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1

The 2023 Ultimate


Amazon Buy Box Guide
for Sellers and Retailers

© F E E DV I S O R
2

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.

The Buy Box is not only a coveted piece of e-commerce


real estate, it is now essential for business survival as
Drive Sales With the Best-in-Class
consumers trade down and search for deals in this
Amazon Repricer
unsettled economy. Competition is higher than ever,
and the constant updates to Amazon’s algorithms
and policies, make it increasingly challenging for
sellers to win the Buy Box. Since today’s Amazon shoppers are primarily
interested in convenience and price, winning
As a result, it’s vital for sellers to stay up-to-date the coveted Buy Box space remains crucial
with the latest strategies and tactics to increase to reaching and converting them. Meeting
their chances of winning the Buy Box while having the requirements of the Buy Box is no longer
the right resources and team of experts who can enough to own it - you need to pair the
fortuitously guide them through the ever-evolving requirements with the highest-performing
digital marketplace. algorithmic repricing platform.

Updated to match the changing e-commerce Feedvisor’s award-winning repricer and


landscape of 2023, this guide will provide you with hands-on team of Amazon experts gives
a road map toward becoming eligible for the Buy leading sellers and retailers the advantage
Box, as well as how to beat out competitors to grow to maximize their Buy Box performance. The
your Buy Box share while profitably maintaining your “AI-first” platform performs cutting-edge
current share, using expert tips and Amazon best automation, analyzing competitors and their
practices. prices, and making real-time optimizations
to your products’ prices that will help you
What's New: increase Buy Box share and achieve your
unique business objectives.
Updated Seller Fulfilled Prime Requirements
When deployed in conjunction with
Updated Shipping Time Information Feedvisor’s technology and intelligence for
optimizing advertising, managing inventory,
Updated Valid Tracking Rate Details and more, businesses are able to take a
holistic look at their operations and make
data-driven decisions that are rooted in
achieving the greatest results.

© F E E DV I S O R
3

Contents

What Is the Buy Box? 4 Landed Price 12


How Important Is the Buy Box? 5 Shipping Time 13
Stock Availability 14
How the Buy Box Works 6 Order Defect Rate 14
Buy Box Rotations 6 Valid Tracking Rate 15
Beating Amazon to the Buy Box 7 Late Shipment Rate 15
When No Seller Qualifies for the Buy Box 7 On-Time Delivery 16
Feedback Rating 16
Buy Box Requirements 8 Customer Response Time 17
Professional Seller Account 8 Feedback Count 17
Buy Box Eligibility 8 Inventory Depth and Sales Volume 18
New Items 8 Cancellation and Refund Rates 18

Secondary to the Buy Box 9 Buy Box Misconceptions and Myths 19


Other Sellers on Amazon 9 Lowest Price Point Manipulations 19
Offer Listing Page 9 The 2% Rotation Rule 19

Variables That Affect the Buy Box 10 Conclusion 20


Fulfillment Method: 10
Fulfillment By Amazon The Buy Box Cheat Sheet 21
Fulfillment Method: 11
Seller Fulfilled Prime The Amazon Acronym Glossary 22

© F E E DV I S O R
4

What Is the Buy Box?


On Amazon, there is no limit to the number of sellers
that can operate on the platform or the amount
of products that they can offer. This allows the
same products to be sold by many retailers, each
competing for the maximum amount of sales.

“ All third-party sellers hope to


see their products appear in the
illustrious Amazon Buy Box, also
known as the Featured Offer.

When a shopper lands on a product detail page,


Amazon’s algorithm chooses one seller whose details
appear in the Buy Box — the white box on the right-
hand side of the page. When a customer clicks on
the “Add to Cart” button or “Buy Now” button, the
sale goes to the seller in this box.

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.

On a desktop, laptop, or tablet, all of the product


information appears on one page. To purchase a In addition, there is a small box dedicated to “Other
particular product, buyers will either go straight to Sellers on Amazon,” which can be found after
the Buy Box, choose a seller from the “Other Sellers the Buy Box and above the product’s details on
on Amazon” box, or click on the link that will take Amazon’s mobile and app versions. This area only
them to all sellers’ offerings on the Offer Listing shows pricing for one alternative new or used item,
page. while linking to another page containing information
for all other sellers of the same product.
On both Amazon mobile and the Amazon app,
however, the customer has to scroll down a vertical Since the “Other Sellers on Amazon” space is not as
chain of information, and the Buy Box appears prominently featured as the “Add to Cart” button,
directly beneath the product image and price. The “Buy Now” button, or the Featured Offer pricing and
“Add to Cart” button appears prominently on the shipping information, mobile shoppers are much
app and mobile, as does the “Buy Now” button. If more likely to purchase from the Buy Box, which is
shoppers like what they see, there is no reason for why sellers who do not win this coveted spot — or
them to scroll down any further. optimize their listings across desktop and mobile —
are at a major competitive disadvantage.

© F E E DV I S O R
WHAT IS THE BUY BOX? 5

How Important Is the Buy Box?


Amazon’s commitment to innovation and a customer-
first mentality have made it a go-to shopping
destination for consumers as well as an integral
channel for any seller’s or retailer’s e-commerce
strategy. With over 300 million active customer
accounts, sellers have the opportunity to reach
millions of customers in over 180 countries as an
Amazon selling partner.1

Despite the rising costs associated with selling,


mainly caused by inflation and supply chain
disruptions, third-party sellers’ Amazon sales grew
52% while first-party sellers’ sales grew 25%.

Amazon third-party (3P) sales are only set to grow


even more in 2023, making the Buy Box the single
most important revenue driver for marketplace
sellers today. Understanding how it works, therefore,
is critical for sellers who want to tap into the profit
potential that this coveted piece of online real estate
offers.

“ A product in the Buy Box will sell


four times more than the same
product without the Buy Box.

Over 80% of Amazon’s marketplace sales take


place through the Buy Box, and this number greatly
increases with Amazon mobile sales. It is vital for
sellers to understand how Amazon determines who
acquires the desired Buy Box position, as it has the
capacity to make or break an online business.

1
Amazon, 2022 © F E E DV I S O R
6

How the Buy Box Works

“ The Buy Box offers consumers


As a customer-centric company, Amazon’s goal is
to offer the best possible end-to-end experience
the best balance of high seller
for its shoppers. The Buy Box, or Featured Offer,
was created with the objective of comparing multiple performance and low price.
offerings of the same product in order to determine
which will give the customer the highest level of Buy Box Rotations
satisfaction and showcase Amazon’s commitment
to operational excellence. Amazon has long abandoned the idea of giving the
Buy Box to a single seller for very popular products.
The Amazon Buy Box uses an algorithm designed to Instead, the Buy Box is shared between several
help customers find the best possible value for their sellers, with their “share” of the Buy Box determined
money. It does this by determining which product by the variables mentioned below.
offering provides the best balance of high seller
performance and competitive prices — two critical For example, if there are 10 perfectly equal sellers
variables in a seamless customer experience. all competing for the Buy Box of the same product,
each might get 10% share. This means that each
When determining which product offering will seller’s offering will be shown in the Buy Box for
win the Buy Box, the algorithm first determines 10% of each day.
which of the competing offerings meets all of the
necessary minimum requirements. It then breaks Alternatively, a relatively high-performing seller
down each eligible offering into many different could have 70% of the Buy Box, an average seller
variables, and evaluates each one relative to could have 25%, and a lower-performing seller, 5%.
the other sellers offering the same product. Therefore, instead of saying that a seller wins or
loses the Buy Box, the correct description is that a
particular seller has a lesser or greater share of the
Buy Box.

It is important to note that Buy Box rotations do


not always take place. When they do, they are
often dependent on the product, the competitive
landscape, and the time of day. Furthermore, these
rotations are hidden from the customer, as Amazon
uses cookies to ensure each customer sees only one
Buy Box winner per hour.

However, if the Buy Box winner’s metrics change,


such as the price of the product or the amount
of available stock, Amazon may rotate to another
seller before the one-hour time period is up. These
changes, however, are not instantaneous, and could
take as long as 15 minutes to be updated.

Optimize your Amazon prices with AI-Driven Technology:


feedvisor.com/connect © F E E DV I S O R
HOW THE BUY BOX WORKS 7

Beating Amazon to the Buy Box


Sellers often ask why Amazon itself seems to
always be the Buy Box winner, and if it is possible
to ever beat it to that highly sought-after position.
Overall, the Buy Box treats Amazon as a seller with
perfect customer experience metrics. Therefore, if
a merchant has near-perfect customer metrics, or a
very low landed price, that seller will often share the
Buy Box with Amazon, or even beat the company if
the price is low enough.

When No Seller Qualifies for the


Buy Box
There are two instances in which no seller will win
the Buy Box. In these cases, the Buy Box will show
a “See All Buying Options” button, and the buyer
will be taken to the Offer Listing page (also known
as the “More Buying Choices” page), which lists all
merchants who sell the product in order of landed
price only.

The two instances are listed below:

1. When no seller meets the requirements to win


the Buy Box, or sellers that do meet the requirements
have substandard seller metrics

2. When the sellers’ prices are deemed


unreasonable because they are higher than
the list price. The list price is the full retail price
— suggested by the manufacturer or supplier, or
estimated according to standard industry practice
— found below the product name on the product
detail page.

© F E E DV I S O R
8

Buy Box Requirements


When competing for the Buy Box, the seller has to Please note that sellers may see that they are eligible
first meet the three key criteria listed below: to win the Buy Box for some products, but not for
others. If a seller believes to have met all the required
1. Must Have a Professional Seller criteria and has not been awarded Buy Box-eligible
status, the seller can contact Amazon seller support
or Vendor Central Account directly to request to be considered for this status.

Only sellers paying Amazon the monthly


subscription fee for a Professional Seller account
will be considered for the Buy Box. Merchants with
Individual Seller accounts cannot compete for the
Buy Box.
“ In order to be Buy Box-eligible, a
seller needs to fulfill certain criteria.

3. Must Be Selling a New Item


2. Must Have Buy Box Eligibility
The item being sold must be new. Used items, along
In order to win the Buy Box, a seller must be Buy with new items that do not win the Buy Box, are
Box-eligible for the product. This status is awarded showcased in the “Used and New” area, which
to experienced Professional Seller account holders features the availability for items not promoted in
who have spent time selling on the Amazon platform. the Buy Box and links to the full Offer Listing page
They must also possess high levels of performance. with details on all available products.

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.”

A “Buy Box Eligible” column will now show the


eligibility status for each ASIN in your inventory.

© F E E DV I S O R
9

Secondary to the Buy Box


Other Sellers on Amazon
A seller who does not win the Buy Box still has a
chance of appearing on the product detail page by
being placed in the “Other Sellers on Amazon” box,
which appears directly below the box for “Used and
New” items. Although this is not as ideal as winning
the Buy Box, a seller who is featured in the “Other
Sellers on Amazon” box has more of a chance of
making sales than other sellers.

“ The Buy Box is not the only way to


make sales on Amazon.

Sellers who appear in the “Other Sellers on


Amazon” box must possess all three aforementioned
requirements necessary to qualify for the Buy Box
and to be eligible for the Featured Offer. Up to three
listings are selected to appear in this box, which also
provides pricing, shipping details, plus a link to the
Offer Listing page.

Offer Listing Page


The Offer Listing page displays all sales listings for
a product offered by a variety of sellers, regardless
of condition and whether they qualify for the Buy
Box or not. The Offer Listing page can be selected
from the “used and new” section and is presented
as a slide-in module on a product’s page. Amazon
orders each offering on the list based on a variety
of important factors, such as customer feedback
ratings and pricing, and the list can be filtered by the
shopper as well as by Prime eligibility, free delivery
eligibility, and item condition.

© F E E DV I S O R
10

Variables That Affect the Buy Box


Once product eligibility has been determined, 1. Fulfillment Method: Fulfillment
Amazon then compares multiple variables of each
offering to determine which provides the best overall By Amazon (FBA)
value for the customer. The weights assigned to each
variable can change on a product-to-product or a The most important variable considered by Amazon’s
category-to-category basis. Therefore, even though Buy Box algorithm is the item’s fulfillment method.
a seller could be losing to a competitor on one Amazon considers its own fulfillment service to
product, the same seller could be beating the same have perfect scores for multiple variables, including
competitor on another unrelated product. Shipping Time (also known as Transit Time), On-
Time Delivery Rate, and Inventory Depth.

Until recently, it was much more likely for merchants


Amazon considers many different factors who use FBA to win the Buy Box. Although a
Fulfillment by Merchant (FBM) seller could still beat
in determining who wins the Buy Box. The
an FBA seller to the Buy Box, doing so would require
importance of each variable can change
high relative scores in all areas and/or a very low
according to the product.
price.

For this reason, utilizing FBA has always been the


quickest and easiest way to drastically improve one’s
It is vital to remember that all variables are measured
chances of winning the Buy Box. Ultimately, though,
relative to their competitors’ offerings. For example,
this has to be a strategic business decision for the
having an on-time delivery score of 98% could have
seller, as it has many other implications and should
a negative effect on winning the Buy Box if a near
be carefully thought through so logistics can be
identical seller has a 99% rating. However, the
planned properly.
chances of winning the Buy Box would increase if
the seller was competing against someone with a
An FBA product appears on the Offer Listing page
96% rating.
as follows:
Having a sophisticated optimization solution like
Feedvisor’s award-winning algorithmic repricer is
how today’s leading sellers and retailers maintain
visibility into these key variables in real time, so they
can analyze the data and take automated actions
that drive results.

© F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 11

2. Fulfillment Method: Seller Interestingly, sellers can regionally designate


where they would like to engage in SFP, allowing
Fulfilled Prime (SFP) them to be Prime in the specific areas that make
geographical sense for their business. To be eligible
With Seller Fulfilled Prime, high-performing, for SFP, sellers need to prove their ability to meet
qualified sellers have the option of displaying the Prime customers’ expectations for service and must
Amazon Prime badge on orders fulfilled via their have strong metrics across the board to begin with,
own warehouse or third-party logistics providers, including:
allowing them to maintain control of their fulfillment
operations. Offer premium options for shipping

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
the Buy Box. © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 12

3. Landed Price Having a true algorithmic pricing platform in place


like Feedvisor’s award-winning technology can
The landed price is the total amount that the help you beat out Buy Box competition by having
product is sold for on Amazon. This includes a solution that will automatically adjust prices for
shipping in the United States, and shipping and optimal impact based on real-time market data and
VAT in the UK and Europe. A lower landed price will operational insights.
increase the seller’s Buy Box share. This is another
simple variable to manipulate, as it is the only one A product’s landed price can be seen on the Amazon
that the seller can control directly and instantly. product page as follows:

If the seller’s overall performance metrics are inferior


to those of the competition, then the seller will need
to lower the price of the product to gain a greater
share of the Buy Box. The lower these metrics are,
relative to the competing sellers, the lower the seller
needs to drop the price in order to compete for the
Buy Box.

Price is certainly key to winning the Buy Box.


However, on its own, it is not enough.

Conversely, the higher the seller’s performance


metrics are in relation to the competition for a
specific product, the higher the price may be raised
while still holding on to a healthy share of the Buy
Box. A higher seller rating and lower Order Defect
Rate means the same item can be sold at a higher
cost and maintain the same share of the Buy Box.

Try Feedvisor’s award-winning repricer for the best


landed price: feedvisor.com/connect © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 13

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:

Amazon arranges Shipping Time (also known as


Transit Time) into several default brackets, with more
specific options available within each time frame.
The default Transit Times in the U.S. are:

2–4 days 5-8 days 14-28 days

© F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 14

5. Stock Availability 6. Order Defect Rate


There must be available stock of the item the The Order Defect Rate (ODR) is a combination of
merchant is trying to sell. Typically, if the item is three different metrics:
not in stock, the seller cannot win the Buy Box. The
Buy Box will not show “out of stock,” and instead it The Negative Feedback Rate
will just rotate the position to another seller. It is
important to use inventory planning best practices The A-to-Z Guarantee Claim Rate
to keep your popular products in stock.
Credit Card Chargeback Rate
However, there are exceptions to this rule, such as
a backordered item. Today, most products can be Amazon adds these three numbers together to work
listed as “backordered,” with a note that is visible in out the percentage of the defective orders that were
the product page. With a backorder, the seller will sent. It includes all orders with at least one defect
accept orders for the item, even though the product shown as a percentage of total orders that occured
is not yet fulfillable and will only be shipped at a during a given 60-day time frame.
later date. Customers will see that the item is not
available for shipping until the restock date.

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.

Backordered items can be featured in the Buy Box,


but items that are immediately fulfillable are favored. While this score only has a relatively medium-level
Therefore, avoiding backorders should be a priority impact on the Buy Box algorithm, sellers with more
for all sellers. than a 1% ODR may incur significant penalties,
including account deactivation. Ideally, this number
should always be kept below 1% to have a serious
chance of winning the Buy Box.

To optimize your pricing and inventory strategies in


unison, get in touch with us at feedvisor.com/connect © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 15

7. Valid Tracking Rate


Valid Tracking Rate is defined as the percentage
of packages shipped with a valid tracking number,
divided by the total number of packages that have
been shipped and confirmed.

Sellers are now required to provide valid tracking


numbers of at least 95% across all product
categories.

Tracking is not required for heavy/ bulky freight


shipments, or items shipped in Standard Mail or
First Class Mail envelopes. Failing to do so will not
only have a detrimental effect on Buy Box share but
could also lead to sellers losing their ability to sell
in that category.

Valid Tracking Rate is calculated according to


promised delivery date data over the course of a 8. Late Shipment Rate
30-day period. You may have to wait up to 72 hours
for these reporting metrics to be accurately updated Late Shipment Rate is the number of orders shipped
and reflected in Amazon Seller Central. later than the expected ship date. The expected ship
date is calculated based on the handling time you
set in Seller Central (in the Manage Your Inventory
section). If you do not set a handling time, the default
is one to two business days.

It is recommended, therefore, to ship and confirm


shipment by the expected ship date. Ideally, this
number should be kept below 4% in order to positively
impact one’s chances of winning the Buy Box. A rate
above 4% could result in account deactivation. This
metric is measured according to both 10-day and
30-day periods.

This metric can be seen in Amazon Seller Central


and only applies to seller-fulfilled orders.

© F E E DV I S O R
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.

To calculate this percentage, the number of tracked


packages that were delivered on time and according
to the carrier’s tracking updates is divided by the
number of packages that have valid tracking
information, which must be recorded within 48 hours
of entering shipment confirmation.

This metric reflects shipping performance data as


of two weeks prior to the date that the rate is being
viewed, which provides carriers and Amazon’s system
time to make updates to delivery confirmation data. 10. Feedback Rating
This metric can be seen in Amazon Seller Central. This is the culmination of all of the feedback that a
If it meets Amazon's targets for On-Time Delivery seller has received from customers and is grouped
in tandem with an impressive Valid Tracking Rate, by the last 30 days, 90 days, 12 months, and Lifetime.
Amazon may give you the ability to offer reduced The most recent feedback has the greatest effect
shipping or handling times on items in your inventory. on the Buy Box. In the below example, the 30-day
feedback score was 98%, giving the seller 4.8 stars
out of a maximum of five stars.

This metric can be seen in Amazon Seller Central


and is displayed as follows:

To learn how to improve your seller performance metrics


on Amazon, get in touch with us at feedvisor.com/connect © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 17

11. Customer Response Time


While initially believed to have little effect on the
Buy Box, it is now evident that Customer Response
Time plays a part in determining the Buy Box share.

Amazon gauges response time by determining


whether a seller is answering buyer messages within
24 hours including weekends and holidays. If a seller
leaves too many messages unanswered for 24 hours
or more, the chances of that seller winning the Buy
Box will severely decrease, in addition to a decline
in their overall seller performance. It is important
to note that responses to every customer message
are included in these statistics, so it is important to
respond to each one.

Sellers should also know that auto replies do not


12. Feedback Count
count as responses, but should a message not need
This is the total number of buyers that have given
a response like a thank-you note from a customer,
the seller feedback. This metric has a dual purpose.
make sure to check the “Mark as no response
First, it is used to accurately weigh the Feedback
needed” box in the reply area within 24 hours so that
Rating between sellers with a long history and a lot
the system will discount this message from the total
of feedback, and newer sellers with a short history
metric, having neither a positive nor negative effect.
and less feedback.

It is also considered a key metric in and of itself, and


sellers with a high score are more likely to win the
Buy Box over a seller with a low score, relative to all
other metrics being equal.

This metric can be seen in Amazon Seller Central


and is displayed as follows:

© F E E DV I S O R
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.

Amazon will not award the Buy Box to a seller


whose merchandise is frequently out of stock.

© F E E DV I S O R
19

Buy Box Misconceptions and Myths


Before you begin exploring new strategies and The 2% Rotation Rule
solutions for maximizing your share of the Buy Box,
we must first dispel the myths about what the Buy Another false assumption is that if a seller’s price is
Box is not. A plethora of articles have been written within 2% (or another percentage) of the current Buy
about how to outsmart the Buy Box and, while many Box winner, that seller is guaranteed to win the Buy
of them may work in specific situations, these are Box at least a certain percentage of the time, as the
generally oversimplified, outdated, or incorrect. Buy Box rotates between sellers.

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.

Although lowering prices can increase one’s chances


of winning the Buy Box, the claim that a certain
magic bullet equation will guarantee the Buy Box
certainly holds no truth. Continually lowering the
price creates price wars between sellers, driving
down profit margins on all sides. It is crucial to avoid
these scenarios by employing holistic, data-driven
optimization solutions that allow you to achieve an
optimal balance between pricing and profits.

Using a repricing technology like Feedvisor’s


powerful, “AI-first” platform can help you further
grow revenues and profits by pinpointing the optimal
pricing for each of the products in your inventory.
Feedvisor’s machine-learning technology makes
adjustments in real time based on your minimum and
maximum price points, operational costs, demand,
and more, so that your products are always sold at
the right prices that are in line with achieving your
business goals.

© F E E DV I S O R
20

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.

By maintaining a consistently high share of the Buy


Box through optimal pricing and experiences that
delight customers, sellers will see demand and sales
on their products soar. These results can be further
amplified when used as part of a holistic Amazon
optimization solution that takes into account
every important aspect of your business, including
advertising campaigns, inventory management,
product page SEO, and more.

For sellers and retailers, these optimization


strategies must include examining key factors like
Seller Authority, Sales History, and more in order
to improve product ranking and receive better
consideration from Amazon’s search algorithm.

Win more Buy Box share without sacrificing profitability:


feedvisor.com/connect © F E E DV I S O R
21

The Amazon Buy Box Cheat Sheet


Time Period That
Impact on Best Way To
Metric Definition For Buy Box Metric Impacts the
Buy Box Win the Buy Box
Buy Box

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

If there is available stock of the item the Avoid stock-outs


Stock Availability High 100% Current
seller is trying to sell and backorders

Negative Feedback Rate + A-to-Z Claim


Order Defect Rate Medium 0% Less than 1% 60 days
Rate + Chargeback Rate

Deliveries sent with full tracking Greater than


Valid Tracking Rate Medium 100% 30 days
information 95%

Number of orders shipped later than the


Late Shipment Rate Medium 0% Less than 4% 30 days
expected ship date

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

The number of customers that have


Feedback Count Medium Higher is better Constant
given feedback

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

© F E E DV I S O R
22

The Amazon Acronym Glossary


ASIN: Amazon Standard Identification Number GTIN: Global Trade Item Number
A unique 10-digit code assigned to each product The umbrella term used to cover several numbers
sold on Amazon. ASINs are the same across all used to identify every product sold on Amazon. It
Amazon sites. includes UPC, ISBN, and EAN, among others.

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.

EAN: European Article Number / International MAP: Minimum Advertised Price


Article Number A supplier’s pricing policy that prevents a seller from
A 13-digit code that is given to retail products and advertising prices below a specific amount.
can be found either on the outer packaging of a
product or the back cover of a book, below the bar MSRP: Manufacturer’s Suggested Retail Price
code. The price at which the manufacturer recommends
the retailer sell the product. It does not necessarily
FBA: Fulfillment By Amazon correspond to the price retailers actually set.
When Amazon is in control of the seller’s entire
shipping and handling process. The seller pays SFP: Seller Fulfilled Prime
a service fee and ships inventory to an Amazon With SFP, sellers can display the Prime badge on
warehouse. When an order is placed, Amazon listings that they fulfill from their own facilities.
employees select, package, and ship the item to
the buyer. SKU: Stock Keeping Unit
This is a number/ letter combination used to identify
FBM: Fulfillment By Merchant a billable item in a company’s inventory. Companies
When the seller is in control of his entire shipping use SKUs to manage inventory effectively using
and handling process. Instead of paying a service computerized systems, rather than having to keep
fee and shipping inventory to Amazon to handle, the track of everything manually.
seller uses his or her own resources and sends the
items directly to the buyer. UPC: Universal Product Code
A 12-digit scannable bar code that is used to track
FNSKU: Fulfillment Network Stock Keeping Unit retail items in many countries, including the USA and
This unique identifier is the way that Amazon UK. It is located below the barcode on the packaging
identifies a product as unique to the seller who has of an item or the back cover of a book.
sent it to the Amazon fulfillment center. It is printed
on product labels.

© F E E DV I S O R
23

Pricing. Advertising. Inventory. Intelligence.


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Optimization Platform for Amazon Sellers and Retailers

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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

Our clients see results:

64% increase
revenue
in
40% increase
sales
in
72% improvement in
RoAS/ACoS

© F E E DV I S O R

Get in touch with us at feedvisor.com/connect

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