When you list an item on Amazon, you are giving the public access to buy your product. Buy Box Equity is an ownership stake in Amazon that some sellers hold. Sellers who hold these coveted boxes have their products boosted for customers shopping in the e-commerce marketplace. Amazon selects sellers with top-rated products, high sales, and positive customer reviews to take part in the buy box program. What some sellers don't know is that they could lose their equity.
There is a limited inventory of products on Amazon that are eligible for Buy Box equity. When someone clicks through and makes a purchase on your listing, this can increase the "buy box" equity for that product. Essentially, what this means is that if another buyer wants to purchase the same product as listed by you (within a certain timeframe), they'll have to fight it out with you to get it - which gives you an advantage over other buyers since there's less competition.
If a product has high Buy Box Equity, it shows Amazon that there is a strong demand for the product. As a result, Amazon may place a higher priority on shipping and selling the product than on other products. If a seller has high Buy Box Equity and their products have good reviews from customers, they may command more sales prices for their products.
The risks associated with having low Buy Box Equity on Amazon are:
-You may not receive as many orders from Amazon as you would if your box had a higher buy box equity.
-Your sales prices may be lower than they could be if your box had a higher buy box equity.
Some ways of increasing your buy box equity on Amazon include the following.
Increasing the number and quality of products you offer for sale - ensuring that your products are well-curated, high-quality, and relevant to the market needs/wants of your target audience.
Some sellers use a variety of tactics to increase their Buy Box equity on Amazon. Some sellers will place more items in their Buy Boxes, while others may focus on optimizing the titles and descriptions of their products to improve buyer sentiment. Some sellers may make connections with buyers through private messaging or social media platforms to forge stronger relationships and drive sales.
There is no guaranteed way to reduce the risks associated with low Buy Box equity on Amazon. However, some strategies that might help include improving product quality and offering more compelling deals. Using Amazon marketing tools to increase brand awareness through paid advertising or creating a comprehensive product listing can also boost sales rankings and improve buyer confidence in buying from the platform.
Sellers can lose their buy box equity if they do not meet Amazon's performance thresholds, which depend on the category and size of the seller's inventory.
If a seller falls short of these requirements for three consecutive months, Amazon may remove their box and instead offer it to other sellers in that category.
When a seller puts their product into the Buy Box on Amazon, they get preferential treatment when displaying their products. Sellers who have a high percentage of buys from customers through the buy box receive more visibility and potential sales commissions from Amazon.
Getting equity depends on specific circumstances and Amazon's Buy-Box policies.
Visit the Amazon website to learn more.