Amazon Buy Box rewards exemplary retailers

Omnichannel Commerce

Retailers extending their reach to a retail marketplace can achieve significant benefits, most notably by optimizing brand exposure. By listing items on a retail marketplace such as Amazon, sellers will be able to tap into an entire audience of prospective customers who perhaps had never heard of the merchant in question before.

Of course, most online retailers are aware of the advantages of selling on a marketplace like Amazon, which means they’ll all be competing for the top spot on these third-party websites. To encourage positive shopping experiences and credible sellers, as well as competition, Amazon has deployed the Amazon Buy Box, which rewards exemplary retailers.

To be eligible for Amazon Buy Box, retailers will need to focus on competitive pricing, availability of stock, and their performance in terms of order defect rates, excellent customer service, and status as a professional seller.

The Amazon Buy Box displays a product sold by a featured Amazon seller along with an Add to Cart button. Many sellers wish to achieve a placement in the Amazon Buy Box but typically have little understanding of the formula Amazon uses to select a seller. The reason being is because the exact criteria for winning the buy box is internal information which Amazon does not disclose to sellers. Having a priority listing on the page means customers are more likely to see their listing over their competitors’ and are thus more likely to buy from them. To be eligible for Amazon Buy Box, retailers will need to focus on competitive pricing, availability of stock, and their performance in terms of order defect rates, excellent customer service, and status as a professional seller. Amazon does not guarantee that any seller will “win” the Buy Box. 

Features such as the Buy Box can bring significant benefits to the sellers in question, and as Multichannel Merchant noted, it’s worth taking these factors into consideration when expanding into a new retail marketplace. When it comes to Amazon in particular, winning that priority placement is a smart goal to reach towards. Amazon is a top 10 retailer in America and is growing much faster than other players in this arena, such as Lowes or Walmart.

Knowing the limits of a retail marketplace

Although selling on a retail marketplace can be a significant advantage, it’s crucial merchants don’t get too caught up in the competition in these platforms. Price wars happen regularly on these channels and may negate one of the biggest advantages of selling through a third-party sales avenue – revenue generation.

Competing too much in terms of price can wind up hurting margins. Most retailers operate on thin margins as it is- getting involved in price wars simply to get the Buy Box or lowest price listing can be tempting but not worth it in the long run. 

Marketplaces bring numerous opportunities, but also offer several challenges as well. Merchants must be aware of both ends of the spectrum.

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