We knew change was coming to the Buy Box, and it’ll apply from May 2024. But how will the new Featured Offer criteria work?
A Fairer Fight
In their efforts to ensure a fair fight for all Amazon sellers – and the best deal for consumers – the Competition and Markets Authority (CMA) secured Amazon’s agreement to new competition terms in November.
Those terms will directly affect the way that Amazon presents Featured Offers (the Buy Box) to shoppers, with the retail giant committing to use criteria that is “non-discriminatory” and treat “sellers and Amazon retail equally”.
The biggest change is to Prime…
The most interesting thing to come out of the agreement?
It’s that the Buy Box won’t rely on Prime eligibility and/or the Prime badge anymore.
That means that, in theory, MFN (Merchant Fulfilled Network) sellers offering fast and free delivery should be competing on a level playing field with FBA and SFP sellers.
Note the words “offering fast and free delivery” though – Amazon has flagged that these will still be crucial criteria in awarding the Buy Box, so MFN sellers will need to make sure their logistics are running at an A++ standard to stay competitive.
The changes in full
Amazon has committed to…
- Not using its competitors’ Marketplace data to give Amazon’s own retail business an unfair advantage.
- Guarantee that all product offers are treated equally when it comes to the Featured Offer in the Buy Box.
- Let third-party brands on Marketplace negotiate their own rates with independent Prime delivery services, benefitting buyers with lower delivery charges where relevant.
- Collaborate with the CMA on the appointment of an independent trustee whose remit will be to monitor Amazon’s ongoing compliance with these commitments.
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