Every online seller who uses price monitoring would also want to monitor the biggest player, such as Amazon. In 2018, Amazon generated approx. USD 230 billion in revenue, selling over 600 million products – such numbers make a huge impact on the structure of the market. However, many of the companies that claim to monitor the platform actually only track some of its offers – just the ones with the Buy Box. What is the Buy Box and what is the point in monitoring the prices of all Amazon offers?
What is the Buy Box?
The Buy Box is a dedicated module located on the right side of selected Amazon auctions that can be used to purchase a particular product. This feature is available only to proven sellers with particularly attractive deals. Over 80% of Amazon sales are done using this button – this means that access to the Buy Box is an opportunity to significantly improve sales results.
The Buy Box – how does it work?
A characteristic feature of the Buy Box is the fact that it is not permanently awarded to any specific seller – it “wanders” from one offer to another. The position of the Buy Box is always determined by the Amazon algorithm, which analyses other auctions offering a similar product and picks the best one, which, however, is not necessarily the cheapest one. The Buy Box is normally used for new products, but now used offers can also frequently be featured.
Price monitoring in the Buy Box
It is much cheaper and easier for providers of price monitoring services to only monitor offers with the Buy Box. However, with such a large player, it is necessary to monitor the entire platform to get the full picture of its prices. Relying on incomplete data only provides limited knowledge of the prices and offers on Amazon, and it also makes it difficult to identify new sellers. This means that if you make your decisions based on incomplete information, you are very likely to make mistakes.
How should Amazon prices be monitored?
To effectively monitor Amazon prices, you have to start by selecting a provider of monitoring services that actually monitors all offers posted at the store. At Dealavo, for instance, we provide our clients with complete information about the auctions at the platform, not just the ones with the Buy Box.
What is the point in monitoring Amazon?
By monitoring Amazon, you gain a tremendous opportunity to acquire valuable knowledge about the market, which will certainly make it easier to make the right pricing choices and pick the correct position in e-commerce. With reliable monitoring, you can also find out what your competition is doing in order to effectively set your own prices.
It is particularly important to monitor Amazon if you are a manufacturer and want to determine deviations from MSRP prices (suggested prices) in Europe. In the USA, in turn, manufacturers can enforce MAP prices (minimal prices), which makes monitoring even more critical. This way, you can protect yourself against price undercutting by other manufacturers and losing your margin.
Would you like to effectively monitor prices at Amazon? Contact us and see how we can provide you with complete information about the platform and help you in making the best business decisions.