When you’re sharing listings with other Amazon sellers, the #1 thing you need to focus on is winning the buy box. For those of you who’re brand new, the buy box is the “add to cart” or “buy now” button a customer sees. Winning it means the sale goes to you.
How is the buy box seller selected?
Amazon use a variety of algorithms to determine who gets the buy box. Often, all things being equal, they rotate it equally among competitively priced sellers on the listing. They also take into account the location of the inventory relative to the customer browsing the listing (and pick a seller who has it stored closer to the customer).
How do you increase your odds of winning the buy box?
1) Sell via FBA. Prime customers value reliable, fast delivery and will pay more to have Amazon ship items to them vs a seller shipping themselves.
2) Ensure you’re competitively priced. As in, to win the buy box you must be priced within 3% of the current highest FBA seller. Any higher than that, you’ll likely not get a chance to compete
3) Make sure your ratings are 100% or as close to it as possible. Regularly check feedback from customers and apply to have Amazon remove product feedback left for you as a seller. Often customers buy a product (from another seller) and mistakenly leave you Seller feedback when they meant to leave a product review.
4) Don’t initiate a race to the bottom. Meaning, don’t lower your price to outsmart the competition. In many cases, everyone keeps lowering their price until the margins are gone. Don’t fall into this trap – Maintain a steady price and wait until other sellers run out of inventory in some cases.
How can you determine the number of sales you’ll make on a listing?
1) Sales rank is important, but you also must understand how to read Keepa charts. It’s a paid subscription for full access, but a must have if you want to sell on Amazon. You can grab a plug-in for your Chrome browser here: https://keepa.com/#!
2) Using a tool like Jungle Scout Pro Web Extension, it’ll show you how many sales (approximately) a listing is selling on Amazon. Take this number and divide it by the number of competitive sellers on the listing, and add yourself. By competitive sellers, I mean only FBA sellers, and only those within 3% of the buy box price. So if there are 12 sellers, and 3 of those are FBA within 3% of the BB price, I’d take 3+1 (myself) for a total of 4 competitive sellers. If Jungle Scout said that item was selling 100 units per month, I’d divide that by 4. Meaning, I could expect to sell about 25 units a month sharing the buy box with 3 other sellers.
I hope you found this useful? In my Seller Academy, I teach all kinds of strategies like this that I use myself and that other top Amazon sellers are using. If you haven’t checked it out, I encourage you to do so here: https://www.selleracademy.ca/
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