As an Amazon seller, securing the Buy Box is often the key to success.
The coveted Buy Box is where most sales happen on Amazon, offering sellers the prime spot to attract and convert customers. However, many sellers face the frustrating experience of being kicked out of the Buy Box, often without a clear understanding of why.
Let’s get into the why and what to do.
Why Amazon Kicks Sellers Out of the Buy Box
There are usually two main reasons why sellers might find themselves being kicked out of the Buy Box:
Competitive Pricing Threshold
The first potential reason is that your prices are higher on Amazon than they are on other channels.
Unfortunately, when you adjust your prices on other channels, Amazon’s response may lag, forcing you into endless support ticket battles.
Interestingly, not every ASIN (Amazon Standard Identification Number) is monitored for price competitiveness, and some ASINs that shouldn't be scrutinized are still monitored.
Additionally, Amazon’s price thresholds are sometimes set so high that they become practically irrelevant. This inconsistency in monitoring and response can be a significant factor in losing your Buy Box position.
Amazon’s Price Ceiling
The second reason why you may have been kicked out of the Buy Box is because Amazon sets limits on how high prices can soar. If your prices climb too high, you’ll temporarily lose the Buy Box but you can regain it once Amazon adjusts to the new price level. However, this is assuming you make sales at this higher price.
Should you set a price that’s too steep without generating the sales to back it up, your Buy Box position will also disappear. Once you lower your prices again, it can take several days to win back the Amazon Buy Box.
The Dilemma with Adjusting Your Pricing Strategy
These two scenarios present an interesting dilemma for private label sellers and their pricing strategies.
Losing the Buy Box results in an immediate loss of rank and sales, but it opens up a window to test higher price points. This can lead to higher operating profits in the long run.
In the end, it’s important to maintain a careful balance between profit maximization and making sure you retain your Best Seller Rank (BSR).
With the right strategies, you can turn this challenge into a unique opportunity. We call it — Profasee.
See you on the winning side.
