What is the Amazon Featured Offer (formerly Amazon Buy Box)?

Elise Jackson

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  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon Operations
  • DATE: 11/03/2024

Did you know that over 80% of sales are reported to come from the Featured Offer on Amazon?

It’s a coveted position on Amazon product pages that makes it easier for customers to buy and as products are given the Amazon seal of approval, it’s a trust factor for customers that encourages purchases.

It directly impacts your brand’s profit so it is crucial to understand what it means and ensure it is a key part of your Amazon strategy. Let’s get straight to it in this article.

What is the Amazon Featured Offer (formerly Buy Box)?

The Amazon Featured Offer (Buy Box) is the white box on the right-hand side of the Amazon product listings, where consumers can purchase items. It features the product’s price, shipping information and information about the seller. Amazon rotates the winners of the Featured Offer, unlike before when it would only be one seller, which gives you a higher chance of being featured.

To ensure a seamless experience for the customer it also has the “Add to Basket” button which allows for faster checkout.

 

Amazon Featured Offer (formerly Buy Box)

 

Since there is no limit to the number of sellers who can use the Amazon platform, it is common for multiple merchants to frequently sell the same item.

These sellers are known as resellers and when multiple resellers offer products simultaneously, there is competition for which seller will win the Featured Offer (Buy Box).

 

How to win the Amazon Featured Offer

Picture it this way, IRL you would only want to recommend something to a friend when you are sure your recommendation is good, whether it be for a restaurant or TV show etc.

Amazon works in a similar way – they want to provide customers with the best experience, so they promote trusted sellers and encourage customers to buy from them.

 

The Amazon Featured Offer (Buy Box) algorithm operates 24/7, which means it’s always assessing your performance, as well as your competitors’, on the platform. Based on this and the performance of your competitors, Amazon determines who wins.

So, how can you show Amazon you’re worthy of the coveted Featured Offer? First, let’s look at who is eligible to be featured, before going more in-depth into each point.

 

Who is eligible for Amazon Featured Offer (Buy Box)?

Not all items and products are eligible to be featured (for example, books!) and for the eligible categories, the factors that determine who gets featured vary from category to category.

Here are some of the determining factors that influence who wins the Featured Offer:

1. You need a professional Amazon account – You’re probably thinking, well ‘of course’, but it’s also imperative your professional selling plan and account are in good standing aka you haven’t got any strikes against you. More on that below.

2. You offer competitive pricing – Featured Offer prices are typically lower than or equal to comparable options. But this does not mean the lowest price always wins, so please keep this in mind. Rather you want to implement a competitive pricing strategy.

3. Have a healthy stock inventory – If you’re items are running out of stock, this can remove you from the Featured Offer spot. To be eligible ensure you have a stock inventory management plan in place.

4. You have fast delivery – Amazon is most well-known for fast, reliable shipping and they expect the same from their sellers. You have a higher chance of being featured if you offer quick delivery times within the advertised time frame.

5. Product condition – It stands for good reason that Amazon wants to promote products in good condition, so your product needs to be new or like-new goods to be included in the Featured Offer.

6. Customer satisfaction – The more positive feedback a seller has with reviews and return rates are taken into account!

 

Check if you are eligible for Amazon Featured Offer

You check the eligibility requirements for Amazon Featured Offer here.

So, taking the above into account, here are the areas you need to pay close attention to when trying to win the Featured Offer:

1. Seller status and eligibility

As we mentioned, winning the Amazon Featured Offer is only available to professional sellers, so you want to sign up for a seller account if you haven’t already.

 

2. Offer Landed Price

Implementing affordable pricing will bring you one step closer to getting the Featured Offer, so you need to consider Amazon’s landed price.

The landed price is the total price an Amazon product goes for, including shipping and handling costs. The lower the price = the higher the likelihood you will land a Featured Offer.

The key here is to offer the lowest prices, or at least prices that are consistent with other merchants on the site. Remember: prices are constantly in flux and sellers compete to outdo each other so you need to have your finger on the pulse when it comes to pricing.

Don’t make your prices so low that you don’t turn a profit, consider what prices you will be comfortable with by taking these into account:

  • Amazon seller fees
  • Margins
  • Return cost
  • Shipping costs
  • Amazon budget

If a product is popular and sellers are on par with their prices, other factors are taken into account.

 

3. Competitive Pricing

As we mentioned pricing is a factor in winning the Featured Offer, So, how do can you compete with pricing? Here are a few strategies:

Manual Pricing

Manually adjusting your prices to win the Amazon Featured Offer can be effective, however, this requires a lot of time and may not be feasible if you have numerous SKUs.

If you are a seller with few items facing limited competition then this would be a good strategy for you.

Automatic Pricing

Amazon offers a free automated pricing tool that automatically and quickly adjusts your prices against your competition. All you need to do is choose the listings you want to enroll in, set price limits and Amazon will do the rest – 24/7. This is a great strategy if you want to focus on other areas of the business.

 

4. Maintain a low order defect rate

Your Order Defect Rate (ODR) is a measure of your customer performance, shipping times and product quality. It’s how Amazon checks your performance against key metrics, the lower your rate the better your performance, the higher the rate is an indication you need to work on improvements!

The algorithm looks at both short and long-term negative feedback, A-Z claims and chargebacks when determining this, then creates a score for sellers. So, if your rate is high, work on these areas and aim to get below 1% to be in with the chance to win the Featured Offer.

 

5. Opt in for FBA or SFP

Sellers offering faster shipping options are likelier to win the Amazon Featured Offer and those that opt for Fulfillment by Amazon (FBA) or Seller-Fulfilled Prime (SFP) can give sellers a boost over those who do Fulfillment by Merchant (FBM).

If you are an established seller using FBM who has a great track record of shipping fast, reliably and with customer satisfaction you have a strong chance of getting the Featured Offer.

New or less established sellers using FBA or SFP are automatically trusted by Amazon as they control the fulfilment of orders.

If you want to understand these in more detail, here is a guide on the different Amazon fulfilment options.

 

6. If you’re using FBM ensure healthy stock levels

Amazon looks at not only the current inventory status of your product but also your overall consistency when it comes to keeping products in stock, so if you’re not using the FBA or SFM it’s up to you to maintain a healthy flow of stock and overall customer satisfaction with fast shipping.

Remember: customers have come to expect seemingly impossible shipping times with Amazon Prime, so you need to be on the ball.

 

7. Keep an eye on your performance metrics

You want to provide the best possible service to shoppers to improve your performance metrics, here are the metrics to keep on top of:

Recent Customer Metrics Data
Delivered on Time (Target = > 97%)
Late Shipment Rate (Target = < 4%)
Pre-Fulfillment Cancel Rate (Target < 2.5%)
Valid Tracking Rate
Refund Rate
Response Times Under 24 Hours (Target > 90%)
Late Responses (Target < 10%)
Average Response Time
Buyer-Seller Contact Metrics (Target < 25%)
Invalid Rejection Rate
Late Response Rate
Negative Return Feedback Rate
Return Dissatisfaction Rate (Target < 10%)
Service Chargeback Rate
Filed A to Z Claim Rate
Negative Feedback Rate
Order Defect Rate (Target < 1%)
By Category (Targets = > 90%)

 

How to lose the Amazon Featured Offer.

We don’t think there is anything quite worse than feeling the high of winning the Featured Offer to then losing it again. Wondering what went wrong?

See this list of how Amazon could take you off the Featured Offer to see if this resonates with you (also, learning what not to do is a great way to save you some heartache):

1. Using the wrong keywords: Amazon is pretty strict on what they like to see and “Worlds best coffee” will not be a claim they want to promote. Stick to facts and correct information without the ‘pizazz’.

2. Poor seller performance: It’s a bit like kicking you when you’re down, unfortunately. However, this will affect your ability to win the Featured Offer. The key area to watch out for is customer service; a lot of negative feedback will tarnish your seller rating and slash your chances for the featured offer. Similarly, if your products are poor this will affect your return rate which signals to Amazon that your product isn’t worth promoting.

3. Prices set too low or too high: There’s a fine line when it comes to pricing. Set them too low and Amazon will avoid promoting you in fear of lowering the market, too high and you will be beaten by competitors.

4. Being on CRaP List: Yup, you read that right, this colourful acronym stands for ‘Can’t Realise a Profit’, a term coined by the financial team at Amazon. It means that products they deem questionable and are unlikely to create a profit.

 

Our thoughts

What it all boils down to really, is focusing on building a solid product detail page, inventory flow (if FBM), great customer service and good quality products. Having these will help you massively in winning the Featured Offer. Then, focus on having a pricing strategy that is flexible to meet the demands of the rollercoaster nature of competitor price changes.

This is not a quick-term strategy either, if you are a new seller then you will need to be patient and work at proving to Amazon that they should include you in the Featured Offer, and that takes time.

Important to remember that while winning the Featured Offer is coveted, it’s not the be-all and end-all. You can absolutely do everything right, still not end up on Featured Offer but that doesn’t mean you miss out on sales!

Looking for some extra tips on how to win the Amazon Featured Offer? We have a few up our sleeves! If you need some help in this area please feel free to send us a message or give us a call, we won’t sell you anything – just help!

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