How to win the Amazon Buy Box

Amazon continues to be a key resource for third party sellers, but many get lost in the crowd. Here are three tips to help sellers increase visibility – and sales – using Amazon’s Buy Box.

Fulfillment Method

“Amazon considers FBA to be the ideal choice, because it believes that its own fulfillment service provides the best value to customers. Choosing to use this option, therefore, is a quick and easy way for sellers to drastically improve their odds of winning the Buy Box. Using FBA is also a good way to reach Amazon Prime customers, and is a speedy option that helps meet consumer demand. Over 60% of Prime members agree that slower shipping deters them from making a purchase.”

Price

“This is the easiest variable to manipulate, as sellers can control it directly and instantly, and a lower landed price can increase a seller’s Buy Box share,” said Hagai. “There are two types of repricers on the market today. Rule-based repricing — which relies on pre-specified rules set up by the seller — takes into account competitors’ prices. Algorithmic repricing, meanwhile, considers all variables used to determine the Buy Box winner, and has been proven to deliver the highest rate of return to sellers with the least amount of effort. In fact, a recent study by Northeastern University found that the Buy Box is much more likely to feature sellers who use algorithmic repricing, even when their prices are higher than those merchants who don’t.”

Seller Rating

“Amazon takes careful note of seller ratings, which tell the company if a seller provides a quality customer experience, and penalizes sellers who have late orders, cancellations, or other issues. Each successful order gives a seller points, while orders with problems such as negative feedback or delivery issues can deduct a range of points from a seller’s rating. Sellers are grouped into brackets depending on their seller ratings, and jumping from one bracket to another has a larger effect on the Buy Box share than moving within a bracket itself. Additionally, 60 percent of Amazon shoppers check the seller rating before making a purchase, which places greater importance on this metric,” said Hagai. “The Buy Box is the most important element of Amazon for third-party sellers, and is determined by many different factors. However, if sellers utilize FBA, adopt a smart repricer, and work to improve their seller rating, winning this spot isn’t too far off.”

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Courtesy – bizreport blogs