University - Winning the Buy Box
Amazon Buy Box Algorithm
There is no quick fix to winning the Buy Box. The Buy Box winner is determined by a complex, machine-learning algorithm that takes millions of data points into consideration. It is therefore up to sellers to stay ahead of any potential issues in order to guarantee themselves the highest chance to win the Buy Box.
How Does the Buy Box Algorithm Work?
The Amazon Buy Box is fueled by an algorithm that tries to give the customer the best possible value for their money. It does this by determining which product offering promises the best balance of high seller performance and low price.
Amazon’s goal has always been to offer the best possible experience to their customers and the company describes themselves as “customer obsessed.” Therefore, it is simply not possible that the Buy Box formula would only take price into account like some theories suggest.
While none of us are likely to ever know the exact Buy Box algorithm, we do know the following:
- The data-fueled algorithm takes each eligible seller and breaks their performance down into many different variables. It then evaluates each one relative to the other sellers offering the same product and decides which seller offers the best overall value to the customer.
- The weights assigned to each variable can change on a product-by-product or a category-by-category basis, so even though a seller could be losing to a competitor on one product, the same seller could be beating that same competitor on another unrelated product.
For example, for time-conscious products such as birthday cards, the shipping time may matter more than other variables. Therefore, a seller who has a shipping time of one day may have an advantage against a seller who ships in three days. For other products, such as kitchenware, shipping time may have less of an impact.
Every seller should focus on spending their energy and resources beefing up the variables that matter to Amazon as much as they can.
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