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Feedvisor Amazon Buy Box Guide Sellers Retailers 2024

The document discusses the importance of winning the Amazon Buy Box for sellers. It provides an overview of what the Buy Box is - the prominent listing on product pages that allows customers to easily add the product to their cart from the featured seller. Winning the Buy Box is crucial for sellers as it directs the majority of sales their way. The document outlines factors that influence who wins the Buy Box like pricing, shipping speed, reviews, and inventory to help sellers maximize their chances of obtaining this important digital real estate. It also discusses myths and strategies for both winning and maintaining the Buy Box over time.

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cjbesmonte01
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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0% found this document useful (0 votes)
101 views27 pages

Feedvisor Amazon Buy Box Guide Sellers Retailers 2024

The document discusses the importance of winning the Amazon Buy Box for sellers. It provides an overview of what the Buy Box is - the prominent listing on product pages that allows customers to easily add the product to their cart from the featured seller. Winning the Buy Box is crucial for sellers as it directs the majority of sales their way. The document outlines factors that influence who wins the Buy Box like pricing, shipping speed, reviews, and inventory to help sellers maximize their chances of obtaining this important digital real estate. It also discusses myths and strategies for both winning and maintaining the Buy Box over time.

Uploaded by

cjbesmonte01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

The 2024 Ultimate


Amazon Buy Box Guide

© F E E DV I S O R
2

Introduction
Updated for 2024, the Ultimate Buy Box Guide Maximize Your Share of the Buy Box
for Sellers and Retailers is your roadmap to
winning the Buy Box in these hyper-competitive
With the Leading Amazon Repricer
times.
Meeting Amazon’s requirements is not enough
to win the Buy Box. In today’s market focused on
convenience and price, having a high-performing
The Buy Box is not only a coveted piece of e-commerce algorithmic repricing platform is essential to
real estate, it is now essential for business survival as effectively compete and convert customers.
consumers trade down and search for deals in this
unsettled economy. Competition is higher than ever, Feedvisor’s award-winning repricer gives leading
and the constant updates to Amazon’s algorithms sellers and retailers the competitive advantage to
and policies, make it increasingly challenging for maximize their Buy Box performance. Here’s how:
sellers to win the Buy Box.
Grow Buy Box Share with Dynamic, AI-Powered
As a result, it’s vital for sellers to stay up-to-date Repricing: Feedvisor’s AI-Driven repricer adapts
with the latest strategies and tactics to increase to market shifts, Amazon algorithm changes, and
their chances of winning the Buy Box while having competitor pricing. Driven by a machine-learning
the right resources and team of experts who can algorithm, it intelligently sets the optimal price
fortuitously guide them through the ever-evolving based on comprehensive market data to maximize
digital marketplace. Buy Box share.

In this revamped guide tailored to the dynamic Optimized Pricing Strategies According to
e-commerce landscape of 2024, discover a strategic Individual Business Needs: Feedvisor’s repricer
roadmap to enhance your eligibility for the coveted optimizes pricing to align with your specific goals,
Buy Box. Uncover insider insights and leverage be it profit maximization, sales boost, or market
Amazon’s best practices to not only expand your Buy share expansion. Plus, the repricer is capable of
Box presence but also outpace competitors, all while detecting when you own versus compete for the
ensuring a profitable maintenance of your existing Buy Box, automatically adjusting and optimizing
market share. pricing without user input.

What’s New: Safeguard Profits with Algorithmic, Rather


than Rules-Based, Repricing: Unlike rules-
Updated Seller Fulfilled Prime Requirements based repricers that risk driving profits down,
Feedvisor’s algorithmic repricer is more
Updated Trial Period Information sophisticated. It determines the optimal price
point — rather than the lowest — to ensure sales
Updated Valid Tracking Rate Details without compromising on profit margins.

More Buy Box Myths With Feedvisor’s comprehensive approach to


achieving Buy Box success, including optimizing
Whether you’re a new seller looking to establish advertising, managing inventory, and more,
a foothold on Amazon or an experienced retailer businesses are able to take a holistic look at their
seeking to stay ahead of the curve, this guide will operations and make data-driven decisions that are
equip you with the knowledge and tools you need to rooted in securing the greatest results.
succeed in the highly competitive world of Amazon
selling.
© F E E DV I S O R
3

Contents

What Is the Buy Box? 4 Order Defect Rate 15


How Important Is the Buy Box? 5 Valid Tracking Rate 16
Late Shipment Rate 16
How the Buy Box Works 6 On-Time Delivery 17
Buy Box Rotations 6 Feedback Rating 17
Beating Amazon to the Buy Box 7 Customer Response Time 18
When No Seller Qualifies for the Buy Box 7 Feedback Count 18
Owning the Buy Box 7 Inventory Depth and Sales Volume 19
Cancellation and Refund Rates 19
Buy Box Requirements 8 Nationwide Delivery Coverage 20
Professional Seller Account 8 Delivery Speed 21
Buy Box Eligibility 8
New Items 8 Buy Box Misconceptions and Myths 22
Lowest Price Point Manipulations 22
Secondary to the Buy Box 9 The 2% Rotation Rule 22
Other Sellers on Amazon 9 Pricing is Irrelevant When Owning
Offer Listing Page 9 the Buy Box 23

Variables That Affect the Buy Box 10 Final Thoughts 24


Fulfillment Method 10
Landed Price 13 The Buy Box Cheat Sheet 25
Shipping Time 14
Stock Availability 15 The Amazon Acronym Glossary 26

© 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,”


will make far more sales than any other seller for that Buy Box sales receive a greater lift when
product. transacted on a mobile phone.

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.

Despite the rising costs associated with selling,


mainly caused by inflation and supply chain
disruptions, third-party marketplace sales on
Amazon grew 13% YoY in 2023, while first-party sales
grew 6% YoY.1

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


even more in 2024, 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
Marketplace Pulse © 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 Owning the Buy Box


Sellers often ask why Amazon itself seems to It is also possible for a seller to have already secured
always be the Buy Box winner, and if it is possible the Buy Box for a product. This is most common for
to ever beat it to that highly sought-after position. Private Labels and brands, as they only sell their own
Overall, the Buy Box treats Amazon as a seller with branded products with unique codes (ASINs) and
perfect customer experience metrics. Therefore, if Buy Boxes — meaning they don’t have to compete
a merchant has near-perfect customer metrics, or a with other sellers for the Buy Box on the same
very low landed price, that seller will often share the product and ASIN.
Buy Box with Amazon, or even beat the company if
the price is low enough. However, there are occasions when an unauthorized
seller can list a counterfeit version of your product
on the platform — commonly known as “hijacking” a
When No Seller Qualifies for the product’s Buy Box. These unauthorized operators take
Buy Box advantage of product listings without permission,
using the credibility and visibility of well-known
There are two instances in which no seller will win brands to promote counterfeit or unauthorized items.
the Buy Box. In these cases, the Buy Box will show
a “See All Buying Options” button, and the buyer To report an unauthorized seller, file an Amazon
will be taken to the Offer Listing page (also known Infringement Report as soon as possible. Here,
as the “More Buying Choices” page), which lists all a seller will attach ownership and authorization
merchants who sell the product in order of landed documentation, a detailed description of the
price only. infringement, and other supporting information.

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
criteria and has not been awarded Buy Box-eligible
1. Must Have a Professional Seller 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.

Win the Buy Box with Feedvisor’s repricing solutions at


feedvisor.com/connect © 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. Buy Box algorithm is the item’s fulfillment method.
Amazon considers its own fulfillment service to
Therefore, even though a seller could be losing to a have perfect scores for multiple variables, including
competitor on one product, the same seller could be Shipping Time (also known as Transit Time), On-
beating the same competitor on another unrelated Time Delivery Rate, and Inventory Depth.
product.
Until recently, it was much more likely for merchants
who use FBA to win the Buy Box. Although a
Fulfillment by Merchant (FBM) seller could still beat
Amazon considers many different factors
an FBA seller to the Buy Box, doing so would require
in determining who wins the Buy Box. The
high relative scores in all areas and/or a very low
importance of each variable can change
price.
according to the product.
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:

At the end of the day, Amazon’s algorithm will never


be fully understood by the outside seller. However, a
sophisticated optimization solution like Feedvisor’s
award-winning algorithmic repricer can detect these
changes is how today’s leading sellers and retailers
can maintain visibility into these key variables in
real time, so they can analyze the data and take
automated actions that drive results.

Maintain visibility into key variables in real time with


Feedvisor’s AI-powered repricer at feedvisor.com/connect © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 11

2. Fulfillment Method: Seller Sellers have the option to leverage Amazon’s Buy
Shipping services for their shipping needs, allowing
Fulfilled Prime (SFP) them to benefit from Amazon’s negotiated rates
and service levels. The shift to Seller Fulfilled Prime
With Seller Fulfilled Prime, high-performing, (SFP) not only brings cost savings but also reshapes
qualified sellers have the option of displaying the the competitive landscape, influencing how sellers
Amazon Prime badge on orders fulfilled via their compete and secure the coveted Buy Box.
own warehouse or third-party logistics providers,
allowing them to maintain control of their fulfillment
operations. Customers have a higher tendency to pay more
to a Prime badge owner and with that badge,
This is especially useful for sellers of large or heavy
sellers in turn have a greater chance of winning
products, since using FBA requires them to pay an
additional cost to ship the products to an Amazon
the Buy Box.
fulfillment center. By eliminating these shipping and
handling fees, as well as FBA long-term storage fees,
sellers are able to offer lower prices, or increase their
margins on these products.

Best Products for Seller Fulfilled Prime

High-value items

Products with seasonal or


unpredictable demand

Items with variations

Slow-moving goods

Inventory that requires special


handling or preparation

© F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 12

To be eligible for SFP, sellers need to prove their Once the trial period is successfully completed (after
ability to meet Prime customers’ expectations for a minimum of 100 orders meet the criteria above)
service by meeting certain criteria before, during, sellers will automatically be enrolled into Seller
and after a trial period. Fulfilled Prime and enrolled ASINs will display the
Prime badge to customers.

The pre-qualification criteria are as


follows: The requirements to maintain Seller
Fulfilled Prime status include:
Have a domestic US address as your
default shipping address Free one-day and two-day delivery for
Prime customers
Have an Amazon Professional selling
account Free nationwide standard shipping for
all customers
Self-fulfilled at least 100 packages
Meet minimum thresholds for one-day
Cancellation rate less than 2.5% and two-day delivery speeds as viewed
by Prime customer detail page views
Valid tracking rate greater than 95%
An on-time delivery rate of at least
Late shipment rate less than 4% 93.5%

A valid tracking rate of at least 99%


Sellers wishing to sign up for Seller Fulfilled Prime A seller-initiated cancellation rate of
must complete a trial period to show they meet less than 0.5%
the requirements. The Prime badge will NOT be
displayed on items enrolled in Seller Fulfilled Prime Ship and deliver Prime orders on
during this time, however, order processing must still weekends (Saturday, Sunday, or both)
be handled with a zero-day handling time.
Offer Free Returns on items weighing
under 50 lb

The criteria to pass the Seller Fulfilled All post-order customer service
Prime trial include: inquiries are managed by Amazon

Participate for 30 days


Amazon has historically suspended sellers who
Ship 100 or more packages from Prime
failed to meet any certain metric. Thanks to recent
trial orders
changes, sellers now have a three-strike allowance
An on-time delivery rate of at least per program requirement. This provides sellers with
93.5% greater flexibility to address issues. Nevertheless,
reaching the three-strike limit necessitates a return
A valid tracking rate of at least 99% to the pre-qualification process, representing a
significant reset within the program.
A seller-initiated cancellation rate of
less than 0.5%

Meet minimum thresholds for one-day


and two-day delivery speeds as viewed
by Prime customer detail page views
© F E E DV I S O R
Courtesy of Amazon
VARIABLES THAT AFFECT THE BUY BOX 13

3. Landed Price
A product’s landed price can be seen on the Amazon
product page as follows:
The landed price is the total amount that the product
is sold for on Amazon. This includes shipping in the
United States, and shipping and VAT in the UK and
Europe. A lower landed price will increase the seller’s
Buy Box share. This is another simple variable to
manipulate, as it is the only one that the seller can
control directly and instantly.

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.

Having a true algorithmic pricing platform in place


like Feedvisor’s award-winning technology can
help you beat out Buy Box competition by having
a solution that will automatically adjust prices for
optimal impact based on real-time market data and
operational insights.

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 14

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 15

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 occurred
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.
A seller’s ODR (Order Defect Rate) takes into
Amazon also recommends that sellers only offer account multiple metrics. The higher the
backorders if they can fulfill orders within 30 days. percentage, the less likely the seller is to win
These recommendations apply to pre-ordered the Buy Box.
products as well, which allows shoppers to place
orders on items in advance of their release dates.
While this score only has a relatively medium-level
Backordered items can be featured in the Buy Box,
impact on the Buy Box algorithm, sellers with more
but items that are immediately fulfillable are favored.
than a 1% ODR may incur significant penalties,
Therefore, avoiding backorders should be a priority
including account deactivation. Ideally, this number
for all sellers.
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 16

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 99% 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 8. Late Shipment Rate


promised delivery date data over the course of a
30-day period. You may have to wait up to 72 hours Late Shipment Rate is the number of orders shipped
for these reporting metrics to be accurately updated later than the expected ship date. The expected ship
and reflected in Amazon Seller Central. 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 day for SKUs already handled in one day or
less.

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 17

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 93.57%
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
10. Feedback Rating
time to make updates to delivery confirmation data.
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
Sellers will now have more flexibility
out of a maximum of five stars.
with a reduced fee from 97% to 93.5%. However,
caution is still advised. Amazon is minimizing the use of
This metric can be seen in Amazon Seller Central
“Promise Extensions,” where customers are provided
and is displayed as follows:
a later delivery date to account for logistical
challenges. Seller Fulfilled Prime performance
metrics will now consider on-time delivery
performance with and without promise extensions.

To prepare accordingly, Amazon has encouraged


sellers to assess their On-Time Delivery Rate for
orders without Promise Extensions to gauge their
actual order fulfillment levels.

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 18

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 19

13. Inventory Depth and Sales 14. Cancellation and Refund Rates
Volume The Cancellation Rate is the number of orders
canceled by the seller pre-fulfillment as a percentage
Amazon prefers to give the Buy Box to sellers who
of total orders calculated during a given seven-day
have enough inventory to deal with the increased
timeframe, and only applies to seller-fulfilled orders.
demand that the Buy Box may create. For that reason,
While a positive score does not have a strong impact
sellers with a larger current inventory, consistent
on the Buy Box share, a pre-fulfillment Cancellation
sales, and a strong stock history may be granted a
Rate greater than 2.5% will have a strong negative
greater Buy Box share.
effect and can result in account deactivation.
Meanwhile, Refund Rate is the number of orders
The strength of the stock history is determined
refunded to the customer post-fulfillment.
by how much time in the last 30 and 90 days the
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
Recent Customer Metrics Data
competitive seller who has frequent fluctuations in
stock quantity and often goes out of stock.
7 days 30 days
These metrics have not been proven to have a Pre-fulfillment
strong effect on the Buy Box when compared to 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
popular products, although we have not seen any Refund Rate 1.79% (1) 6.05% (15)
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
VARIABLES THAT AFFECT THE BUY BOX 20

15. Nationwide Delivery Coverage Size tier Definition

Starting in 2024, Amazon requires that products in


all three size categories – Standard, Oversized, and An item will be considered standard-size
Extra Large – be made accessible with fast shipping if its package weight and dimensions meet
all of the following:
in the contiguous United States.
The length (or longest side) is 18 inches
When a product is equipped with a Prime shipping or less
template, irrespective of its sizing tier, it is inherently Standard-
size The width (or median side) is 14 inches
accompanied by a guaranteed minimum delivery or less
speed of 3-5 calendar days. Sellers are unable to
modify this default setting. Sellers can define regions The height (or shortest side) is 8 inches
or less
for faster delivery speeds such as same-day, one-
day, and two-day options. All regions, regardless of The weight is 20 lb or less
speed, qualify for Prime branding and are subject to
monitoring based on the delivery-speed requirement.
An item will be considered oversize if its
The notable change is that sellers can now have package weight and dimensions exceed
Oversize any of the standard-size conditions but do
the Prime badge nationwide for oversized and extra-
not meet any of the extra large conditions.
large SKUs. Previously, this ability was limited to the
specific regional area where the seller operated.
An item will be considered extra large if its
package weight and dimensions meet any
of the following:

The length (or longest side) is 96 inches


or more
Extra
large The length plus girth is 130 inches or
more (girth is 2 x height + 2 x width)

The weight is 50 lb or more

The item is a television and the length


(or longest side) is 40 inches or more

Courtesy of Amazon

Win the Buy Box with Feedvisor’s repricing solutions


at feedvisor.com/connect © F E E DV I S O R
VARIABLES THAT AFFECT THE BUY BOX 21

16. Delivery Speed


Delivery speed measures how often Prime customers
view products with specific advertised delivery
speeds.

Amazon has expanded the delivery speed calculation


for featured offers to include all page views from
Prime customers in the contiguous US, regardless of
the shipping option. This update also incorporates
Sundays and holidays in the calculation, resulting in
increased delivery speed metrics across all size tiers.

Additionally, orders will now be categorized as Prime


when a Prime customer purchases an offer from a
Prime shipping template, regardless of the chosen
shipping option. This is a shift from the previous
criteria, where orders were deemed Prime only if
a Prime or non-Prime customer selected one-day
or two-day delivery for an offer linked to a Prime
shipping template.

The new delivery speed metrics are as follows:

Size tier Same day ≤ 1 day ≤ 2 days

Standard
N/A ≥ 30% ≥ 70%
Size

Oversize N/A ≥ 10% ≥ 45%

Extra
N/A N/A ≥ 15%
Large

Courtesy of Amazon © F E E DV I S O R
22

Buy Box Misconceptions and Myths


Before you begin exploring new strategies and
solutions for maximizing your share of the Buy Box, Tech Tip: Using a repricing technology
we must first dispel the myths about what the Buy like Feedvisor’s powerful, “AI-first”
Box is not. A plethora of articles have been written platform can help you further grow
about how to outsmart the Buy Box and, while many revenues and profits by pinpointing the
of them may work in specific situations, these are optimal pricing for each of the products in your
generally oversimplified, outdated, or incorrect. inventory. Instead of focusing solely on pricing
your product the lowest to outbid competitors,
Below are the most common fallacies about the Buy Feedvisor’s technology experiments with
Box: raising the prices and monitors how the market
— including consumers and other sellers —
Lowest Price Point Manipulations adjusts.

This theory claims that a seller who undercuts the


lowest competition by a certain percentage and then
takes off an extra penny will always win the Buy Box.
The 2% Rotation Rule
After testing this theory extensively with multiple
Another false assumption is that if a seller’s price is
products, at multiple price points, and in multiple
within 2% (or another percentage) of the current Buy
categories, it is evident that this is not a fixed rule.
Box winner, that seller is guaranteed to win the Buy
The idea may have gained popularity because when
Box at least a certain percentage of the time, as the
it was tested on low-end products, it created a lot
Buy Box rotates between sellers.
of false positives.
Again, there are no statistics or evidence to support
Although lowering prices can increase one’s chances
this theory. Although it appears to work when tested,
of winning the Buy Box, the claim that a certain
this is very likely another example of false positives.
magic bullet equation will guarantee the Buy Box
Buy Box rotations do exist, but this has nothing to
certainly holds no truth. Continually lowering the
do with the 2% rotation rule.
price creates price wars between sellers, driving
down profit margins on all sides. It is crucial to avoid
While we will explore the integral role that rotations
these scenarios by employing holistic, data-driven
play in Buy Box allocation, the assumption that they
optimization solutions that allow you to achieve an
can be manipulated entirely by price has been proven
optimal balance between pricing and profits.
wrong time and time again. Sellers and retailers need
to have solutions in place that can holistically take
into account all the key factors that will affect your
chances of winning the Buy Box.

© F E E DV I S O R
BUY BOX MISCONCEPTIONS AND MYTHS 23

Pricing is Irrelevant When Owning To establish a strategic advantage, brands should


consider various factors influencing the demand
the Buy Box and pricing of their products when formulating their
pricing strategy, including:
Securing the Buy Box isn’t the sole solution for
optimizing sales and profits. While you might not face Shipping Costs
direct competition for the Buy Box on a particular
ASIN, it’s essential to remain vigilant regarding Inflation
competitors offering complementary or substitute
products. Overall Market Trends

Consider this — 36% of customers stress the Your Customer’s Budget


significance of conducting research before making
a purchase, and 60% of them choose to do so on Your Competitor’s Prices
Amazon.1 Even if you have secured the Buy Box,
customers are still evaluating it in comparison to the Combine all of these factors with the data on the
myriad of alternatives available. Most importantly, pricing trends of competitive products to accurately
customers are scrutinizing your price, with 77% reflect demand sensitivity to price, shaping an
highlighting it as a crucial factor in their purchasing informed pricing strategy.
decisions.2 Are they likely to find a better deal
elsewhere? Is your product priced higher compared
to the competition?
Tech Tip: Given the likelihood of your
With this in mind, it’s crucial to strategically price catalog featuring more than one SKU
your products in alignment with competitors to and the ever-changing nature of the
achieve your business goals, whether it’s boosting marketplace, manually tweaking prices
sales, expanding market share, or other objectives. for all your items can quickly become a
There are three types of competitors to consider: time-consuming and confusing task. Swap
Competing, Complementary, and Substitute. your manual approach for dynamic pricing
technology that adjusts prices on a more active
Complementary: A product that enhances and informed basis, rather than relying on
or goes well with another product. occasional gut instinct changes on a monthly
or quarterly basis.
Competing: A similar offering that serves the
same or similar purpose as another product

Substitute: An alternative that can fulfill the


same consumer need or desire as another
product.

Win the Buy Box with Feedvisor’s repricing solutions


at feedvisor.com/connect
1
Feedvisor 2023
2
Feedvisor 2023 © F E E DV I S O R
24

Final Thoughts
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 technology
business improve performance and achieve Buy Box
solution in place to ensure they win the Buy Box at
success.
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
25

The Amazon Buy Box Cheat Sheet


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

FBA or Seller
Fulfillment Method Very high How the seller ships the item FBA/FBM/SFP Current
Fulfilled Prime

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


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

How often Prime customers view products Higher is better, but depends on
Delivery Speed High 45 days
with advertised delivery speed sizing tier

Landed Price High The total price plus shipping Lower is better Current

Less than
Shipping Time High Time it takes to ship the item Up to two days Current
14 days

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 99%

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
93.5%

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
26

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
27

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