What is the Amazon Buy Box? (Featured Offer)
What is the Amazon Buy Box? (Featured Offer)
Many sellers can sell the same item on Amazon, on the same product listing.
When a customer visits the listing, Amazon determines which seller the customer buys the product from based on a number of factors.
The seller that Amazon chooses will earn the sale from the customer is placed in the “Buy Box”, the former name for the now “Featured Offer” and when the customer hits add to cart, the inventory and sale come from the selected seller.
To say Amazon’s terminology and policies are complex is an understatement.
As an Amazon Consultant for 10+ years one of the questions I get the most is:
“What is the Amazon Buy Box?” (Featured Offer)
One of the other most common questions I get after that is:
“How do I win the Buy Box?” (Featured Offer)
That’s why I put together this in-depth guide on what is the buy box on Amazon, how you can win the Amazon Buy Box, and much more to help you increase sales on Amazon quickly whether you’re an Amazon Seller Central seller, using Amazon FBA, Merchant Fulfillment, FBA Small and Light or selling Amazon B2B alike.
What is the Amazon Buy Box? (Featured Offer)
The Amazon Buy Box (now, Featured Offer) is how Amazon determines which seller the customer buys from based on a number of factors when there are multiple sellers of the same product on a product listing.
The seller that Amazon chooses will earn the sale from the customer is placed in the “Buy Box”, the former name for the now “Featured Offer” and when the customer hits add to cart, the inventory and sale come from the selected seller.
Amazon chooses what sellers have the Amazon Buy Box algorithmically.
Amazon Buy Box Example: (Featured Offer Example)
In this example, the Buy Box (Featured Offer) is highlighted in red and tells the customer who they’re buying from and by what shipping method.
From this example, we can see that the seller is Cambio Roasters and it is shipping from Amazon.
That means Cambio Roasters has listed the product on Amazon, has won the Buy Box over any potential distributors or 3rd party retailers and has sent inventory to Amazon FBA, so when the order ships, it will come from Amazon.
This process of clicking the Add To Cart button and checking out isn’t always that easy.
Especially if you don’t have the Buy Box.
And as a consultant for Amazon, I can tell you this, makes having the Amazon Buy Box that much more important.
Why is the Buy Box Important?
With 90% of Amazon sales coming from the Buy Box (Featured Offer), it is incredibly important to win the Amazon Buy Box.
Here’s why:
If you aren’t in the Amazon Buy Box, this is the complicated process that a customer would have to follow in order to buy from you.
1) The Customer Finds and Clicks The More Buying Choices Box
2) The Customer Finds an Offer Attractive To Them From The List, Then Adds To Cart
As you can see, without having the Amazon Buy Box, your odds of making a sale are significantly diminished.
The thing is, not everyone is eligible for the Amazon Buy Box.
How To Become Buy Box Eligible
To be buy box eligible on Amazon Seller Central you need to be a professional seller whose Seller Account meets all of Amazon’s performance-based metrics.
There are no additional fees to become Buy Box eligible and Amazon does not specifically state how to become Buy Box eligible on Amazon but most agree it depends on the following:
- Order Defect Rate (ODR): This is based on customer feedback, A-to-Z Guarantee claims, and chargebacks.
- Customer Experience. Buy Box eligibility can be improved through shipping speed, shipping options, competitive pricing, using Amazon FBA, and customer service.
- Seller Metrics: Metrics such as sales, pre-fulfillment cancel rate, late shipment rate, refund rate,
- Seller Tenure: The length of duration that the Seller Central Professional Account has been active and selling on the platform.
- Pro Merchant Status: Having a Professional Amazon Seller Account rather than an Individual Selling Account.
How To See If You’re Buy Box Eligible:
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Begin by navigating to your Amazon Seller Central and clicking on the Inventory tab.
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From there, select the option labeled “Manage Inventory.”
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Now, click on the Preferences tab to access your preferences settings.
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Within the Column Display section, you’ll find the Buy Box Eligible field.
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From the drop-down menu in this field, choose the option that reads “Show When Available.”
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With this setting in place, you can easily determine your Buy Box eligibility for a specific SKU. If you’re eligible, the Buy Box Eligible column will display “Yes.” If you’re not eligible, it will show “No.”
That said, even with strict adherence to Amazon Seller best practices, you may not have a buy box or lose your Amazon buy box. (Featured Offer)
Here’s what to do about it…
How To Win The Buy Box on Amazon
If you’ve ever lost the Amazon Buy Box (Featured Offer) or are new and don’t have the Amazon Buy Box on your listing, you know how painful not winning the Amazon Buy Box it is.
Dealing with Amazon Buy Box issues can be complex.
Luckily, there are 13 key focus areas for you to target to win the Amazon Buy Box.
1) Fulfillment Method:
Opting for either FBA (Fulfillment by Amazon) or SFP (Seller-Fulfilled Prime) generally provides sellers with an advantage compared to those who utilize Amazon FBM (Fulfillment by Merchant), assuming all other factors remain constant.
2) Landed Price:
The landed price represents the total sale price of a product on Amazon. If a seller’s performance metrics are lower than those of their competitors, they may need to reduce their price to enhance their chances of securing the Buy Box. Conversely, higher metrics allow for price increases while maintaining Buy Box eligibility.
3) Shipping Time:
Faster shipping is a key determinant of success.
4) Availability:
While back-ordered items can still feature in the Buy Box, Amazon’s algorithm typically favors items that are ready for immediate fulfillment. Therefore, avoiding backorders should be a top priority for all sellers.
5) Order Defect Rate:
This metric combines the Negative Feedback Rate, the A-to-Z Guarantee Claim Rate, and the Service Chargeback Rate.
6) Valid Tracking Rate:
This statistic measures the percentage of shipments with complete tracking information.
7) Late Shipment Rate:
It quantifies the number of orders dispatched after the expected shipping date.
8) On-Time Delivery:
This percentage reflects orders delivered within the specified timeframe.
9) Feedback Score:
The rating given by customers, particularly recent ones, significantly impacts your performance.
10) Customer Response Time:
Responsiveness to customer inquiries plays a pivotal role. Delayed responses can harm your chances of securing the Buy Box.
11) Feedback Count:
The quantity of customer feedback received is a pivotal factor. Generally, more feedback is better.
12) Inventory Depth and Sales Volume:
Maintaining consistent and adequate inventory levels provides a competitive edge over sellers with fluctuating stock levels.
13) Cancellation and Refund Rate:
Frequent cancellations of customer orders can negatively impact your seller performance, so it’s essential to minimize them.
That said, Amazon selects Buy Box winners algorithmically, so how does the Amazon Buy Box algorithm work?
How Does The Buy Box Algorithm Work
The path to an Amazon Buy Box victory isn’t straightforward or singular. Instead, it’s a multifaceted, intricate algorithm.
The Amazon FBA Buy Box algorithm considers a multitude of data points and layers of information extracted from the marketplace, current market dynamics, and every seller. Its goal is to provide customers with the best value for their money.
Reducing the algorithm’s considerations to just pricing oversimplifies the matter. In reality, it seeks to determine the product offering that strikes the best balance between strong seller performance and competitive pricing.
Amazon’s ultimate aim has always been to offer an exceptional experience for its customers, emphasizing a “customer-obsessed” approach. Hence, the idea that price is the sole factor in the formula, as some might speculate, seems unlikely.
While the exact workings of the Buy Box algorithm remain shrouded in secrecy, some aspects are clear:
The algorithm assesses each eligible seller by breaking down their performance into numerous variables. It then evaluates these variables in comparison to other sellers offering the same product, ultimately deciding which seller offers the most compelling value to customers.
The weight assigned to each variable can fluctuate depending on the product or category. As a result, a seller may lose to a competitor on one product while outperforming that same competitor on an unrelated item.
For instance, in the realm of perishable goods like fresh flowers, delivery speed could be of paramount importance. Therefore, a seller offering same-day delivery might gain an edge over a competitor with a two-day shipping schedule. On the other hand, for durable electronic gadgets like smartphones, shipping time might be a less critical factor.
Every seller should channel their efforts and resources into strengthening the specific variables that hold significance for Amazon, tailoring their approach to the dynamic nature of the Buy Box algorithm.
Frequently Asked Questions
By the way, marketing in Amazon & eCommerce is complex, with lots of challenges that cost you time & money.
If you want to sell more and spend less, I’m a top-rated Fractional CMO, Amazon Consultant & eCommerce Consultant with 10+ years of Fractional CMO Services, Amazon Consulting & eCommerce Consulting experience, and come with a proven, one-of-a-kind system to drive sales.
Whether it’s consulting Amazon brands, working with great companies at my Fractional CMO Agency or helping grow eCommerce website sales at my eCommerce Consultancy I can help you sell more & spend less.
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