As an Amazon dealer or seller, you are aware of the significance of obtaining the Buy Box. Customers can click the Buy Box to add pr...
As an Amazon
dealer or seller, you are aware of the significance of obtaining the Buy Box.
Customers
can click the Buy Box to add products directly to their shopping baskets on the
product detail page.
Amazon
estimates that 82% of sales come via the Buy Box, and that number rises even
higher when include mobile purchases.
But how can
you get the Buy Box in the first place when there is so much competition on the
platform? What happens if you're a vendor who sells to Amazon rather than a
direct seller? Is there a method to make it more likely that one of your
products will appear in the Buy Box?
We will
address each of these queries and provide you with useful advice on how to win
the Buy Box on Amazon as an Amazon vendor in this blog article.
Now let's
get started!
How does
the Amazon Buy Box work?
The Buy Box
has probably appeared hundreds of times if you have made any purchases on
Amazon.
It has the
"Add to Cart" and "Buy Now" buttons and is situated to the
right of the product information page.
Amazon
allows numerous merchants to offer the same product. Based on a set of
criteria, Amazon gathers products from various sellers and selects one to be
featured in the Buy Box.
Amazon is
now a buyer-centric platform, which means that before giving any seller the Buy
Box, the platform will rigorously evaluate them based on a few criteria.
They are
as follows:
Availability: The degree to which your goods can
be shipped to clients immediately.
Cost: If the item has the most affordable
pricing.
Convenience: If you provide simple return
procedures or quicker delivery.
Furthermore,
maintaining a positive image on Amazon and delivering consistent results are
necessary to obtain the Buy Box. Winning the Buy Box is more difficult than it
has ever been as the fierce competition heats up.
You would
anticipate consistently receiving the Buy Box if you were a vendor selling
directly to Amazon. However, reality says a different story.
Causes of
the Amazon Vendor Buy Box Loss
Although
cost is a significant determining factor, there are a few other considerations
as well, like:
Minimal
Inventory Levels
If Amazon
notices that a vendor's stock availability is irregular or low, it may reduce
the vendor's eligibility for the Buy Box or remove them entirely.
High prices
The
suppliers that provide the best value for clients are given preference by
Amazon's algorithm, which compares the pricing of several vendors for the same
goods. A merchant may lose the Buy Box to another seller if their price is too
high or not aggressive enough.
Metrics
of Poor Performance
Based on a
number of variables, including order defect rate, customer feedback, shipment
speed, and more, Amazon keeps track of a vendor's performance. A seller may
forfeit their selling rights completely or the Buy Box if they do not satisfy
Amazon's requirements or if they have a history of receiving unfavorable
reviews.
Policy
Offenses
Vendors must
adhere to Amazon's stringent policies and guidelines regarding customer
service, product authenticity, listing correctness, and other matters. A vendor
may lose the Buy Box or face legal action from Amazon if they break any of
these rules or partake in illegal activity including selling fake items,
falsifying reviews, or violating intellectual property rights.
Six Ways
for Vendors to Win a Buy Box
Now that you
are aware of the elements that influence the Buy Box, let's examine some
particular tactics you can use to succeed as an Amazon merchant.
Enhance
Amazon's Price Structure
Because it
values its consumers the most, Amazon uses the Buy Box to provide sellers who
offer the best pricing an incentive.
However,
occasionally it doesn't work out to be the lowest price. If you significantly
undercut Amazon's price in order to obtain the Buy Box, Amazon may believe that
you are engaging in predatory pricing and may add you to their list of
prohibited sellers.
Products
that are not profitable to sell on Amazon's marketplace are referred to as
CRaP, or Can't Realize any Profits. Losing the Buy Box and receiving less
visibility for your products are the consequences of being on the CRaP list.
Examine your
present cost structure to determine whether you can reduce costs without
compromising quality. This will enable you to maintain your margins while
offering competitive prices.
Manage
Your Minimum Advertising Policy (MAP)
Enforcing a
Minimum Advertising Policy (MAP) is another strategy to stop other merchants
from undercutting your prices. Vendors benefit from increased profitability as
a result of the cost-effectiveness, and their products are less likely to be
included on the CRaP list.
Think of
yourself, for instance, as an Amazon dealer offering a premium microphone. It
is stipulated in your MAP that the microphone cannot be marketed for less than
$200.
Listings for
independent resellers who are offering your product for sale can be kept an eye
on.
Notify
Amazon and take appropriate legal action if you discover any reseller marketing
the product for less than the $200 that was agreed upon.
The product
keeps the same price in every listing using this MAP. This consistency helps
your ranking on Buy Box by giving Amazon's system a signal of dependability.
This has
several disadvantages but can help you win Buy Box in the short term. For
instance, MAP is not long-term sustainable and might be challenging to monitor
and audit.
The Can't
Realize Any Profits (CRaP) List should be avoided.
As
previously indicated, losing the Buy Box is a direct result of being listed
under CRaP.
When these
sellers try to compete with others, their low or nonexistent margin is caused
by high shipping costs and low price per item, which causes them to lose Buy
Box.
But if
you're on the lookout, you can spot these product types. These are a few signs:
· These products are no longer promoted
by Amazon directly.
· The "Save & Subscribe"
option is no longer available.
· Amazon won't place another order with
you for these goods.
CRaP
products often fit into one of the following categories:
· Large or heavy objects
· Products that don't seem to be in
stock at all
· Inconsistency in prices across
multiple digital channels
· Variations in the sales velocity
· E-commerce price that is not as
optimized as retail
In the end,
there is a good probability that your product will be added to the CRaP list if
it is included in one of these categories. Additionally, you can witness a drop
in product sales.
Stricten
Up Your Distribution Management
Although
many sellers attribute the loss of the Buy Box to Amazon's algorithm, it's
preferable to consider the placement of the Buy Box on Amazon as a result of
your distribution plan.
It's likely
that certain businesses would undercut your price to obtain the Buy Box if you
start selling your products in bulk to everyone.
Although it
may seem difficult at first, this is actually a hidden opportunity. You are the
maker and owner of the brand, so you are the one who decides who gets to sell
your product first.
It is
therefore imperative that you take stock of your business and determine who
else is selling your product on Amazon if a third-party seller takes the Buy
Box away from you.
Boost
Processes for Inventory Forecasting
It goes
without saying that stock availability is a major decision factor for Amazon
when it comes to the Buy Box.
Research
indicates that there is a 42% decrease in sales on Amazon if the in-stock rate
falls from 90%+ to less than 30%. Furthermore, following a single day of supply
outage, it often takes three to four days to restore full sales velocity.
Therefore,
to maintain your Buy Box placement, make sure that your inventory never drops
below 30% by refining your stock forecasting.
Reorganize
Your Logistics
Vendors and
sellers pay varying prices on Amazon.
Amazon
charges an average referral fee of 15% to sellers, with an extra cost for FBA
sellers.
On the other
hand, the referral fee is negotiated with each vendor separately.
Therefore,
there's a good likelihood that Amazon will transfer the Buy Box to the 3P
seller rather than the vendor if the referral fee for a 3P seller selling the
identical goods is higher.
Fortunately,
Amazon gives 1P merchants the resources they need to lower variable handling
and delivery expenses.
Vendor
managers can reduce shipping costs for vendors and Amazon by enrolling
suppliers in supply chain efficiency programs.
Additionally,
they can leverage techniques of consolidation such as Full Truck, Direct
Import, or Full Pallet Ordering to make it more affordable for Amazon to accept
purchase orders.
To maintain
recurring Buy Box victories, the supply chain savings might be reimbursed to
Amazon as a recommendation.
Note: To
guarantee that order confirmation and shipment satisfy Amazon's stringent
requirements, concentrate on streamlining operational efficiency if you're
using the Direct Fulfillment or Vendor Flex model. If you don't, 3P Sellers
might take the Buy Box away from you.
Purchase
Box Lost Already? How Can I Recover It?
It can be
annoying to lose Buy Box even after you've followed the best practices.
You must
first admit that the Amazon merchant Buy Box is gone. After that, you can
consider what to do next.
Don't ever,
under any circumstances, slash the product price out of panic.
How come?
It's nearly
hard to raise your pricing again after these price reductions, which will also
significantly lower your profit margin.
Thus, how
can you help?
Here are
some tactics you can use to reclaim the Buy Box.
In Brief, Make Use of Your Seller Account
Activate
your seller account as soon as possible after losing Buy Box.
Start pushing sales of the same product through the seller account in order to maintain brand visibility and the integrity of your product line.
Make Time-Limited Offer
To make the
product pricing competitive, consider offering discounts for a restricted time
instead of lowering the base price. You may be able to win the Buy Box and
boost your sales with its assistance.
Note: In
order for this technique to be successful, you must first defend your profit
margins.
Handle
phony vendors and counterfeit goods
For most of
the successful Amazon merchants, this is a typical issue.
Start by
using the standard scare technique. Via the Amazon platform, send a "Cease
and Desist" letter alerting them to the impending legal action.
Find out
more about this specific unlicensed seller if this doesn't work. Utilizing the
product's serial ID, try to locate the supply chain and trace it. You can use
this to determine whether or not the seller is permitted.
You can take
appropriate measures to address this problem in accordance with the
distribution agreements in your marketplace.
Extended
Procedure
Refine
operational procedures like supply chain management, inventory control, and
logistics tracking over time.
Regaining
Amazon vendor Buy Box is simple once they are honed.
Final Thoughts
Regaining
the Buy Box is not as hard as it seems.
But in order
to keep your inventory under control, your pricing competitive, and your
distribution control in check, you must remain composed and devise a plan of
action.
You’re
headed in the right direction if you can do this consistently.
Although
it's not an instant remedy, following these guidelines will improve your
chances of regaining the Buy Box.
Read More:
Utilize Amazon Inventory Management System to Increase Your Profits
An Introduction to The Amazon Seller Flex Program In 2023, be fully informed
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