How to Sell Bundles on Amazon
by Colleen Quattlebaum, on May 25, 2017
Peanut butter and jelly. Biscuits and gravy. Coffee and donuts. Bundles on Amazon.
Consumers like to buy things that go together. And as the world's #1 online retailer, Amazon.com offers a way to capitalize on this phenomenon. Known as "bundling," kitting complementary products can help you capture a larger share of the Buy Box and improve profitability.
In this post, we'll offer an introductory explanation of how to sell bundles on Amazon.
Bundling Basics to Consider
Amazon.com, Inc. ("Amazon") is known for being the most customer-centric company in the world. This type of reputation doesn't come easily, and Amazon can be pretty aggressive when trying to defend it - even with third-party sellers. There are plenty of suspension horror stories floating around the web. Failing to play by the rules is a quick way to end up as one of them.
As with anything on the Amazon marketplace, it's wise to thoroughly review and understand the rules before investing too much time on a new strategy. When it comes to product bundling, you'll definitely want to check out the following help pages (there are also countless seller forum posts on this topic):
- Amazon's product bundling policy
- Amazon's product detail page rules
- ASIN creation policy
- How variation relationships work
Even after reviewing Amazon's bundling documentation, it may still be unclear as to whether your bundle idea is Amazon-worthy. Before you move forward with creating the bundle, pause to consider it through three different vantage points:
The Buyer's Perspective: Amazon puts the customer first, and so should you. Would this new product combination add substantial value to buyers? Will it make people's lives easier or more enjoyable? If the answer is yes, move on to the next perspective.
Amazon's Perspective: If you were Amazon, would you actually want this product bundle consuming precious real estate in your search result pages? Are the products truly "complementary" to one another? Does the kit actually improve the customer's experience? If yes, move on to the final consideration.
Your Perspective: Can you make money on this product bundle? If so, do you have a plan to ward off copycat competitors? What software do you need to efficiently track the kit's supply chain and profitability?
Create Your Bundle Plan
If your product bundle checks all the boxes, it's time to get busy bringing it to fruition. Amazon offers very detailed instructions for launching a new product bundle (refer once again to the bundling policy). To briefly summarize the process, you'll need to do the following (in no particular order):
- Figure out which category the kit should belong to (you can only pick one, and it usually is based on the highest priced item in the bundle)
- Obtain a UPC code and ASIN for the bundle
- Create the new Amazon product listing (see the end of this guide for tips on bundle titles and images)
- Place purchase orders with suppliers, if necessary
- Determine if you'll be self-fulfilling orders
- Gather the necessary kit parts and build shipments
- Develop your promotional strategy
If you're not a private-label seller, it can also be beneficial to obtain manufacturer buy-in (in writing) on your bundle concept. For example, bundling products from two directly competing suppliers could sour existing relationships.
Track the Results
Now for the fun part: watching your bundle product gain market acceptance.
Without the right tools, however, even the most experienced seller can struggle to accurately measure a bundle's success. With hundreds or thousands of other SKUs to attend to, it's easy to lose track of how a kit is performing. This is especially true if you plan to sell kit parts individually (in addition to the bundle itself). Talk about some tricky restocking decisions!
Luckily, RestockPro simplifies the management and profitability analysis of Amazon bundles. RestockPro securely houses all of your supplier and product cost data. In addition, it pulls in sales and cost information from your seller account via the Amazon MWS API and simplifies the ordering process for kits. RestockPro does all the number crunching for you, helping you to visualize how a bundle is performing (as compared to its individual parts or other related ASINs).
As your inventory falls below certain thresholds (as defined by you), RestockPro alerts you that it's time to take action. Is the bundle pulling its weight? Should you continue to dedicate resources to the kit? Are competitors creeping into your space? Historical sales data, Buy Box details, estimated margins and competitive intelligence help you make an informed restocking decision.
Ready to Sell Bundles? Let RestockPro Help
I hope this article offers a helpful overview of how to sell bundles on Amazon. If you have any questions, feel free to post a comment below. I'll be sure to respond as quickly as possible.
And, once you've launched your first Amazon bundle, circle back to RestockPro and claim your free trial account!