There’s a football field near where I live that is on a slope – it’s the classic uneven playing surface. It favours those who don’t have the stamina to play uphill in the second half (as long as they win the toss at kick off of course).
The Buy Box on Amazon is a bit like that, it’s a bit of an uneven playing surface. And the question comes up often on how to cope with the uphill struggle that is associated with Winning the Buy Box.
Pricing is an important element when competing for the Amazon Buy Box but not the only thing. For many people it’s a surprise to learn that the Buy Box on the right hand side of the Amazon screen is not necessarily showing the best price. Instead it’s picking a supplier based on a combination of things which Amazon has decided are important. It’s a sort of quality measure, a check on the retailer’s stamina, to push our metaphor a little more.
The Amazon Buy Box is influenced by the sellers reputation, longevity and available stock, after that price.
The Buy Box is influenced by the sellers reputation, longevity and available stock, after that it considers price. Some retailers may never win the Buy Box – simply because they are not using Fulfilled By Amazon (FBA). FBA is a pre-requisite for winning the Buy Box in certain categories, notably those classified as Fast Moving Consumer Goods such as DVD Games and media. That may seem a little unfair – an uneven playing field – but the justification is that if something is fast moving then Amazon wants to be sure that there is stock.
But if it isn’t purely about price then why bother with a repricer. Well the Amazon Repricer within Seller Dynamics gives the retailer a few options to help level out the playing surface. For instance it can be quickly configured for a group of SKUs in such a way as you only ever compete with the Buy Box. That can be pretty handy when you suspect that having a stand up fight with all and sundry on the left hand side of Amazon is proving fruitless – ie best to fight on the right hand side where quality (stamina even) is valued.
Winning the Amazon Buy Box requires a meaningful price differential.
And then there is the price point. Although not the only consideration in winning the Buy Box on Amazon it is, nonetheless, important. We’ve found that, although Amazon keeps things a deep dark secret, you can influence your chances by being a decent price. So what’s that mean – well it means being 1p cheaper than your closest rival ain’t gonna cut it. So if you are truly set on winning the buy box make sure everything is cool from a quality point of view and then make sure your price difference from your next closest competitor is meaningful.
Seller Dynamics with its multiple features, repricer and marketplace support is all about helping our retailers even out the uneven playing field and (whisper it quietly) even tilting the pitch in their favour.