Most of you will be familiar with the Amazon Buy Box, the box on the top right of the product detail page that sellers compete for based on Amazon’s algorithm which looks at seller performance and price.
Whilst, Amazon doesn’t disclose the specific performance metrics for the Buy Box, we can reveal a list of the most likely factors, which vary in importance, which Amazon considers before awarding sellers the much coveted Buy Box.
Amazon Buy Box Factors
Excelling in all of these factors thus delivering an outstanding customer experience is the best way to win a share of the Buy Box.
Fulfilment method, very important
Fulfilment is probably the most important variable considered by Amazon.
Fulfilment can now be done in three ways, through FBA (Fulfilment by Amazon), FBM (Fulfilment by Merchant) or Seller-Fulfilled Prime (SFP).
Amazon gives FBA a perfect score for multiple variables including shipping method, on time delivery and inventory depth. This makes it highly unlikely for merchants to beat FBA sellers.
However, in 2015 Amazon introduced Seller-Fulfilled Prime which allows FBM sellers to reach Amazon Prime members without housing the goods in Amazon’s fulfilment centre. This is of particular interest to sellers of heavy goods as they can make savings on shipping.
Sellers enrolled in Seller-Fulfilled Prime will have a greater chance of winning the Buy Box than FBA sellers. Sellers who wish to enrol in the Seller-Fulfilled Prime program must have strong performance metrics and a proven record of meeting customer’s expectations.
Landed price, very important
There are two prices on Amazon, the price you list an item and the landed price which includes shipping and VAT (UK and EU only). It’s important to take these things into consideration when pricing your products.
A common misconception is that sellers who have the lowest price think they will win the Buy Box. Whilst having a lower price will increase your chances of winning a share of the Buy Box, it is only one of the criteria for it, albeit, an important one.
If your seller performance is higher than your competition for a product, you may be able to raise your price and still get your share of the Buy Box.
Shipping time, very important
The amount of time a seller takes to ship an item is known as the shipping time. This has a high impact on winning the Buy Box, particularly for products such as birthday cards and perishable items.
Shipping time is arranged into the following brackets, which only includes working days: 0-2 days, 3-7 days, 8-13 days, 14 or more days.
The shipping time can be seen on the product detail page where it states the date the item should arrive between.
Order defect rate, important
Order defect rate (ODR) comprises of three different metrics: negative feedback rating, A-Z guarantee claim rate and service chargeback rate.
Amazon calculates these three metrics to find out the number of orders which were defective. According to Amazon, the ODR should be below 1% and any sellers above this will be penalised.
Valid tracking rate, important
This is a new performance metric from Amazon, which is the percentage of total packages shipping with valid tracking.
Valid tracking rate is considered on the basis of the last seven and 14 days.
In order to protect your Buy Box eligibility, valid tracking numbers should be provided for 95% of packages shipped. Anything less than this could affect their chances of winning the Buy Box and even selling in a certain category.
Late shipment rate, important
Late shipment rate is the number of orders shipping later than the expected ship date. You can set your handling time in Seller Central, sellers who don’t will be given the default shipping time of 1-2 business days.
A late shipment rate below 4% will aid your chances of winning a share of the Buy Box. This metric can be viewed for the last seven and 14 days in Seller Central.
Delivered on time rate, important
The percentage of orders that buyers received by the estimated delivery date.
Sellers should aim for a percentage of 97% or greater. This metric can be viewed for the last seven and 14 days in Seller Central.
Feedback rating, important
Feedback rating is the culmination of all feedback score the seller has received over the last 14 days, 90 days and 365 days, with the most recent feedback having the greatest impact.
Feedback rating can be seen in Seller Central.
Customer response time, important
Again, Amazon checks responses for the last seven, 30 and 90 days and compares them for all competing sellers. It is considered, that replying to customers within 12 hours increases your chances of winning the Buy Box.
If more than 10% of messages were replied to after 24 hours or never replied to, this can have an adverse effect on the ratings. However, by marking as no response needed, the seller can save themselves from negative points.
Feedback count, important
Feedback count is the number of buyers who have given seller feedback. A higher feedback count can lead towards winning the Buy Box.
Inventory depth/sales volume, somewhat important
Amazon prefers sellers who have enough inventory to deal with the demand which the Buy Box can create. As a result, sellers with large inventory, consistent sales, and good stock history can be granted a higher Buy Box share.
If you’re frequently out of stock, your chances of winning the Buy Box are slim to none.
Cancellation and refund rate, somewhat important
The number of orders cancelled before being shipped by the seller and the number of orders refunded after being shipped make up the cancellation and refund rate.
A rate higher than 2.5 % could affect your chances of winning the Buy Box.
New metrics, no impact currently
Amazon recently introduced two new seller metrics aimed at improving the buying experience, the Return Dissatisfaction Rate and the Customer Service Dissatisfaction Rate.
Although Amazon is currently not considering these two new metrics as Buy Box factors, it’s worth keeping them in good health as they are likely to be factors in the near future.
*A version of this article first appeared on the RepricerExpress blog
