Ready. Do you have the stock, you have registered with Amazon, you have integrated the catalog with an Amazon API and you have just received 500 cardboard boxes B4 140 g / m2 for shipments. Now all they have to do is drop sales.
Many, many sales. A mansalva. Because it works like that, right?
Well I’m afraid not. And so win the Buy Box (and keep it) will become your biggest concern if you want to sell on Amazon and not eat the inventory and the 500 boxes.
We are going to tell you what it is and how you can improve your chances of winning it.
Everything revolves around the consumer experience
Amazon wants to make sure that the consumer experience be as satisfactory as possible. He knows that when we go with the customer chip, we are looking for a product (and not a supplier) with the best possible conditions.
When there are several sellers for the same product, it does not give options to choose them directly, but instead assesses which one is offering the best purchase option for customers.
That option will be the one that appears on the product page in the Buy Box. The choice that leaves shopping just a click away and, yes, the one that takes the cat to the water.
The Buy Box is this:
Between 80 and 90% of the purchases are made directly in the Buy Box, which takes the rest of the competitors out of the game. Hopefully, you will appear among these three options that Amazon suggests below the Buy Box:
Voucher. And how do we win the winning position?
What factors make the Amazon algorithm happy?
Only Amazon knows all the secrets of its algorithm, what factors affect it and with what intensity.
However, thanks to the experience of hundreds of thousands of sellers who have been competing on the platform for years, we know some of the most relevant factors:
- Have good opinions and ratings
- Ship the products on time
- Become an FBA seller
- Keep the stock updated
- Offer competitive prices
If you look at those 5 factors, you will find a pattern. They have all the logic if we take into account the pillar of Amazon’s behavior: the aforementioned consumer experience.
So when you want to introduce changes in your sales policy, logistics, customer service, etc., first ask yourself: «Does this benefit my customers? Does this help them to buy with confidence and security? ».
If the answer is no, it is quite possible that Amazon will not help you.
How to improve your performance on these factors?
Here are some good tips.
1. Improve your pricing policy with an Amazon Repricer
For Amazon, lower prices are not necessarily better. The platform does not miss one, and that is why what worries it is not so much that the price is very low, but that it is consistent with what the product is.
What we want is for Amazon to understand that we offer a quality product at a competitive price. In the Hispanic area, VAT is included in the valuation.
And there are no competitive prices without competition. We must be attentive to what others do to play with our prices, raising and lowering them according to interest in a kind of endless auction. Always without losing profitability. It is exhausting.
It is impossible to keep up with the prices of all products, minute by minute. That’s what the Amazon Repricer by Channable, which allows you to monitor the price changes of the competition and adapt yours accordingly automatically.
You just have to set the maximum and minimum limits. This way you won’t have to constantly pay attention to prices.
When there is a significant change, the Amazon Repricer will change your prices so that you do not lose your position in the Buy Box or take it away from your competition.
2. Demand more with your orders
What does the customer want? What you buy. How do you want it? He wants it now and that it arrives perfect.
Obvious, yes.
So obvious and so important that as a seller you have the calling POP (Perfect Order Percentage), an indicator that values ​​your exercise in order fulfillment.
POP measures factors such as delays, negative reviews, cancellations, and complaints.
If you want to have a very positive POP, you will have to strive to
- Have the inventory updated and always with stock
It goes without saying that if you have no product to sell, it is impossible for you to keep the Buy Box.
two. Maintain a level of compliance with shipping deadlines above 97%
Out of 100 shipments, only 3 can be delayed.
3. Send valid tracking codes for at least 95% of shipments
In other words, the client must be able to be informed of the status of their shipment, yes or yes. If you make a mistake when passing the code, you are leaving him helpless.
Four. Reduce the delivery time as much as possible
The ideal is 0 to 2 days.
5. Minimize the ratio of defective orders and cancellations
Less than 1% of the orders may be broken and you cannot cancel more than 2.5% of the purchases. The customer cannot buy and suddenly see that the order is canceled.
When our catalog is large it is difficult to manage all orders without error. It is advisable to use a good order management tool with marketplaces.
With these tools you save a lot of time and avoid errors that can affect your POP.
3. Become a Fulfillment by Amazon seller
Amazon puts at your disposal its unbeatable logistics capacity for shipments. For that alone it would be worth considering being FBA vendors, if you have a high volume of sales with a margin that allows the cost.
But it is also that being FBA makes you gain confidence in the eyes of Amazon, and that is rewarded.
In fact, other retailers being equal, if one is FBM and the other is FBA, the latter will have the upper hand. Sometimes, even if it is with a higher price.
If you don’t want to or can’t be FBA, you can try to be SFP (Seller Fulfilled Prime). It is not as high a category as FBA, but it does put you above the rest of FBM.
What do you contribute by being SFP? Customers can buy you through Prime, which, as you already know, is advantageous and convenient for them.
4. Improve your customer service
Customers want you to be there for them. Product pages don’t always have all the information, but even if they do, there is always someone who may have the most unexpected question.
It is your opportunity to stand out. Always respond as fast as you can with relevant information and with education.
Your answer will not only serve the questioner, but everyone else will see that there is someone real behind the screen and willing to help.
On the other hand, people trust the opinions of third parties. Some studies put this level of confidence above 90%, according to ages and types of products.
Come on, people trust the word of a stranger much more than the seller’s own. Looking at reviews is usually the first thing to do, sometimes even before reading the product description.
If your products have many evaluations, it is a guarantee for buyers. And in the face of Amazon, it is proof that you are what you say you are.
There is no greater proof that your product (and your service) complies than the evaluation of the clients. The good news is that this does not depend only on your good will. You can actively search for reviews:
- Request them directly from the Amazon control panel
- Be polite. In the order box you could include a friendly card or a small gift to ask for their opinion (and improve it).
- And most importantly: strive to provide the best possible service.
Conclusion: customer experience always first
If you analyze the advice we give you, you will understand that the retailers with the longest experience have the advantage.
It’s natural, they’ve had a solid career that is reflected in a lot of positive sales and reviews. Large volumes also help improve POP. In short, they accumulate good experiences with their customers and that is rewarded.
But this is also an indicator of manageability and that it is only achieved using suitable tools. There is no other option, it is clear: if you want to sell a lot, well and consolidate, you need a system that supports you in the administration.
But always with the will to give a good service. Get to it!