Amazon ads are different from Google Shopping, paid social, and all the rest in one major way. On Amazon, your pricing determines whether or not your ads show to the general public. Simply put, if you aren’t price competitive on Google, you might get the sale —but if you aren’t price competitive on Amazon: you won’t. One factor controls whether your ad appears: the “Buy Box,” and you either win it or you don’t.
How can you win the Amazon Buy Box to ensure your ad are seen? Let’s take a look at a few steps you can take to improve your chances of advertising success on Amazon!
Quick Refresher: What is the Buy Box?
When you go to a product page, and there are multiple sellers, one seller will appear in the box alongside “add to cart” — this is the buy box. Other sellers will be listed below, usually for a higher price. If your product “wins the Buy Box” (i.e. appears in this location), you are more likely to get a conversion.
Now, let’s take a look at 3 ways you can increase your chances of winning the Buy Box!
1. Investigate Amazon Inventory Reports
Start by looking at the Amazon Inventory Reports section. Here, you’ll see clearly if you’re Buy Box eligible or not. You’ll also learn what price your competition is selling the same item for, which is critical.
If you have access to services like Channel Advisor, SellerActive, etc., you can also use those to determine whether your products are priced appropriately. We recommend double-checking against the Amazon report, though, since they are the final authority on who wins the Buy Box. You should always take information straight from the horse’s mouth, as they say!
2. Monitor Product Performance Y/Y
Another way to identify products that are not in the Buy Box is to keep a close eye on product performance.
At Omnitail, we have the in-house tools to do just that. However, for a seller who doesn’t have those tools, we highly recommend monitoring product performance year over year and/or month to month using Amazon’s reporting. By staying alert when a product starts to underperform, you can react swiftly to maintain your Buy Box stronghold.
3. Address Undercutting
One of the biggest gripes manufacturers have with Amazon is that they are sometimes undercut on price by other sellers. If you’re a manufacturer and you aren’t winning the Buy Box, it’s possible some sellers are not conforming to your MAP (manufacturers advertised price) policy. If you notice this happen, you should reach out to those sellers that are undercutting your brand, and remind them of the policy.
It’s Not Just About Winning the Buy Box
Remember, winning the buy box is important — but there are other factors to consider. Adjusting your pricing impacts your margins, so you’ll need to ensure any changes you make don’t upend the profitability of your campaigns. As always, a profit-driven digital marketing strategy is the key — no matter what platform you use to advertise!