In today’s fast-paced world, shoppers aren’t looking to put 2, 3, or 4 products in the same checkout bag. Amazon shoppers want an easy way to buy all the relatable products with one click.
You, as a problem-solving entrepreneur, can fix this problem or at least make the process of buying for Amazon shoppers easier. Entrepreneurship is not about money but rather about creating value and solve problems. And if done correctly, money will follow.
The same goes for every business. Look at me as an example. I’m here providing value to you as a reader and not asking anything in return. Hack, I’m not even expecting anything in return.
Creating the convenience of a product bundle for a customer to purchase everything they want in one place is an old school differentiation model that is still working today. It’s called product bundling.
How does product bundling work
In plain English, this is how I would explain it.
Amazon product bundling is taking two or more related products and bundling them together into one listing. Instead of ordering from two or more separate product listings, the customer can get everything they need with one click, making it easier and quicker.
Here is an example of what a beneficial product bundle can look like on Amazon.
You see, customers can purchase a DJI Mavid without any attachments on it. Just a plain drone. However, a listing like the above provides a solution for Amazon shoppers who want everything in one place.
The seller has a great strategy by wholesaling the DJI Mavic and adding additional private label products. Wholesale is the practice of purchasing brand-name products from suppliers or distributors. However, the popular business model has a ton of competition.
Why sell product bundles on Amazon FBA
The standard DJI Mavic listing has eight different sellers, including Amazon themselves. If you know anything about selling on Amazon, you understand competing with Amazon on the same listing is not a good idea.
The solution is bundling private label with wholesale products─or wholesale with additional wholesale products. Doing so will lead to less competition as sellers are not likely to source the same products. With less competition, I mean additional sellers on the same listing fighting for the buy box.
On top of that, you are differentiating your listing to stand out from the competition. It’s a great way not to be the same seller offering the same product from the same manufacturer from the same Alibaba listing. You are different by offering a real solution to the customer.
That is the exact reason you want to sell product bundles on Amazon.
Types of product bundles
In dummy terms, a product bundle obtains two products together. Nothing more, and I don’t want you to overthink it.
The goal of product bundling is to make life easier for the customer. To offer a simple solution. Knowing this, we can start brainstorming ideas for the product we want to offer. To develop ideas, we want to use our creativity or look at the data─data provides us with certainty to a point where customers are already purchasing two products together. I’m talking about the frequently bought together section under need a product.
Amazon sellers highly overlook it, but the frequently bough-together section displays Amazon’s internal data on what customers have purchased in the past.
It’s one way to come up with an idea. Another way is to use your creativity.
Think about items you have bought in the past and see if you had trouble selecting multiple items to put in your basket. I find a problem that you face yourself and fix it an even better way than to look at the data. However, it’s more tricky. Being creative isn’t providing certainty as data would have.
There are countless opportunities for product bundles in the Amazon marketplace. Besides using data, I have provided a few different ways to spice up your creativity to find market problems. Your job is to find a problem and fix it.
Gift or themed product bundles
With a gift or themed product bundle, you can make life easier for shoppers looking for a present. An example might include a movie night gift basket.
The listing is marketing the gift basket to teenagers, colleges, students, and friends. I can think of multiple occasions to give a product bundle like this to one of my friends. There is also a ton of volume if you look at Jungle Scout.
Handy product bundles
Product bundles that are handy combine several products to make it more convenient when you have a project. Think about a back-to-school product bundle that includes items like books, pencils, paper, etc.
The Amazon product bundle targets moms and dads, offering an all-in-one solution with a bulk pack containing everything a K-12 student needs to get organized.
Further, when thinking of handy product bundles, think about sports bundles. For example, you might offer a starter pack with everything you need to get started with your first yoga class.
Branded product bundles.
Also known as wholesale bundling, where you put multiple products from the same brand together. The products are not your brand but rather sourced from a distributor. However, you can develop a bundle where you put a brand’s product together with a product you sourced from China. For example, the GoPro─the GoPro is sourced from a distributor, and the complementary parts are likely sourced by the seller from China directly.
A branded product bundle where you have the luxury of GoPro’s brand recognition and likely a higher margin than if you would only sell a GoPro. On top of that, you won’t see competition on your listing.
Other product bundles on Amazon
There can be a lot more possibilities regarding product bundle options. I recommend taking a deep dive into each product bundle I explained, but also to be creative yourself. Try and think about problems you have had in the past and see if you can figure out a solution.
Virtual product bundles program
If you don’t know yet, Amazon has come out with a new program called “Virtual Product Bundles.” It’s relatively new, so don’t worry if this is your first time reading about it. I will explain everything.
A virtual product bundle lets brand owners create “virtual” bundles made up of two to five complementary ASINs purchased together from a single detail page. It allows brand owners to offer bundles without packaging items together or to change FBA inbound inventory.
The program is only available for sellers who own a brand. If you don’t have access, you have not been identified as a brand owner. Visit the brand benefit eligibility page to check and gain access to virtual product bundles.
So how does it work? Let me explain with an example; let’s say you are selling a mattress as one ASIN for your brand and a bed frame for another. The tool, virtual product bundles, allows you to make a separate ASIN that is a package deal of both of those items. Basically, a separate product page offering a bundle without bundling it yourself.
If a customer purchases your virtual product bundle, Amazon will ship the two products from your inventory.
Previously, if you wanted to sell the two products together, you would have needed to repackage them in your warehouse and send it to Amazon. This advantage allows you to create virtual bundles within minutes. Also, you don’t have to create a new UPC for the bundles you create. It’s all done by Amazon.
Next to the benefit of prepackaged inventory, you are also cross-promoting your product line and attracting price-sensitive customers. It’s a win-win for everyone.
Cons and requirements of virtual product bundles
Are there even any negative elements of virtual product bundles? Well, at first glance, no. However, there are requirements and restrictions, so not every Amazon seller will be able to benefit. Like I said before, you need to be a member of the Amazon Brand Registry, which is to say, you need to own your brand.
Other requirements are:
- ASINs need to have active FBA inventory in the ‘New’ condition.
- You can’t include gift cards, electronically delivered products (like digital music, video, and books), and renewed/used ASINs in your virtual product bundle.
- Product bundles can only be created in the US Amazon store.
For the time being, you are not able to use sponsored products to promote your virtual bundle. Sponsored brand ads, on the other hand, are compatible. Next to that, ASINs have independent reviews and ratings in the bundle.
One other negative aspect are the fees. For bundles that you create and repackage yourself, you get the benefit of reduced Amazon FBA fees. For virtual product bundles, however, that is not the case. There are no changes to fulfillment fees.
How to create a virtual product bundle
Besides the negative aspects of virtual product bundles, I still believe the potential is huge. The risk-free way to get added exposure will get more attractive over time as it is still relatively new. I recommend giving it a try if you have access to it.
Here is a step-by-step on how to set it up:
- Go to this link
Start with choosing your products and select two to five ASINs to create your virtual product bundle for.
Following, upload up to 9 images for the listing. The component products you have entered in step one will automatically populate the images. It’s suggested that you upload an original image for the main image, which shows the complete bundle instead of just one product.
When that is done, enter your new bundle’s title, price, and description. One more restriction on the price. It must be equal to or less than what the customer would pay if they bought everything separately. It’s your responsibility to monitor the bundle price, says Amazon. If the bundle price becomes higher, you will lose the Buy Box.
It’s suggested to use a software tool to build your listing title, bullet, and description. I use both Jungle Scout, and Helium 10. It doesn’t matter what software you choose as a starter, but I suggest choosing between the two above.
That is it! Your full guide towards Amazon FBA product bundles. If for any reason something is missing, let me know. I appreciate everyone reading my blog, especially those who share this article on social media.