Even as an online seller, you still get a thrill out of finding a better deal when you’re on the other side of the sale. Whether you discover an amazing offer organically or from a helpful
price-comparison app, the feeling when scoring a product at a lower price than it was selling for at other marketplaces is pretty powerful.
In order to stand out from nearly identical competitors, sellers must strive to offer products at the most competitive prices at any given time. The only way to do this is to stay on top of your competitors’ prices and then respond accordingly when you set your own prices.
That, simply put, is repricing.
Of course, there’s a lot more nuance to repricing, such as the difference between manual and automated repricing, the strategies available for different situations, and the way Amazon’s Buy Box comes into play.
What is the Amazon Buy Box and how to win it?
The Buy Box refers to the white box on the right side of the Amazon product detail page, where customers can add items to their cart and eventually purchase. Thanks to the solid competition and Amazon’s customer-obsessed approach, only users with excellent seller metrics have a chance to win a share of this valuable spot.
It’s estimated that between 80 and 90 percent of sales on Amazon are made through the Buy Box.
Not all sellers are eligible to win the Buy Box. In order to be able to win the Buy Box your type of selling account must be professional, metrics for late shipment, cancellation, etc. should be healthy, and the seller must have a sufficient order volume.
According to Amazon:
“Buy Box eligible sellers are Professional sellers who have met performance-based requirements. There is no additional fee for being Buy Box eligible, and sellers must maintain their performance levels in order to retain the status of Buy Box eligible. Sellers with Buy Box eligible seller status gain placement advantages for their listings on Amazon.com.”
To choose Buy Box winners, Amazon uses a complex algorithm that takes multiple factors into account.
Each factor is has a different weight in the algorithm, with landed price (which is sales price + shipping price), being one of the most important factors.
Here are the Buy Box eligible status qualifications that Amazon lists on its website:
- Order defect rate
Amazon determines Order Defect Rate based on your customer’s feedback and chargebacks.
When determining whether you are eligible for the Buy Box, your time and experience as a seller will be taken into account as well.
Overall customer shopping experience
Before placing you in the Buy Box, Amazon will use the following metrics:
- customer service
It’s super important to note that your Buy Box eligibility could also change over time if you fail to maintain your seller performance metrics which are against Amazon’s Buy Box criteria.
Also, Buy Box eligible status differs from category to category. Some categories have more complicated requirements therefore, you shouldn’t expect to be Buy Box eligible in every category.
Amazon’s Buy Box algorithm is not public of course, but research has decided the metrics that sellers should focus on if they want a chance at winning the marketplace’s most wanted spot.
The most important factors in the Buy Box algorithm are:
Length of time selling on Amazon
Late shipment rate
Customer response time
Tracked delivery rate
Order defect rate
And lastly, the following four metrics have the least impact on a seller’s chances of winning the Buy Box, but they still affect your chances slightly:
Pre-fulfillment cancellation rate
Sellers whose metrics are high in all the above categories, with extra attention paid to the top four, will find their listings win the Buy Box more often. Of course, how high you rank for any Amazon metric is only as important as how high your competitors’ metrics are for each product you list.
Let’s say you have a 98% seller rating, that is something you can use to your advantage, until you meet a competitor with a 99% or 100% seller rating. In order to win the Buy Box against those users, you’ll have to make up for the difference by having better metrics in the rest of the categories, such as fulfillment method, shipping time and price.
To sum up
Pay attention to whom you’re competing against with your best listings, so you get an idea of your chance of winning the Buy Box for each product that you sell. If it seems like your competitors have far better seller metrics on certain listings, it’s a good idea to consider investing in different products where your competition doesn’t have as good metrics, so you’ll be in a better spot to win the Buy Box.
After all, the products you choose to list should be based on how likely you are to sell them profitably. And even if demand is high for the products in question, you may not be able to hit your sales targets if your competition on those products is out of your league when it comes to Amazon metrics. That’s why it’s important to meet the metrics we’ve talked about and maintain them in a good condition.
One way to do that is by using a price monitor.
Repricehub monitors and updates the prices of your listings so you never lose money or sell out of stock products in your Amazon dropshipping business!
The key features are:
Price monitor – Automatically checks and updates prices and availability of all your products.
Updates prices twice an hour, every hour
See your entire inventory at a glance
Use multiple suppliers (add more on demand)
Configure listings in bulk through CSV
Full integration with Amazon – Repricehub connects to the Amazon API to sync Inventory data directly.
No third-party software needed
Lightning fast price updates
Secure and super easy to set up and use
Order management – All your Amazon orders and the corresponding supplier items in one place.
Know your exact profit from each sale
Check detailed order information
Navigate to your Amazon order and supplier product with one click
Sign up for the 14 Days Free Trial with 3 easy steps.
For any additional questions, you can contact the Live Chat Support directly or book a Free Demo with our team from HERE.