Amazon is now a very crowded marketplace compared to 10 years ago when I first started selling. Sellers are now finding it tough to rank on best match search result and it is the same with winning the buy box. The Buy box is simply a top prominent “buy now” button. Losing this position may mean no sales at all. This post will talk about how to win a buy box and how product differentiation is a good way forward.
Amazon has set out many criteria to win the buy box position and out of many – Fulfilment By Amazon, Price and Feedback percentage are the main ones in my experience.
Fulfilment By Amazon (FBA)
- In this example, the product sold by Amazon wins the buy box even if there are other cheaper products.
- Tip: Trial FBA if you are competing with other Amazon sellers
- Lowest price seller wins buy box in this example
- Tip: Monitor your price and amend as necessary. It is always good to generate sales volume with less profit than no sales at all
Manual price update is possible with less SKU but if you have a high number of items automated solutions like eprice can help. It connects with all your Amazon accounts, follows your pricing rules and automatically changes prices keeping you competitive all the time.
- Seller with high feedback % wins the buy box
- Tip: Ensure your performance level is up to standard. It is always best to avoid bad feedback even if this means a loss. This is simply because bad feedback impacts on your overall account.
So how to avoid Buy Box Competition
We have seen the rise of “Amazon Private Labels”. They are simply a copy of original products the “Aldi” way and production is now possible in smaller batches by reaching out to Chinese manufacturers via Alibaba or Global sources. Private labels now play a very significant role in creating sustainable businesses with Amazon.
What we are seeing here is successful three-way relationships between Amazon, brand owners and factories and this is only going to get stronger.
Another way to avoid buy box competition is grouping products. If you are selling brands readily available to anyone else, it is good practice to include one of your brands in a bundle. This prevents any one else to list on your ASIN.
- Tip: Include your own brand to prevent others from selling
With the rise of Amazon sellers everyone is doing their best to win the buy box and differentiate their products. The above examples hopefully act as reminder. If you have any more questions, please do get in touch.