Think of an Amazon listing as a limitless bazaar with merchants all selling the same item. With a few exceptions, anyone can plug into any the listing and sell that item so Amazon developed a tool to decide who gets to fulfill the sale. This tool is called the Buy Box.
The general rule to win the BB is whoever has the best combination of full landed price (price + shipping cost) and who can get the product to the customer fastest wins. Here is an example from Vital Proteins.
There are 10 other sellers trying to sell their inventory, but can't because someone else (in this case, Vital Protein themselves) has the buy box. Want a fun fact? You can't advertise in sponsored products unless you have the buy box.
This puts further downward pressure on your ability to drive sales and move your inventory.
Want a few tips on how to win the buy box? Here you go...
- Offer a low price + fast shipping
- Use repricing software to adjust pricing and react to changing marketing dynamics
- Fulfill your items through FBA (continued)...
- Ensure strong account health scores (Amazon doesn't want to reward poor seller performance)
- Sell your own private label and don't worry about the buy box! #amazon#ecommerce#buybox
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Like a lot Amazon seller business, we are heavily (90%) dependent on Amazon and our top priority is to diversify our revenue mix. Here is our game plan.
Here are our 10 themes to growing our business off of Amazon
1 - have great products. This sounds obvious, but we spend 6 months making some changes to packaging, product inputs and finding new manufacturing partners. This is critical as our mktg model is heavily LTV dependent and a shitty items tanks repeat rates.