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Explaining the buybox

The Buy Box (now also known as the Featured Offer) is what people see when they search for a product you are selling on Amazon. It’s a critical feature where multiple sellers might offer the same product, but only one “wins” the prominent “Add to Cart” button. For sellers, not owning the Buy Box can be frustrating, especially if competitors have better prices, faster shipping, or superior seller metrics. For customers, however, this system ensures competitive pricing and reliable fulfillment choices, reinforcing Amazon’s brand promise of convenience and value.

Who wins the Buy Box?

When you are selling on Amazon, you manage your business through Seller Central, which is the platform for all third-party sellers—whether you’re a brand owner or a reseller. While the blog originally framed “Best Sellers” and “Seller Central” as distinct seller categories, “Best Sellers” is actually a performance ranking, not a separate seller type. All sellers operate within Seller Central.

Brand owners who have enrolled in Amazon Brand Registry gain significant control over their product listings, including writing permissions and the ability to dictate content like images and descriptions to maintain brand consistency. If you are a reseller selling a brand-registered product, you can still offer it, but you must adhere to Amazon’s intellectual property policies and the brand’s established listing content. You cannot typically use your own images or product descriptions that deviate from the official brand listing, as this is a core aspect of Brand Registry’s protection. However, subtle promotion of your company, within Amazon’s guidelines, can still be achieved on your seller profile.

Rita
Rita – Amazon Operations

Let’s try to explain it a bit more figuratively:

“COOP (your Seller Central) and Lidl (another seller on Seller Central) both offer Milka chocolate (your branded products) in Zurich (Amazon marketplace).

COOP, relying on a slower fulfillment method, has run out of Milka chocolate in their immediate shipping inventory, or perhaps their seller metrics have taken a hit.

Lidl, using Fulfillment by Amazon (FBA) or Seller Fulfilled Prime (SFP), consistently has Milka chocolate in stock, offers fast shipping, and maintains excellent seller performance metrics. Therefore, all Zurichers are automatically presented with Lidl’s offer in the Buy Box, even though COOP might also technically have the product listed. The Buy Box often rotates between eligible sellers, but the rotation heavily favors those with superior offers.

The advertising campaigns or promotions run by COOP that might draw customers to their individual offer page are less effective if Lidl constantly holds the Buy Box/Featured Offer. Only the campaigns associated with the winning Buy Box offer gain maximum visibility. This illustrates that possessing inventory on Amazon FBA (or through another fast, reliable fulfillment method) under one seller account is distinct from another, impacting who gets the coveted Buy Box spot.”

Who or what sets the price?

When it comes to setting your price, your cost of goods is fundamentally important. However, simply having the lowest price doesn’t guarantee the Buy Box (or Featured Offer). While competitive pricing is a significant factor, Amazon’s Buy Box algorithm considers a comprehensive set of weighted criteria to determine which seller wins. These include: the product’s price, shipping method (Fulfillment by Amazon (FBA) and Seller Fulfilled Prime (SFP) offers are heavily favored due to faster shipping and Prime eligibility), estimated delivery time, seller performance metrics (such as Order Defect Rate, cancellation rate, valid tracking rate), inventory availability, and customer service history.

The goal is to provide the best overall customer experience, and Amazon’s system determines who offers that, not just who has the absolute lowest price. Many sellers utilize automated repricing tools to dynamically adjust prices, adhering to specific rules (e.g., stay within a certain percentage of the lowest competitor, or match the Buy Box price) to optimize their chances of winning. It is also essential to know your return rate and overall profitability to calculate your sales price and set effective price automation rules, ensuring you remain competitive while maintaining healthy margins. Remember, the Buy Box often rotates among eligible sellers, so even if you don’t always win it, maintaining strong performance across all metrics increases your share of that rotation.

SPACEGOATS
SPACEGOATS
http://spacegoats.io