Amazon has succeeded in transforming itself from a bookseller into the largest online mail order company of the 21st century. In 2021, Amazon generated an annual turnover of 469.82 billion US dollars - infallible proof of the company's resounding success. The e-commerce giant's positive development is due to its focus on its customers.
Over the years, Amazon has taken various measures to guarantee customer safety and satisfaction. For example, there is excellent buyer protection, express delivery, a sophisticated algorithm and the Amazon Buy Box. This tool enables customers to add products to their shopping cart with a single click or to make a purchase directly.
The principle is as simple as it is ingenious and is more than well received by customers. After all, the shopping cart field makes it easier to use and contributes to a good shopping experience. But retailers also benefit from this tool. This is because the Buy Box winner receives an average of 9 out of 10 orders and thus records record-breaking profits.
So if you want to prevail against the strong competition on Amazon and keep your sales volume at a high level, then you should conquer the Buy Box. We explain how this works in the following article!
What exactly is the Amazon BuyBox?
Amazon is a platform that offers countless products from all categories. You will always find what you are looking for at the online mail order company. The items are available from different retailers in different versions. However, there are also resellers who offer the same item on Amazon. While there are no restrictions on the number of resellers, retailers have to share a product detail page with the same product.
If the customer is now interested in the relevant product, they are directed to the product detail page, which contains further information. On the right-hand side of the page is a small white box - the Amazon Buy Box. The box provides the user with information on shipping, retailer and price. The buttons marked in yellow represent the shopping cart field and the buy now button. If the customer decides to make a purchase, they press one of these buttons and automatically select the winner of the Buy Box.
Why is the Amazon BuyBox important for retailers?
The Amazon Buy Box is permanently linked to a retailer. All sales that are made via the Product detail page integrated box are forwarded directly to the Buy Box Champion. Other resellers only receive orders if the Amazon user selects another seller. This overview list of all sellers can be found below the Buy Box, but very few buyers actually take advantage of this offer.
This option is only known to very few users and is therefore rarely used. Other buyers trust Amazon blindly and assume that the shipping giant will select the best option. So if you want to sell your products as an Amazon retailer, the Buy Box should be your main goal.
The mobile BuyBox
Google's Panda update in February 2011 officially ushered in the era of smartphones. Under the motto "Mobile First", search engines and online stores have been optimizing their services for users of smartphones, tablets and the like ever since. After all, the proportion of e-commerce traffic from mobile devices has increased steadily in recent years. Search queries and purchases are increasingly being made on the move, making mobile devices the most important tool for online shopping.
Amazon is also feeling the effects of these developments:
- There has been a continuous increase in access to the Amazon website via mobile devices.
- Desktop users are decreasing.
- The popularity of the Amazon app is steadily increasing.
- In the 25 to 34 age group, around 14 million people use their smartphone exclusively for online shopping.
These facts and figures underline the importance of mobile users. And Amazon has already taken steps to win over this high-revenue target group. In order to improve the user experience for mobile and tablet users, the Buy Box was also incorporated into the mobile version a few years ago. In contrast to the desktop version, the feature is displayed directly below the product image. The call-to-action catches the user's eye and increases the likelihood of a sale.
Other sellers are not displayed on the smartphone or tablet. The retailer who claims the Amazon Buy Box is therefore the absolute top dog. As the majority of customers make their purchases via mobile devices, the Buy Box profit is the key to your e-commerce success.
How does a seller receive the Amazon BuyBox?
If you sell your own products via Amazon, you do not automatically take part in the Buy Box prize draw. You must fulfill a number of requirements that demonstrate your competence as a seller:
- You have a Professional account.
- You have been registered as a seller with Amazon for at least three months.
- You offer new items.
- The products are available for sale at short notice.
- Your price is based on the average price of the past few weeks.
Mostly automatic for private label retailers
Private label sellers have a decisive advantage: they are the only supplier of a product and therefore do not have to compete. They win the Buy Box without any effort if they meet the requirements of the online mail order business.
Resellers, on the other hand, are less fortunate. They get into the ring with other sellers of the same product and have to prove that they deserve the Buy Box. If you lose the battle, as a reseller you have to hope that customers will look for you directly.
What factors play a role in the awarding of the Amazon BuyBox?
The number of resellers is large. In Germany alone, Amazon has more than 400,000 sales partners who actively sell their products on the platform. Amazon relies on an algorithm to decide who gets the honor of the Buy Box. This is made up of various factors that all have one thing in common: They are aimed at customer satisfaction.
Recommended seller status
To become the owner of the shopping cart field, the seller status plays a decisive role. Be sure to contact the Amazon Business Development Team and inquire about your status within the community. It is quite possible that you will be promoted directly to recommended buyer based on your potential sales volume. If you are not offered verification immediately, you will have to prove your skills as a reseller: A positive sales record over a period of three months guarantees you the much sought-after status.
The price
The lower the price, the higher the probability of becoming a Buy Box winner - that's not how the Amazon algorithm works. The price should be competitive and not greatly exceed the average. Nevertheless, Amazon's main focus is on the overall seller performance, which is influenced by the price.
The availability
Another decisive factor is availability. Express delivery is the order of the day at Amazon; short delivery times and maximum convenience are very important to Amazon. In the best case scenario, the goods should be in the hands of the customer within 24 hours of the order being placed. As a result, resellers only have a chance of getting the Buy Box if the products are available at all times.
Customer satisfaction
As already mentioned, Amazon's main focus is on customer satisfaction. This can be checked using various factors:
- POP: The Perfect Order Percentage reflects orders with smooth processing.
- ODR: The Order Defect Rate provides information about the orders that have received negative customer feedback, a chargeback or a warranty claim.
- PFCR: The pre-fulfillment cancellation rate is an indication of poor inventory management, as orders are canceled before they are shipped.
- LSR: The late ship rate contradicts Amazon's principle that orders are ready for dispatch within 2-3 working days.
- POR: The abbreviation stands for Percentage of Orders refunded and allows conclusions to be drawn about the rate of credit notes.
The customer status
However, not only the seller status, but also the customer's status is one of the biggest influencing factors in the race for the Buy Box. It is therefore helpful to make your own product range particularly appealing to Prime customers, as they have a high position in the Amazon customer hierarchy. At the same time, as a seller you should take care of the well-being of "normal users" and offer attractive services.
Rate of late deliveries
If resellers attract negative attention, this reflects badly on Amazon. For this reason, the e-commerce giant has introduced a quota for late deliveries. If the 4 percent limit of deliveries that are at least three days overdue is exceeded, your reputation and your chances of success on the Amazon Buy Box will suffer.
Contact reaction time
In times of digitalization, a fast response time is an absolute must. Customers expect a quick response to questions, otherwise they will move on to the next seller account. Amazon therefore requires its sales partners to respond to messages and inquiries within 24 hours.
Shipping method and shipping time
Preferred status is given to retailers who enter into a cooperation with Amazon. Delivery is handled by the online mail order company itself, making the platform more secure and reliable. The prospects for FBA offers are therefore bright.
Product condition
The Amazon Buy Box is limited to retailers who offer new goods. B-goods and used products are excluded from the outset.
Order volume
It is also only possible to calculate your sales performance if you have a certain order volume. If you only list a few purchases per month, you should put the Amazon Buy Box out of your mind.
Is it possible to lose the BuyBox again as a retailer?
If you have been able to claim the shopping cart field for yourself, don't rest on your laurels. Because this privilege can quickly be taken away from you. You need to make sure that your performance is consistently high and that customer satisfaction is kept at a constant level.
Nevertheless, it is common for retailers to lose the shopping cart field to the competition. To use the Buy Box algorithm in your favor again, you can improve your delivery time and prices and optimize your service. More positive customer reviews will help you rise in the rankings. If this is not enough, you should compare yourself with the current Bux Box winner. In which area does he perform better than you?
It is also possible for several resellers to share the Buy Box. Depending on the location, one reseller may have the edge and offer customers in a particular region better conditions.
Useful tips for a better BuyBox quota
There is no recipe for success on Amazon, as the many competitors mean that you always have to fight hard for your own top position. However, you can influence the BuyBox quota with a few tips and tricks:
- Planning: Sophisticated inventory management means that your items are always in stock. Amazon attaches great importance to an up-to-date inventory.
- Focus: Put the customer's needs at the center of your activity. Only through excellent customer service and high product quality can returns and cancellations be avoided.
- Communication: No master has ever fallen from the sky - mistakes happen! It is important to inform customers about delivery bottlenecks or staff shortages at an early stage.
Important tools for Amazon sellers
Amazon sellers can counter the strong competitive pressure and high demands with practical tools. The programs support the daily work of sellers and relieve them of a large part of their workload.
With the help of the repricing tool, providers can, for example, monitor the price development of their own product groups. The practical tool constantly checks the current market situation and informs the reseller of price adjustments in a matter of seconds. This prevents the reseller's own prices from being above the average - an important criterion for winning the Buy Box.
Buy Box Amazon pricing strategies: Manual vs. rule-based vs. algorithmic
It has been a popular pricing method for many sellers to lower their prices below their competitors to increase their chances of winning the Buy Box. However, this does not always lead to higher profits, the reasons for this are explained below.
There are three methods used by Amazon to generate new prices:
- Manual
- Rule-based
- Algorithmic
1. manual renewal of prices
Manually changing prices means manually updating the prices for each ASIN.
It is an ideal option for sellers of handmade or unique goods, but proves to be inefficient for sellers of competitive products. As your business grows, this method is considered unsustainable.
2. rule-based renewal of prices
With rule-based price renewal, the competitor prices are checked and the prices are adjusted according to predefined rules. For example, you can set a rule that beats the competitor by a certain amount. This method is easier than manually adjusting prices, but it also has some major disadvantages:
- Since only the prices of competitors are considered, it is limited in its options
- Setting the rules is a time-consuming task and rules can conflict with each other, requiring constant monitoring
Sellers who use the rule-based approach often leave a lot of money lying around, as the approach is designed for price competition. In doing so, many sellers lose the advantage of being able to afford even higher prices due to their high seller metrics and still keep their share of the Buy Box. It also leads to price wars if all sellers constantly lower their prices, ultimately driving down profits for everyone.
3. algorithmic adjustment of prices
The algorithmic adjustment of prices is considered to be the most complex option.
In contrast to the rule-based approach, which only focuses on competitors' prices, the algorithmic approach takes into account all the factors that influence your chances of winning the Buy Box.
By monitoring a wide range of important factors, it ensures that you achieve the right balance between buy box share and profit. The data-driven approach has proven to deliver the highest ROI for retailers as it requires less effort and achieves better results.
However, this method of price change is the most expensive of all the options available and is therefore best suited to larger sellers who are already making a high profit.
Buy Box Alternatives
However, winning the Buy Box is not the only way to sell on Amazon.
The two other options are:
- Other sellers on Amazon
- The provider page
Even if they are not as profitable as the Buy Box, they will still give you a certain degree of visibility.
1. other sellers on Amazon
Directly below the Buy Box is a list of up to three entries. The sellers listed there must still fulfill the Buy Box requirements.
Even if they are not placed there as prominently as in the Buy Box, they still have a higher chance of conversion than those whose offers do not appear at all.
Frequently asked questions about the Amazon BuyBox
Is there a chance of getting the BuyBox if Amazon is the seller?
As a rule, Amazon owns the rights to the Buy Box when the platform itself acts as the seller. Despite all this, a marketplace seller is perfectly capable of claiming the privilege. The only requirement is to have a better seller performance than Amazon.
Is it possible to sell on Amazon without a BuyBox?
Yes, most retailers sell their products without a Buy Box. However, the feature increases sales opportunities and turnover many times over.
Is it possible to lose the BuyBox as a private label retailer/brand owner?
Various reasons can be responsible for losing the Buy Box as a private label retailer:
- The sales performance leaves a lot to be desired.
- The seller account has not been registered for 90 days.
- The product price is too high.
Can the Amazon BuyBox only be won with the Prime label?
The Fulfilment by Amazon label gives the seller a decisive advantage. However, it is not a prerequisite for claiming the shopping cart field.
What are the advantages of the BuyBox?
The visibility of your own products is growing rapidly, as the majority of customers make their purchases using the Buy Box. You receive 90 percent of the orders on your product page.
The bottom line - The Amazon BuyBox as a decisive factor for sales as a retailer
The Amazon Buy Box is justifiably referred to as the Holy Grail for resellers. If you are the registered retailer in the Buy Box, you will receive almost 100 percent of the incoming orders on the corresponding product detail page. Your main aim as an Amazon reseller should therefore be to fulfill the requirements and criteria of the Amazon algorithm in order to position yourself as a winner in the Buy Box. The repricing tool can help you to maintain your position. It is also important that your seller performance is impeccable at all times.
So much for the theory. Unfortunately, these principles are not so easy to put into practice. With our team of experts, we will actively support you and ensure that you receive the honor of the Amazon Buy Box. If you are looking for a suitable Buy Box for your sales activities on Amazon Amazon Agency then contact us today for an initial meeting.
The "BuyBox" is the box on the right-hand side of a product detail page. Customers can add the desired product to their shopping cart there.
The Amazon Buy Box is permanently linked to a retailer. All sales made via the box integrated on the product detail page are forwarded directly to the Buy Box Champion. Other resellers only receive orders if the Amazon user selects another seller. This overview list of all sellers can be found below the Buy Box, but very few buyers actually make use of this offer. What is the Amazon BuyBox?
Why is the BuyBox important for retailers?
