How Seller Snap Helps You Win Amazon Buy Box Share
As a third-party Amazon seller, your main goal is to increase revenue and as much as possible avoid Amazon returns. One way of dealing with the former is to increase your Amazon Buy Box winning rate. By doing so, an increase in Amazon sales will likely happen.
Staying competitive in the online selling industry is a must for every Amazon seller, especially as Amazon has been rapidly increasing its reach and online sales shares. With the growing dominance of Amazon over its competitors like eBay and Walmart, third-party Amazon sellers are expected to benefit from it as well.
It was even reported last year that Amazon is still in command in terms of sales, with 47%. In the same report, eMarketer forecasting analyst Cindy Liu was quoted saying, “Amazon’s growth still outpaces that of the e-commerce sector as a whole. Amazon will continue to look into areas of high growth potential…”
With the given statistics and the continuous expansion of the e-commerce giant, Amazon sellers are continuously competing for Buy Box share. The Amazon Buy Box is prime real estate, helping sellers increase sales.
Amazon Buy Box: Two Way Perspective
For the benefit of newbie Amazon sellers and to refresh the knowledge of experienced sellers, the Buy Box is the widget visible on the far right of the screen. The main function of the Buy Box is to provide shoppers a quick and easy way to make their purchase of the Amazon product they were searching for.
With the help of the said widget, shoppers may select various options from the selection provided, including the quantity of the item to be purchased, shipping speeds, and even gift options. One of its distinguishing features is the presence of the “Add to Cart” button. Technically speaking, both “Add to Cart” and “Buy Now” buttons are the “Buy Box.”
The one discussed above focuses on Buy Box from a buyer or shopper’s perspective. However, for an Amazon seller like you, you should view the Buy Box as both a sales and advertising opportunity. It is a sales opportunity, for owning the Buy Box increases the chances of your business making more sales. This claim is statistically supported, for according to Statista, more than 80% of Amazon purchases are executed through Amazon Buy Box.
Alternatively, the coveted Buy Box does not only help in sales generation, but it also helps in creating Amazon PPC ads. In order to run a PPC ad, the Buy Box, along with other requirements should be present. With the help of Amazon PPC (pay-per-click), you as a seller will be able to bid on prices of clicks for certain keywords. To know more about Amazon advertising opportunities in general, you may click here.
Buy Box Rotation Overview
Although the Buy Box is commonly observed on the Amazon platform, not all sellers are able to attain it. Amazon will often share the Buy Box among sellers who are eligible for it and are offering competitive pricing. This is called Amazon Buy Box rotation.
As commonly experienced and noticed by Amazon sellers, Buy Box rotation happens when multiple sellers are bidding at the same or similar price for their item. As well as this, Buy Box rotation also occurs in situations when sellers have the same fulfillment method.
Understanding the Buy Box from a singular formula perspective will surely be difficult, for in reality, the concept behind the Buy Box is a bit complicated. The Buy Box algorithm takes into consideration various data points. To name a few, the current market condition, seller’s behavior, the market place itself, are some of the avenues through which the Buy Box algorithm gathers its data.
However, Amazon industry experts and enthusiasts alike are both convinced that Buy Box rotation, though not solely, is extensively dependent on pricing. Such an outlook is based on the fact that price is the most controllable factor among the aforementioned avenues and conditions.
That is why experienced Amazon sellers who are time conscious and result-driven will rather not take a chance with manual repricing but, rather implement a smart pricing strategy with a reliable Amazon repricing tool like Seller Snap.
Buy Box & Seller Snap Dynamics
As previously mentioned, there are many factors for Amazon Buy Box eligibility. This section will focus more on the influence of pricing on your Buy Box strategy as well as the efficiency, competence, and reliability of Seller Snap in influencing the Buy Box winning rate.
Since pricing is one of the most crucial and manageable factors to win the Buy Box, Amazon price wars can and will occur among sellers. Without proper knowledge of Amazon seller tools, one seller will naturally aim to out-price or outbid the others. Thus, resulting in a race towards the bottom of the price structure.
At first glance, such a strategy could be considered effective due to increased Buy Box share. However, a race to the bottom will of course eat into your profit margins. Having the lowest price does not always guarantee the Buy Box, and worth noting that selling on Amazon does not only involve a singular price cycle change.
In order to win the Buy Box without having to always decrease your price, you need a repricing strategy. Seller Snap uses tactics inspired by Game Theory to outsmart your competitors by applying the optimum strategy for each individual listing. The aim here is to maximize profit by increasing the listing price.
Instead of having to immediately drop price continuously, Seller Snap’s algorithm analyzes the pricing behavior of your competitors and uses a collaborative approach to get you your entitled share of the Buy Box at a higher price point, instead of trying to dominate the Buy Box at the lowest price point. When sellers attempt to dominate the Buy Box, it’s likely that they’ll end up sharing the Buy Box, but at their min price.
In the case of a competitor using a rule-based repricer to match the lowest FBA price, Seller Snap’s more advanced AI repricer can easily outperform the rule-based repricer that will result in sharing the Buy Box at the highest possible price, rather than settling on the lowest price.
The algorithmic repricer does this by analyzing Amazon’s price change notifications, scanning the competitive environment, and understanding the competitor’s decision. If you wish to know more about Seller Snap’s AI repricing tools, you may click here.