Earlier, we looked at what we know and don’t know about the Buy Box.
Now, let’s look at some real-life strategies that other sellers use to grab the Buy Box as often as possible.
1. Focus on ASINs Where the Supporting Metrics Matter
While most strategies revolve around price, dropping your asking price isn’t the only way to get the Buy Box. You can win the Buy Box in a crowded field even with a higher price if you are the only FBA seller with a low number of refunds, good inventory and amazing customer feedback. For some “undeveloped” ASINs, this may be all you need to distinguish yourself, allowing you to keep your generous margins.
Those who follow this strategy only do battle in ASINs where other FBA sellers have not ventured to go. Use eComSpy to quickly identify which ASINs are highly competitive among FBA sellers and which ones are more of an open range.
2. Undercut All Other Sellers Considerably
Admit it, this is your first instinct most of the time. You want to drop the price so low so that only you can own the Buy Box and everyone else backs down. The downside to this strategy is that someone else is usually willing to match your suicide mission and you may get stuck in a price war and a race to the bottom. Not to mention that if you are up against Amazon.com, Inc. (“Amazon”), their pockets are a bit deeper than most sellers and they can afford to lose a few pennies now and again.
However, some sellers find this strategy to be effective when timed right. For example, if you are are selling an ASIN where Amazon is also a seller, you may be able to catch Amazon off guard for a few profitable hours by dropping the price suddenly, lapping up several sales on a fast moving item, and then backing off after Amazon also drops their price.
The key to being able to drop the price sharply is to buy well. When you research ASINs and their leading Buy Box price with eComSpy, you can get an idea of how much wiggle room you have. Only use this strategy when you know ahead of time that you have healthy margins.
3. Count on the “More Buying Choices”
For many ASINs, Amazon will show up to three additional offers in the “Other Sellers on Amazon” category. These are all eligible for the Buy Box, but didn’t win it this time. Remember that the vast majority of all sales come directly from the Buy Box.
Sellers who adopt this strategy are often content to camp out right under the Buy Box and capitalize on those 25% who are looking for a good deal. If winning the Buy Box isn’t possible, the next best thing is to be positioned well on the offers page. To get the upper hand here, feedback history is of utmost importance.
4. Price items within about 0.5% on the low side
A strategy that goes along with #3 is to drop your price, but just enough. No need to go to the extreme of undercutting the Buy Box winner by a huge margin. Just come under a little bit. This assumes that you want to share the Buy Box with other sellers and want to make the best offer possible to maintain the top position.
This strategy often works well when Amazon is a seller, which you can quickly find out after researching your ASINs.
5. Price Items Within About 0.5% on the High Side
This shrewd strategy finds the Buy Box price and goes just slightly above it. The advantage is that, unless Amazon is a seller, you are still likely to get a share of the rotating Buy Box. However, you get to keep a little more profit than the lowest price.
Another advantage of this strategy is that it doesn’t trigger a price war, prompting the winning seller to lower his price as well. The idea is that getting the Buy Box 30% of the time for all of your ASINs and keeping your margins is better than trying to get it 100% of the time and losing all your profit.
6. Pursue More Private Label Offerings
This is similar to strategy 1, except that the focus is on private label offerings. When you have created your own brand (or find a brand you can sell exclusively), you’ve guaranteed that you will own the Buy Box for that item. It’s a great strategy to not have to constantly worry if someone is undercutting your price.
7. Forget About the Buy Box
Finally, there are those experienced sellers who just don’t care about the Buy Box. They know their domain and they made their money when they bought the item at a good price after researching what the Buy Box prices were. They set the price for an ASIN and let it sit until it sells. If you don’t like a lot of fuss and are mostly focused on your ROI (and can be very patient), then this strategy might make you the happiest.
Share Your Best Buy Box Strategies
Which of these seven strategies best sounds like the one you follow? Do you have one we haven’t mentioned? Grabbing the Buy Box takes talent and skill. The more you know, the more you can dominate it! An automatic repricing tool can be just the ticket for your Buy Box strategy.
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