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Amazon Buy Box Guide For Sellers & Retailers - 2023
Amazon Buy Box Guide For Sellers & Retailers - 2023
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Introduction
Updated for 2023, the Ultimate Buy Box Guide Whether you’re a new seller looking to establish
for Sellers and Retailers is your roadmap to a foothold on Amazon or an experienced retailer
winning the Buy Box in these hyper-competitive seeking to stay ahead of the curve, this guide will
times. equip you with the knowledge and tools you need
to succeed in the highly competitive world of
Amazon selling.
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Contents
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This seller, commonly known as the Buy Box “winner,” Buy Box sales receive a greater lift when
will make far more sales than any other seller for that transacted on a mobile phone.
product.
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WHAT IS THE BUY BOX? 5
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Amazon, 2022 © F E E DV I S O R
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To check Buy Box eligibility: Certified refurbished items generally have their
own unique ASINs, and therefore do not compete
Click on the Inventory tab in Amazon Seller with new merchandise for the main Buy Box.
Central and select “Manage Inventory”.
Since the Buy Box for new items always appears
Click on the Preferences tab. first, and most sellers sell new items, the focus
of this guide is on optimizing this crucial space.
Select “Buy Box Eligible.” However, sellers of used items can benefit as well
from this material, since many of the same best
At the bottom of the page, click practices still apply.
“Save Changes.”
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VARIABLES THAT AFFECT THE BUY BOX 11
This is especially useful for sellers of large or heavy 99% of orders shipped on time
products, since using FBA requires them to pay an
additional cost to ship the products to an Amazon Maintain an order cancellation rate of less
fulfillment center. By eliminating these shipping and than 0.5%
handling fees, as well as FBA long-term storage fees,
sellers are able to offer lower prices, or increase their Utilize Amazon’s Buy Shipping Services for
margins on these products. at least 99% of orders
Best Products for Seller Fulfilled Prime Support nationwide delivery for all
standard-size products
High-value items
Support weekend pick-up and delivery
Products with seasonal or (Saturdays or Sundays)
unpredictable demand
Meet one-day and two-day delivery targets
Items with variations
Deliver orders with Amazon supported Seller
Fulfilled Prime carriers
Slow-moving goods
Must agree to the Amazon Returns Policy
Inventory that requires special
handling or preparation Allow for all customer service inquiries to be
dealt with by Amazon
They can also use Amazon’s Buy Shipping services
Sellers wishing to sign up for Seller Fulfilled Prime
to postage their shipping through Amazon, which
must complete a trial period to show they meet
gives them access to Amazon’s negotiated rates and
the requirements. The Prime badge will NOT be
service levels. Due to the cost savings associated
displayed on items enrolled in Seller Fulfilled Prime
with converting to SFP, the competitive landscape
during this time, however, order processing must still
and how sellers compete and win the Buy Box is
be handled with a zero-day handling time.
shifting.
Once the trial period is successfully completed (after
a minimum of 50 orders meet the criteria above)
sellers will automatically be enrolled into Seller
Customers have a higher tendency to pay more Fulfilled Prime and enrolled ASINs will display the
to a Prime badge owner and with that badge, Prime badge to customers.
sellers in turn have a greater chance of winning
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VARIABLES THAT AFFECT THE BUY BOX 12
4. Shipping Time Please note that the term “days” refers to business
days, and does not usually include Saturdays or
Another essential metric Amazon looks to determine Sundays, unless weekend delivery is enabled.
Buy Box positioning is the time in which the seller Holidays are also taken into account.
promises to ship the item to the customer. Sellers
who can offer faster options for shipping are more Again, jumping between the brackets will have
likely to be prioritized at the Buy Box. greater significance than moving within them. For
example, sellers who improve their Shipping Time
For certain time-sensitive products and categories, from seven days to five days may see an increase in
such as birthday cards and perishable goods, the their Buy Box share. However, improving it from five
impact of this metric on the Buy Box will be even days to three or two days will have a much greater
higher, since customers often demand swift shipping effect.
on such items.
A product’s Shipping Time is reflected in the time
which the item is promised to arrive to the buyer.
It can be seen on the Offer Listing page as follows:
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VARIABLES THAT AFFECT THE BUY BOX 14
Amazon also recommends that sellers only offer A seller’s ODR (Order Defect Rate) takes into
backorders if they can fulfill orders within 30 days. account multiple metrics. The higher the
These recommendations apply to pre-ordered percentage, the less likely the seller is to win
products as well, which allows shoppers to place the Buy Box.
orders on items in advance of their release dates.
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VARIABLES THAT AFFECT THE BUY BOX 16
9. On-Time Delivery
This is the percentage of orders that buyers received
by the estimated delivery date and is based on valid
tracking information. A score of less than 97% would
normally have a strong negative effect on the Buy
Box, however there is no penalty for not meeting
performance target at this time.
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VARIABLES THAT AFFECT THE BUY BOX 18
13. Inventory Depth and Sales 14. Cancellation and Refund Rates
Volume
The Cancellation Rate is the number of orders
Amazon prefers to give the Buy Box to sellers who canceled by the seller pre-fulfillment as a percentage
have enough inventory to deal with the increased of total orders calculated during a given seven-day
demand that the Buy Box may create. For that timeframe, and only applies to seller-fulfilled orders.
reason, sellers with a larger current inventory, While a positive score does not have a strong impact
consistent sales, and a strong stock history may be on the Buy Box share, a pre-fulfillment Cancellation
granted a greater Buy Box share. Rate greater than 2.5% will have a strong negative
effect and can result in account deactivation.
The strength of the stock history is determined Meanwhile, Refund Rate is the number of orders
by how much time in the last 30 and 90 days the refunded to the customer post-fulfillment.
seller has been out of stock of this item. However,
These metrics can be seen in the Amazon Seller
historical stock amounts do not seem to be taken
Central and are displayed as follows:
into account. Even if a seller maintains a low stock
level, they will be preferred over a perfectly equal
competitive seller who has frequent fluctuations in Recent Customer Metrics Data
stock quantity and often goes out of stock.
7 days 30 days
These metrics have not been proven to have a
strong effect on the Buy Box when compared to Pre-fulfillment
Cancel Rate 3.57% (2) 1.21% (3)
other higher-impact metrics. They may be used to
distinguish between sellers who have very similar Late Shipment Rate 0% (0) 0% (0)
performance ratings, and/or are bidding on very
Refund Rate 1.79% (1) 6.05% (15)
popular products, although we have not seen any
strong proof of this. This metric is hidden and cannot
be seen in Amazon Seller Central.
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Below are the most common fallacies about the Buy Again, there are no statistics or evidence to support
Box: this theory. Although it appears to work when tested,
this is very likely another example of false positives.
Lowest Price Point Manipulations Buy Box rotations do exist, but this has nothing to
do with the 2% rotation rule.
This theory claims that a seller who undercuts the
lowest competition by a certain percentage and then While we will explore the integral role that rotations
takes off an extra penny will always win the Buy Box. play in Buy Box allocation, the assumption that they
After testing this theory extensively with multiple can be manipulated entirely by price has been proven
products, at multiple price points, and in multiple wrong time and time again. Sellers and retailers need
categories, it is evident that this is not a fixed rule. to have solutions in place that can holistically take
The idea may have gained popularity because when into account all the key factors that will affect your
it was tested on low-end products, it created a lot chances of winning the Buy Box.
of false positives.
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Conclusion
Since so many performance metrics and Advertising metrics such as Impressions, Pay-Per-
requirements can affect a seller’s ability to win Click (PPC) Sales, and Click-Through-Rate (CTR)
the Buy Box, it is crucial that businesses take the are also analyzed by the company’s algorithm to
time to get a holistic view of their operations, so determine product placement in customer searches,
they can make informed decisions on how to best all of which will further help improve your conversions
and Buy Box share.
optimize key areas to achieve maximum results.
Through understanding your customers and making
sure your efforts are optimized with their needs in
mind, the strategies in this guide can help your
Sellers and retailers need to have the right
business improve performance and achieve Buy Box
technology solution in place to ensure they win
success.
the Buy Box at the optimal — not necessarily the
lowest — price by taking into consideration every
variable that impacts how the Buy Box winner
and share are determined, such as fulfillment
method, inventory levels, product costs, and more.
FBA or Seller
Fulfillment Method Very high How the seller ships the item FBA/FBM/SFP Current
Fulfilled Prime
Landed Price High The total price plus shipping Lower is better Current
Less than 14
Shipping Time High Time it takes to ship the item Up to two days Current
days
Greater than
On-Time Delivery Medium Orders that were delivered on time 100% 14 days
97%
Higher is better;
Feedback Rating Medium Total of all feedback the seller has received Lifetime
most recent is most important
Customer Response How long the seller takes to reply Less than 24
Medium Up to 12 hours Last 90 days
Time to the customer hours
Inventory Depth Low How often the seller runs out of stock Lower is better Last 90 days
Cancellation Rate Low How often the seller cancels an order 0% Less than 2.5% 7 days
Refund Rate Low How often customers ask for a refund Lower is better 7 days
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BMVD: Books, Music, Video, and DVD ISBN: International Standard Book Number
A category of items sold on Amazon. Amazon actually Every publicly printed book is assigned one of
began as an online store for BMVD products, and its these (usually) 13-digit numbers. It is located on the
terms for them still remain slightly different than all packaging and/or back cover of the specific product
other categories. located above the bar code.
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“ Lots of insights to dig into, and I love that it automatically estimates your
margin rate when you are typing in your floors/ceilings. You never have to
log into Seller Central to do your pricing! You have lots of insight into the
“
sales velocity of an item right at your fingertips while pricing which
is also super valuable.
- Tom L.
Retail SMB
64% increase
revenue
in
40% increase
sales
in
72% improvement in
RoAS/ACoS
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