Explaining the buybox

1. March 2022

Table of Contents
Explaining the buybox

The buybox is what people see when they search for the product which you are selling on Amazon. It’s part of Amazon’s exclusive seller program, and it boils down to one product, many sellers. For sellers, it can be frustrating not to own the buybox, especially if another seller has better prices or discounts. For customers, however, this gives them a choice in whom they want to buy from. This is also a good way for Amazon to promote its brand.

Who owns the buybox?

When you are selling on Amazon, you can be listed under one of two categories – Best Sellers or Seller Central. Best Sellers is where most sellers go to list their products, and Seller Central is where brands go to sell their products. The brand owner of the items within the category gets to have the writing permissions and decide over the listing content. If you are a seller in the category, you can still sell the product, but you are required to adhere to certain rules. You cannot use your own images or working copy of the product description, as this infringes on Amazon’s intellectual property. You should promote your company in a subtle way on your listing.

Rita – Amazon Operations

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

“COOP (your Seller Central) and Lidl (our Seller Central) both sell Milka chocolate (your branded products) in Zurich (Amazon marketplace).

COOP is out of Milka chocolate. So the warehouses are empty.

Lidl still has Milka chocolate and continues to sell the products. All Zurichers therefore automatically buy Milka chocolate from Lidl. (because there is no other offer of goods).

The campaigns and promotions that COOP runs for Milka chocolate are not effective at Lidl. Only the campaigns of Lidl are aired in the buybox. So our warehouse on Amazon FBA is not equal to your warehouse on Amazon FBA.”

Who or what sets the price?

When it comes to setting your price, it is important how high your cost of goods are. The buybox has the writing permissions over the product listing and buyer order page. What this means is that they will determine who provides the best prices and which seller gets the buybox spot. There are multiple tools to automate setting the right price. You can set different rules on how your price setting is determined. It is also essential to know your return rate to calculate your sales price and set your price automation rules accordingly.

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