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Get the Amazon Buy Box and Expand Your Business: 6 Tried-and-True Vendor Strategies

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...

Amazon Buy Box

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 Buy Box

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

How To Increase your E-commerce Conversion Rate

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