There’s no denying that there is incredible competition among Amazon sellers. The need to separate yourself from your competitors and bring something new to the table is almost mandatory in this environment. Kits and bundles are one way that nearly every high-volume Amazon seller is using to help them increase revenue across the board.

Kitting and bundling refer to the practice of selling a group of your items together in a package deal. For example, if you sell laptop accessories, you can group together a bag, a mouse, and a spare battery and call it a travel kit, offering a discount for buying all three together instead of separately. Or you might bundle a camera together with a case, an extra battery, and a memory card.

Even though kitting and bundling sound like they are the same, they aren’t, at least not to Amazon. There are some crucial differences that you need to be aware of in order to get the most out of your kits and bundles.

Bundles vs. Kits

Amazon considers bundles to be items that are highly complementary (such as the laptop accessories mentioned earlier) with each item having its own UPC/ASIN. These bundles are then sold together as a single offering and do not have their own ASIN/UPC. A kit, on the other hand, is a group of items that are prepackaged together and have their own UPC/ASIN. This is a subtle difference to be sure, but one that Amazon is very keen on.

Essentially, bundles are groups of items that are shipped together after a customer orders them. The items are pulled from existing stock and they can still be sold separately. With kitting, the items are prepackaged with only one UPC/ASIN. This difference is important if you’re an FBA seller. Kits will need to be pre-packaged before they are sent to a fulfillment center, while bundles are pulled from individual stock at the Amazon fulfillment center.

It is well worth reviewing Amazon’s specific guidelines regarding bundling. Not only do they give tips on how to create pages, you should make sure you don’t fall astray of their rules.

How High-Volume Amazon Sellers Are Using Kitting & Bundling to Increase Revenue blundle of cosmetic products

Advantages of Kitting and Bundling

There are definite advantages for you as the seller when it comes to kitting or bundling your inventory. First, you’re going to sell more in the long run. That translates to a higher gross income and profits, although you do want to be careful with how deep of a discount you offer with your bundles.

One big reason why this works is because it makes it easier for the customer to make that decision to buy. When things are purchased separately, often the consumer will worry if this accessory will really work with that product. Bundling them together reassures them that everything they are buying will work as they expect and need it to.

A second advantage is the increased exposure. You’re creating new listings by kitting your inventory together, which means you’re going to have more listings. With these additional listings, you get more pages and exposure to different audiences. A significant, but subtle, advantage is that your bundles are going to help you stand out from your competition.

A third advantage to bundling is that you’re going to experience lower return rates and higher customer satisfaction overall. Think of the times you’ve ordered something only to discover that it didn’t come with what you needed to make it work. Whether it’s batteries for a drone, or a memory card for your new camera, providing those things that are necessary to make a product better makes for a better shopping experience.

One key way to take advantage of the higher satisfaction that your customers get from your bundles is to send follow-up emails asking them to leave a review and seller feedback. After all, the best way to let others know that your bundles and kits are on point is from this sort of feedback. This is also a great time to address any questions or dissatisfaction that your customer may have experienced.

If you’re an FBS shipper, creating bundles and kits will reduce errors and can even reduce overall shipping costs. Because multiple items are going to the same address, all of the items can be packaged together, reducing size and weight in many cases. You can also reduce the amount of time it takes to ship because you can have your kits and bundles pre-packaged and ready to go. Packaging kits ahead of time will also practically reduce errors involved in shipping because you’ll be able to notice immediately if a kit’s contents

How High-Volume Amazon Sellers Are Using Kitting & Bundling to Increase Revenue online seller concept shipping around the world

Kitting and Bundling Tips

When it comes time to make your kits and bundles, you should go beyond the standard base item plus accessories. Branching out into other types of bundles can open up an entirely new market and customer base for you. Here are some great ideas for kitting and bundling to help you increase your own revenue.

1. Holiday and Seasonal Kits

Nearly every day has a holiday associated with it; most of them are obscure and only celebrated in other countries. However, just because they’re a little obscure doesn’t mean that they don’t have their celebrants. Setting up bundles that are linked to specific keywords is a great way to attract sales related to those holidays, especially the major ones.

Whether it’s Easter, Valentine’s Day, or even something like the Chinese New Year, people will celebrate it and are looking for a convenient way to do so. Putting together a bundle of your products to take advantage of those holidays is an amazing way to attract a new customer base. And don’t forget about the little holidays either.

There are some great ones that are just begging for a bundle to be put together. For example, February 9th is both National Pizza Day and National Bagel Day. With a little research and creativity, you can put together bundles for most of them. And because they pull from your existing individual kits, you can build as many as you like for whatever holiday you like.

2. Subscription Box-Type Bundles

Subscription boxes have started to come into their own as a successful business model. Amazon itself has created several models, from their Sweet Surprise offering to sample boxes centered on various offerings. It’s no wonder. Sample boxes are a multi-billion dollar company on their own. According to a report by the business wire, subscription commerce tracked to produce about $40 billion in revenue in 2017.

Tapping into this market is fairly simple. While you may not have the diversity of inventory to do a monthly subscription box, there’s no reason you can’t offer your customers a fun sample of what you do have. Put together some items along a central theme and give it a value pricing. If you use your social media channels to generate buzz about your new offering, you’ll be pleasantly surprised with how well a sample box can perform for you.

Bundles and kits create a wonderful opportunity for you as a seller to create unique offerings that will both excite your existing customer base and attract new customers as well.

 

This is a guest post by Andrew Maff, Director of Marketing and Operations for Seller’s Choice, a full-service digital marketing agency for e-commerce sellers. Seller’s Choice provides uniquely personalized marketing and managed services for digital marketplace sellers, e-commerce merchants, and brand builders worldwide. You can learn more by emailing team@sellerschoice.agency or visiting here.

Feel free to contact Andrew on LinkedIn, Facebook, Twitter or Instagram with any questions.