What is BuyBox?
Suppose if there are multiple sellers offering same product at different prices.
Now out of that list of sellers, one of the sellers’ name is displayed at the product’s page and rest of the seller details are summarized as 22 other offers or 19 other sellers.
The area which displays the featured seller is known as BuyBox.
Why winning the BuyBox is essential?
When you become a Customer, two qualities defines you:
- You are the laziest person.
- You are running short of time.
Because of these two reasons most of the customers do not care about looking at those 22 other offers. They also assume that BuyBox displays the lowest price. Hence, they simply click on ‘Buy Now’ button and make their purchase at BuyBox price.
So if you want to grow your sales, it is of utmost importance to win the BuyBox.
How to win BuyBox?
There is no sure shot way to win the BuyBox, as this is assigned through a very complex algorithm which Amazon keeps on updating and never reveals in full detail. There are a number of factors that affect the BuyBox. Following points given below can help you Win BuyBox:
Customer Rating :
A simple way to understand this point is by putting yourself as a customer!
Suppose you want to buy a product for which there are two sellers and both are offering the product at the same price. Now, one seller has very high customer rating and another seller has reasonably good customer rating. However, it is less compared to the first seller.
Which one would you choose? Obviously the one with higher ratings, right?
A Happy Customer can bring more customers. Try to get as much positive feedback from your customers as you can.
Order Defect Rate :
This refers to the returns initiated by customers because of difference in what customer had ordered and what was received. Difference may be in terms of size or colour or because of missing additional accessory which was mentioned.
Providing the accurate product information helps customers make better buying decisions, which in turn reduces the customer returns.
This Order Defect Rate has to be maintained at 1% to 2%.
Higher the defect rate, lesser the chances of winning BuyBox.
Performance Metrics :
Your overall performance as a seller, though indirectly, affects your sales.
Along with Order Defect Rate, these Metrics include -
How quick you respond to Buyer messages!
How do you resolve the claims raised by Buyers?
Order Cancellations (Not delivering the products within promised period or cancellation due to unavailability of product).
Availability of Product :
By the term “Availability of Product” we mean number of units available for sale and consistency in keeping the product available.
It is always advisable not to go out of stock even for a short time. Plan your inventory well in advance and keep updating your stocks regularly.
Price Competitiveness :
THE single most effective tactic is to offer the product at most competitive price. Who would spend more money, if the same product is available at a cheaper rate?
As a standard practice, marketplace keeps on rotating BuyBox within all those sellers who qualify.
Have a suggestion or a question, please post it into comments.