With over 40% of online sales transpiring on Amazon, the e-commerce platform is a vital component for online retailers. However, achieving success on Amazon hinges on securing the Amazon Buy Box — and this success is contingent upon comprehending the Amazon Buy Box algorithm. Are you prepared to delve into the intricacies of the Amazon Buy Box formula? Keep reading to uncover all the essential details!
The Amazon Buy Box is a white box situated on the right-hand side of a product detail page. Consumers utilize the Buy Box to add items to their carts or to expedite one-click purchasing. The seller who captures the Buy Box becomes the default selection when a user clicks “Add to Cart” or “Buy Now.” As the default option for shoppers, the Amazon Buy Box is responsible for nearly 85% of Amazon’s sales. This means that less than 20% of sales are attributed to sellers outside the Buy Box, who are positioned beneath it. Consequently, the Amazon Buy Box holds significant value for online retailers, as winning it can lead to increased sales, as most shoppers opt to purchase from the Buy Box seller rather than comparing multiple sellers.
However, the value of the Amazon Buy Box is accompanied by intense competition.
Amazon operates similarly to a search engine like Google, aiming to provide users with relevant results. If users searched for “orthopedic dog bed” and Amazon returned a list of cat beds, they would likely not use Amazon. This principle applies to the Amazon Buy Box as well. If Amazon allowed any seller to win the Buy Box or offered it as a paid advertising option, it would risk delivering poor results and negative customer experiences. By establishing a formula for the Buy Box, Amazon ensures that only qualified and trustworthy sellers with reasonable pricing secure the Buy Box. This approach results in a positive consumer experience, fostering repeat purchases on Amazon.
For businesses new to Amazon or established companies optimizing their stores, understanding the Amazon Buy Box algorithm is crucial. By grasping the formula’s operation, you can begin to win Buy Boxes and drive increased sales.
The Buy Box formula is influenced by these seven factors:
1. Eligibility: Amazon’s Buy Box algorithm is based on eligibility requirements, including being a Professional Seller, selling new products, maintaining strong performance metrics, and ensuring in-stock products.
2. Product price: In addition to eligibility, Amazon considers your product’s price. To win the Buy Box, you must offer competitive pricing, including the landing price, which encompasses the product cost, shipping, tax, and handling.
3. Order fulfillment: One of the most influential factors in the Buy Box formula is order fulfillment. Amazon considers its FBA service to have ideal performance metrics, making it beneficial to invest in FBA to enhance your chances of winning the Buy Box.
4. Shipping time: The algorithm for the Amazon Buy Box also relies on your shipping times. To maximize this factor’s impact, ensure your promised shipping times are met, ideally through Amazon’s FBA service.
5. Order defect rate: Amazon monitors your short-term and long-term order defect rate (ODR) and expects an ODR of less than one percent to win the Buy Box.
6. Customer feedback: Customer feedback, including positive, neutral, and negative responses from the past 30, 90, and 365 days, influences the Buy Box algorithm. Aim for a customer feedback score of at least 90 percent and respond to shopper questions within 24 hours.
7. In-stock consistency: To win the Buy Box, maintain a consistent inventory level. Amazon monitors your inventory regularly, and low stock can decrease your chances of winning the Buy Box.
Implementing these strategies can help you improve your chances of winning the Amazon Buy Box and increasing your sales on the platform. For further assistance, consider partnering with WebFX, the industry’s trusted source for Amazon marketing and advertising. Contact us online or call us at 888-601-5359 to speak with one of our award-winning Amazon Buy Box algorithm experts.
