The Buy Box means everything to Amazon sellers; whoever wins it will dominate the sales. Why is the Featured Offer so important? Well, every seller on Amazon relies primarily on the Amazon Featured Offer, which accounts for 80% of all sales. To decide who wins the Featured Offer, Amazon takes a number of factors in account. According to us, the fulfullment method and product prices are two of them.

This blog will examine all such factors and help readers understand the importance of signing up with FBA on Amazon to win the featured Offer.

Table of Contents

Table of Contents:

  1. Importance of Amazon Featured Offer
  2. Who gets the Featured Offer on Amazon
  3. How do FBA sellers have the advantage
  4. Competing for the Featured Offer as an FBM Seller

Whenever a customer visits Amazon to buy something, they almost always click the prominent “Add to Cart” button which is located close to the price. This is known as the Amazon Featured Offer. The majority of customers are unaware of how many sellers offer that particular product. The link that states “15 more offers starting at 6.95” is rarely clicked, which is why a seller must improve their listings to win the Featured Offer.

There are certain conditions for sellers to win the sweet spot. For instance, the items offered must be in new condition. Not every product is eligible for the Featured Offer. However, rest assured you can determine if your products are qualified for the Featured Offer by going to your seller account and clicking “Manage Inventory”. After that, click on “Preferences” and open the “Buy Box Eligible” page to see the Buy Box eligibility of each product in your listing.

Speaking from experience, there are three different ways a product is offered and sold on the largest e-commerce marketplace, Amazon. First, Amazon itself can be the seller and sell products to customers as well as deliver them. Second, a seller can sign up with an FBA account on Amazon. Amazon stores all the products in its warehouses, manages shipping, handles customers, and the items are also offered to Prime members. Third, a seller can sign up with an FBM account. This indicates that the seller is in charge of storing his goods, shipping them, and is also responsible for customer service.

If you sell a similar product that is also offered by Amazon on the platform, then that makes Amazon your competitor which makes it extremely difficult for you to get the Featured Offer. Even an FBA seller has a slim probability of getting the Featured Offer if Amazon itself sells and delivers the item to the customers. You can compete on price by undercutting Amazon’s product price by a cent or two as an FBA seller, but if Amazon shows up again with a lower product price, then don’t keep lowering your price. The only other option is to keep offering the product and wait for Amazon to run out of stock. Once Amazon goes out of stock, FBA sellers have the highest chances to get their hands on the Featured Offer

How do FBA sellers have the advantage?

Amazon typically prioritizes its own listings, but if a product isn’t sold directly by Amazon, it favors sellers enrolled in the Fulfillment by Amazon (FBA) program. This preference stems from Amazon’s control over the entire fulfillment process with FBA, from storage to shipping, boosting reliability. Sellers maintaining healthy account status and competitive pricing—usually within 2-4 percent of the Featured Offer price—have better chances of winning it. Leveraging FBA benefits and adhering to Amazon’s guidelines can significantly improve a seller’s chances of securing the Featured Offer and boosting sales.

Amazon sellers need to make sure their product prices are competitive, and for that, they can always choose to sign up with the best Amazon repricer for FBA sellers. However, The Featured spot will not be given to an FBA seller who has the best price but has negative reviews.

In short, the Featured Offer is assigned to the FBA sellers who have the most competitive product prices, no negative reviews, and a healthy account. A healthy account includes:

1.       Low order defect rate

2.       Low returns

3.       Well-maintained selling history on the platform

4.       Positive reviews and feedback

5.       Getting back to customers within 24 hours and solving their issues.

Moreover, Amazon also checks if you have the item in stock before giving you the Buy Box.

Competing for the Featured Offer as an FBM Seller: Strategies for Success by Alpha Repricer

Winning the Featured Offer as an FBM seller on Amazon requires a strategic approach focused on maintaining account health and delivering exceptional customer service. While FBM accounts may have a lower chance of securing the Featured Offer compared to FBA sellers, prioritizing account health is paramount. Although FBM accounts are less common on Amazon nowadays, they can still thrive, especially for sellers dealing with large-size products or possessing efficient shipping frameworks. Building trust with Amazon takes time, so new FBM sellers must consistently demonstrate their commitment to outstanding service. To compete effectively, FBM sellers should align their product prices with FBA sellers and prioritize fast shipping and top-notch customer service to enhance their chances of winning the Featured Offer.

To sum up, Amazon has top three preferences while assigning the Buy Box:

1.       Amazon itself

2.       FBA sellers

3.       FBM sellers

Ø  When a product is sold directly by Amazon, they exlusively hold the featured offer spot without sharing it with anybody else.

Ø  In the case of FBA sellers offering the product, then Featured Offer is not shared with any of the FBM sellers.

Ø  The featured Offer designation is automatically assigned to the FBM seller if Amazon or FBA sellers are not part of the race.

Ø  If the item is sold by a single FBA seller that goes out of stock, the Buy Box will be transferred to the top FBM seller. However, if that FBA seller stocks up the product, then the Buy Box will be shifted back to that FBA seller.

In conclusion,

While maintaining an FBA selling account may entail higher costs, the benefits far outweigh the expenses. With FBA, sellers significantly increase their chances of securing the Buy Box, which accounts for a staggering 80% of Amazon sales. Despite the initial investment, the returns can exceed expectations. Transitioning to FBA not only boosts sales but also allows sellers to maintain competitive product prices, attracting a larger customer base. For sellers looking to optimize their Amazon performance, embracing FBA is a strategic move endorsed by industry experts.

Author

  • Noor Jarri

    Meet Noor Jarri, a seasoned writer specializing in the dynamic world of Amazon. With over three years of experience, Noor has become a trusted resource for Amazon sellers seeking guidance on repricing strategies and navigating the e-commerce landscape.

    As a valued contributor to Alpha Repricer, Noor's expertise shines through in her engaging blog articles, press releases, and guest posts. Praised for her skill in crafting content that is both informative and approachable, Noor's writing is a knowledgeable resource for sellers of all levels. Beyond her professional pursuits, Noor is an avid traveler and culinary enthusiast. She finds inspiration in exploring new destinations and experimenting with recipes from around the world.

    Join Noor Jarri on her journey as she continues to empower Amazon sellers with insights, tips, and strategies to thrive in the ever-evolving marketplace.

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