BUY BOX COMPETITION

The Buy Box Competition feature in Alpha Repricer allows you to strategically compete for the Buy Box on Amazon. It enables sellers to adjust their prices in different ways based on specific competitor scenarios. Below is an overview of how this feature works, as well as its options and configurations.

Overview

Buy Box Competition settings activate only when:

  • The feature is enabled.
  • The item is in stock.
  • The Buy Box is not suppressed.
  • You are eligible for the Buy Box.

When enabled, Buy Box Competition takes precedence over Price Competition, which is the default strategy. If the Buy Box Competition is turned off or unavailable, the system automatically switches to Price Competition.

Options for Buy Box Competition
There are four key options.

1. Disable

When disabled, the system defaults to Price Competition and does not target the Buy Box specifically.

2. Set My Price Relative to Buy Box

This option allows you to compete directly with the Buy Box price by setting your price relative to it. You can customize your pricing strategy based on the type of competitor.

  • Actions for Competing with the Buy Box:
    • Beat By: Undercut the Buy Box price by a fixed amount, percentage, or both.
    • Match: Set your price equal to the Buy Box price.
    • Price Higher By: Set your price above the Buy Box price by a fixed amount, percentage, or both.

For example, if you are an FBA seller:

  1. Competing with another FBA Buy Box winner: You may want to lower your price.
  2. Competing with an MFN seller: You may choose to increase your price.
  • After Winning the Buy Box:
    Once you’ve secured the Buy Box, you can decide how to proceed:
    • No Action: Keep your price unchanged.
    • Compete with Next Buy Box-Eligible Seller: Gradually increase your price based on the next competitor without letting it drop below your current price.

When You Are the Only Seller:
If there are no competitors, you can configure how your price is set:

    • No Action: Do not change your price.
    • Use Minimum: Set your price to the item’s minimum price (optional: add a fixed amount or percentage).
    • Use Maximum: Set your price to the item’s maximum price (optional: subtract a fixed amount or percentage).
    • Average of Minimum and Maximum: Use the average of the item’s minimum and maximum prices (optional: adjust further with a fixed amount or percentage).
    • Increase My Price: Raise your price by a specific amount or percentage.

3. Classic Buy Box Strategy

This strategy focuses on decreasing your price by a fixed amount or percentage to win the Buy Box, regardless of competitor type.

  • Decrease My Price By:
    • Fixed Amount ($): Set your price below the Buy Box by a specified dollar amount.
    • Percentage (%): Set your price based on a percentage of one of these values:
      • Current Buy Box price.
      • Total price.
      • Minimum price.
  • Example:
    Your price: $10.00
    Competitor’s price: $9.00
    If you select “Decrease by 5% of Total Price,” the calculation would be:
    $10.00 – (5% of $10.00) = $9.50
  • After Winning the Buy Box:
    Similar to the “Set My Price Relative to Buy Box” option, you can configure actions after securing the Buy Box.

4. Buy Box Hunter

This is Alpha Repricer’s advanced algorithm designed to:

  1. Win the Buy Box.
  2. Optimize your price by hunting for the highest price that retains the Buy Box.

 

As competitor prices fluctuate, Buy Box Hunter adjusts your price accordingly to maintain a competitive edge while maximizing profitability.

  • Modes in Buy Box Hunter:
    • Exclusive Buy Box: Targets and maintains sole ownership of the Buy Box.
    • Shared Buy Box: Allows sharing the Buy Box with other eligible sellers when necessary.
  • When You Are the Only Seller:
    Similar to the “Set My Price Relative to Buy Box” option settings apply as mentioned above, allowing you to configure how prices are adjusted when there are no competitors.

Special Configurations

Competition Below Minimum Price

Sometimes, the Buy Box price may fall below your minimum price. When this feature is enabled, the system will temporarily raise your price to encourage competitors to raise theirs. If successful, this strategy helps you win the Buy Box without going below your set minimum price.

Key Notes

  • The settings under “When You Are the Only Seller” are ignored if you select No Action for “If a Buy Box Winner.”
  • The system prioritizes Buy Box Competition settings over Price Competition settings when both are active.

 

Alpha Repricer’s Buy Box Competition tools provide flexibility and precision, allowing sellers to customize their strategies based on unique business needs and competitor behavior.