Hello everyone, welcome to our blog! Today, we’re diving into the world of wholesale bundling on Amazon, also known as the “poor man’s private label”. This is a powerful selling model that can significantly boost your profits, and we’re excited to guide you through it from A to Z.
What are Wholesale Bundles?
Wholesale bundles are highly complementary products sourced from wholesale vendors and sold together in a way that provides both convenience and value to the buyer. This model is particularly powerful because it allows you to differentiate your offerings from the competition, potentially owning 100% of the buy box and capturing all the sales.
Why are Wholesale Bundles Important?
Wholesale bundling is important for several reasons:
- Increased Profits: By bundling products together, you can increase your profits substantially. This is because Amazon charges service fees for every item you sell. By selling multiple items together, you can avoid these fees on single items, thereby increasing your profit margins.
- Reduced Competition: With wholesale bundling, you can eliminate competition by offering unique bundles that other sellers can’t replicate. This is especially true if you include a branded item in your bundle, which can prevent other sellers from jumping onto your listing.
- Meeting Customer Needs: Bundling allows you to solve a customer’s need or meet a problem that they might have. By offering a bundle of products that go well together, you can provide value to your customers and increase the likelihood of a sale.
The Benefits of Wholesale Bundles for Amazon Sellers
Wholesale bundles can eliminate common Amazon seller struggles:
- High Competition on Individual Items: Wholesale bundles allow you to own the Buy Box 100% of the time without the risk of competition decreasing your price or your profit. When done correctly, you’ll be the only seller on your listing.
- Scalability: When working with wholesale bundles, you don’t need to be out in the field in order to scale your sales volume. When you purchase products from wholesale vendors, you can send emails to reorder more product, eliminating the need to drive from place to place to scrape up enough product to sell that week. This will free up more time in your business to find a more sustainable source of products (wholesale vendors) and allow you to scale faster.
- Accessibility: Wholesale bundles give you the flexibility to work anytime from anywhere. You don’t need to stick to the operating hours and inventory levels of brick-and-mortar stores.
How to Find Wholesale Bundles
Finding the right products to bundle together is a crucial part of the wholesale bundling process. Here are some strategies to help you identify potential wholesale bundles:
- Frequently Bought Together on Amazon: This is a great place to start. Amazon already provides this data, showing products that customers often buy together. This can give you ideas for potential bundles.
- Customer Reviews and Questions: Pay close attention to what customers are saying in the reviews and questions sections of product listings. You might find that customers are using a product in conjunction with another item, which could be a great opportunity for a bundle.
- Competitor Analysis: Look at what your competitors are doing. If they are selling bundles, what products are they combining? This can give you ideas for your own bundles.
- Market Research Tools: There are several market research tools available that can help you identify potential product bundles. These tools can provide data on product trends, customer behavior, and more.
- Trade Shows and Vendor Catalogs: Trade shows can be a great place to find new products and get ideas for bundles. Similarly, vendor catalogs can provide a wealth of information about products that might go well together.
- Think Like a Customer: Put yourself in the customer’s shoes. What products would you buy together? What problems do you have that a product bundle could solve?
Remember, the key to a successful bundle is to provide value to the customer. The products in the bundle should complement each other and meet a specific customer need or problem.
How to Create a Successful Wholesale Bundle
Creating a successful wholesale bundle involves several steps:
- Choose a Product: The first step is to choose a product that already exists, preferably one that you can get from a wholesale account at a low price.
- Add Value: Next, think about what you can add to the product to solve a customer’s need or add value. This could be another product that complements the first one, or a branded item that you’ve created yourself.
- Mix Vendors: To make it harder for your competition to replicate your bundle, consider mixing vendors. For example, you could get one item from a wholesale catalog, another from a retail store like Walmart, and another from a different source.
- Create a Listing: Once you’ve put together your bundle, you’ll need to create a listing on Amazon. This can be time-consuming, but it’s crucial to do it right. The quality of your listing can determine whether your bundle sells or not.
Getting into the Mind of Your Buyer
To understand why bundles work, Amazon sellers need to make a mindset shift away from data-based widget inventory purchases tofocus on who will purchase the product. Put yourself in the buyer’s shoes and ask yourself the following questions:
• Who is looking for this type of product?
• What will it be used for?
• When will the buyer use the product?
• Why does the buyer need the product?
• How will the buyer use the product?
• What value does your product bring to the customer that other products are lacking?
By asking these questions, you’re getting into the head of your buyer. This process helps you provide the exact product your customer needs to solve their problem. Once you do that, a whole world of possibilities can open up to you.
The Power of Wholesale Bundles
Wholesale bundling offers the ability to have fully-researched products on the shelf in less than two weeks with less risk and less upfront investment. It’s a sustainable growth strategy for Amazon sellers both big and small, providing a way to increase profits, reduce competition, and meet customer needs.
Wholesale bundling is a powerful selling model on Amazon that can help you increase your profits, reduce competition, and meet customer needs. By choosing the right products, adding value, mixing vendors, and creating a high-quality listing, you can create a successful wholesale bundle that stands out from the competition. In our next blog post, we’ll delve deeper into how to choose the right niche and category, and how to find the right vendors and catalogs. Stay tuned!