{"title":"An Empirical Examination of BuyBox Assignments in Online Grocery Retail","authors":"Chinonso E. Etumnu, Trey Malone","doi":"10.1002/agr.21978","DOIUrl":null,"url":null,"abstract":"In Amazon's marketplaces across the globe, multiple sellers sell the same product, leading Amazon to introduce BuyBox. This box‐like feature, located on the top‐right corner of product pages, prominently displays a single seller at a given time. Using a choice model and a panel dataset of over 290,000 unique grocery products from five countries, our study investigates the key factors that influence BuyBox assignments. We found that winning the BuyBox is primarily determined by competitive pricing—being the lowest‐price seller for a 180‐day period significantly improves the chances of a BuyBox assignment. Furthermore, maintaining low current product prices, low sales ranks, and minimal out‐of‐stock percentages are crucial in becoming a BuyBox seller. These findings affect Amazon and its extensive network of over 2 million third‐party sellers, who navigate the increasingly competitive and dynamic E‐commerce landscape.","PeriodicalId":55544,"journal":{"name":"Agribusiness","volume":"22 1","pages":""},"PeriodicalIF":2.1000,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agribusiness","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1002/agr.21978","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
In Amazon's marketplaces across the globe, multiple sellers sell the same product, leading Amazon to introduce BuyBox. This box‐like feature, located on the top‐right corner of product pages, prominently displays a single seller at a given time. Using a choice model and a panel dataset of over 290,000 unique grocery products from five countries, our study investigates the key factors that influence BuyBox assignments. We found that winning the BuyBox is primarily determined by competitive pricing—being the lowest‐price seller for a 180‐day period significantly improves the chances of a BuyBox assignment. Furthermore, maintaining low current product prices, low sales ranks, and minimal out‐of‐stock percentages are crucial in becoming a BuyBox seller. These findings affect Amazon and its extensive network of over 2 million third‐party sellers, who navigate the increasingly competitive and dynamic E‐commerce landscape.
期刊介绍：
Agribusiness: An International Journal publishes research that improves our understanding of how food systems work, how they are evolving, and how public and/or private actions affect the performance of the global agro-industrial complex. The journal focuses on the application of economic analysis to the organization and performance of firms and markets in industrial food systems. Subject matter areas include supply and demand analysis, industrial organization analysis, price and trade analysis, marketing, finance, and public policy analysis. International, cross-country comparative, and within-country studies are welcome. To facilitate research the journal’s Forum section, on an intermittent basis, offers commentary and reports on business policy issues.
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