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Moreover, keep in mind that the term “winning the Buy Box” is actually misleading. More accurate would be to say “winning a percentage of the Buy Box,” since Amazon rotates the Buy Box “winners” every hour. In the end, what you’re shooting for is a bigger piece of that Buy Box pie. So without further ado, here are our best practices for getting your products more time in the Buy Box.
A study conducted by Northeastern University found that algorithmic repricing is directly correlated with higher Buy Box share and profits. According to the head researcher, Christo Wilson, “Amazon is much more likely to feature sellers in the Buy Box who use an automated practice called algorithmic pricing, even though their prices may be higher than those who don’t.”
The study also found that “60 percent of sellers using algorithmic pricing have prices that are higher than the lowest price for a given product.” This information should help debunk the popular perception that the lowest price automatically wins. What’s happening here is that sophisticated algorithmic repricers are more successful at determining the ideal price for each product. The algorithms weigh a variety of seller and competitor metrics to determine the maximum price a seller can sell his products for without forfeiting Buy Box share.
The moral of the story is, Amazon awards the Buy Box to sellers based on more than just price. An Amazon repricer that takes into account the complexity of Amazon’s Buy Box decision making will have better results for its users.
One caveat: Many repricers that are in fact just a bundle of rules call themselves “algorithmic repricers.” Before you commit, make sure they really have the science and data analysis to back up their claims.
Learn more about the differences between rule-based and algorithmic repricing
Amazon’s formula for allocating the Buy Box puts a premium on customer satisfaction. That means it’s key to focus your efforts on the metrics that play into it — shipping time, order defect rate, cancellation rate, policy violations, contact response time, on-time delivery rate, and in-stock levels. Click on the “Performance” tab in Seller Central, and then “Account Health,” to view your seller performance.
To be realistic, it can be challenging to consistently deliver on all the customer satisfaction parameters. Especially when you are focused on growing your business fast, other (important) things can sometimes slip through the cracks. One way of relieving the pressure of providing perfect service is by using FBA (it also has the added benefit of making you immediately Buy Box eligible, even if you’ve just started selling on Amazon). Yes, you’ll have to pay those pesky fees, but your metrics will climb once Amazon is the one fulfilling your orders. You may discover that it’s a small price to pay for providing that customer-obsessed service you need to win the Buy Box.
Here are a few tips to ensure your stock levels are up to par: