Amazon dominates the online auto parts sales sphere. The website generates over $150 billion in sales per year. Of that $150B in sales, Amazon is responsible for 37% of car part and accessory industry sales. That’s a lot of potential profit.

If you want to get in on the action and generate some revenue for your dealership, you’re going to have to win the Buy Box. The Buy Box is the section on the right side of a product page where customers add an item to their cart or make an instant, “buy now” purchase. If you’re featured there, you’ll be able to take Amazon sales to the next level.

So how can you begin the journey to Buy Box domination? There are a few major factors to look at.

RELATED: Successfully Sell Parts on Amazon: How to Win the Buy Box

 

Fulfillment and Price

Amazon determines who gets the spot in the Box through a variety of considerations, but fulfillment and price are the two most important to keep in mind.

When it comes to fulfillment, you can choose to have items fulfilled by Amazon (FBA) or fulfilled by the merchant (FBM). If you choose FBA, then you will ship products to the Amazon warehouse, and from there they will be sent to your customer. Choosing FBA has many benefits and will increase your chance of winning the Buy Box because Amazon is able to guarantee the quality and quantity of your inventory.

As far as pricing is concerned, you might think you need the cheapest price around – but this isn’t always the case. Amazon looks at how competitive the pricing is in comparison to other sellers of the same product. This simply means keeping an eye on other sellers and modifying your pricing accordingly. Also, keep in mind that shipping is factored in! Amazon shoppers only care about the total cost of the product so don’t bother trying to hide your margin in an unreasonable shipping cost! You’ll stick out like a sore thumb.

 

RELATED: The Parts Manager’s Guide to Selling on Amazon & eBay

 

Customer Experience

Part of what gives you an edge when it comes to competing for the Buy Box is your Customer Experience Score. The score is based on things like seller feedback, shipping performance, and customer response rates.

Amazon is known for its dedication to customer satisfaction, so there’s no wonder why your customer satisfaction rating is factored into eligibility for the Buy Box. A high rating also allows you the freedom to price more in your favor (but don’t go crazy). Amazon shoppers also take seller ratings into account; the higher the rating, the more secure they feel making a purchase.

So how can you ensure a high customer satisfaction rating? Make sure you respond to customers quickly and get things shipped out in a timely manner (especially if you’re FBM).

 

Get Started

Winning the Buy Box dramatically increases your opportunities for sales. Owning that real estate also allows you a greater chance of hitting OEM incentives for selling a certain volume of product. Amazon is all about volume selling. Since it’s easier to meet these numbers, you can lower margins knowing you can get 5-10% back by meeting incentive requirements.

You’re not on your own with getting your parts business on Amazon. RevolutionParts offers many services to get you started, like a dynamic pricing tool that helps to generate competitive pricing for your SKUs. The platform also communicates with Amazon in real-time regarding the availability of parts.

Get ahead of the game by working with RevolutionParts to accelerate your parts department and establish a presence on Amazon.

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