Will Buybox Losses Make Amazon Lose 2019 to Google?
Products have started to disappear or increase in price
When Amazon released their Buybox product, there was no doubt that it was to compete with Google shopping. For customers, Google allows users to compare products, view products and search for products. For sellers, Google shopping inventory is very valuable as it allows them to get their product in front of the customer while cutting through the noise of other suppliers.
After Amazon dropped out of Google shopping in 2018, they pushed their sellers towards using the Buybox feature. Although Buybox has always been incredibly competitive compared to Google Shopping, several sellers have experienced massive buybox losses. A worrying article has surfaced recently the reasons for this to be price comparisons between different portals made backdoor at amazon. So whenever a seller offers items at a lower price on another marketplace or in their own webstore, amazon seems to take note of this and suggests to lower the price on amazon as well.
The issue with this is, although it is a lot more convenient for the buyer, it drives down the revenue for the seller. With Amazon being such a huge entity, it is hard for any seller to escape them. If a seller completely drops out of using Amazon, Amazon will just suggest the item to the buyer from a competitor who offers it at a lower price. This means anyone who wishes to stay away from using amazon as a seller will miss out on the sale altogether.
What is Amazon Buybox?
Amazon Buybox is a tool that not many customers think about. If you click on an item you would assume that there is only one seller, but actually, there are a number of different suppliers for the same item. The box on the right-hand side that says “buy it now” is actually only one of the sellers. Alternative sellers are listed below.
Sellers can win or lose the Buybox space depending on how the Amazon algorithm favours competitors. One worry is that comments, articles and reviews relate to the product, not the seller. This means that fake sellers can compete with original sellers under the same ASIN, using the brand’s images and descriptions.
How Will the Losses Affect Sellers?
Many items in the German market have either had huge increases in price or have lost the Buybox function all together. With so much of the sellers’ revenues being based on them being able to get the Buybox, having to take off products and increase prices is likely to cause a dip in sales for many products and brands.
It is likely that if customers cannot find quick and simple ways to buy the product for a reasonable price, they will turn to Google Shopping to make their purchase. The price comparison between both competitors could lead to a downward helix of prices and therefore vulnerabilities for fraudulent sellers. Amazon does a lot to ensure retailers offer low prices, but this often means the market is flooded with many different sellers of the same product.
How Will This Affect my Brand Protection?
With many brands and products unable to increase their prices so that they can remain competitive, third-party sellers and counterfeit sellers could easily capitalise in the gap in the Buybox market.
If you are worried about this, our sales tracking service can help you monitor what is going on with your brand or product in thousands of different marketplaces. Furthermore, we can delete bad reviews under any of your items when they clearly relate to a fake seller and we can help you keep your authorised listings clean from fraudulent competitors, to give your dealers and sales department a healthy marketplace environment.