ChannelMAX's buy box strategies are a result of a decade-long research on Amazon’s ever-changing buy box algorithm. Based on our research, we have derived the best repricing strategies that work well for a majority of the sellers. These repricing strategies are defined in your ChannelMAX account “Settings>Repricing> Repricing Model>Home” tab. Let us now understand how these strategies work in detail.
Buy box strategies are broadly based on your SKU type and that of the competition. Your listings may consist of FBA as well as non-FBA and each of these types will be subject to the respective FBA or non-FBA competitors.
Target Buy Box:
For your SKUs(both FBA and non-FBA), you may use the ‘Target Buy Box’ strategy to increase your buy box potential. With this strategy, you choose your desired buy box rotation percent, such as 80% or 90%, and let the system determine your price to achieve your target.
For example, when you set ‘Target Buy Box’ to 80%, the repricer will lower your price till your SKUs buy box rotation is 80%, or the floor price is reached. When the buy box rotation hits 80%, the repricer will try to micro increment your price (raise your price by a few cents) to maximize your buy box price.
Share Buy Box:
With this strategy, the repricer would try to win you a buy box depending on the total number of buy box eligible offers present on Amazon for each listing. That is, say for an ASIN, if there are 3 buy box eligible sellers, the repricer would try to ensure you win the buy box at least 33% of the time, if 2 sellers, then 50% of the time, and so on.
Maximize Buy Box
This setting is applicable for your FBA SKUs against non-FBA competitors. By default, FBA listings are eligible to buy boxes at a higher price than a nonFBA SKU price. Choosing this setting will help the repricer algorithm to raise your price by 5 to 10% from the nonFBA competitor to win the buy box.
This percentage would vary depending on the distance between your selling price of the SKU and the buy box total price. If you do not get the buy box at this increased price, the repricer will automatically lower the price till you win the buy box or hit the floor, whichever is first.
When you win the buy box at any specific point, the repricer would wait for a couple of cycles and if you still retain the buy box, the repricer would incrementally start raising the price to maximize the buy box price.
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