Losing the Buy Box on Amazon can frustrate your ecommerce goals, but did you know this loss has a huge impact on your overall business and profitability? Losing the Buy Box doesn’t just affect your Amazon sales, it affects your retail partners, too.
When you, an Amazon Seller, stop showing up in the Buy Box, it’s often because another seller has lowered the price and taken the Buy Box for themselves. Whether it’s an unauthorized seller gaming Amazon’s algorithm with price, or Amazon itself creating a competitive price as your 1P partner, another seller is stealing Amazon sales from you—on your listing!
Regardless of who, when another seller lowers the price to steal the Buy Box, they create channel conflict that escalates the problem to your retail partners. With one price in-store and a different price online, your customers receive conflicting messages about your product’s value and the best place to shop.
Even when shopping in-store, customers usually check online prices before purchase, and they will almost always choose the lower price. This means if you have channel conflict, then your retail partner will lose the sale to lower online prices. When this quandary continues, the lost sales add up fast.
As retail partners painfully lose sale after sale to ecommerce, they become unhappy with your brand. Without sales, retailers can’t make a profit on your products, and they may opt to give your product less desirable shelf space, limit how much inventory they purchase in the future, or stop the relationship altogether. All because you lost the Buy Box on Amazon.
One solution to help retailers is to cover the cost of price-matching. Then, retail partners can match the lower online price while your brand pays the difference. Although this may keep your relationships afloat, it’s essentially an expensive band aid. Without addressing the root of the problem, your brand will eternally cover price matching, deteriorating your long-term profits.
To stop unauthorized sellers and channel conflict, you need to have omnichannel control of your brand. This comes from narrowing your distribution for ecommerce sales and creating and enforcing pricing policies to take down unauthorized sellers.
With wide distribution, or providing products to a large number of resellers, it’s easy to lose track of where every item ended up. This is a goldmine for shady actors who want to buy up excess inventory and turn it for a quick profit. When you narrow your distribution, you limit the number of ways unauthorized sellers can get your products. Without access to products, it’s more difficult for unauthorized sellers to lower price and commandeer the Buy Box.
When your distribution strategy is solved, you can focus on removing the remaining violators. By creating and enforcing pricing policies like MAP, you have the leverage to shut down unauthorized sellers and maintain the Buy Box at the price you determine.
At Pattern, we understand successful omnichannel strategies—and happy retail relationships—begin with control. When you partner with us, we work as your sole Amazon distributor, blocking leaks in the supply chain. To combat unauthorized sellers, we provide our proprietary technology and work with an eControl law firm to identify and remove unauthorized sellers. We help you stabilize pricing and support your sales partnerships.
Ready to protect your retail relationships? Get in touch today.
Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.
If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.