Buy Box on Amazon Explained: Eligibility and Strategies
Keren Dinkin, Copywriter
10 min read -
Updated:The Buy Box on Amazon is a coveted goal for many sellers. Displaying it on a product’s detail page can significantly enhance visibility, improve conversions, and increase sales.
But there’s a hitch: It’s a contest, and only one can win.
Discover how you can emerge the champ through this comprehensive guide. We’ll break down the Amazon Buy Box, its benefits, and the practical strategies to help you achieve this key position.
What is the Buy Box on Amazon?
The Buy Box (now called Amazon Featured Offer) is a prominent feature on Amazon’s product pages that allows customers to swiftly add an item to their cart. Positioned at the top right, it displays essential information like:
- Price
- Shipping Details
- Seller’s Name
- Buy New (indicates that the product is new)
- Buy Used (option to buy a used version of the product)
- Add to List (option to buy at a later date)
- Other Sellers on Amazon (sold by others on the platform)
With Amazon generating over $500 billion in sales annually, it’s worth noting that over 83% of these conversions occur through the Buy Box. This statistic underscores its important role in a seller’s success.
When multiple sellers offer the same product, Amazon uses a complex algorithm to determine which seller wins the Buy Box. Factors influencing this decision include price, shipping speed, seller performance metrics, and fulfillment method.
For customers, the Buy Box simplifies the purchasing process. Instead of sorting through multiple listings for the same product, they can trust that the Buy Box offers a competitive price from a reliable seller. This convenience is a primary reason as to why it drives such a large percentage of Amazon’s sales.
Essentially, the Buy Box acts as Amazon’s way of endorsing a seller’s offer as the best available option. Winning it can lead to increased visibility and sales, giving sellers a considerable advantage in the competitive marketplace.
Buy Box Benefits for Amazon Sellers
When your listing secures the Buy Box, it becomes the default option for customers ready to make a purchase, dramatically enhancing your visibility and sales potential. Sellers who hold the Buy Box often experience a substantial boost in sales — as much as 300%. The increased exposure that comes with the Buy Box also means more eyes on your products.
As the primary purchase option, it simplifies the buying process for customers, making them more likely to choose your listing over others. This convenience translates into higher conversion rates and, ultimately, more sales.
Additionally, winning the Buy Box enhances your seller reputation. Having it displayed on your product page signals to shoppers that your offer is trustworthy and high-quality. They will see you as a seller who meets Amazon’s criteria of consistently providing excellent service, timely shipping, and competitive pricing.
The Buy Box also gives you an edge in competitive categories where multiple sellers offer the same product, and standing out can be challenging.
Lastly, it can boost your PPC ads’ performance. When your Sponsored listings tied to a specific ASIN gain increased visibility, they enjoy higher click-through rates and reach more potential customers effectively.
Clearly, the benefits of securing the Buy Box extend beyond just increased sales. It is an invaluable tool for any Amazon seller looking to grow their business.
Amazon Buy Box: Eligibility Requirements for Sellers
Winning the Buy Box on Amazon hinges on several important criteria:
Professional Seller Account and Tenure
This type of account not only unlocks advanced selling tools but also makes you eligible to compete for the Buy Box. Additionally, sellers with a longer term on Amazon generally have a better chance of securing it because their established track record of successful sales and high customer ratings indicates consistent performance. This gives Amazon confidence in their ongoing reliability.
Product Condition Must Be New
Only new products can win the Buy Box, as Amazon’s algorithm automatically excludes used items. This ensures shoppers get new, undamaged products when they use the Amazon Buy Box.
Top-Notch Seller Performance Metrics
The Buy Box on Amazon has its own algorithm, which is different from the platform’s A10 algorithm that determines its search results. While the latter serves buyers, the former holds the formula that awards the coveted box to deserving sellers.
Amazon doesn’t disclose the details but it involves scrutinizing these metrics:
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Indeed, it’s a long list, and Amazon holds sellers to the highest standards of these metrics if they desire to bag the Buy Box.
Strong Sales History
Amazon favors sellers with a proven track record of consistent sales and customer satisfaction. If you’re just starting, focus on building a solid sales history by providing excellent service and prompt shipping.
Efficient Inventory Management
Sellers must maintain adequate stock levels to ensure product availability. Frequently running out of stock can hurt your chances of winning the Buy Box, as Amazon prefers sellers who can reliably fulfill customer orders. Consistently monitoring your Inventory Performance Index (IPI) will help you stay on top of your reserves.
Fulfillment Method
Opting for Fulfillment by Amazon (FBA) can be advantageous because it ensures faster shipping and better customer service — both of which Amazon values highly. Using Prime Shipping will also accelerate your logistics.
Competitive Pricing
While price isn’t the top factor that Amazon considers for Buy Box eligibility, it still is a significant one. Remember that this refers to the landed price, which is the total cost a buyer pays for your product, including shipping.
By meeting these requirements, you position yourself as a trustworthy and efficient seller, enhancing your chances of achieving the Buy Box. Focus on these areas to make your listings more attractive to Amazon’s algorithm and to customers alike.
There are 3 ways to check your eligibility for the Buy Box on a specific listing, both found in your Seller Central account:
- Go to the Inventory tab, click Manage Inventory, navigate to your product listings, and look for the “Featured Offer Eligible” column. If this column isn’t visible, click the Preferences button above your product list on the right.
- Type “Buy Box” into the search bar at the top of your Seller Central page. This will open a Help window on the right where you can check the Buy Box availability.
- Use Sellerise alert system, which notifies you instantly when you gain or lose the Buy Box on any of your listings.
Performance Metrics That Impact Winning the Buy Box
In awarding the buy box, Amazon determines which sellers consistently provide the best experience for customers through the metrics enumerated above. The first strategy in your quest, therefore, is to build an excellent seller performance. Here are six techniques that are essential:
1. Keep ODR Low
One of the most critical performance metrics is the ODR, which measures how many orders experience issues, such as negative feedback, chargebacks, or A-to-Z guarantee claims. Having a low ODR rate signals to Amazon that you are a reliable seller who delivers quality service.
2. Ship Timely
This is another vital criterion, as Amazon values sellers who deliver orders quickly and reliably. Proof of this is the existence of Fulfillment By Amazon (FBA), which prides itself on speed and efficiency. Ensuring that your shipments go out on time, at a rate of 97% or higher, can significantly boost your chances of winning the Buy Box.
Conversely, late deliveries can harm your performance metrics and reduce your eligibility. Try to maintain your late shipment rate at less than 4%.
3. Choose an Efficient Fulfillment Method
Using FBA can help you meet Amazon’s high shipping and customer service standards, thus improving your chances of winning the Buy Box. However, if you choose to fulfill orders yourself, ensure your practices align with Amazon’s expectations to remain competitive.
4. Watch Your VTR
Related to the fulfillment metric, the Valid Tracking Rate tracks how often a seller uses an Amazon-verified carrier, service, and tracking number for shipments. Aim for a VTR of at least 95% to meet Amazon’s standards.
5. Maintain Accurate Inventory Management
Having the right products available when customers want them is essential. Running out of stock or canceling orders can negatively impact your seller performance metrics, so strive to put a robust inventory management system in place.
6. Provide Impeccable Customer Service
Response time to inquiries, resolving issues, and overall satisfaction ratings can enhance your seller performance and make you more competitive for the Buy Box. Positive reviews also convince Amazon of your commitment to keeping its shoppers happy.
By focusing on these performance metrics and monitoring their numbers in Seller Central’s Account Health section, you can create a strong foundation for securing the Amazon Buy Box.
How Fulfillment Methods Affect Your Buy Box Chances
Amazon puts a premium on its FBA service, which offers numerous advantages that can boost your Buy Box prospects. When Amazon handles the storage, packing, and shipping of your products, you are assured of a fast and reliable service. This hits two targets with one arrow: Meeting the platform’s high standards for fulfillment and enhancing customer satisfaction through quick delivery and responsive customer support.
FBA can significantly improve your seller performance metrics by reducing order defects and ensuring timely shipments, both critical components that Amazon considers when awarding the Buy Box. Additionally, products fulfilled by Amazon are often more attractive to customers because they come with Prime shipping benefits, which can lead to higher conversion rates.
Alternatively, you may fulfill orders yourself through the Merchant Fulfilled Network (MFN) a.k.a. Fulfilled By Merchant (FBM). However, it’s essential to meet or exceed the standards set by FBA. This means you need to ensure that your shipping times are as fast and reliable and that you provide equally excellent customer service.
Keeping your shipping costs competitive and managing your inventory efficiently are key elements in maintaining strong performance metrics. In this regard, one advantage of using MFN is having more control over your inventory and fulfillment processes. You can implement tailored strategies to manage costs and logistics.
However, the responsibility for maintaining high standards is solely on your shoulders, so consistent monitoring and adjustments are crucial. But with FBM, you can also take advantage of Seller Fulfilled Prime , which enables you to earn the Amazon Prime badge and increase your appeal to Prime members.
Both fulfillment methods have their pros and cons, and aligning with Amazon’s expectations regardless of the method you choose will enhance your chances of earning the Buy Box on Amazon.
Pricing Strategies to Win the Amazon Buy Box
Determining the fees to charge your customers for purchasing your items is not simple for any Amazon seller. And with the Buy Box added to the equation, it becomes a bit more complicated. Consider these options if you’re bent on taking home the prize:
Spy on Competitors
That is, actively monitor their prices and adjust your own to stay competitive and improve your likelihood of getting the Buy Box. Start by researching products similar to yours and identifying the pricing trends in their respective niches. Then, regularly update your prices to reflect market changes and keep your listings attractive.
Offer Promotions and Discounts
Limited-time deals and special offers not only draw more attention to your products but also boost your conversion rates, making your listings more appealing to Amazon’s Buy Box algorithm. Shipping rates play a crucial role, too, so enhance your overall value proposition for customers by giving free or reduced shipping costs if possible. This can make your product more attractive even if its base price turns out to be slightly higher than the competitors’.
Keep an Eye on Profit Margins
While it’s important to stay competitive, you don’t want to sell at a loss. Balance competitive pricing with profitability to establish sustainable growth. It will take you a step closer to the Buy Box and guarantee you’re always in the running to win it.
Manage Inventory Levels to Maintain Buy Box Eligibility
Your third strategy in maintaining Buy Box eligibility is effective inventory management. Consistently running out of stock can negatively impact your seller performance metrics, making it harder to secure this valuable position.
Implement these methods to prevent stockouts:
1. Utilize Forecasting Tools
Closely monitoring your current inventory levels is not enough. You must be ready to predict demand based on historical sales data, seasonality, and upcoming promotions. This proactive approach helps ensure that you always have the right amount of stock on hand — not too much that you end up with a capital loss, but not too few that you can’t keep up with customer demands.
Streamline the process with digital applications that can automate routine tasks like reordering products, tracking stock levels in real-time, and alerting you when stock is low. This method not only reduces the risk of human error but also allows you and your team to focus on other important aspects of your business.
3. Build Strong Relationships with Suppliers
Reliable vendors can offer faster replenishment times and flexible terms, enabling you to restock quickly when inventory levels drop. Additionally, consider diversifying your supplier base to mitigate risks associated with delays or shortages from a single source.
4. Incorporate Safety Stock into Your Inventory Strategy
This buffer is an essential concept that acts as a cushion against unexpected demand spikes or supply chain disruptions. It puts your mind at ease that you can meet customer orders without running out of inventory.
5. Conduct Regular Audits
The main objective of this exercise is to identify slow-moving items and clearing them out. This way, you free up capital to invest in better-selling items, optimize your inventory turnover, and enhance your chances of securing the Buy Box on Amazon.
Customer Service Best Practices to Improve Buy Box Eligibility
In the Amazon marketplace, the customer is king, so establishing timely and clear communication with them should be every seller’s priority. Respond to inquiries and issues as quickly as possible, ideally within 24 hours. This not only helps resolve problems swiftly but also demonstrates that you value their time and satisfaction.
Aim to provide accurate and detailed product descriptions to set clear expectations as, well, to minimize the incidences of returns and negative feedback. When handling returns, make the process as seamless and hassle-free as possible. A smooth experience can turn a potentially negative situation into a positive one.
Additionally, solicit feedback from your customers and use it to improve your services. Positive reviews enhance your seller rating, a key factor in Buy Box eligibility. Encourage satisfied buyers to leave reviews by following up with a polite request after their purchase.
Lastly, make sure your packaging is secure and your products arrive in excellent condition. Damaged goods can lead to negative feedback and hurt your performance metrics. By consistently delivering a high level of customer service, you build a solid reputation that makes you a strong contender for the Amazon Buy Box.
Monitoring and Adjusting Your Amazon Buy Box Strategies
Achieving and maintaining the Buy Box on Amazon requires ongoing attention because winning it is not a one-time achievement. The competition is ongoing, and the crown can change hands frequently. Even if you secure it and see a surge in sales, complacency can cost you as another seller can quickly claim that prized spot. Your goal should be to win and retain the Buy Box as often as possible.
To stay ahead, follow these tips:
- Regularly analyze your performance metrics. Pinpoint areas that need refinement. Use these insights to make targeted adjustments in your operations.
- Stay updated on market trends and competitor activities. Use tools like automated repricers to adapt your pricing strategy dynamically without manual intervention.
- Frequently review feedback and ratings. Understand what you’re doing well and where there’s room for improvement. Promptly address issues and make changes based on common customer concerns.
- Establish an efficient inventory management system. Keep an eye on stock levels, forecast demand accurately, avoid stockouts, and automate reorders.
- Be flexible and adaptable. Keep an eye out for updates to Amazon’s algorithms and policies, as these changes can affect the Buy Box criteria.
- Watch out for unauthorized resellers. Some malicious private label sellers may offer your branded products without permission, risking your brand’s reputation with subpar customer service.
Leverage the power of digital tools to facilitate your continuous improvement toward securing and maintaining the Amazon Buy Box. Sellerise boasts a robust portfolio that could ultimately drive your sales and grow your business.
