19 Feb 3 Best Practices to Win the Amazon Buy Box
Selling on Amazon can be a great source of revenue for any company, but the key to selling efficiently on Amazon is winning the Buy Box. According to Statista, 82% of all Amazon purchases come through the buy box.
Before we give you the top 3 best practices to win the buy box, let’s first clarify what the buy box is. The buy box is “is the box on a product detail page where customers can begin the purchasing process by adding items to their shopping carts.”
Only one seller at a time can have the buy box and they compete based on specific metrics which include:
- Availability (Amount in Stock vs. Sale Rate)
- Seller Rating
- Customer Service Metrics
The best 3 practices are the top 3 ways that you can efficiently maximize your leverage on these metrics to beat the competition.
1. Deliver the Best Customer Experience
Amazon is going to award the buy box to a seller that gives their customer the best seller experience. This goes in line with their mission statement which is “to be earth’s most customer-centric company”3. If you treat the customer right Amazon will treat you right.
First thing to make a great customer experience is to use Amazon’s Account Health Dashboard to see your Order Defect Rate, Negative Feedback Rate, Late Shipment Rate, etc. The higher those rates are, the less likely Amazon’s buy box algorithm will place you in the buy box which will negatively affect your sales performance.
Second, focus on acquiring more positive seller feedback and less negative seller feedback. The higher the start ranking on seller page and the number of reviews are both factors to win the buy box. The clarify seller feedback is reviews on your seller page specifically on their customer purchase experience. A tool very helpful in bringing in more seller reviews is an email drip campaign. (for more info on Amazon email drip campaigns, click here) The key is sending the email out to your customers at key parts of their purchase cycle when they are most likely to consider reviewing you as a seller. If you are looking to increase seller feedback, it is recommended that you send an email one to two days after delivery.4
2. Prime, Prime, & Prime!
Fulfillment is a large factor in your buy box ranking, and the faster you can get it to the customer the better you will rank. Prime allows you to get your products to customers as quickly as several hours, access a customer group that has a 74% conversion rate, but is also favored Amazon’s Buy Box algorithm. Amazon will favor prime products since the shipping is usually free, fast, and the best customer experience. (According to Amazon) Sending products to prime will increase your costs, but the likelihood of winning the buy box increases.
Once you have improved your customer service metrics and fulfillment, the price is the last lever you can tweak. Adjusting price to win the buy box may seem like a no-brainer, but is not always the only way to win the buy box. Remember, Amazon wants everything to be about the customer experience, and low prices do not always mean the best experience! As for how much to adjust pricing, this will be something that will depend on your individual costs in your business, but repricing tools can make it very easy to test for the optimal price. A repricing tool is a simple algorithm that automatically changes pricing based on competitor pricing, buy box position, or margin. Using a repricer can help your prices automatically adjust to competitors. Keep prices competitive, but remember, lowest price doesn’t always win the buy box!