University - Winning the Buy Box
An FBA repricer is a tool that enables Fulfillment by Amazon sellers to automatically set the price of a product by responding to changes in market conditions. The main goal of the FBA repricer is to enable the seller to win the Amazon Buy Box, thus improving the seller’s chances of making more sales.
FBA and the Amazon Buy Box
Winning the Buy Box
Every Amazon seller aims to win the Buy Box for their products, and much literature has been written on the subject of how to win it. While some feel that there are “quick-fixes” to winning the Buy Box, Amazon themselves explain that many variables go into determining Buy Box winner.
The Unique Position of FBA
One of the more important variables that Amazon consider when deciding on Buy Box winner is Fulfillment by Amazon. This does not mean that an FBA seller will automatically win the Buy Box over an FBM (Fulfillment by Merchant) seller, but due to the unique nature of FBA, it is more likely. This is because Amazon consider their own fulfillment service to have perfect scores across many variables. Someone who chooses to fulfill through FBA appreciates the fact that Amazon take care of their shipping, returns, customer service and other aspects of the selling process. And Amazon rate themselves 100% perfect in all of these aspects, which means the seller automatically has perfect scores across many of the other variables that impact the Buy Box (such as Shipping Time and Customer Response Time).
Repricing for the Buy Box
FBA sellers have a range of repricing software to choose from. These consist of both rule-based and algorithmic solutions. Rule-based solutions react against competitors’ prices and therefore they tend to price down in response to other sellers changing their prices. Algorithmic solutions, on the other hand, take into account all the variables that Amazon themselves take into account, making repricing not just a reactionary process, but a proactive one too.
FBA and Algorithmic Repricing
Feedvisor is an example of an Amazon algorithmic repricer. Their specialty is to price up, rather than down, in order to win the seller the Buy Box at the highest possible price. The better a seller performs across many variables, the higher that price can be. This means that FBA sellers, with their perfect scores across a number of variables, are going to be able to price high and still win the Buy Box. FBM sellers may also have perfect (or near perfect) scores in some variables, if they work hard enough, but it is not a given.