How the Amazon Buy Box Works

January 26,2018
by Hannah Jennings-Voykovich

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Every product page on Amazon features an extremely powerful button: “Add to Cart”. Each day, millions of sellers are competing with each other—and Amazon itself—to be the business on the other end of every click on every product.


To maximize sales on Amazon, sellers need to “capture the Buy Box”. To do this, you’ll need to compete on a lot more than just price. Here’s our quick guide on understanding the Buy Box, and how to capture it.

iPhone 7 with Buy Box.jpgWhat is the Buy Box?


The “Buy Box” refers to the white box on the right side of the Amazon product detail page, where customers can add items for purchase to their cart.


Most products are offered by multiple sellers, which means companies have to compete with other businesses (and Amazon itself) to have their product listing linked to the “Add to Cart” button within the Buy Box. In the industry, this is referred to as capturing (or winning) the Buy Box.

Why is capturing the Buy Box important?


Holding that Buy Box spot is your best chance of selling high volumes of your product. Amazon reports that 82% sales go through the Buy Box, and the percentage is even higher for mobile purchases. If your product isn’t capturing the Buy Box, you’re missing out on a lot of potential income.

How can a seller capture the Buy Box?


Amazon provides basic information about their Buy Box decision-making process online, but has always kept the intricacies of their algorithms private. It’s a complex system based on seller performance and low cost prices. If you have a low customer feedback score, are low on stock, charge too much (or too little), or aren’t an FBA fulfillment client, you may not be eligible to compete.


To capture the Buy Box, sellers have a couple of choices: choose to learn and game Amazon’s Buy Box system alone, or use e-commerce tools that are purpose-built to make their products more competitive in the marketplace.

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How can an e-commerce tool help me capture the Buy Box?


E-commerce tools such as SellerActive maximize your marketplace competitiveness by regularly adjusting your prices—in real time—to make your products most enticing to Amazon’s Buy Box algorithm.


SellerActive has developed its own Buy Box Algorithmwhich takes in a whole range of different factors when setting your products up to be the most competitive.

Repricer Screen Half.pngHow does SellerActive help sellers compete?

SellerActive’s algorithm is set up to help sellers capture more Buy Boxes, maximize margins, and protect profit. The feature also allows sellers to better optimize the algorithm itself, based on the optimal pricing strategies for their unique business.


To get your products set up,  you’ll need to log into SellerActive’s repricing tool, where you’ll punch in a few variables for your products, such as cost, minimum, and preferred pricing. Once you’re ready to go to market, SellerActive’s Buy Box algorithm will quickly and efficiently evaluate how your prices, fulfillment options and feedback scores compare to your competition, and decide on a price to list on Amazon.


This process is repeated regularly—sometimes multiple times a day—to give your products the best chance to win (and keep) the Buy Box. But here’s the kicker – once your product hits the Buy Box, SellerActive can automatically raise your pricing, increasing your per-sale profit margins without losing you the coveted Buy Box spot.

But… does it work?


Yes! Not only do successful Amazon sellers see 22% average revenue growth in the first 60 days of using SellerActive, our repricing algorithm has been capturing the Buy Box 72% of the time for items not yet at the floor—or lowest listed—price.

For a few more Buy Box success stories, check out the infographic below.

If you’re ready to find out more about SellerActive’s repricing tool, schedule a product demo online today, or by calling 1-800-545-7385.

 

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