{"id":109998,"date":"2022-07-05T06:03:00","date_gmt":"2022-07-05T06:03:00","guid":{"rendered":"https:\/\/127.0.0.1\/blog\/new-study-does-amazon-prefer-itself-in-the-buy-box\/"},"modified":"2022-07-05T06:03:00","modified_gmt":"2022-07-05T06:03:00","slug":"new-study-does-amazon-prefer-itself-in-the-buy-box","status":"publish","type":"post","link":"https:\/\/www.sellerlogic.com\/et\/blog\/new-study-does-amazon-prefer-itself-in-the-buy-box\/","title":{"rendered":"New study: Does Amazon prefer itself in the Buy Box?"},"content":{"rendered":"

The accusation: Amazon prefers itself in the awarding of the Buy Box. The rumors have existed for years. Especially in the community of Amazon sellers, the accusation seems to have already established itself as truth. There is currently no concrete evidence of a circumvention of competition rules, but at least the antitrust authorities are also investigating the corporation.<\/p>

Because the dual role that Amazon takes on is particularly problematic: The company is both the owner of the platform and a seller on this platform at the same time. Although Amazon does not have a monopoly, it does have a very high market share in German online retail.<\/p>

Now the ARD business magazine Plusminus has also dealt with Amazon and the rumors about the Buy Box. In collaboration with a price analysis company, several tens of thousands of products were observed and evaluated. The results are quite surprising \u2013 but different from what most marketplace sellers would probably assume.<\/p>

Why is the Buy Box so crucial?<\/h2>

Plusminus focused on the Amazon Buy Box<\/a>. The yellow button that allows products to be added to the shopping cart is known to every customer of the trading platform. And for sellers, especially of retail goods, the shopping cart field plays a crucial role.<\/p>

Because instead of creating a separate product page for each offer (as eBay does, for example), Amazon consolidates all offers of the same product on a detail page. To decide which seller receives an incoming order and thus has sold the product from their inventory, the Amazon algorithm considers various parameters, including price, shipping method, shipping speed, and any customer reviews.<\/p>

Now, the fact is that the vast majority of customers order directly through the yellow button and do not take the effort to look at the other offers of the product. Therefore, whoever wins the Buy Box receives about 90% of the sales. Those who do not win the Buy Buy Box practically walk away empty-handed. Thus, the competition for the shopping cart field is crucial, and the awarding criteria are antitrust significant. If Amazon were to prefer itself here, it might be abusing its market power.<\/p>

Does Amazon prefer itself and its own offer? \u2013 Study results<\/h2>

For the Amazon study, Plusminus examined 64,000 products on the marketplace of the online giant. Both price and delivery speed were considered in the analysis, but no other criteria such as the reliability or customer rating of a seller were included. All products included in the study were offered by several merchants as well as by Amazon itself.<\/p>

\u00bb According to Plusminus, Amazon held the Buy Box<\/strong> for 20,000 of the 64,000 products. That is just over 31%<\/strong>. <\/span><\/p>

\u00bb For about 8,000 products (12.5%<\/strong>), Amazon held the Buy Box, even though there were other providers offering a cheaper price. Here, Amazon was on average 1.83 euros more expensive<\/strong>, but usually also the provider with the fastest delivery time.<\/span><\/p>

\u00bb In contrast, for 156 products, Amazon not only held the Buy Box with a higher price, but there was also at least one other seller who could deliver as quickly as Amazon<\/strong>. That amounts to just 0.25%<\/strong> of the products examined.<\/span><\/p><\/blockquote>

For each of the 156 sellers, it could potentially be a significant loss if Amazon were indeed to prefer itself here and disregard competition rules. However, regarding the overall study, the result is different from what many marketplace sellers would have likely assumed beforehand. 156 out of 64,000 products is an insignificantly small share.<\/p>

Moreover, the Plusminus study considers the Amazon Buy Box solely based on two awarding criteria: price and delivery speed. Both aspects are undoubtedly very important, but they are not the only decisive factors. At least eleven other Buy Box criteria<\/a> can be identified that also play a role in the awarding of the shopping cart field. Ignoring these provides only a distorted picture of reality.<\/p>

How marketplace sellers win the Buy Box with the highest possible price<\/h2>

Holding the Buy Box not with the lowest, but with a higher price is indeed possible for the majority of providers of retail goods. However, manually adjusting prices is a hopeless endeavor \u2013 too many criteria and competitors need to be kept in view. With a suitable repricing tool, this can be managed quite reliably. This is exactly what SELLERLOGIC has been doing for its customers for years. A Buy Box share of 95%<\/a> is not uncommon.<\/p>\t\t

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Annemarie Raluca Schuster<\/strong><\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t

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Founder and Managing Director<\/strong> of SiAura Material<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t
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\u201cUltimately, companies can only implement a successful pricing strategy with software; it is not feasible manually. With the SELLERLOGIC Repricer, I was able to increase my Buy Box share to 95%!\u201d<\/p><\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n

In contrast to the Amazon study conducted by Plusminus, the Repricer inherently takes into account the important Buy Box criteria. As a result, it wins the Buy Box not with the lowest, but with the highest possible price depending on the current status of the other metrics of the offering seller.<\/p>

Do you also want to achieve a Buy Box share of almost 100%? Then test the SELLERLOGIC Repricer now for 14 days free<\/a>!<\/p>

Conclusion: Plusminus study on the Amazon Buy Box<\/h2>

Amazon’s dual role in connection with the high market share it has in e-commerce is certainly problematic, even though there is no classic monopoly in online retail. However, the result of this large-scale study of nearly 64,000 products also shows why it is so important not to focus solely on price or delivery speed as the decisive metrics.<\/p>

In addition, there are many other customer-relevant criteria that influence the price with which a seller can win the Buy Box for their offer. Only with intelligent software is pricing for Amazon sellers still meaningful and, above all, economically feasible today. It is important to choose a dynamic Repricer that not only keeps an eye on the price but also on other important metrics and competitors.<\/p>

Image credit: \u00a9 Nuthawut \u2013 stock.adobe.com<\/p>","protected":false},"excerpt":{"rendered":"

The accusation: Amazon prefers itself in the awarding of the Buy Box. The rumors have existed for years. Especially in the community of Amazon sellers, the accusation seems to have already established itself as truth. 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