Did you know – bundling and kitting is one of the most underrated strategies to sell through inventory and boost profit margins + revenue?
In fact, some of the most successful Amazon FBA sellers brilliantly use bundling and kitting to dominate many niches and product categories – shutting out competitors selling regular SKUs by combining complementary products that solve multiple problems for customers.
In this article, we’ll cover the bundling and kitting process – along with 6 strategic tips you can use to “”bundle and kit” your way to growing and scaling your Amazon store.
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- What is bundling & kitting? Is there a difference?
- Benefits to bundling & kitting for Amazon FBA
- Tips for kitting & bundling on Amazon FBA
What is bundling & kitting? Is there a difference?
When you are looking to streamline your packaging and shipping process, bundling and kitting can be a phenomenal strategy. This is when you group similar & complementary products together in one package or kit. For example, if you sell jewelry, you could bundle together a necklace, earrings, and a bracelet. Or if you sell cosmetics, you could create a kit that includes a lip gloss, mascara, and eyeshadow.
Both of these methods involve packaging multiple products together, but there are some key distinctions between them. Bundling generally refers to combining multiple products into a single package, without any customization or assembly required. Kitting, on the other hand, involves creating a custom package of products that are designed to be used together. For example, a business might sell a kitted product that includes a power drill, drill bits, and a battery charger.
Kitted and bundled products often have a higher perceived value than bundled products, since they are specifically tailored to the customer’s needs. As a result, they’re often used as effective merchandising and marketing strategies to increase Amazon sales.
Benefits to bundling & kitting for Amazon FBA
Reduces shipping costs
Any experienced Amazon FBA seller knows that shipping can be a significant cost. When selling through Amazon, it’s crucial to find ways to minimize these costs in order to maximize profits. One way to do this is through bundling and kitting.
By packaging together similar items, sellers can reduce the overall number of shipments and save on shipping fees. In addition, kitting allows businesses to send products directly to customers without incurring the cost of Amazon storage. By taking advantage of these strategies, Amazon FBA sellers can keep their shipping costs low and turn a higher profit on their sales.
Drives more revenue
When it comes to selling products on Amazon, FBA sellers have a few different options for pricing and packaging their items. Bundling and kitting is a pricing strategy that can be particularly effective – since grouping together similar or complementary products can allow sellers to offer their customers a more complete solution, and generate more revenue in the process.
Another example – a seller might bundle together a set of kitchen knives with a sharpening stone and a cut-resistant glove. Not only does this give the customer everything they need to get started with cooking, but it also helps the seller maximize their profits.
Kitting can also be an effective way to clear out inventory that is taking up space in the warehouse. By grouping together slow-moving items, sellers can make them more attractive to buyers and move them off the shelves more quickly. Ultimately, bundling and kitting are both powerful pricing strategies that can help Amazon FBA sellers boost their revenues.
Speeds-up cash flow and growth
Bundle products together to improve cash flow and quickly sell through inventory with the Amazon FBA program. By bundling products and grouping like-items together, you can create a convenient shopping experience for the customer that will result in increased sales and improved cash flow – it’s a win-win!
Kitting is another way to group products together in a way that is advantageous for both the customer and the seller. Typically, kitting involves grouping items together that are necessary for a particular task or goal – it’s an excellent way to move slow-moving inventory and can also be used to create new product combinations that appeal to new customer groups.
Boosts customer satisfaction & reviews
Any Amazon FBA seller knows that customer satisfaction is key to success on the platform. Good reviews and high ratings are essential for attracting new customers and maintaining a strong seller reputation. One way to improve customer satisfaction is through bundling and kitting.
Since you’re packaging together products that complement each other, it’s now easier and more convenient for customers to find everything they need in one place – and this can be a great way to boost sales and encourage positive reviews, as customers are more likely to be satisfied with their purchase when they receive a complete package that meets their needs.
Plus, with shoppers seeing previous customers having a good experience with your most-expensive products (your kits and bundles), it will add more confidence in your products – beyond your regular-priced products.
Lowers return rate
Amazon FBA sellers are always looking for ways to minimize their return rate. One way to do this is by bundling and kitting products together – especially since you make it less likely that customers will return items, because they come in a package and customers often enjoy some/many of the products at a minimum.
Customers are also more likely to be satisfied with their purchase because they will receive everything they need in one package. As a result, bundling and kitting can be an effective way to lower your return rate and improve customer satisfaction.
Encourages gift-buying
As an Amazon FBA seller, you are always looking for ways to increase your sales and profits. One way to do this is to offer gift-themed bundles and kits. By bundling together products that complement each other, you can create a more appealing package that is more likely to be purchased as a gift – which attracts the gift shoppers on Amazon.
For example, you could create a bundle of travel-sized toiletries that would be perfect for a business trip or a weekend getaway. Or you could put together a kit of all the essential items needed for a new puppy owner. By offering gift bundles and kits, you can tap into the lucrative gift-buying market and boost your sales during the holiday season and beyond.
Overall, gift-buying tends to peak during the holiday season, with a significant spike in the months of November and December. This is likely due to the fact that many people do their holiday shopping online, taking advantage of Amazon’s vast selection and convenient delivery options.
However, there are also spikes in gift-buying activity during other times of the year, such as Mother’s Day and Father’s Day. This suggests that Amazon is increasingly becoming a destination for buying gifts all year round, not just during the holidays.
Tips for kitting & bundling on Amazon FBA
Use an FBA prep service to handle kitting & bundling
An FBA prep center is a company that provides crucial help with the process of preparing products for shipment to Amazon – especially when it comes to kitting and bundling. This can include tasks such as labeling and packaging items, as well as more complex services such as quality control and forwarding.
FBA prep services can save businesses a considerable amount of time and money – along with providing a peace of mind knowing that their products will arrive at Amazon’s warehouses in good condition and ready for sale. Whether you’re just starting out with FBA or you’re looking to streamline your fulfillment operation, a reputable FBA prep service can be an invaluable partner.
There are a number of reasons to consider an FBA prep service to handle your kitting and bundling needs:
- First, it can save you a significant amount of time and hassle. Rather than having to do everything yourself, you can simply send your products to the prep service and they will take care of the rest.
- Second, it can help to improve your product’s chances of being accepted by Amazon. By ensuring that your products meet all of their requirements, you can minimize the risk of rejection.
- Finally, using a prep service can also help to improve your bottom line. By reducing the time and effort required to get your products ready for sale, you can free up more time and resources to focus on other aspects of your business.
Ultimately, using an FBA prep service is a smart way to streamline your operation and improve your chances of success on Amazon.
Differentiate yourself from competitors
When it comes to selling products on Amazon, differentiation is key. Customers have a huge range of choices, so it’s important to find a way to make your products stand out from the rest. Bundling and kitting are two great ways to do this.
By bundling multiple products together into one package, you can offer buyers a more convenient and cost-effective option than they would find elsewhere. Kitting, on the other hand, is a great way to create unique items that are not available from other sellers. By combining products in new and interesting ways, you can capture the attention of customers who are looking for something different:
- Offer different colors or styles – especially if competitors are already using bundles and kits
- Combine different products together to serve a unique purpose and solve a specific customer problem
- Clearly communicate convenience and savings in your listing – otherwise customers might buy separate products from other sellers and combine the order together
Both bundling and kitting can help you differentiate your products from those of your competitors. By offering more convenient and cost-effective options, you can make your products more appealing to buyers. And by creating unique items that are not available from other sellers, you can attract customers who are looking for something different. So if you’re looking for a way to stand out from the crowd, bundling and kitting may be the answer.
Don’t bundle unwanted items together
As an Amazon seller, you might be tempted to increase your profits by bundling and kitting several items together. However, it’s important to be careful when you’re choosing which products to bundle. You don’t want to end up with a bunch of unwanted items that people won’t buy.
Instead, take the time to research which products are being bought together most often. Look for items that complement each other and would be useful to customers who are looking for a complete solution. By taking the time to create thoughtful bundles, you’ll be more likely to succeed on Amazon – instead of pouring capital into bundles and kits that won’t sell through.
Communicate closely with supply chain partners
When it comes to bundling and kitting on Amazon, close communication and coordination with your suppliers and supply chain partners is essential. By maintaining open lines of communication, you can ensure that everyone is on the same page, that there are no surprises along the way, and that your bundles and kits are properly sourced and packaged.
Furthermore, by coordinating closely with your partners, you can streamline the process and ensure that everything runs smoothly. Ultimately, bundling and kitting on Amazon is a team effort, and the success of your operation will hinge on the ability of everyone involved to work together effectively.
By maintaining close contact with your FBA prep center, you can ensure that any problems are quickly resolved. Your prep center can help to inspect products for damage, investigate issues with defective items, and take corrective action to prevent future problems. This will help to ensure that your customers are always satisfied with their purchases – instead of accidentally receiving the wrong combination of products in your bundles and kits.
Bundle and kit to reduce returns
Think strategically about how you can bundle and kit your products together to reduce returns. Is there a way to solve multiple problems for your customer – so that if one product is slightly disappointing, your other products make up for it?
Keep in mind – customers are judging and evaluating the entire bundle/kit – and they often won’t return an entire order of products unless it’s MOSTLY disappointing to them. Customers know every single product they buy won’t be 100% satisfactory, and there’s a bit of wiggle room for overall occasional product downsides. However, customers will typically return products if they review it below a 3.5/5.0 stars – so your bundle/kit needs to consistently reach beyond that quality rating to sell successfully.
Bundle and kit to boost profit margins
The smaller and lighter the bundle… the less your shipping costs will be (helping boost your profit margins. On top of that, if you can strategically bundle multiple-high value products while simultaneously offering a much-needed solution for the customer, they will have no problem spending large amounts to find that solution.
Final thoughts on Amazon FBA bundles and kits
Amazon FBA sellers are always looking for new ways to boost their profit margins and sell through more inventory. Now that you know more about bundling and kitting, you can confidently package together two or more products into one listing – while increasing profits and sell-through-rate for items with multiple product combinations. Both strategies work great to reduce shipping costs and increase sales.
In addition, Amazon FBA bundles and kits can be an excellent way to promote slow-moving inventory. By bundling it with other products, sellers can give shoppers a reason to buy it. Ultimately, Amazon FBA bundles and kits are a powerful tool that every seller should consider using.
