While there is no single magic bullet to help you stand out and sell more on the marketplaces, kitting and bundling is an underutilized method for increasing your search results and selling more inventory on key online channels, such as Amazon, eBay, and Walmart. Kits and bundles don’t cost you anything, are easy to create, and allow you to manage your inventory to sell more.
So, what are kits and bundles?
Kits are individual products each with their own listings grouped together to create one listing.
Bundles are grouping several of the same product into one listing.
The benefits are many with kits and bundles. We’ll go over some of the top benefits below.
1) Create unique listings and stand out from the competition
Kits and bundles enable you to expand your footprint and beat out competitors. On marketplaces, such as Amazon and eBay, your inventory will be competing with many sellers selling the identical product. By managing your inventory on Amazon to create new product combinations out of individual products you can generate new that you “own.” For example, there is nothing unique about selling a single razor on Amazon. As a matter of fact, it will be very difficult to stand out from the other hundreds of sellers selling the identical razor. However, by combining a razor with shaving cream, after shave, and replacement blades as a kit, you can create a new product listing and SKU. These new listings are valuable real estate that helps you show up in search, win the buy box, and generate more sales.
2) Increase average order size
Consumers love deals. If they found a product they want the incentive to order more than one and get a discount is a powerful motivator. You’ve probably heard the adage it is easier to keep an existing customer than to win a new one. With bundles, it’s easier to sell someone multiples of something they want than try to convince them to buy something else!
3) Get rid of excess inventory
You can create bundles from your excess inventory and incentivize buyers by offering discounts on the bundled products, such as offering 30% off for a bundle of three of the same product. You can also offer a “Buy 2 and get 1 free” promotion. In this instance, you are reducing your excess inventory while buyers are enjoying price discounts.
4) It’s a great promotional tool
You can create unique kits and bundles as a promotional tool for holidays or special events. For example, as a July 4th promotion you can create a unique kit that combines an apron and BBQ grilling tools at a discounted price. Themed promotions that you can create on the fly to adjust to demand and calendar events are an important tool in the ecommerce arsenal.
Physical kits and bundles vs. virtual kits and bundles
In the brick and mortar world, you would need to physically combine products and package them together before the sale. This presents added expenses in terms of storage space and creates a requirement that you must sell the combined package. It also means that you have dedicated inventory tied up in these prepackaged units, which means you need to have more money tied up too. In the eCommerce world, however, you can create virtual kits and bundles. This means that individual products are not combined until the kit or bundles are sold.
To create virtual kits and bundles you need an inventory system that enables you to track the available quantities of the individual components and provides the details to your warehouse team. Solid Commerce’s inventory solution enables sellers to automatically deactivate a kit or bundle if one of the component items is out of stock.
Another advantage of virtual kits & bundles is the ability to create packaged products even if the individual components are stored in disparate locations. Let’s look at our July 4th example again. Imagine you have your aprons in an East coast warehouse and your grilling tools in a West coast warehouse, but you want to sell this inventory on Amazon, eBay and Walmart as if they were a single physical kit. When a kit is sold, the aprons order will be sent to your East coast facility and the grilling tools order will be sent to your West coast facility. Each warehouse will get pick lists of the individual components to be fulfilled and the inventory will then be shipped to the customer in separate packages. A virtual kit setup can help your inventory spread out between multiple warehouses, since it will allow you to fulfill the order even if you run out of stock in one warehouse. Solid Commerce enables sellers to create exactly these types of virtual kits and bundles.
Kits and bundles are an excellent means of managing inventory on Amazon, eBay, and your online store to increase search results, visibility, and ultimately sales. If you haven’t already started using virtual kits and bundles to grow your eCommerce sales, now is a great time to start!
You can learn more about Solid Commerce’s kits and bundle feature here. Make sure you come back next week for some more eCommerce news and tips.