Amazon displays a variety of products for visitors while saving them time to check the same exact item offered by all merchants.
Your main goal as an Amazon seller is to win the biggest share of the buy box as a means to sell your products. Although you may not always win it, since it rotates among vendors, you ought to improve your metrics to boost your chances.
In the following, we will assist you in your journey and give you the proper guidance to understand the buy box functionality, to strive for excellence and to optimize what needs to be modified.
- How does the algorithm work?
- How to increase your chances of winning the buy box?
- What to do when you lose your buy box?
- Final reflections
1. The buy box algorithm
Most Amazon deals are closed through the buy box - the section on the right of your PC screen containing the CTAs, delivery date, and some shipping details.
The metrics are even more promising with mobile devices, due to the fact that the CTA is right under the product image without any additional links to other merchant pages that sell the same item. As a consequence, the visitor will “Buy Now” or “Add to cart” to proceed further, not knowing that behind those buttons an algorithm is constantly operating to find the best deal and reward its seller. Thus, the odds of you securing the deal tend to be much higher when minding the buy box.
Earning the buy box by offering the lowest price is a delusion, though it remains a metric to deem. On one hand, ask yourself; who wouldn’t doubt the quality of an item sold at a cheaper price in comparison with all competitors? On the other hand, in addition to the price, the algorithm takes into account multiple metrics, which will be revealed next.
2. How to boost the likelihood of claiming the buy box?
- Join an Amazon programme
By joining the Fulfilled-by-Amazon programme, Amazon handles the full logistics process. This ensures that the delivery date will be respected, thus guaranteeing fast and accurate shipping.
Qualifying for the Seller-fulfilled Prime is challenging. Vendors must have a trusted history on Amazon; in other words, you must demonstrate your capabilities with a high seller ranking and an outstanding sales record. This programme will allow you to operate with third-party logistics on your own.
The SFP comes with a Prime badge unlike the Fulfilled-by-Merchant programme that functions under the same rules. Although under FBM it is tougher to compete for the buy box, chances remain quite impressive. Make sure the orders that are failing to be shipped on-time do not exceed 4%; otherwise, the probability of claiming the prize is in jeopardy.
- Optimize your seller rating
This metric is an abstract one, influenced by multiple factors such as customer services, i.e. responding to customer queries in less than 24 hours. The faster, the better.
Ideally, the Amazon order defect rate should fluctuate under 1%. This metric is measured based on negative feedback, chargebacks, as well as A-to-Z claims.
The pre-fulfillment cancel rate must be less than 2.5%. The equation is simple. It is equal to the number of cancellations divided by the overall number of orders.
Is it a great impression to deliver orders with overdue arrival dates? Certainly not. This will harm your reputation and your algorithmic metrics. For that reason, keep the late shipment rate under 4%.
If you face challenges like phone returns, you should refund customers if and only if they are right. If not, defend your business. To be accurate in such delicate situations, it is worth noting that you should describe your products well so that you justify to Amazon your reluctance to pay back.
- Engage with customers and boost your reviews
Amazon's algorithm doesn’t only consider the feedback’s quality, but also the volume of engagements. Connect with customers and ask their opinion. Take a step further and persuade them, if needed, to leave a comment for you. Keep in mind, your account’s visibility is at stake.
The algorithm compiles old and new feedback, however, the critical ones affecting your rating are the newest. For this reason, be interested in your customers. Let them feel that their voice matters, and in response, you shall receive positive feedback.
Be an active seller. Communicate with customers. Build a trusted brand.
- Constantly examine your stockpile
Preserving an adequate stock to keep up with demands is always a critical algorithmic criterion. This stipulates that you can deal with sales floods, thus, rendering the algorithm to operate in your favor.
Logically, being short on inventory will most likely prevent you from joining the race.
- Amazon product pricing
Amazon strives to offer visitors the most lucrative deals by providing quality goods at reasonable prices.
Selling cheaper than your competitors might give you an advantage ‘on paper’, but this is insufficient, since it remains one of the metrics and not the only one.
So, even if you price slightly higher than your competitors, you will still be able to receive the highest buy box share, as long as other metrics are performing well.
Moreover, some sources help you track the best deals and alert you when prices drop. These sources monitor the price variations that the buy box algorithm favors, and give you insight over the price history of millions of items.
3. How to counter a buy box loss?
Something is certain, when you lose the buy box, you will be notified through SellerApp’s buy box alerts so that you proceed with the needed modifications to win it back.
Generally, most sellers adjust the price when they lose the buy box. Indeed, as much as it can help, make sure you don’t harm your margins while doing so.
Always check your inventory in case of shortages. You can also run short-term promotions or offer coupons to win it back.
4. Final reflections
Competing on Amazon is heavily linked to winning the buy box. Amazon is pro- customer, and their algorithm operates in a way to ensure the best journey for visitors. In a nutshell, build connections and make your customers happy.
To do so, not only should you go along with the algorithm, but also offer quality devices to prove yourself as an undisputed leader on the market.
NSYS Diagnostics will help you inspect and evaluate your devices with more than 60 automated and semi-automated tests. The software will detect all the possible hurdles in your stock, so that you can offer your target market renewed phones of high calibre. Therefore, your ratings shall automatically surge.
NSYS Inventory helps you manage your stock with ease. It offers you the following:
- Ability to know which devices are the most profitable;
- A multi-functional, yet simple interface;
- A balance sheet system to manage your inventory’s finances;
- Advanced charts and analytics to understand the market.