If you are running a business in the eCommerce arena, then Amazon is one of the best stops to acquire numerous sales. Online shoppers are gaga over Amazon and its wide collection of products from the best of sellers. For most businesses today, success in the eCommerce sector is directly proportional to success in Amazon.
And one such parameter that defines your success on Amazon is the Buy Box. If you sell your products over Amazon, you have heard this term. Have you ever wondered what it is? And even if you know, have you considered how to win it?
To understand why we are talking about Amazon Buy Box today, you must know that more than 83% of all Amazon sales go through this box. And this is why Amazon sellers are crazy about Buy Box.
Don’t worry if you didn’t know about it yet; now you do! And if you want to know how you can win it, then this article clearly describes what Amazon Buy Box is and how you can win it. So, read along till the end.
What is an Amazon Buy Box?
First, you must know that there are two categories of sellers on Amazon. One is Amazon itself, whereas the other is the third-party sellers. So, for most of the items available on Amazon, buyers will have ample options to buy from. But, every time a customer clicks on “Add to Cart’, the seller who has won the Buy Box will get that particular sale.
Amazon Buy Box helps customers make quick decisions on purchasing a product without considering who is on the other side selling it. But the catch is that not all sellers can get the Buy Box. The reason is evident, a cut-throat and strenuous competition. The businesses with excellent metrics as a seller will have the chance to win the Amazon Buy Box.
If you are still debating why Amazon Buy Box is that big a deal, these statistics will be an eye-opener for you. From 2004 to 2022, Amazon earned net revenue of $514 billion, of which around $426 billion is from the Amazon Buy Box, implying 83% of the approximate sales record.
So, winning the Amazon Buy Box is something that will boost your Amazon sales for sure. So, let’s take our quest to guide you on how to win the Buy Box.
How are Sellers Evaluated to be Eligible for the Amazon Buy Box?
All Amazon sellers are evaluated based on specific factors or metrics decided by the eCommerce giant upon delivering exceptional shopping experiences to the consumers. Some of those evaluation factors are as follows:
1) Registered Seller Account
The first step towards getting into the Amazon Buy Box category is registering your professional seller account. You can get it from Amazon Seller Central. It is a subscription-based service you can avail of upon monthly pricing beyond the sales fees.
2) Duration of Your Service through Amazon
Professional sellers selling their products on Amazon for a long time have a better chance of winning the Amazon Buy Box. It is an advantage because Amazon goes through the track record of every seller and determines the successful sales rate with the customers.
With a good track record, Amazon believes you will continue performing well in your business later.
3) Performance Metrics
Amazon relies mostly on customer experience, and you need to ensure you are delivering it as a seller. So, among all the assessments Amazon does to consider you for an Amazon Buy Box, one remains the performance metrics.
Amazon has specified some of the specific metrics for the sellers. The better the metrics, the higher your chances of winning the Buy Box.
4) ODR (Order Defect Rate)
ODR represents orders with indicators of poor service to customers within 60 days. Amazon demands the sellers obtain an ODR rate of less than 1% to be eligible for winning the Amazon Buy Box.
5) Rate of Cancellation
The cancellation rate includes all of the order cancellations initiated by the seller or by Amazon for various reasons. Amazon cancels the order from its side when the seller fails to ship the order or confirm the shipping. The cancellation rate is recommended to be under 2% for sellers to be eligible for Amazon Buy Box.
6) VTR (Valid Tracking Rate)
VTR is a metric that includes all shipments with tracking numbers on them. It is cumulated as a percentage of total shipments processed within a tracking period of 30 days. The sellers are requested to obtain more than 95% VTR to be eligible for the Amazon Buy Box.
7) Merchants Must Sell New Products
Amazon rules out the name of sellers from the list of Amazon Buy Box races that sell used products. Only the sellers who sell brand-new products over the site are eligible to be part of the Amazon Buy Box race. This is a mandatory rule to ensure that Amazon’s customers feel confident about getting a new product every time they click on the Buy Box.
8) Quality of Customer Service
In the case of FBM (Fulfillment by Manufacturer) sellers, it is the seller’s job to respond to the customer queries at the earliest. The dissatisfaction rate and response time of the customer towards an order will determine if the seller is fit to earn the Buy Box or not.
Amazon demands that sellers respond to customer requests or return, replacement, or other issues within 24 hours. Upon customer surveys, if the seller is consistent with good marks, they might be part of the Buy Box.
What Things Could Sellers Do to Acquire the Amazon Buy Box?
To ensure you meet all parameters of Amazon to be part of the Buy Box race, there are a few practices you can implement on priority. They include:
1) Maintain the Inventory
You need to make Amazon believe that you have sufficient inventory to fulfill the rate of orders. If there’s a demand for your product, but you are not coping with it with ample supply, your chances of winning the Amazon Buy Box will decrease.
You need to keep track of your inventory and the demand flow over Amazon. Keep a constant check on the inventory reports.
2) Prefer Amazon FBA
The sellers who opt for FBA or Fulfillment by Amazon have a critical advantage while competing for the Amazon Buy Box. With FBA, Amazon is responsible for packaging your product, shipping it, and handling customer service.
All of the products sold through the FBA sellers are also qualifying for Amazon Prime automatically. Thus, lightning-quick delivery service is applicable for your products. It is fairly easy to win the Buy Box with FBA.
But, the FBM (Fulfillment by Manufacturer) sellers can also attain Buy Box, but they must closely monitor their shipping and customer service aspects.
3) Faster Shipping
With Amazon Prime in play, customers have an uplifted expectation of receiving their products quickly. And Amazon intends to keep up with this trend. In the process, Amazon intends to give more visibility to the sellers who are offering faster delivery to the customers.
Therefore, FBA sellers have the added advantage of competing with the Buy Box!
4) Attain the Best Seller Rating
Considering all the metrics, Amazon has a rating system for all sellers, ranging from 0 to 100. The higher your rating is, the better will be your chances of winning the Amazon Buy Box.
Remember, the rating has a strong influence on several factors, which include the response time of customers, cancellations of orders, feedback from customers, and others. Basically, all of your service parameters conclude in the form of a seller rating.
5) Pricing of the Product
Put yourself in the shoes of a shopper! Now, imagine how great it would feel to see competitive pricing in a marketplace. Won’t you feel good?
Just like that, Amazon also loves what customers are fond of! Therefore, its goal is to give exceptional products at affordable pricing to consumers. So, you must assess your pricing decisions to be part of the Amazon Buy Box.
The lower your price is among your competitors, the higher your chances of winning the Buy Box. Be careful in assessing the pricing, as you shouldn’t be selling it at a loss.
It is because you can maintain a moderate price and qualify in all of the other factors to possibly win the Buy Box. But selling at a loss price won’t benefit you for a longer time.
Conclusion
Winning the Amazon Buy Box is the mission of every seller who has been with the marketplace for a long time now. If you are new, make it your mission right from the start. If you can collect good metrics right from the beginning and keep up with consistency, then Amazon will find you.
Every seller who impresses Amazon’s customers never goes unrewarded. As a seller, keeping your end customers happy should also be a priority. So, keep up with the good service consistency, and you will win the Buy Box.
