Wednesday, May 7, 2014

Amazon's Buy Box

Watching and learning is the first step to planning and growing.

This is the buy box. It's the price on the main listing page. Every seller wants their turn here. Many Amazon customers will buy from who,ever has the buy box, but most especially Prime customers who click the "Buy Now with 1-Click" button (that would be me).

Notice that beneath the words in green, "In Stock.", you can see WHO has the buy box. If an FBA seller has the buy box you will see, "Sold by XYZ FBA Seller and Fulfilled by Amazon.com". If an MF seller has the buy box you will see, "Sold and shipped by XYZ MF Seller".

So how does the buy box work? It's Amazon's secret algorithm and their not telling.

But I will tell you something that I figured out.

I spent a few days studying the buy box in a couple of different categories. I plan to run another experiment this summer to gather more data, but what I discovered is pretty cool.

The buy box rotates every hour. It's kind of random, but tends to rotate between the top (lowest priced) three to seven sellers. It skips around. Some sellers get more turns (usually FBA sellers get more turns than MF sellers). MF sellers DO get the buy box. If Amazon is a seller, they will share the buy box, but they get it more than other sellers.

If you click on the link for NEW, you can see that there are 10 sellers on a page. You want to at least be on that first page if possible (if there are more than 10 sellers), so price somewhere in the top 3 to 7 on the list. If you need to hold a higher price, and the rank is high, then expect to wait awhile before you make the sell.

This is not a perfectly perfect observation, but it was fascinating, and I believe that when I track it again in more categories that I will come out with similar results. But the important thing is that the buy box rotates every hour!

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Hey there! I'd love to hear what you have to share about FBA, but please keep your spam out of it. Thanks for reading and commenting!