What is a Buy Box on Amazon? A Winner’s Guide

Over the years, we’ve seen different kinds of Amazon sellers. Some struggle to make a handful of sales. Some start well, but vanish from the scene. And then there are a few who consistently dominate the marketplace and rake in a perennial stream of revenue. So what sets them apart from the other two? 

It’s simple, really. They have mastered the mechanics of winning the Amazon Buy Box. Now, what is a Buy Box on Amazon? Why is winning it the breakthrough factor for sellers? In this article, we will answer these questions plus give you some valuable tips on how to win it. 

What is a Buy Box on Amazon?

If you’ve ever shopped on Amazon, there is a good chance that you’ve already seen and used a Buy Box. It is nothing but the ‘Add to Cart’ or ‘Buy Now’ button on Amazon product pages that lets you instantly purchase the product. Only a single seller will be linked to this button for a particular product and clicking it will place an order only with that seller. 

The alternate scenario is the buyer scouring through the list of sellers of the product and selecting one from the list.

In this era of quick commerce and instant gratification, the chances of people clicking on “other sellers” is slim as everyone wants to get done with their order in minimum possible time. And as you would have rightly guessed, the seller who wins the Buy Box experiences much higher sales than others.

The Buy Box has been recently renamed as Featured Offer and not all sellers are eligible for it. Before we understand more about the eligibility criteria, let’s understand why it is important to win it. 

Why is Winning Amazon Buy Box so Important for Sellers? 

Here are some compelling reasons why winning the Buy Box on Amazon can make or break the seller:

More Sales

This is the most obvious benefit. 80% of all Amazon purchases happen through the Buy Box. So if you’re not in the Buy Box, you’re competing for the small fraction of buyers who manually scroll down to find other sellers. And that’s a much tougher game to play.

Higher Visibility

When you win the Buy Box, your product is going to get prime placement on the product page. This means it is going to be the first, most visible option for buyers. This boosts your visibility without compromising on conversions since customers tend to go with the default option rather than searching for alternative sellers.

Better Amazon Rankings

Amazon prioritizes products that sell well. Since Buy Box winners are going to secure more Amazon sales, their listings will obviously rank higher in search results. This results in a virtuous cycle: The more you win the Buy Box, the better your rankings, the more the sales, the higher the chances of winning the Buy Box…

Scale Growth with Ads

You read that right. If you’re planning to run Amazon PPC ads, winning the Buy Box is essential. Why? Because Amazon only allows Buy Box winners to advertise their products via ‘Sponsored Products’ ads. So for other sellers, this limits their ability to scale sales through paid marketing, even if they want to. 

Remember, the timeframe for which you hold the Buy Box can vary and we have seen some sellers holding it for a very short time, losing a great opportunity to improve their sales via Sponsored Products ad. This is where you need the help of an advanced Amazon PPC software like atom11. 

Atom11 can improve your ad performance by automating most of the tasks related to advertising, and at the same time offer valuable retail insights that can help you master your advertising strategy.

How Amazon Buy Box Works?

Amazon has two main algorithms. First, the popular A10 search algorithm which determines product rankings in search results. Second, the Buy Box algorithm, which decides the sellers who will win the Buy Box for a particular product at any given time. Unfortunately, Amazon has not publicly disclosed how the Buy Box works or how it picks the winners. But we know one thing: The Amazon algorithm is powered by machine learning and analyzes millions of data points to evaluate each seller's performance and then awards the Buy Box to the most capable seller. 

While the Amazon Buy Box algorithm follows no exact formula, we know that it pays attention to the following key variables: 

• Time on Amazon: Sellers with a longer history on Amazon have a better chance of winning the Buy Box. Amazon prefers those with a proven track record.

• Pricing: Sellers with a lower landed price (including taxes, shipping, and handling) have a higher chance of winning the Buy Box.

• Delivery: Sellers with fast and reliable shipping have a higher chance of winning the Buy Box. FBA sellers don’t need to worry about this, but self-fulfillment sellers must take care of this. 

• Seller Ratings: Sellers with lower volume of negative feedback, fewer returns and chargebacks tend to perform better when it comes to winning the Buy Box. 

• Customer Service: Amazon favors sellers who respond to customer inquiries within 24 hours and maintain low customer dissatisfaction rates.

• But remember - winning the Buy Box is not permanent. It’s a continuous competition, with different sellers frequently rotating in and out. To maximize sales, you must strive to win the Buy Box as often as possible, but first, you must meet Amazon’s eligibility criteria.

Eligibility Requirements for the Amazon Buy Box

Below are some basic criteria you need to fulfill as a seller to be eligible for winning the Buy Box: 

• Professional Seller Account: Only Professional Seller accounts are eligible for the Buy Box. Individual Seller accounts are not eligible.

• Type of Items: The Buy Box is only available for new products. So if you are selling used or refurbished products, you are automatically excluded.

• Consistent Inventory: Amazon favors sellers with stable inventory levels. It particularly pays attention to the Inventory Performance Index (IPI) score. The IPI measures the efficiency of your inventory management practices within Amazon's fulfillment centers.

• Seller Metrics: The following metrics can impact the chances of you winning the Buy Box:

  • Order Defect Rate (ODR): Amazon evaluates ODR based on negative seller feedback, successful A-to-Z claims, and credit card chargebacks. The total occurrence of these issues must remain under 1% to maintain a strong seller rating. In other words, you must have a low order defect rate at all times. 

  • Pre-Fulfillment Cancellation Rate: High seller-initiated cancellations can not only make you stay away from the Buy Box but also lead to account suspension. Amazon closely monitors order reliability. Keep this rate below 2.5%.

  • Late Shipment Rate (LDR): The Late Dispatch Rate tracks orders where shipping confirmation was posted after the expected ship date. Keeping this rate below 4% helps avoid warnings or account restrictions.

Here are the steps to follow to check your Buy Box eligibility: 

• Log in to your Amazon Seller Central account.

• Click on the "Inventory" tab and then select "Manage Inventory."

• Click on the "Preferences" tab.

• Choose the "Featured Offer Eligible" option.

• The "Featured Offer Eligible" column will show whether each of your ASINs is eligible for the Buy Box.

How to Win the Amazon Buy Box?

Here are some battle-tested tips to win the Amazon Buy Box: 

Sign up for Amazon FBA

While this is not a mandatory requirement, we have seen sellers who have adopted Fulfilment By Amazon (FBA) winning the Buy Box more frequently. This is understandable. After all, Amazon will handle everything from storage to packaging and shipping to customer support for these sellers. In other words, you are able to offer reliable shipping and prompt customer service - both of which adhere to Amazon’s basic commitment to prioritizing customer experience over everything else. 

Plus, better shipping speed and reliability has a positive impact on your shipping metrics, which, in turn, will bolster your chances of winning the Buy Box. Finally, Amazon’s customer service manages returns and inquiries. This enhances your seller rating and response time as they are crucial Buy Box factors.

Maintain Sufficient Inventory

The idea is simple - if you frequently run out of stock, Amazon is going to offer the Buy Box to another seller who has the item available for immediate purchase. Amazon always prefers sellers with consistent stock levels as it ensures a seamless shopping experience for their customers. Amazon also considers your IPI to check your ability to manage inventory. If you are unable to manage inventory manually, you can use Amazon’s Restock Inventory tool to predict demand and replenish stock before it runs out.

Pro Tip: Avoid overstocking items that don’t sell quickly. This can increase your storage fees.

Maintain a Good Seller Rating

Amazon uses a 0-100 rating system to evaluate sellers. Sellers with higher ratings have a higher chance of winning the Buy Box. This rating is typically influenced by metrics related to order cancellations, A-to-Z claims, customer feedback, order defect rate, late shipment rate, etc. 

Additionally, your response time to customer inquiries plays a key role. Amazon closely tracks how quickly you reply. Delayed responses can negatively impact your seller rating, reducing your chances of securing the Buy Box.

Focus on Product Pricing

Pricing is another critical factor that influences your chances of winning the Buy Box. Amazon always considers your landed price for awarding the Buy Box. It typically includes the product cost, shipping, and taxes. The goal is to have a competitive price that balances affordability with quality service. But don’t think that by offering the lowest price you will win the Buy Box. Strong seller metrics can outweigh a slight price difference. Products with consistent pricing and fewer fluctuations also tend to perform better in the Buy Box.

Pro Tip: Monitor competitors’ prices and adjust accordingly—but don’t undercut so much that you lose margin.

What are the Common Mistakes Sellers Make in the Buy Box?

Here are some costly mistakes committed by sellers before and after winning the Buy Box: 

Not Keeping the Price Competitive

Many sellers keep their total prices higher than their competitors. It could be due to a genuine reason like higher cost of production. But your chances of winning the Buy Box become slimmer. Unless you find ways to reduce the cost of goods sold and keep your prices lower than your competitors by 1-2% (or at least the same), you can forget about winning the Buy Box.

However, there are situations when you can increase your product price and still win the Buy Box. The best example would be when your competitor runs out of stock. You can take advantage of this situation as they would be ineligible for the Buy Box at that time. You can win it even if you’re charging more than you normally would.

Using FBM instead of FBA

Many sellers adopt Fulfilled By Merchant as it is more economical. Sure, FBA does not come cheap and can eat into your margins. And there is also no mandate that using FBA is essential for winning the Buy Box. But it can definitely help. 

You need to stop thinking of FBA as a cash burner and start thinking of it as an investment. Apart from improving your fulfilment metrics (which improves the chances of winning the Buy Box), FBA also offers numerous other benefits like better visibility, improved trust, the ability to operate with a leaner workforce, etc., all of which can help you grow as a seller. 

Not Focusing on Customer Reviews

Customer reviews can significantly influence your seller ratings, which, as you know, impacts your eligibility for the Buy Box.  Many sellers make the mistake of not actively managing their reviews, leading to lower ratings and reduced visibility. Failing to respond to negative reviews individually can harm your reputation. Amazon values a positive customer experience, and unresolved complaints signal poor service. Additionally, sellers who don’t encourage satisfied customers to leave reviews miss out on opportunities to boost their credibility.

Not Maintaining the Buy Box

This is a mistake made by Buy Box winners. More often than not, they become complacent after winning and forget that winning the Buy Box once doesn’t guarantee that they'll keep it. They forget about monitoring their seller metrics or optimizing their listings. Continuous improvement in these areas is the key to consistently retaining the Buy Box.

Using Restricted Keywords

Amazon has strict guidelines on restricted words. Words or phrases like “100% satisfaction guaranteed," "top-rated," "#1 rated”, etc. can trigger listing suppression or even account suspension. Many sellers unknowingly include these terms in backend keywords, titles, descriptions, bullet points, etc. and risk losing their eligibility for the Buy Box. So carefully review Amazon’s restricted keyword list and ensure your listing stays away from such keywords.

Wrap Up

Securing the Amazon Buy Box isn’t just about increasing conversions. It also helps you accelerate your sales velocity via PPC campaigns and strengthen market dominance. When you win the Buy Box, you can run sponsored ads, leading to higher visibility and long-term success on Amazon.

To maximize your PPC performance and make the most of your Buy Box wins, atom11 offers advanced automation and optimization tools. With the help of data-driven insights, atom11 helps you fine-tune your ad campaigns, lower ACoS, and drive higher returns on investment.

Ready to take your Amazon PPC strategy to the next level? Book a demo with atom11 today

Frequently Asked Questions

What is a good Buy Box percentage on Amazon?

A Buy Box percentage is a seller metric that indicates the number of times you have the Buy Box when visitors check your listing’s product detail page when compared to all the times this active listing is viewed. Even a value as low as 2%-5% is considered a good Buy Box percentage, but most sellers experience good sales at 15%.

How do I qualify for the Amazon Buy Box?

Two basic requirements include having a Professional Seller Account and selling new products. In addition, you need to have consistent inventory, good account health, strong performance metrics, maintain price competitiveness, and have excellent customer response time to qualify for and then win the Amazon Buy Box.  

How does a new seller on Amazon get their first Buy Box?

Once you meet the basic requirements of Amazon Buy Box, you need to have sufficient inventory and ensure that your product has the most competitive price among all the sellers selling it. In addition, try gaining positive reviews from Amazon customers and improving your seller ratings to win your first Buy Box. 

What is Buy Box Suppression?

This is a common situation when the Buy Box entirely disappears from the listing. In other words, customers have to perform an additional step of selecting the seller from a list to buy the product. This can negatively affect the sales. Buy Box suppression could happen due to different reasons. But the most common reason is that none of the sellers have competitive pricing. It could also be because the seller metrics have dipped below standard or the listings are incomplete. It also happens when Amazon enforces its Marketplace Fair Pricing Policy. 

What does losing the Buy Box mean on Amazon?

Losing Buy Box ownership means you have lost the chance of gaining higher sales for a particular listing. The good news is you can regain it very quickly. All you need to do to regain the Buy Box is work on your seller metrics, improve shipping times, make the retail price of your product more competitive, and improve your customer support to gain a competitive edge.