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According to SEO Dictionary, Google Sandbox is one of Google search engine algorithms which are trying to prevent the spam websites from quickly reaching high in the search engine results pages (SERPs).
Many SEO Specialists at SEO University hypothesize that there is a virtual "purgatory" that all newly launched websites must pass through in order to rank well in Google search engine. In fact, many new websites seem to pass through this stage, and many find that the period is remarkably close to six months or even one year.
Why does Google need Sanbox? Google have sufficient reason for creating the Sandbox. Google need quality websites show up high in the search engine results pages (SERPs), and try to prevent spam websites from quickly achieving high placement in the search engine results pages (SERPs). In the past, once a short period of promotion time was over, a promotional spam website would be removed and cause many broken links in the Google SERPs. That is the reason why Google search engine need this Sandbox algorithm, which is unfair to newly lanched websites.
Matt Cutts at Google states in an interview with Barry Schwartz (news editor at Search Engine Land) that there may be "things in the algorithm that may be perceived as a sandbox that doesn't apply to all industries".
Many SEO specialists believe that while Google may not explicitly have a "sandbox", the effect itself is real. For this reason it is termed an "effect", and not a "penalty". It may be the collective side effect of several algorithms - not an explicit "sandbox algorithm". Some websites seem to be exceptions to the rule, especially those that acquire links from several authority sites early on. A few links from nytimes.com and other prominent websites, for example, may exempt a web site from the sandbox effect.
Some SEO specialists at SEO University hypothesize that Bing Search does not appear to have anything similar implemented now.
If you have newly-registered domains or domains with frequent ownership changes, or newly-lanched websites, you will find your websites may be put into the Google Sandbox. But don't worry, there is a way to get out from the Google Sandbox: