Possible States of the Optimizer and the Repricing Strategies

The BuyBoxBuddy Amazon algorithm is what makes this software a true Amazon Buy Box for Amazon sellers with its focus on winning and keeping the Buy Box in an intelligent way. The algorithm gives BuyBoxBuddy the capacity to learn from its environment and to optimize resources or results for the users, for example avoiding price wars. 

Its main focus is winning the Amazon Buy Box and keeping it for the best price. This is valid for items eligible for the Buy Box, and having this focus in mind, BuyBoxBuddy is showing items that are not eligible under the dedicated SmartList “Not eligible for the Buy Box”. Check our support and blog articles for what eligibility means and what Amazon sellers can do about it.

The main outcome of the optimizer is an overall increase in Buy Box ownership at better prices. And BuyBoxBuddy does that through a customized strategy for each item depending on its competition. Considering the highly competitive environment on Amazon, most items will spend most of the time trying to win or to share the Amazon Buy Box. BuyBoxBuddy will optimize how much time each item spends in each of these states to improve Buy Box ownership and prices.

Here is how the above logic looks in practice in terms of repricing strategies applied by BuyBoxBuddy depending on the competitive environment for each item: 

1. Keep the buy box at a higher price - the optimizer will switch between raising the price and lowering the price in order to rewin the Buy Box. Also maintaining the price level and trying to match the competition static state might be used in situations where the competition is static. 
2. No buy box - in this case the optimizer will analyze and match competition’s price, adjusting to the static or dynamic states.  
3. No competition in this case the optimizer will alternate between holding the price, raising and, respectively, lowering the price.  
4. Sharing the Buy Box - when the competition is very tight, the optimizer will aim for sharing so it will alternate between trying to win, holding, losing the Buy Box and undercutting to get the Buy Box back without engaging into price wars.
5. Fighting for the Buy Box when going after the Buy Box the optimizer will lower the price to win, win the Buy Box, raising the price and lowering the price again to regain it.
6. Match my own offer - is a corner case for cases when the Amazon seller has another SKU with the same ASIN, in this situation the optimizer picks one of the prices, and the other one matches the priority one.