The Buy Box on Amazon is the box on the right-hand side of product pages, where you can see the price, shipping time and the seller. This resource allows sellers to increase their sales, and customers widely use it on the marketplace. The main advantage is that consumers can buy straight from the Buy Box by clicking on “Add to Basket” or “Buy now”, with a fast and easy checkout. For this reason, calculations suggest that 82% of Amazon’s sales are made through this buying box. But what happens when there are multiple sellers of the same product? We explain how the Buy Box works so that you can make the most of its potential within your pricing strategy.
Which sellers appear in the Amazon Buy Box?
As far as sellers are concerned, the main aim is to appear in the Amazon Buy Box, which only displays one brand or manufacturer. The rest appear in a box lower down, like other items you might like. However, as mentioned above, only a small percentage of users check which other companies have the product in stock. The majority stick with Amazon’s suggested seller.
Although the marketplace decides who is in the box based on their algorithm, this benefit rotates between sellers. The selection depends on the following factors:
- Sellers’ track records.
- Sales volume.
- Successful transactions and user satisfaction, measured by the number of positive reviews.
- Appropriate stock management in line with demand.
- Good customer service.
Amazon deems these aspects essential, as they base awarding the prize of appearing in the Buy Box on them. They also guarantee a positive purchasing experience for consumers. Apart from this, you should remember that you are not just competing with other companies in your sector. Amazon itself is a competitor with its own suppliers.
Seller bonuses with the FBA system
In addition to the factors above, Amazon gives more points to sellers who use the FBA system (Fulfilment by Amazon). Their logistics solution keeps the management of product delivery in Amazon’s hands. Through FBA, Amazon ensures that sellers always adhere to shipping methods, delivery times and stock availability for selected items. Therefore, Amazon prioritises these sellers aiming to continually increase user engagement, as they already trust the platform.
Importance of competitive pricing on Amazon
Finally, the algorithm also analyses which sellers’ prices are competitive and adapted to customers’ expectations. This is a crucial factor within a marketplace where there is fierce competition, and prices change much quicker than on other sales channels. This does not mean that prices need to be at rock bottom.
Analyse your competitors’ prices and use them as a point of reference before you define a good pricing strategy and boost your sales. From there, you can adopt higher or lower prices consistent with your brand image, your objectives, and the characteristics of your target markets. You can use automated Amazon price monitoring tools to find out how other companies’ prices change at any given moment, and then anticipate their moves.