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Tag Archives: how to win amazon buy box

Amazon Amazon Strategies

Buy Box and Product Differentiation on Amazon

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)   

How to win Buy box - Daytodayebay

 

  • 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

 

Price

Buy Box Winning Strategies - Daytodayebay

  • 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.

Feedback Percentage  

 

  • 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

Private Labels

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.

Product Bundles 

 

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.

Create Product Bundles on Amazon - Daytodayebay

 

  • 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.

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Amazon Strategies

Amazon is Biased towards its listings

Recently I discovered this GU 10  Led Light listing on Amazon. I saw it advertised for £21.98 and went to buy but later discover it was temporarily out of stock from Amazon themselves. I spent few more minutes to read product reviews and discovered that this was also sold by a third party at £7.95 ( 63% cheaper than Amazon ) however I would not have known this out if hadn’t spent few more minutes on this listing. So, why did Amazon did not allow this third party to appear before themselves when they are not in stock with Amazon. There seems to be no issue with the third party:

#1  100% Positive Reviews

#2  Free Delivery

#3  Lower Price than Amazon

If this stock was available with Amazon, I would have paid lot more for the same product. From this experience, I would be checking other sellers when I shop with Amazon and you should too ! The one on the top is not necessarily better value for money.

If you were a third party seller on Amazon selling this product, you could win the top spot popularly known as buy box by sending stock to Amazon for fulfilment (FBA). On this occasion this looks like a compulsion rather than choice for this retailer. It does not seem right but who can fight with the mighty Amazon !

** Few days later there was another seller on this listing selling with FBA. I have updated the slides with new seller. If the third party above does FBA they would do it bit lesser price than the new seller and win the buy box.

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Amazon Strategies Amazon Training eCommerce

As the world’s first fully-algorithmic repricer – Feedvisor

[youtube=http://www.youtube.com/watch?v=lDcznOKHTDs]

I wrote  short post on ” Why Amazon Repricing Tool DOES NOT always work ?”  back in October and Dave from UnderstandingE recommended Feedvisor –

“I wouldn’t tar all repricers either the same brush, some are very much price and raise to the bottom driven, however some are much more intelligent.

FeedVisor for example have a self learning algorithm which takes into account all buy box factors, not just price and they will get you not just the buy box but the highest possible price you can sell at to maintain it.

Hence the example you have pictured above, the buy box seller could be using FeedVisor or something similar and they win the buybox even when not at the bottom price.”

Feedvisor claims to be  fully algorithmic repricing solution on the market today, enabling you to continuously and consistently win the BuyBox without sacrificing your profit margins.

Instead of repricing your products based on your competitors’ prices, Feedvisor understands how the Amazon BuyBox works, and is able to reprice your products based on maximum profit, optimum sales, or any other business goals.

I will try this tool sometime soon and reading a “Buy Box Bible” an refreshing my memory.  May be you can give it go !

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