Why is the buy button important?
Amazon’s influence as a global e-commerce leader is undeniable, and both sellers and consumers feel its impact. In this big online market, the Buy Button is the single tap or click that bridges the gap between wanting and owning. For sellers, it represents the ultimate make-or-break moment to make a sale
What is the Amazon buy button?
When a buyer goes on Amazon, they search for a product and add it to their cart. Now the buyer who has the buy button is the one that gets the sale in the end. Their competitors on the other hand are only visible if the buyer clicks on ‘See more sellers’. However, almost 82% of Amazon’s sales are from the buy button. So it is absolutely imperative that buyers know how the buy button works and what they can do to win it.
The Amazon buy button was a pivotal moment in business. To read more about how the 1 click ordering was a game changer check out the link.
Now the buy box is only rotated amongst sellers who have an eligible status for the buy box. So what determines a seller to be eligible for a buy box?
Buy box eligibility:
New sellers aren’t eligible: New sellers do not qualify for the Buy Box immediately. Earning the Buy Box on Amazon requires the investment of time and experience in selling.
Good account health: When it comes to Amazon listing, Amazon checks if your account health is good. It is an important metric to pay attention to. Good account health would entail
Low order defect rate
Low cancellation rate
Customer shopping experience: Enhancing the customer shopping experience entails a track record of swift shipping, prompt responses, and a commitment to seller satisfaction. Additionally, seller ratings provided by customers play a pivotal role in this process.
No ‘out of stocks’: Maintaining a sufficient order volume for all products is vital. This is necessary to prevent ‘out of stock’ situations.
New items: Only new items are eligible for the Buy Box; sellers offering used products are not considered for the Buy button feature.
The most important variable that is taken into consideration to win the buy box is the fulfillment mode of the seller, with Fulfilled by Amazon (FBA) and Seller Fulfilled Prime (SBF) being the most pivotal:
FBA – It is where sellers send their inventory to Amazon’s fulfillment centers. Here, Amazon takes care of warehousing, packaging, shipping, and customer service. Choosing this mode of fulfillment proves to be useful since Amazon handles the majority of those services listed above, their metrics would be rated perfectly putting you in the line for the buy button.
SFP – Here, sellers fulfill Prime orders from their own warehouses or fulfillment centers. To be eligible for SFP, sellers need to meet certain criteria, including demonstrating consistent on-time delivery and maintaining high-performance metrics. Since SFP gives sellers the benefits of Prime without using Amazon’s fulfillment centres, it requires efficient logistics and customer service to maintain Prime-level standards. They also have a higher chance to win the Buy Box and getting access to Prime members.
Other than the product’s fulfillment method, there are numerous other factors that play into the picture to decide if you get the buy button.
Having the lowest price does not guarantee the seller the Buy Box. The Buy Box price is not always the lowest price on Amazon. Thus calculating and tweaking the optimum price according to the dynamic and competitive environment is of the utmost importance. Here is how AI pricing engines can help you do that:
Dynamic Pricing– AI algorithms can take into account dynamic changes in the market such as demand fluctuations, trends, and even competitors’ prices in real-time. This helps determine an optimum price to remain competitive in the market. To read more about dynamic pricing ultimate guide blog.
Competitive Pricing – It is not just about the market but also the players within. AI can monitor competitors’ activities, pricing strategies, and product offerings, to help you adjust your approach in order to remain competitive. To know more about how competitive pricing helps brands float, read our blog on how to gain an edge in the market with dynamic pricing.
Customer satisfaction – AI’s sentiment analysis helps sellers analyze their customer’s reviews about the product in order to gauge their sentiments about the brand and refine their stance in the market. The voice of the customer is vital for a brand’s reputation. To know more about how a customer’s voice is important for brand success follow the link.
Inventory management – AI can forecast demand and optimize inventory levels to ensure that you have sufficient stock to fulfill orders promptly, minimizing the likelihood of stock-outs. With real-time alerts, AI pricing engines can ensure you don’t lose out on a sale. Explore the art of inventory management powered by AI and to see how effective inventory planning can propel your brand success check out our recent blog.
Optimized Listings – AI can optimize keywords, product descriptions, and images to elevate your product listings. This improves your chances of attracting customers and, subsequently, winning the Buy Box. To learn more about why your brand should pay attention to listing quality visit the blog about listing content quality management and why your brand needs it.
To know more about our AI-powered dynamic pricing tool BRIO, reach out to us.