Let’s Get Ready to Bundle!

Amazon Bundle Strategy

A well designed product bundle not only provides convenience and value to customers, it is also a good way to win the Buy Box every time when the bundle is the one and only unique listing on Amazon. Let’s explore what bundled product is all about.

Product Bundle Creation Rule:

●  Include the word “Bundle” and the number of items in the bundle in the product title. Example title: Bundle – 3 items: Tote Bag, Knit Scarf and Gloves – Blue

●  The referral fee applicable to the product category in which the bundle is listed will apply to the entire bundle.

●  Bundled products can be listed in all categories with the exception of Books, Music, Video and DVD( the four categories collectively known as BMVD) and Video Games

●  A Bundle may only be listed in a single category

●  Bundled product can include Books, Music, Video and DVD (BMVD) or Video Games only when a primary product is included in the bundle. [1]

example1

Bundled Products vs Multi-pack vs Variations

Many Amazon sellers might be confused by bundled products, multi-pack and variations. Here are some specific attributes for each different product listing type for sellers to distinguish them.

A. A bundle is composed of different products that are highly complementary and provides a value to buyers when compared to the individual items purchased separately.

B. A multi-pack of the same product counts as multi-pack rather than a bundle.

C. A bundle that only includes a variation of a parent product cannot be listed as a bundle.

bundle2

Why create bundled products?

Customers love bundles. One transaction, fewer decisions, better price, more items. Selling Bundled products is great for sellers who use FBA as a method of shipping. The main advantage of shipping bundled products with FBA is that the shipping fees should be kept to a minimum when you combine two or more items to be sold as a whole rather than selling each item separately. The reason behind this is that FBA pick & pack and order handling fees are calculated per unit shipped and bundled products sent to FBA warehouse is considered to be a unit. Amazon doesn’t need to pick, pack, and handle multiple different products, instead, they only need to take care of one. Thus, bundled products can reduce various FBA fees incurred on one’s seller account. [2]

The benefit of selling bundled products shipped with FBA doesn’t just end with less FBA fees. Bundling products from stale inventory that has been sitting in an Amazon warehouse for a long period of time with other existing popular hot-selling items can also help getting rid of slow moving inventories to avoid Amazon warehouse long-term storage fees.

If you have problems such as slow sales that are caused by losing the Buy Box of listings or shipping cost/fees of items that have exceeded your profit margin hurting your business, creating bundled products can be a life saver. Bundling is a skillful and cost-effective way in differentiating sellers’ products from their competitors’. Not only that bundles are great for getting rid of excessive inventory, but also it is a practical way to add value to an existing product line to make listings appealing and desirable without the hassle of undercutting competitors at the expense of your profit just to win the Buy Box for several minutes. If you do not wish to bundle some of your products but you still would like your items to win the Buy Box with ease, you should try out BQool Repricing Central, the most advanced repricer. 

When you find that your customers are often at times looking at various related listings in your line of products, maybe it’s a good idea to think about bundling some of these products together. By bundling, it can increase not only your traffic and seller exposure, but there is a greater chance of customers buying all of these products from you. Instead of buying a Gaming Console from you, a Joystick from seller B and a Headset from seller C, a customer has a higher chance of buying all three products from you if you offer them in a bundle. This can save customers’ time from product searching and  money by getting all three products in a package. As long as your margin allows and you are still making a comfortable and acceptable amount of profit, bundling can be a good strategy if utilized properly. [3]

Cost 

Gaming Console: $250.00

Joystick: $40.00

Headset: $60.00

total cost: $350.00

cost

Seller B offering

Gaming Console: $400.00

Joystick: $60.00

Headset: $80.00

competitor

Your offering

Gaming Console + Joystick + Headset bundle: $500.00

best bundle

Profit

$500.00 – $350.00 = $150.00

= 30% profit margin

 

Learn more about Amazon Buy Box and Amazon FBA 

 

References

[1] Product Bundling Policy: https://www.amazon.com/gp/help/customer/display.html?nodeId=200442390

[2] Creating a Bundle to Sell on Amazon: http://www.secondhalfdreams.com/4106/creating-my-first-bundle/

[3] Creating Unique Bundles to Win the Buy Box on Amazon: http://www.ecommercebytes.com/cab/abu/y213/m02/abu0329/s02

 

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