For e-commerce sellers, especially on Amazon, finding ways to increase Average Order Value (AOV) without adding to inventory or logistic costs is a great challenge. Amazon Virtual Bundles provide exactly this opportunity, letting sellers create multi-product bundles within their brand catalog at no extra fulfillment cost. These bundles create added value by presenting products in a new light, making it simpler for customers to see how different items complement each other, leading to higher-order values and potentially increased customer satisfaction.
In this guide, we will cover what Amazon Virtual Bundles are, how they can significantly improve sales, and the best practices for setting them up, selecting products, promoting, and optimizing their performance.
What Are Amazon Virtual Product Bundles?
Amazon Virtual Bundles allow brand owners to pair complementary products within a single listing without physically bundling them and without incurring additional storage or fulfillment fees. This tool, available through Amazon Seller Central, gives sellers the flexibility to present multiple products together under one ASIN, essentially creating a new product listing that includes individual items already stocked.
For example, a seller of fitness equipment could bundle a set of sweatbands, workout clothes, a yoga mat, and a water bottle, giving customers a complete workout solution while increasing sales per order. This bundling strategy can help increase sales and optimize product exposure across different customer segments.
Note: To create virtual bundles in Amazon Vendor Central, you will need to get in touch with Amazon Vendor Support. You can also contact us for help with setting up these virtual bundles.
Where Do Virtual Product Bundles Appear?
Virtual Bundles are prominently displayed on the Product Detail Page, offering several strategic benefits:
- Prime Placement: Positioned directly below the main product listing, the “Make it a bundle” feature is instantly visible to customers, capturing their attention at a key moment when they are considering a purchase.
- Above Sponsored and Enhanced Content: Notably, the bundle feature appears above sponsored listings and A+ Content. Sponsored slots are paid placements for added product visibility, and A+ Content showcases enhanced product details like extra images, text, and comparison charts. By positioning bundles here, Amazon promotes multi-item purchases, which can increase overall order value.
- Attractive Design and Convenience: The “Make it a bundle” layout is streamlined, displaying all bundled items together. This arrangement emphasizes the value of using these products as a set, making a larger purchase more appealing and straightforward for customers.
How Amazon Virtual Bundles Can Improve Sales
The strategic use of Amazon Virtual Bundles can have multiple positive impacts on sales, including increased visibility, higher customer engagement, and an improved shopping experience.
- Higher Average Order Value (AOV): By encouraging customers to purchase multiple items at once, bundles naturally increase AOV. When multiple related products are offered together, customers are more likely to see the value of getting everything they need in one go.
- Better Cross-Selling Opportunities: Amazon Virtual Bundles effectively cross-sell products by creating a compelling combination, enticing customers to buy more than they initially planned. For instance, a skincare brand could create a virtual bundle with a cleanser, moisturizer, and serum—offering customers a full regimen instead of just one product.
- Enhanced Brand Loyalty and Customer Experience: Virtual bundles deliver a cohesive shopping experience, making it easier for customers to find complementary products in one listing. This not only increases convenience but also encourages brand loyalty as customers feel the brand understands their needs.
While Amazon Virtual Bundles offer a great option to increase sales, Variations can play an equally significant role in helping you grow your Amazon business. Read our detailed blog to learn more about the importance of variations.
Requirements to Fulfill to Create a Virtual Bundle
To group together products for Amazon’s Virtual Bundles, ensure that they are part of a brand enrolled in Amazon Brand Registry and fulfilled via FBA. Additionally, the products must meet these criteria:
- Quantity of Products: Each bundle should consist of 2 to 5 distinct items.
- Condition: All items included in the bundle must be new.
- Pricing Rule: The bundle’s total price must be equal to or less than the sum of each individual item’s price.
- Restrictions: Certain product types, such as gift cards, digital products, and subscription items, are not eligible for bundling.
How to Create Virtual Bundles on Amazon
Creating virtual bundles is straightforward, but there are some essential steps to follow to ensure the bundles are both attractive and effective:
- Review Product Suitability: Start by analyzing complementary products. Use Amazon’s Market Basket Analysis report to identify products frequently bought together.
- Navigate to Virtual Bundles on Seller Central: Go to the “Brands” tab in Seller Central and select “Virtual Bundles.” This section lets you begin setting up bundles based on available ASINs.
3. Assign a Primary ASIN: Choose a main component ASIN, which helps categorize the bundle and determines its keyword search ranking. Keep in mind that only ASINs with active FBA inventory can be part of the bundle.
4. Set Up Bundle Details: Customize your bundle listing, including title, description, pricing, and images. Each bundle can have up to nine images, with the primary image ideally showcasing all bundled items together.
5. Review and Submit: Double-check all the details, ensuring each product meets Amazon’s listing and quality standards. Submit for review, and your Amazon Virtual Bundle will be live within a few days.
Best Practices for Product Selection
Careful product selection is key to successful Amazon Virtual Bundles. Choose products that provide real value to the customer when purchased together:
- Complementary Products: Use items that logically go together. For example, a travel brand could bundle a neck pillow, eye mask, and travel-sized toiletries for a convenient travel kit. Bundling together random products, like a novelty collector’s item and an insect repellent, is unlikely to yield desired results.
- Use Data to Guide Decisions: Amazon’s Market Basket Analysis can help you identify products often bought together, making it easier to find natural pairings.
- Balance Price and Utility: Create bundles that seem valuable to customers, making sure that the discount feels substantial but also allows for profit.
Good product bundling strategies allow brands to highlight the added value of their offerings, and Amazon Virtual Bundles can be an ideal tool to achieve this goal.
Benefits of Virtual Bundling
For Sellers
Apart from increasing sales, product bundling serves as a strategic listing tool to enhance inventory control and strengthen brand presence.
- Streamlined Inventory: Bundles can help move slower-selling items by pairing them with popular products, making less sought-after items more attractive.
- Enhanced Brand Exposure: Product bundles can highlight a brand’s wider range, setting it apart from competitors and underscoring expertise in fulfilling customer needs. Unique bundles also enhance brand identity and awareness.
For Customers
Product bundles streamline the shopping process and offer several advantages:
- Convenient Shopping: Bundles make purchasing easier by providing all related items together, saving customers time from searching for separate products. It’s a one-stop solution that reduces hassle.
- Discover New Products: By bundling complementary items, customers are introduced to products they may not have explored otherwise, allowing them to uncover new favorites or meet unanticipated needs.
- Cost Efficiency: Buying products as part of a bundle often comes with a discounted rate, helping customers save compared to individual purchases.
Promoting and Advertising Amazon Virtual Bundles
While creating bundles is an effective way to increase sales, promoting them can take their visibility to the next level. But if you’re wondering, can you advertise virtual bundles on Amazon?, the answer is yes—albeit limited to certain types of ads.
- Sponsored Brand Ads: Currently, Amazon only supports virtual bundles in Sponsored Brand Ads, not Sponsored Product Ads. By investing in Amazon PPC for these bundles, you can increase their visibility, especially if your bundle includes a popular or highly-rated item.
- Feature Bundles in Campaigns: Showcase virtual bundles in seasonal or themed marketing campaigns. For example, a beauty brand might feature a skincare bundle during the holiday season as an ideal gift package.
Check out our ultimate Amazon Advertising Strategy Guide to make the most of your ad spends on Amazon.
Analyzing and Optimizing Bundle Performance
Like any sales initiative, monitoring the performance of Amazon Virtual Bundles helps ensure they are meeting sales goals. Amazon provides bundle sales reports at the component level, which can help you track performance by reviewing the sales of individual items within the bundle.
To optimize bundles:
- Monitor Weekly Sales Reports: Use weekly sales reports Amazon provides to track the bundle's performance. This data can help identify which bundles are successful and which may need adjustments.
- Experiment with Product Combinations: Try bundling different complementary items to see which combinations are most appealing to customers.
- Adjust Pricing and Promotions: Experiment with various pricing strategies to identify the optimal price that maximizes sales without compromising profitability.
Examples of Successful Amazon Virtual Bundles
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Potential Challenges and How to Overcome Them
As valuable as Amazon Virtual Bundles can be, there are some challenges:
- Inventory Management: If any item in the bundle runs out of stock, the bundle itself becomes unavailable. Keep a close eye on inventory levels across all products in a bundle.
- Fulfillment and Returns: Since bundles are shipped as separate items, customers may initiate returns for specific products within the bundle. Understanding how partial returns can affect overall sales is very important.
- Monitoring Sales Data: Virtual bundle sales are reported per component, which makes it challenging to track bundle-specific data. Using weekly bundle reports can mitigate this but requires consistency.
Enlisting the services of a full-service Amazon agency can help deal with these obstacles and allow you to focus on other important aspects of running your business.
Conclusion
Creating and promoting Amazon Virtual Bundles is an effective way to increase sales per order without additional fulfillment costs. By combining complementary products, sellers can boost customer satisfaction, increase Average Order Value (AOV), and build stronger brand loyalty. From setting up bundles to advertising and analyzing performance, the right strategies can make a significant impact on sales.
If you are looking to streamline your bundling strategy and need expert assistance, partner with us. Our team of experts can help you leverage Amazon Virtual Bundles to enhance sales and drive growth effectively. Schedule a Call with an Amazon Expert now!
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About the Author
Meet Arjun Narayan, a Business Dynamo with two decades of conquering boardrooms and founding two companies that didn't just survive but thrived. When he's not navigating business strategies and delivery teams, you'll find him immersed in his love for cars and exploring new models, geeking out over tech trends, globe-trotting for new adventures, and occasionally pondering the mysteries of the universe over a good cup of coffee.
