“Buy Box” is a very popular term in e-commerce today. Also known as the Featured Offer on Amazon, it is the top right section on a product page. Products listed here have an “Add to Cart” button that allows customers to add items to their shopping carts immediately without clicking into the product itself. Winning the buy box is important because customers are more drawn to the first listing shown. On Amazon alone, 82% of sales go through the Buy Box feature.
If you’re selling on multiple marketplaces, you have probably noticed that Amazon is not the only company using the term “Buy Box”. Walmart has also jumped on this trend, creating their own buy box algorithm and service. There are a few key differences between the Amazon Buy Box and the Walmart Buy Box that you should know if you plan on selling on these marketplaces.
Amazon Buy Box Factors
Amazon has their own algorithm that determines which listing gets displayed in the Buy Box. To win the Amazon Buy Box, Sellers must meet performance-based requirements, which vary by category.. While Amazon does not disclose the target performance-based requirements, because they are subject to change at any time, there are a few ways sellers can increase their chances of winning the Buy Box.
There are four major areas to focus on to increase your chances of owning the Buy Box:
Pricing: Setting the proper price for your products is essential to move inventory and make a profit. You want to price your products competitively. Amazon compares your price to other sellers of similar products to see who sets item prices too high and who sets item prices too low.
Fulfillment: Quickly receiving orders creates a great customer experience and ensures efficiency for your business and for Amazon. When selecting products for the Buy Box, Amazon often favors those who offer faster shipping than competitors.
Customer Service: All businesses receive poor reviews at one time or another. But, that isn’t a bad thing, in fact, it can often be helpful. Providing good customer service is another factor Amazon takes into account. Here, Amazon looks at order defect rates, cancellation rates, and late shipment rates.
- Availability: Amazon will not show products that are out of stock. Managing your inventory properly and not running out of stock is important to own the Buy Box.
Again, the Buy Box performance target metrics will vary depending on the category and any new algorithm updates Amazon makes to ensure the best shopping experience for their customers. However, there are ways for you to check if you own the Amazon Buy Box.
Walmart Buy Box Factors
Walmart has recently opened up their marketplace to third-party sellers. As a result, there will now be multiple sellers offering the same item to customers. While Walmart has many similar ways to capture the Buy Box as Amazon, there are two major areas to focus on.
To increase your chances of owning the Walmart Buy Box:
- Availability: Having inventory available, particularly when there are spikes in interest and demand is an important factor for owning Walmart’s Buy Box.
- Price: When Walmart looks at product prices to display in the Buy Box, they look at the total cost to the customer. In addition to the listing price, Walmart factors in any shipping costs as well.
To win the Buy Box for the Walmart marketplace you will need to make sure your items are in-stock and you have the lowest shipping price. Even being a single cent lower than your competition can win you the Buy Box. Remember that if the total price is over $50, shipping is free from Walmart.com. To see how your listings are performing, you can generate a Buy Box report.
Win the Buy Box With SellerActive
With SellerActive, there are many ways to win the Buy Box. Understanding the different criteria for each platform is important to capture the Buy Box. Using a service like SellerActive can seamlessly integrate and expand your business with Amazon and Walmart Marketplace to properly price and manage your product listings. Email our experienced support staff to learn more about our inventory management software or begin a 30-day free trial today!