Just recently, Amazon announced that FBA Small and Light recommendations were added to their Growth Opportunities tool to help Amazon sellers maximize their business.

Amazon Seller Tool Overview: What is Amazon The Growth Opportunities Tool?

Amazon Growth Opportunities is an Amazon seller tool that provides sellers with actionable insights on how to grow and improve their business performance from a single page. 

Growth Opportunities is another feature in Amazon Seller Central that gathers recommendations from various Amazon programs. The aggregated recommendations that this seller tool provides comes from multiple sources, which primarily include:

• Amazon’s assessment of your product’s sales potential
• Sales lift experienced by other Selling Partners after completing the recommended action on similar products

The gathered data is then centralized to help sellers choose the actions that make sense for their business. Through this Amazon seller tool, sellers can decide whether to invest their resources in a particular inventory item.  

Amazon Growth Opportunities is a powerful Amazon seller tool that can help you focus on the program or task that is most likely to impact your performance. Similarly, this Amazon seller tool can also improve traffic and discoverability of your listings. Hence, increasing your product listings sales conversion.

What Is FBA Small and Light?

Recently, Amazon announced that sellers can now view all of their products that are eligible for enrollment in the FBA Small and Light Program. So, what exactly is the FBA Small and Light Program?

As a way of helping sellers, Amazon created a program called FBA Small and Light. This Amazon program reduces fulfillment costs for products that meet certain criteria, such as weight, size, and price. 

The FBA Small and Light program allows sellers to offer small and lightweight products at an affordable price for customers. The program’s goal is to make it more cost-effective for sellers to offer these types of products while presenting customers with more affordable listing prices.

How Sellers Benefit from This Amazon Seller Tool Update

With the FBA Small and Light recommendations added to the Growth Opportunities tool, sellers can now have better insights and recommendations concerning products enrolled in the FBA Small and Light Program. 

In addition, the seller tools’ potential sales lift metric can help Amazon sellers prioritize specific FBA Small and Light actions by estimating which products will have the greatest return from enrollment. Furthermore, the Growth Opportunities tool can also help sellers make more informed decisions about which products to enroll in the Small and Light Program.

Identifying Common Business Challenges 

The Amazon Growth Opportunities tool is a valuable resource for Amazon FBA sellers looking to gain an edge over their competition. However, such a tool is somehow limited to the programs added to it.

For an increased success rate in the Amazon marketplace, it likewise is essential for Amazon sellers to look into other challenges in the industry. There are many challenges that can arise when growing an Amazon business, including:

Competition: The Amazon marketplace is highly competitive, with millions of sellers offering a wide range of products. It can make it difficult for new sellers to stand out and attract customers. 

Pricing: Setting the right price for your products can be challenging, as you need to take into account the cost of production, shipping, and fulfillment, as well as the prices of similar products on the marketplace. Hence, it is highly suggested that sellers utilize an Amazon repricer to optimize their pricing strategy.

Shipping and fulfillment: Managing the shipping and fulfillment of your products can be a major challenge, especially if you are dealing with a large volume of orders.

Customer Service: Providing excellent customer service is essential for maintaining a good reputation on Amazon, but managing customer inquiries and complaints can be difficult, especially as your business grows.

Marketing: Effective marketing is crucial for attracting customers and driving sales on Amazon, but it can be challenging to develop and implement a successful marketing strategy. Thus, sellers need a better understanding of Amazon’s marketing and advertising strategies. 

Growing Your Amazon Business

Growing an Amazon business can be complex and challenging, but results can be rewarding. By identifying areas of your business that need improvement, you can take steps to optimize your business performance and achieve success on the platform.

In addition to using the Amazon Growth Opportunities tool to gain insights and specific recommendations for particular Amazon programs, you can also use other Amazon seller tools to identify and address other challenges in the business. You can do more and achieve more by utilizing the right Amazon seller tools for your business.

As a third-party Amazon seller, your main goal is to improve Amazon sales or 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 Amazon Buy Box share. The Amazon Buy Box is prime real estate that helps to improve Amazon sales.

Amazon Buy Box: Two Way Perspective

For the benefit of newbie Amazon sellers and to refresh the knowledge of experienced sellers, the Amazon 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. Hence, Amazon Buy Box eligibility is important, as well as winning the Amazon Buy Box.

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. Thus, emphasizing again the importance of Amazon Buy Box eligibility and understanding the Amazon Buy Box formula.

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. That’s how the Amazon Buy Box formula works. 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 | Winning Amazon Buy Box

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 in winning Amazon 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.

Therefore, making it important for sellers to understand Amazon Buy Box eligibility. This buy box eligibility Amazon is crucial in any seller’s goal to increase sales and store engagement.

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 apart from simply understanding buy box eligibility Amazon. 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.