Amazon has announced a new Virtual Product Bundles Program that will allow brands and merchants to create bundles of products and sell them as a unit on the Amazon marketplace.
The program is designed to help brands and merchants increase sales and traffic on Amazon, and offers several benefits including exposure to new customers, increased discoverability of products, and simplified order management.
In this blog post, we'll explore how brand owners can take advantage of the Virtual Product Bundles Program to boost their sales on Amazon. We'll also discuss some strategies for creating successful bundles that will appeal to Amazon customers. Read on to learn more!
What are virtual bundles on Amazon?
Virtual product bundles for Amazon FBA let brands produce virtual bundles of 2 - 5 ASINs that may have a total purchase price. The details page is 'distance based,' meaning the owner can create packages with little packaging and changes inbound stocks at their discretion, making this an excellent way to save money on shipping costs!
Overview of Amazon's Bundle Policy
- A bundle can only have a single category. If the products are from multiple categories, you must list the bundle under the category of the highest priced (primary) item.
- Each bundled-product must be purchasable on its own and should be complementary to the primary product.
- Video, music, books, DVDs, or products from the Video Games category cannot be used as primary items when creating a bundle.
- The referral fee for the bundle will be the same as that of the primary product’s category.
- Don’t use generic items for bundling
What is your Virtual Bundling Strategy?
When it comes to bundling products, you'll want to consider a few things:
- Complementary products that are often purchased together
- Products with a similar price point
- Discounts that will appeal to customers
- A clear and concise bundle title and description
Examples of Amazon Virtual Bundles
Virtual bundles are a great way to increase your average order because they allow you the chance of getting more than one product with different discounts. The beauty category has many opportunities for this type virtual bundle such as shampoo and conditioner which can be purchased at an average price point between $8-12 dollars depending on where it's from but when paired together, customers will purchase both items separately costing around same amount while saving money by purchasing them together in package deals under 20$.
Other examples include household staple foods (like cereal) that offer much lower prices if bought individually; however during sale periods consumers might buy more often resulting in higher order values.
But how can I tell this is a virtual bundle?
You can tell by scrolling down the page a little and you will see "This bundle contains 2 items (may ship separately)". Check out this example here
How does Virtual Product Bundling work?
Amazon beauty product bundling is a great way to reduce the search pain for beauty buyers. Beauty buyers are always searching for multiple products multiple times which can be a painful task. Product bundles that are created with the items that are frequently purchased together reduce this pain.
Amazon beauty product bundling has a 60% success rate with 35% of the purchases on Amazon coming from product recommendations. (Source)
Did you know these recommendations have a 60% success rate? (Source) Beauty buyers will appreciate being able to find everything they need in one place without having to search multiple times. This will increase your average order value and create loyal customers.
Benefits of Bundling Products
Bundling products is a great way for beauty enthusiasts to get everything they need in one place. Not only does this save time, but it also saves money. Bundling products also allows beauty enthusiasts to try new products without committing fully to them.
For example, a beauty enthusiast might want to try a new eyeshadow palette but wouldn't want to spend the money on a full-sized product. By bundling it with other products, they can try it out without breaking the bank. In addition, beauty enthusiasts can also create their own custom bundles by choosing the products that they want.
This allows them to get exactly what they need and nothing that they don't. Bundling products is a great way for beauty enthusiasts to save time, money, and get exactly what they need.
1 - Win the Buy Box Battle
The bundle can require longer creation time and therefore less buyers are using it. There's also no competition with the shared buy box. If a shopper shares the box, they must create identical packages for you. Then, you can profit by purchasing the box in your own hands by choosing one popular combo. There are many advantages of selling single product because it takes time before competition grows. If that happened you could enter a price war or share the Buy Boxes with others from Amazon.
2 - Higher Minimum Order Value
Bundles are more expensive and require more order quantities, giving customers more opportunity at lower prices for goods. Amazon's fee structure has traditionally prevented low-value products from being sold, as they have destroyed profits. Because bundles are categorized as the same item and Amazon referred fees are charged for each bundle, it is very easy for sellers to buy low-value items.
3 - Sell less popular products
Maybe the idea of selling less popular products sounds odd to many people, so listen. Maybe you tried the product but the product did NOT stick out. Why not mix them with popular products? Psychologically sales is strange. Some people might choose to purchase the same product over one simply by focusing on getting two instead of one.
4 - Make it easier for your customers
When product bundles are appropriate, it should be convenient. It's important to be satisfied with our service. These comments will encourage conversions, which will boost organic rankings on Amazon.com. This is a way to start a sales flywheel. It's a simple way of driving auto sales.
Can you create Virtual Bundles in Amazon Vendor Central?
Absolutely! An Amazon Virtual Bundle is a group of products that are related to each other, but are not physically bundled together. Customers can add all the items in the bundle to their cart with just a few clicks, and you as the seller get to choose which products are included in the bundle. This is a great way to cross-promote complementary products and increase your average order value.
One issue is that you will need to have Amazon Vendor Support set up these virtual bundles in Vendor Central or you can reach out to beBOLD to help you setup these Vendor virtual bundles.
Can you create Virtual Bundles in Amazon Seller Central?
Amazon virtual bundles are a great way to increase your sales and boost your conversion rate. You can create virtual bundles in Seller Central by going to Brands > Virtual Bundles.
When creating the listing, you'll need to specify the products that are included in the bundle, as well as the price of the bundle. Virtual bundles are a great way to offer discounts on multiple products, and they're a great way to increase your sales. Thanks for reading!
Can you advertise virtual bundles?
Advertisement and Enhanced Content Presently Virtual Bundle ads are only able to be displayed on Sponsor branded advertisements and not sponsored product advertisements. Brand owners are allowed to create unique A+ content pages for Virtual Bundles.
Track your Virtual Bundle Performance
Amazon is not recording virtual bundle sales reports in Seller Central at this point of time. Instead, the sales are passed through to each component of the bundle. With this, Amazon makes it easy to manage your inventory without tracking new SKUs. However, you may not be able to track the performance of your bundle.
To keep a record of bundle sales, Amazon sends you an email once a week with a link to download your bundle sales from the past 90 days in CSV format. This report contains:
- Date: Given in the format of Year/Month/Day. If there is no date, the bundle has no sales recorded.
- Bundle ASIN
- The first 100 characters of the bundle title
- Total sales: Sum (bundle price * bundles sold). This column gives ordered product sales for the bundles.
Amazon Virtual Bundle - Frequently Asked Questions
How do I create an Amazon Virtual Bundle?
To create an Amazon Virtual Bundle, go to Seller Central > Brands > Virtual Bundles. rate a listing for your bundle and specify the products that are included in the bundle, as well as the price of the bundle.
Can I advertise my virtual bundle?
Amazon Virtual Bundles are currently only able to be advertised on Sponsor branded advertisements and not sponsored product advertisements. Brand owners are allowed to create unique A+ content pages for Virtual Bundles.
What are Virtual Bundles on Amazon?
Virtual bundles are 2-5 products from your catalog that are sold as one, typically at a discount. These products are not packaged together but are sold together. Virtual bundles allow Customer to shop for products that go well together, making it easier to discover and buy more from your Brand's catalog.
Can virtual bundles be edited?
When a virtual bundle is created, it becomes an independent SKU. You can edit the title, description, bullets, images, and price. However, you cannot change the products offered within the bundle itself.
Amazon Virtual Bundles Conclusion
If you're looking for a way to increase sales and traffic on Amazon, the Virtual Product Bundles Program may be just what you need. This program offers several benefits, including exposure to new customers, increased discoverability of products, and simplified order management.
And if you're not sure where to start or need help setting up your virtual bundles, beBOLD can manage your entire Amazon business for you. Contact us today to learn more about how we can help boost your online sales with this powerful program!