One of Amazon’s foundational principles is customer-obsession. Business owners are taught to “start with the customer and work backwards.” The e-commerce giant’s sales platforms and algorithms align with this standard, as they are designed to highlight and reward sellers who provide outstanding customer service and performance.
In this article, we will explore how Amazon sellers pursue an increased share of the Amazon Buy Box, the most coveted piece of digital real estate in e-commerce today. Over 80% of Amazon’s website sales today take place through the Buy Box. It’s imperative for sellers to understand their competitive edge and what sets them apart on the marketplace. This way, they can most effectively increase conversions and maximize their store’s profitability.
The Amazon Buy Box, the prominent, white box on the right hand side of the page when a customer lands on a product page, is inhabited by one seller determined by Amazon’s algorithm. Most consumers buy their goods through the Buy Box section within the desired product page.
When a consumer proceeds to buy the item through this section, the seller which is highest ranked by Amazon at the time, will show up there. The Buy Box winner will go on to make more sales than any other seller for that product (unless of course there are multiple high ranked sellers, then they would rotate in the Buy Box, each gaining their share of product sales). The Buy Box takes into consideration which product best combines low cost and high seller performance metrics.
Once sellers are eligible to win the Buy Box, they can capitalize on their growth potential by focusing on and investing in the high-impact Buy Box variables that will result in additional wins such as fulfillment method, landed price, shipping method, and availability. It all comes down to the relevant data points (of which there are tens of billions aggregated each day) and how you use them to monitor and shape your routine business processes.
Receiving Buy Box placement also demonstrates to customers that you are trusted and recommended by Amazon, as some of the Buy Box requirements that you need to be eligible are competitive experience, length of time selling on Amazon, and performance ratings. Through exemplary customer service, sellers are not only doing their businesses a favor by winning the Buy Box, but they are also fostering an engaging and efficient buying process for their customer, which generally leads to repeat purchases and ongoing customer loyalty.
It is in fact possible to beat Amazon to the Buy Box and it is accomplished by perfecting at least one of these areas: better availability, faster shipping time, a lower price, or a combination of the three. It is also common that Buy Box winners win the space with higher prices than their competitors – they simply maintain better performance metrics when it comes to availability or shipping.
In Feedvisor’s new 2018 edition of the Buy Box Bible, we take an in-depth look at all things Buy Box – metrics that impact the Buy Box, scaled by importance (including a new variable introduced this year), fresh strategies to take your Buy Box share to the next level if you’re already winning, and how to effectively adjust your assortments’ pricing amidst the billions of price changes that take place every day.
Not only does the eBook function as a comprehensive, one-stop guide to mastering the Amazon Buy Box, but it also offers up fresh insights and tips on how enhancing customer satisfaction and performance ratings go hand-in-hand with improved Buy Box share.
This is a guest post by Catie Grasso, marketing content writer at Feedvisor. Catie enjoys running, trying new restaurants, and exploring New York City.
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