - prices that will maximize profits while adhering to any established guidelines between buyer and supplier.
Integrating a repricing tool into their Amazon operations would help save even more time and make them more effective. The majority of successful Amazon vendors (those with annual sales of $3-10 million) employ a dependable repricer tool, according to research.