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1、P A C V U E.C O MGUIDE:HOW TOWIN THE BUY BOXON AMAZON CONTENTS13245OVERVIEWHOW DOES THE AMAZON BUY BOXWORK?WHAT IS THE AMAZON BUY BOXALGORITHM?CREATE A STRONG BUY BOXSTRATEGY TO WIN PACVUE COMMERCEOVERVIEWThe Amazon Buy Box is the holy grailfor every Amazon vendor.It providesa tremendous opportunity
2、 togenerate sales due to its high impacton conversions.Whenever yousearch through Amazon and jumponto any product listing,it is hard notto notice the vast amount ofinformation displayed before you.Buttoday,we are going to focus on thewhite Buy Box located on the rightside of the product listing,whic
3、hcontains key information such as theprice of the product,the shippinginformation,the Add to Cart,andBuy Now button,and who thecurrent seller is.When the buyerclicks Add to Cart,Amazonautomatically adds the featuredproduct to the buyers cart.If thebuyer completes the order,they willhave bought the f
4、eatured product.How the Amazon Buy Box works How the Amazon Buy BoxAlgorithm works Factors that determine who winsthe Amazon Buy Box How to create a strong Buy Boxstrategy to win If you are the seller whose product isfeatured in the Buy Box,thenconsumers are much more likely topurchase your product.
5、Over 82%ofall Amazon sales go through the BuyBox.That percentage is even higherfor mobile users,so winners of theBuy Box have the mega advantage ofa whopping 150 million mobile userson the Amazon marketplace.If you are an arbitrage seller trying tosell inventory or a corporate brandwith a wide distr
6、ibution network,thiscomprehensive guide is for you.In this guide,we will cover:HOW DOES THE AMAZONBUY BOX WORK?Whenever you search throughAmazon and jump onto any singleproduct listing,it is hard not tonotice the vast amount ofinformation displayed before you.Buttoday,we are going to focus on theBuy
7、 Box located on the right side ofthe product listing,which containskey information such as theproducts price,the shippinginformation,the add to cart and buynow button,and who the currentseller is.You can check to see whatother sellers are competing for thebuy box by scrolling down just belowit on th
8、e listing,which will indicatehow many sellers are also selling thatsame product,either new or used.But Amazon Buy Box wins arereserved for vendors,brands,andresellers with the time,personnel,and resources required to fulfill BuyBox algorithm requirements.Manyvariables factor into why a seller winsth
9、e Buy Box,such as the speed atwhich an item ships to a consumer,its fulfillment method,the price,whether it is Prime eligible,and theselling account metrics.But Amazondoes not guarantee 100%Buy Boxownership,as 3P sellers need tomake money too,so this is where thebattle for the Buy Box getsinterestin
10、g.WHAT IS THE AMAZONBUY BOX ALGORITHM?Amazon operates as a search enginebecause its important to provideusers with relevant results.The BuyBox formula ensures that only vettedand trusted sellers with reasonableprices win the Buy Box.This equationresults in a positive consumerexperience and repeat Am
11、azonshoppers.Once a seller passes Amazonsminimum eligibility requirements,theBuy Box algorithm further analyzesthe sellers standings according todifferent variables.Amazonsalgorithm compares the competitorswith one another to determine howthey hold up on each variable for thesame product.What happen
12、s often isthat for more popular items withseveral sellers,multiple sellers mayrotate their spot on the Buy Box.TheBuy Box algorithm constantlyproduces different winners within thesame spaces.Its common to win theBuy Box at the beginning of the dayand then lose it at the end of the day Sellers are no
13、t featured 100%of thetime in the Buy Box because thealgorithm constantly produceschanges.The Buy Box algorithmchanges every day,so it is importantto keep track of all the components,not just price or shipping.The Buy Box algorithm depends on:Eligibility:For a seller to be eligiblefor the Buy Box,the
14、y must beregistered as a Professional SellerAccount,and the sellers accounthealth should remain in goodstanding.Healthy Amazon accountsoften have exceptional customerservice standards and practices,strictly follow Amazons sellingpolicies and seller code of conduct,and efficient shipping performance(
15、e.g.,delivery speed and shippingoptions).To learn more about yourAccount Health,you can log on toyour account in Seller Central,clickon Performance,and click theAccount Health tab.Another factor contributing to youreligibility status is simply having anaccurate product listing.Sellers mustcarefully
16、craft a title,description withrelevant keywords,propercategorization for items,and anyother select item conditions to avoidconfusion with customers.Product Price:If your product ispriced too high,it might not beenticing to prospective customers,so they may opt for yourcompetitors more affordableprod
17、uct.And if the price of your product is too low,you mayadversely affect the value of yourproduct niche and your own level ofprofitability.Choosing the right pricecomes down to your productsquality,production costs,and whatshoppers are looking for,which varyfrom your competitors.Its importantto note
18、that while 1P vendors donthave control over price,they do havecontrol over profitability.Understanding your profit marginswill help you identify the bestminimum and maximum price foryour product.Its worth noting thatthe Buy Box price is near the lowestpossible price for a given productmore often tha
19、n not.A best practice to figure out whichprice your product performs betterat is to run an A/B split test.A/Bprice testing is rather easy to conduct-list your product at twodifferent prices for a set amount oftime,then compare theirperformance side-by-side.Runningan A/B test allows you to make data-
20、driven decisions on pricing.According to I,Amazonremoves the one-click buy buttonfrom certain product listings if itsoffered at a lower price outside of itsplatform.Some sellers call it buy boxsuppression.Now,instead of saying“add to cart,”it will display all buyingoptions.An Amazon spokespersonhad
21、this to say about the phantombuy boxes:Sellers set their productprices in our store.If a product is notpriced competitively by a seller,wereserve the right not to feature thatoffer.Customers can still find alloffers on the offer listings page.BUY BOX SUPPRESSIONShipping Time:A sellers totaldelivery
22、time can simply becalculated by handling time plustransit time(+any holidays andweekends),calculated in businessdays.Your handling time is theestimated time between when thebuyer places the order until you handthe order over to a delivery service.Your transit time(also known asshipping time)is the d
23、urationelapsed between when you hand theshipment over to your carrier until itsdelivery to the customers address.Configuring an accurate delivery timefor your products helps ensure a satisfactory customer experience.Itmight improve sales overall,asshoppers are more likely to buyfaster delivery items
24、.Therefore,items with a faster delivery date aremore likely to win the Buy Box onAmazon.Order Defect Rate:The order defectrate(ODR)is a key measure of asellers ability to provide a goodcustomer experience.Order defectrate represents the percentage oforders with one or more indicators ofpoor customer
25、 service during a given60-day time period.Negative feedback rate-thenumber of orders that havereceived negative feedback dividedby the number of orders in therelevant period.One-and two-starratings are considered negative.A-to-z guarantee claim rate thenumber of orders with a relevantclaim divided b
26、y the number oforders in a given 60-day period.Tomanage and take action on claims,go to Manage A-to-z Claims.Claims that are granted to thebuyer and for which Amazondetermines that you were at fault Claims for which you refunded thebuyer after the claim was filedClaims for which you or Amazoncancele
27、d the order Claims that are pending a decisionon appeal Credit card chargeback rate Thenumber of orders that havereceived a credit card chargebackOrder Defect Rate:The order defectrate(ODR)is a key measure of a sellersability to provide a good customerexperience.Order defect raterepresents the perce
28、ntage of orderswith one or more indicators of poorcustomer service during a given 60-day time period.The following are the three componentsof order defect rate:The following types of claims negativelyimpact your ODR:To meet customer expectations,Amazon requires sellers to maintainan Order Defect Rat
29、e under 1%tosell in the Amazon marketplace.Notonly will an order defect rate above1%disqualifies sellers from winningthe Buy Box,but it can also result ina restriction of your sellingprivileges,including suspension ofseller-fulfilled offers.Customer Feedback:When thecustomer comments on theirinterac
30、tion with you,such as if youresponded super promptly to theirmessage or went the extra distanceto rectify something that couldhave gone wrong.Speedy,kind,andthorough customer servicepractices will keep your listing inthe running to win the Buy Box.In-stock Consistency:If you wantto win the Buy Box,y
31、ou need tokeep your items in stock,asAmazon continuously monitorsyour inventory on a routine basis.Ifyour stock becomes low,it willdecrease your odds of winning orkeeping the Buy Box.divided by the number of ordersin the relevant period.Themetric is order-correlated,meaning Amazon looks at thedate o
32、f the order(not the dateon which the servicechargeback was received)whencomputing the rate.A creditcard chargeback is similar to anA-to-z Guarantee claim,exceptthat the credit card issuerprocesses the claim and makesthe decision,not Amazon.Amazon Retail presence.IfAmazon Retail is in the listing,Ama
33、zon always wins.Exception for Vendor Central.IfVendor Central and AmazonRetail lose the buy box to third-party sellers,Amazon Retail isprobably out of stock.There area few reasons Amazon wouldwillingly give up sales to othersellers.The lower the price aftershipping,the better.FBA is favored over FBM
34、.If aseller has Seller Fulfilled Prime,they can compete more againstFBA.Fast delivery speeds.Shipping isanother reason FBA is prioritized A high percentage of successfulorders.Heres an overview of factors thatdetermine who wins the Amazon BuyBox:over FBM,though more FBMoffers reach FBA-equivalentspe
35、eds.SOURCE:FREDERIC LEGRAND-COMEO/SHUTTERSTOCK.COMLow defect rate(ODR).High on-time delivery rate.Low late shipment rates.A high percentage of orderswith valid tracking numbers.A large number of high sellerreviews&ratings.Fast customer response time.No or rare stock-outs.Low cancellation rate.Low re
36、fund rate and low returnresolution time.Only new products are eligible.12-9-DISTRIBUTIONEnsure successful orders.INVENTORYMinimize stock-outs withinventory forecasting.CREATE A STRONG BUYBOX STRATEGY TO WINWe cant emphasize enough theimportance of factoring in multiplealgorithm factors listed earlie
37、r in this guide instead of focusing on just oneor two.3-9-45PRICINGKeep up to date withcompetitive pricing trends.Onlysell products with low defects.CUSTOMERRESOLUTIONEnsure a large number of positivereviews and rating generation.Yourcustomer feedback score shouldbe at least 90%.Check buyer-seller m
38、essaging multiple timesper day for fast customerresponse times,low refund rates,and low return resolution time.FULFILLMENTFulfill via FBA whenever possible.Ensure high on-time delivery rates,low late shipment rates,and validtracking numbers.FBA handles logistics Amazon has discounts withshipment car
39、riers FBA takes care of product returns FBA has the fastest deliveryoption Benefits of FBA for Winning the BuyBox:SOURCE:AMAZONFBA has the fastest deliveryoption Multi-Channel Fulfillment(MCF)service allows brands to store andfulfill inventory via FBA,even fornon-Amazon sales channel itemsPACVUE COM
40、MERCEAt Pacvue,we recently rolled out thegeneral availability of PacvueCommerce,our new end-to-endmarketplace management platformthat enables brands to run theireCommerce business with a singlesource of truth.Based on Amazontraffic and conversion rates,PacvueCommerce makes winning the BuyBox easy.Bu
41、y Box Monitoring:Maintain controlof every Add to Cart moment bymonitoring the 3P ecosystem,pricehistory,and rate of Buy Boxownership by brand,product,andseller.Monitor lost sales to determinethe Buy Box weight on revenue,allowing you to prioritize accordingly.You can also easily determinecompetitive
42、 Buy Box opportunitiesbased on pricing,reviews,inventory,fulfillment opportunities,and more.You can also view products that arenot winning the Buy Box and evaluateyour competitive opportunities.More key features include:Ticketing Automation:Avoid lostrevenue by automatically sendingtickets to retail
43、ers to replenishinventory and get items re-listed.Ads Optimization:Drive yourbusiness with integrated media,andoptimize keyword bidding based oninventory,profitability,and more.-11-LEARN MORERequest a demo to learn more about theenterprise suite of Pacvue sales,advertising,and intelligence solutions.“Pacvue is an absolute lifesaver ateCommerce marketing campaignmanagement.We utilize Pacvue forseveral large retailers,and it saves us somuch time,enabling functions that wecouldnt do manually.”-Lindsey SaxtonSenior Digital and Marketing Specialist