Why Should Amazon Sellers Care About the Amazon Buy Box?

Selling products on Amazon Australia opens the doors to a growing customer base. However, reaching customers and making a sale often requires you to win the Amazon Buy Box.

What Is the Amazon Buy Box?

The “Buy Box” is a widget that typically appears on the right side of a product listing page. It includes the price, delivery estimate, and buying options.

The Buy Box also states where the product ships from and who sells it. Shoppers can scroll down to compare options from other sellers in the “More Buying Choices” box. However, if they click “Add to Cart” or “Buy Now”, they go with the default seller chosen by Amazon.

“Winning the Buy Box” occurs when Amazon selects you as the default seller for a product listing.

For Amazon Australia, the Buy Box is called the Featured Offer. Amazon chooses sellers based on a variety of performance-based criteria and eligibility does not guarantee a Buy Box position.

Why Does the Amazon Buy Box Matter?

About 82% of all sales on Amazon are completed through the Buy Box. Sellers that fail to win the Buy Box position are competing for just 18% of Amazon’s total sales.

Most shoppers do not take the time to compare buying choices. They simply choose the default option.

Winning the Buy Box also allows you to create sponsored listings for specific products using Amazon PPC (pay-per-click). Sponsored listings are only available to sellers that control the Buy Box. These listings appear in standard searches and increase your chances of making a sale.

Who is Eligible for the Buy Box Position?

Amazon FBA Australia sellers receive an advantage when it comes to winning the Buy Box. Fulfilled-by-merchant (FBM) sellers can still get the Buy Box spot, but you need a long track record of happy customers.

You also need a Professional Selling Plan to win the Buy Box (Featured Offer). If you currently have an Individual Selling Plan, you must upgrade to the professional one.

Only new items are eligible for the regular Buy Box position. You also need to have your items in stock.

How to Win the Buy Box on Amazon Australia

Amazon uses a variety of performance metrics to analyze and compare sellers. Some of the most important metrics include:

  • Order Defect Rate
  • Cancellation Rate
  • Product Price
  • Late Shipment Rate
  • Product Price

Sign in to your Seller Central dashboard and click on the “Account Health” section under the “Performance” tab to check your stats. You can also check the Buy Box status of your products.

Address Negative Feedback

If you want to win more Buy Box positions, focus on customer service. According to Amazon, you need an order defect rate (ODR) of 1% or less. This means that fewer than 1% of customers file a claim or leave negative feedback.

Set Competitive Prices

The Buy Box typically goes to the seller with the lowest price. Amazon recommends that you keep prices within 5% of the current Buy Box price to increase your chances of taking over the coveted spot.

If other sellers drop the price of a product, you should adjust your prices accordingly to remain competitive.

Avoid Late Shipments

You also need to get your products to an Amazon warehouse in a timely manner. Amazon requires you to ship at least 96% of orders on time to win the Buy Box spot.

Working with an Amazon prep center can help with your shipping times. A prep center can hold long-term items at lower rates and handle all your prep work, saving you time and decreasing the risk of late shipments.

Contact Easy FBA Prep today to learn more.