There are many metrics that brands selling on Amazon must keep a close eye on for success. One of those metrics is the Amazon Buy Box percentage. But what exactly is it and how can you ensure you win the Buy Box?
What is the Buy Box percentage?
The Amazon Buy Box percentage measures the rate with which a seller’s product makes a sale when a customer clicks the “Buy Now” button. In particular, you can find your Amazon Buy Box % report on Amazon Central, you’ll go to Business Reports, click on Reports and choose Business Reports.
If a product detail page receives 200 visits and a specific seller’s Buy Box appears 100 times, then the percentage for that product listing is 50%.
To emphasize, the Amazon Buy Box refers to the “Add to Cart” or “Buy Now” button that appears on the right-hand side of an Amazon product detail page. Accordingly, this button allows customers to make a quick purchase, and that’s why all brands on Amazon highly covet it.
The Amazon Buy Box % is an essential metric that brands should monitor continuously. You can take action to maintain a good Buy Box % and maximize sales potential on Amazon. A low value is more likely to translate to lower sales and vice versa.
This definitive blog post will help you how the Buy Box works and the best practices to increase the chances of winning this placement.
Monitoring your Amazon Buy Box percentage
With around 83% of all the sales on Amazon happening through the Buy Box, brands must monitor their Amazon Buy Box percentage and find ways to improve it, because being in the Buy Box means more sales.
A low Buy Box % is a possible indication that certain metrics are falling below the required threshold. On the other hand, having a high % means that your account performance is in good standing. Therefore, keeping tabs on this value allows you to evaluate your account performance metrics from time to time and take the best course of action.
Buy Box % shows how competitive your prices are
Pricing is one of the factors that determine who wins the Buy Box on Amazon. If the pricing is not competitive, a brand’s chances of winning the Buy Box are quite limited. Monitoring your percentage can give you clues as to whether your pricing is right or not.
Buy Box % shows unauthorized brands
It’s possible for brands to lose the Buy Box to unauthorized brands on Amazon who may use dishonest means to steal the Buy Box. A low Amazon Buy Box percentage does not necessarily mean incorrect pricing or poor account health. Sometimes it’s stolen by unscrupulous brands that cut corners to steal sales. Keeping track of this value can help you determine if you’re losing it to unauthorized brands and take immediate action.
Buy Box % can indicate low inventory
Amazon takes into account stock availability in their Amazon Buy Box percentage formula. A brand’s percentage reduces when they run out of stock. Keeping an eye on your Buy Box values gives you an idea of how effective your inventory management practices are, allowing you to make the necessary improvements.
How Buy Box % works
Amazon rotates the Buy Box between a few eligible brands based on several variables, including pricing, seller rating, fulfillment, sales history, and many more. Ultimately, all suitable brands split the Buy Box percentage.
Let’s say there are ten brands with equal metrics competing for the Buy Box. In this case, each of the ten brands will share 10%. This means every brand will have the Amazon Buy Box show up on their product detail page for 10% of the product listing page visits.
Amazon Buy Box % myths
Amazon has never disclosed the exact metrics they use to award the coveted Buy Box. This has left many Amazon brands speculating about the criteria the buy box algorithm follows.
Here are some myths and why they are not based on facts:
- The lowest price will guarantee the Buy Box – Offering the lowest prices alone does not guarantee winning the Buy Box. There are many other factors that influence winning the Buy Box.
- Some brands have exclusive Buy Box access – No brand on Amazon is given preferential treatment for access to the Buy Box. Amazon keeps the Buy Box in rotation to keep the marketplace fair and competitive. Any brand can get the Buy Box provided they’re eligible, and they meet requirements.
- You need to activate Buy Box eligibility in Seller Central – This is not correct because it is Amazon that decides whether a seller is eligible for the Buy Box or not.
How to grow your Amazon Buy Box % & sell more
If you want to grow your Amazon Buy Box percentage, there are several steps you can take to increase sales. Here are the various steps you should take that will grow your Amazon Buy Box percentage without strenuous effort.
1) Offer competitive pricing
Apart from eligibility and other factors, pricing is a key factor determining how a brand wins the Buy Box on Amazon. However, although Amazon considers pricing in determining who wins the Buy Box, offering the lowest prices does not guarantee the Buy Box.
Keeping your prices lower than what other brands are offering will shrink your margins and make it hard to thrive in the marketplace. Therefore, it’s advisable to offer competitive prices and maintain excellent performance metrics to increase your chances of winning the buy box more often.
Here’s a guide on how to enforce your MAP prices on Amazon.
2) Use Amazon FBA to fulfill orders
The Amazon algorithm considers a brand’s reliability in determining who wins the Buy Box. The algorithm tends to favor FBA brands because of guaranteed fast delivery, optimized inventory management, and efficient shipping protocols.
If you want to increase the chances of having a higher Amazon Buy Box percentage, consider using Amazon FBA. However, that doesn’t mean brands that use FBM can’t win the Buy Box. It only means that FBM brands will have to put more effort and maintain excellent account performance to compete with FBA brands.
NOTE: Seller-Fulfilled Prime brands also have higher chances of winning the Amazon buy box than those using FBM.
Check out the pros and cons of using FBA vs FBM on Amazon.
3) Meet performance-based requirements
If you fulfill orders by yourself, you’ll have to meet performance-based requirements when it comes to product quality, shipping, and customer service. Amazon favors CPG brands whose accounts are in good standing in awarding the buy box.
Poor metrics like late shipments, canceled orders, and negative feedback makes it difficult for brands to improve their Buy Box percentage. That’s why it’s essential for CPG brands always to be aware of their metrics and make efforts to improve them.
Here are some of the minimum seller performance requirements to keep your eyes on:
- Keep order defect rate less than 1%
- Late shipment rate should be less than 4%
- Ensure pre-fulfillment cancellation doesn’t exceed 2.5%
- Return dissatisfaction rate should not exceed 10%
Suppose you fail to meet these targets and many others. In that case, your Amazon Buy Box percentage is more likely to reduce drastically.
4) Provide exceptional customer service
Exceptional customer service is one of Amazon’s core values, and they never compromise on it. For this reason, the Amazon algorithm seems to favor sellers with positive feedback in awarding the Buy Box. In detail, Amazon looks at customer reviews, response time, complaints, exchanges, and refunds to determine a seller’s eligibility for the Amazon Buy Box.
To increase your Amazon buy box percentage, provide customers with high-quality products, respond to their questions promptly, and encourage them to leave reviews.
If your schedule doesn’t allow you to keep up with customer service, it’s a good idea to use Amazon FBA.
5) Optimize inventory management
Stock availability is one element that most brands on Amazon overlook when considering Buy Box percentage, when Amazon keeps an eye on your inventory levels on a routine basis. Therefore, it’s essential to ensure your products are always in stock to avoid the risk of incurring negative reviews.
Besides, Amazon’s Buy Box percentage formula favors brands that keep optimal stock levels. For instance, if you have ten units left and a competitor has 100 units, the other brand is more likely to win the Buy Box.
It’s advisable to streamline inventory management practices to maintain the required inventory threshold. At Emplicit we offer Inventory Management services as part of our full-service Amazon store management or as a consulting service.
6) Faster shipping
Amazon’s Buy Box formula takes into account an FBM brand’s shipping time. Therefore, the faster the delivery, the more the chances of winning the Buy Box and achieving a higher Buy Box percentage. As an FBM seller, whenever you have the capacity, you should consider shipping orders within two days.
How Emplicit can help you with Buy Box %
Generally, Amazon brands can increase their Amazon Buy Box % and maximize sales potential if they play by the rules. Whenever you want to improve your percentage, keep competitive prices, optimize inventory, maintain excellent account performance, and improve seller feedback rating.
If you need professional help with your strategies to increase your Amazon Buy Box %, please don’t hesitate to contact the experts at Emplicit, a leading, results-driven Amazon marketing agency for growing ecommerce brands. Tap into our managed services to take your Amazon business to the next level today.