As a seller on Amazon, you have a lot of decisions to make and responsibilities to uphold. In order to scale your business and meet your profit margins, you must always adjusting to the market, the demand, the new regulations and of course, making sure your inventory is stocked. There are many ways to scale your Amazon FBA business, and one of the ways to do this is by creating Amazon Product Bundles. In this blog, Black Caiman Media will be covering what product bundles are and why they are beneficial to you as the seller as well as to customers. Let’s dive in!
What is a Product Bundle?
An Amazon product bundle is when you put two or more complimentary products together into one listing. You can adjust the price to be slightly discounted in order to incentivize customers to buy the bundle of products rather than just buying one. The key to a successful product bundle is the complementary aspect, or combining products that are often purchased together. For example, bundling a sunglasses case with sunglasses lens cleaner would be an appropriate combination of products because they are related and likely to be necessary for best keeping a pair of sunglasses. On the other hand, a bad example of a product bundle would be combining a water bottle with a candle because these two items are not alike or relevant to one another. In sum, the simplicity, compatibility and pricing of your bundles are key aspects of bundling that ultimately determine how successful it is.
The Bundling Benefits
There are many benefits involved with bundling products on Amazon. Let’s start with the benefits to you as the seller…
Product bundles increase your average order value.
By bundling two or more products together into one listing, you are increasing the potential for customers to spend more on your products. Customers are encouraged to spend and order more products when it makes sense to buy them together and they are being offered at a discounted price. To the customer, it is seen as an opportunity to save money, but for you it is an opportunity to increase your sales and average order value.
Product bundles speed up inventory clearance.
Bundling products in a strategic fashion can help reduce your inventory by moving dead stock on through the pairing of weaker items with strong selling items. While it would not be wise to pair an extremely high-selling product with one that is not selling, there is a substantial middle ground where the outlook is beneficial. Clearing your inventory by utilizing product bundles allows you to make more room in your stock, which ultimately saves you money on carrying costs and increases product exposure for your weaker selling items.
Product bundles can increase your profit margins and revenue.
A great product bundle gains traction and exposure on the marketplace, which leads to higher sales and profit margins. As a seller this is especially beneficial because you are not only making more money but also getting your products in front of more customers looking to buy. This is why it is crucial to be smart and strategic when bundling two or more of your products!
Product bundles can help with a new product launch.
If you are considering adding a new product to your business, a great way to get more exposure to that new product is by bundling it with a pre-existing, top-selling one! Since the demand already exists for a top-selling product, you can leverage a new product into that space by bundling the two items together.
Now here are some bundle-benefits reaped by the customer, which in the end work to your benefit as well…
Product bundles are time efficient.
For the customer, product bundles offer a quick and easy way to purchase two or more items at once, without having to waste time scrolling and searching. It’s an effortless way for them to buy everything they need at the same time.
Product bundles save money.
From a customers perspective, a bundle of products that is offered at a discounted price saves them money. The discounted bundle saves a few dollars (or more) that otherwise would be spent if they were to purchase the items separately.
Product bundles make for great gifts or item sets.
Customers love kits and sets of things that they use. For example, an artist would likely be excited to see a product bundle of paints, brushes, canvases and stencils. Bundles can also be great for gifting because they conveniently pair like-items together into one, making it an ideal option for birthday or wedding gifts.
Product bundles enhance customer experience.
A successful product bundle strikes appeal with the customer because it saves them time, money and the energy that would have been exerted into finding complimentary items to serve one purpose. Happy customers are great for you as the seller too because they are incentivized to become regular buyers of your products and leave positive reviews.