How Higher Feedback Ratings Enable Sellers to Set Higher Prices

high feedback ratings

High feedback ratings are a testament to consistent customer satisfaction, quality service, and product reliability. These are key factors that not only customers consider when making a purchase but also for Amazon in determining who is awarded the Buy Box.. 

In this article, we delve into how high feedback ratings enable you to set higher prices with the help of repricing, and we will also discuss the best methods to enhance your feedback rating.

Seller Feedback Rating is Extremely Important to Amazon

Amazon’s customer-focused business model is highlighted by the importance it places on feedback ratings. Given by customers, these ratings are crucial to the platform. 

A seller’s feedback score needs to be at least 90% as it can influence their overall seller ranking and the frequency with which they appear in the Buy Box. Amazon sees these ratings as essential markers of customer contentment and product quality, leveraging them to promote only credible and trustworthy sellers. This approach not only helps maintain a superior customer experience but motivates sellers to enhance their services and products, in line with Amazon’s dedication to customer satisfaction.

Stellar Feedback Offers a Competitive Advantage

Every day, over 2,000 new sellers begin selling on Amazon, adding substantial competition, even for established sellers who already offer competitive prices. In fact, 39% of Amazon sellers identify increasing competition and declining prices as a primary concern. This highlights the vital importance of maintaining excellent feedback ratings to uphold higher prices and safeguard profits.

Excellent Feedback Ratings Allow Sellers to Price Higher

set higher prices with high feedback ratings

Feedback ratings on Amazon can significantly shape a seller’s pricing strategy. High ratings enable sellers to set higher prices, reflecting the trust and value associated with their service and products. 

Amazon’s algorithm weighs sellers’ feedback over 30, 60, 90 days and lifetime to decide who offers the best service, influencing which seller secures the Buy Box.

From the customer’s perspective, they are often willing to pay more for products from sellers with consistent positive feedback, considering the extra cost as a guarantee of quality and reliability. In fact, we know that customers are willing to pay an average of 13-18% more for the same products from sellers with better customer service.

Conversely, sellers with lower ratings may need to reduce their prices to attract customers, possibly initiating a price war that could result in a downward spiral of pricing.

Besides fulfilment, feedback ratings and price are the two most important metrics for winning the Amazon Buy Box.

The Buy Box is rotated among various eligible sellers to maintain fairness and balance. This strategy allows several sellers to be showcased, preventing any single seller from dominating the Buy Box. However, a seller with a strong reputation and outstanding feedback ratings is likely to secure the Buy Box more frequently compared to one with less-than-perfect ratings.

Win the Buy Box more often – even with higher prices

Colin Palin, head of product at Repricer notes, “Typically, the seller who sets the lowest price compared to others on the same product listing gets the Buy Box on Amazon”

However, a seller with a great feedback rating can win the Buy Box even if their prices are higher than competitors with lower ratings. This happens because Amazon recognizes the exceptional service this seller provides and so awards them the Buy Box position.

Competing with sellers with low feedback ratings can diminish profits

Repricing against every seller on the same listing can be ineffective. This approach often results in a price war with sellers who have lower feedback ratings, leading to a downward price spiral and reduced profits. Instead, a more effective strategy for a seller with high feedback ratings would be to exclude sellers with low ratings from their repricing strategy. This method helps maintain competitive pricing while increasing the chances of securing the Buy Box, boosting sales and increasing profits.

5 Ways to Improve Feedback Ratings

Low feedback ratings can impact not only your product pricing but also the health of your account, posing a risk of Amazon potentially suspending your seller account. To improve your feedback rating, consider focusing on these five key areas:

Make Customer Satisfaction a Priority

Keeping customers happy is key. Focus on selling high-quality products and making every part of the shopping journey, from browsing to the product arriving, outstanding.

Simply ensuring your product descriptions are accurate, products are being shipped quickly, and that they arrive in perfect condition are key to a positive customer experience. 

Respond to Queries Quickly

respond to customer queries quickly

Be quick to respond to questions, complaints, or feedback. Aim to reply within 24 hours, to show customers that you value them and take their concerns seriously. Those who are satisfied with their experience are more inclined to leave positive feedback. Quick replies also help in addressing and resolving issues before they become major concerns, minimizing the chance of any negative feedback. Being responsive isn’t just about answering questions – it’s an effective way to build trust, create positive relationships with customers, and ultimately boost your seller feedback rating.

Ship as Soon as Possible

Maintaining reliable and efficient shipping practices is key to meeting customer expectations. If you are a Prime seller, it’s essential to consistently deliver on this promise. A report by Feedvisor saw that 83% of Prime members cited free-two day shipping as the main benefit of their Prime membership. Should there be any unavoidable delays in shipping, it’s important to inform your customers immediately to keep them in the loop. 

When shipping fragile items, it’s important to use sturdy packaging to ensure they arrive in perfect condition. To further enhance the experience, include a custom insert in your packages to promote your brand however you should never ask for a review as Amazon will see this as feedback manipulation which can result in your account being suspended.

Deal with Product Issues

When a customer faces an issue with a product, your response is crucial. Addressing their concerns quickly and effectively, whether through replacements, partial refunds, or extra support, demonstrates your commitment to their satisfaction. This kind of positive and caring approach can transform a potentially negative situation into a positive customer experience. By proactively dealing with problems, you not only solve the immediate issue but also establish yourself as a reliable and customer-centric seller. 

Use a Feedback Solution to Automate Review Requests

Using a smart feedback tool can significantly boost your seller ratings. This tool cleverly targets satisfied customers and automatically asks them for reviews. By generating more positive reviews, you can stay ahead of your competitors and potentially increase your sales. Automating the review process saves you time, freeing you up to focus on other crucial parts of your business.

Final Thoughts

As you can see, improving your feedback ratings places you in a more favourable position, where competing on price with sellers who have lower ratings isn’t necessary. This enables you to set higher prices and achieve a greater profit margin.

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Ronan White
Ronan White
SEO and content marketing executive at Repricer. Loves cycling, cinema, a few beers and all things outdoors.
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