A Quick Overview of the Buy Box Challenge
Winning the Buy Box defines success for marketplace sellers.
Marketplaces such as Amazon and Walmart allow multiple third-party vendors to compete for customers selling the same SKU. This competition takes place in the Buy Box. It is the featured eCommerce interface at the point of sale identified as a “Buy Now” or “Add to Cart” button.
You own the Buy Box when that button is linked directly to your merchant account, selling your inventory. The Buy Box is won by those with the best customer service, the best reputation, and the best price. Frequently, the exact algorithm used to determine the owner of the Buy Box is kept secret by the marketplace.
This document will demonstrate how SellerActive helps its customers unlock these secrets and more frequently win the Buy Box.
Why is winning the Buy Box important?
Owning the Buy Box is vital. On Amazon, 82% of all items sold take place in the Buy Box. Your challenge is figuring out how to own the Buy Box. That's what SellerActive does best.
How do you win the Buy Box?
Repricing is the factor that most rapidly gets you into the Buy Box.
Each marketplace is a little different, but controlling the Buy Box depends on your company's reputation, service reliability, and product quality. Above all, it depends on having the right price at the right time.
SellerActive uses intelligent automated pricing algorithms to fine-tune your product marketplace prices so your products have the best chance of winning the Buy Box at the maximum possible price. The goal is ideal profitability.
How does SellerActive help you win the Buy Box?
SellerActive uses intelligent, automated price adjustments to win the Buy Box for each product. We provide several different automated strategies. We help you choose the right pricing strategy for your products and business while you concentrate on providing the best customer experience possible.
Not every strategy is available for every marketplace. Since pricing alone does not win the Buy Box, SellerActive takes care of the pricing details using the parameters you set so you can focus on fulfillment, customer relations, and marketing.
It is essential that you can be flexible in pricing your products. If you list at your lowest possible price and are still priced too high for other factors to help you win the Buy Box, SellerActive will be less able to help you win it.
How do we profitably win the Buy Box?
The goal with intelligent Buy Box pricing is not only to win the prize but to maximize pricing within your guidelines. Winning the Buy Box requires good customer relations, excellent order fulfillment, and a high customer rating in the marketplace. It also requires the best price. However, the best price isn't necessarily the lowest price. The best price controls the Buy Box while still providing you with the highest profit margin.
In this example, a new product is added to the Amazon marketplace and configured in SellerActive with the Algorithmic Buy Box strategy. The product has a maximum price of $50 and a minimum price of $30. SellerActive adjusts the price until we not only win the Buy Box, but provide the best price with the best profit margin for the seller.
To learn more how to get more sales without giving away the store, read Understanding the BuyBox