Recently, Amazon has come to an agreement with the European Commission to make significant changes to its Prime eligibility and badge criteria, as well as its Buy Box offer display. These updates are set to take effect in June 2023 and will affect sellers in several countries across the EU, including Germany, France, Spain, Netherlands, Poland, Sweden, and Belgium.
If you’re a seller in one of these countries, it’s crucial to understand the implications of these changes and what they mean for your business.
In this article, we’ll dive into what sellers need to know about the EU Amazon Prime eligibility updates, and how these changes could impact your sales and performance on the platform.
What Exactly Are These Updates?
The major update that is coming will affect the way Prime eligibility and Prime badge criteria are applied to sellers across different fulfilment channels, including Fulfilled by Amazon (FBA), Fulfilled by Merchant (FBM), and Amazon retail.
The key change is that these criteria will now be applied equally to all offers from sellers, regardless of their fulfilment channel.
In the past, having stock in FBA or Seller Fulfilled Prime (SFP) typically resulted in better placement and a higher likelihood of winning the Buy Box compared to Merchant Fulfilled orders. However, with the new update, this advantage will no longer exist, and all sellers will be subject to the same Prime eligibility and badge criteria.
How Do I Qualify For Prime Eligibility?
In order to be eligible for the Prime program, offers on Amazon must meet the requirements based on the expectations of Prime customers with the goal to uphold the existing customer experience. This includes:
- Fast and reliable delivery
- Easy customer returns
- Excellent customer service
- Offering package tracking
Merchant Fulfilled sellers (FBM) who wish to enrol into the Prime program, may use alternative logistics providers and negotiate terms directly, however, must make delivery tracking information available to Amazon and meet the Prime requirements listed above.
If your business employs a slow delivery service, the likelihood of winning the Buy Box is nearly zero, as it is one of the primary metrics considered when assessing eligibility. To increase the chances of being accepted into the Prime program, it is necessary to utilize a faster delivery service.
The Advantages of Being an Amazon Prime Eligible Seller
Becoming an Amazon Prime eligible seller can offer a host of benefits for your business, ultimately leading to increased sales and revenue. First and foremost, being a Prime eligible seller means that your products will be highlighted with a Prime badge, which is highly visible to millions of Amazon shoppers. This badge signifies that your products are eligible for free and fast shipping, which is a significant draw for many customers who value speedy and reliable delivery.
In addition to increased visibility and sales, being a Prime-eligible seller can also help to build trust and credibility with customers. Amazon’s Prime program is known for its exceptional customer service, and being a part of this program can demonstrate to customers that your business is committed to providing the same level of service and convenience.
How Amazon Prime Eligibility Can Improve Your Buy Box Performance
One of the most significant benefits of being an Amazon Prime eligible seller is the increased chance of winning the Buy Box. The Buy Box is the box on the right-hand side of an Amazon product page where customers can add an item to their cart. Winning the Buy Box means that a seller’s product is listed as the default choice when a customer clicks the “Buy It Now” or “Add to Cart” button, leading to increased sales and visibility.
Since the Prime program guarantees fast and free shipping, being a Prime-eligible seller automatically fulfils some of the key criteria required to win the Buy Box. Amazon’s algorithm heavily favours sellers who provide a positive customer experience, and the Prime program is designed to do just that.
The Role of Repricing in Winning the Amazon Buy Box
Repricing is a crucial strategy for Amazon sellers looking to win the Buy Box. Winning the Buy Box can lead to increased sales, and a dynamic pricing strategy can help you to remain competitive and stay ahead of your competition.
Repricing involves dynamically adjusting the price of your products in real-time to ensure that your pricing remains competitive and aligned with customer demand.
By leveraging repricing software, you can automatically adjust your prices based on factors such as competitors’ prices, product demand, and supply levels, leading to increased Buy Box ownership and greater sales and profits.