Why Your Online Marketplace Needs a Buy Box?
Written by Pranita Navrekar
Business Analyst at Royal Cyber
Amazon Marketplace assures an unmatched selling experience to sellers, helping small to large-sized businesses increase their sales and reach new customers. And this has resulted in an increased competition among third-party companies to partner with Amazon in order to list and sell their products. And what remains as the biggest challenge for these third-party sellers would be winning the Amazon Buy Box, which contributes to 80% of sales on Amazon.
With its unique set of logic, Buy Box differs from one Marketplace to another. On Amazon, behind every “Add to Cart” or “Buy Now” click lies a Marketplace Seller. Compared to the other sellers on Amazon, Buy Box winners have greater visibility and full ownership of the “Add to Cart.” But the factors that decide which Marketplace Seller will get a chance are always decided by Amazon. And like Amazon, eCommerce giants such as Walmart and eBay also utilize Buy Box to capture sales.
Let Your Customers and Sellers Think of You When it Comes to an Online Marketplace
Customers are the new market-makers, so business must align itself with the needs of the existing customers. For this, organizations must have their own strategies to build a relationship with the customers.
The fundamental function of a Marketplace is to offer a common channel for customers and sellers to perform business. Usually, when multiple sellers compete to sell their products, the price will be the prime deciding factor; unless it is a unique brand and no other product can replace it. Sellers with excellent metrics on an online Marketplace have a better chance to win the Buy Box.
And an online Marketplace owner must know how the Buy Box algorithm will boost sales:
- As an online Marketplace owner, it is essential to realize that the best seller’s product has a combination of different metrics such as low price, fast & free shipping, fewer returns, high performance, etc. and all these factors depend on the needs of the business.
- With the help of the Buy Box algorithm, an online Marketplace can manage multiple seller products because the product with the best seller metric stands a chance to win the Buy Box. In a way, it is a fair competition between multiple sellers to see how they hold up on each variable of the same product.
- To win the Buy Box, sellers will put their best efforts together to improve all the performance indicators.
- With Buy Box, only the competitive sellers get a chance to be in the prime position, which positively impacts both sales and profits of online Marketplace.
- Customers who are satisfied with the product & services of a seller will reorder the product without comparing it with any other, contributing to an increase in sales.
The growing eCommerce business provides its customers with n-number of choices. Smart shoppers can easily compare the offering of multiple websites and shopping mediums to check for the best deals. According to Inc. Magazine, it is much costlier to find a new customer than sell to an existing one, especially when the customer is familiar with a particular brand and its products.
Royal Cyber considers it an opportunity, as well as a challenge, to help its clients retain customers by recognizing the smart customers and analyzing their behavioral patterns.
At Royal Cyber, we have a dedicated Technical Team that strives to deliver the best possible solution - Buy Box algorithm, for an online Marketplace client, irrespective of the platform they are set upon. As a solution provider, we suggest and provide business consultation to sellers, so that the sellers can promote their merchandise on more than one Marketplace platform with a customized strategy for winning the Buy Box. For more information, you can email us at [email protected] or visit www.royalcyber.com.
1 Comment
nice step , but I still confused about buy box