Interested in Amazon private label selling with less upfront investment? The ability to have fully researched products on the shelf in less than two weeks with less risk? Sound too good to be true? It’s not, and Kristin Ostrander and Amy Feierman from MommyIncome.com have built seven-figure businesses… living proof that wholesale bundles (aka the poor man’s private label) are a sustainable growth strategy for Amazon sellers both big and small. Ladies, I turn it over to you to enlighten us!
Before we dive into why you need to add bundles to your business model, let’s define what they are and why they are an amazing asset to ANY Amazon business.
What are wholesale bundles?
They are highly complementary products sourced from wholesale vendors and sold together in a way that provides both convenience and value to the buyer.
Why do wholesale bundles sell well on Amazon?
To understand why bundles work, Amazon sellers need to shift their mindset away from data-based widget inventory purchases to focus 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?
- 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 lack?
By asking these questions, you are getting into the head of the buyer. This helps you provide the exact product your customer needs to solve their problem. Once you do that, a whole world of possibilities will open up to you.
Why do wholesale bundles make sense for Amazon sellers?
If you’ve sold on Amazon, even for a short time, you know the many challenges we face. With high competition, price wars, and restrictions, there is no shortage of issues we face as sellers. The good news is that wholesale bundles can eliminate many of these struggles. Let’s dig into that.
Challenge #1: High competition on individual wholesale items
When the data tells you and 30 (or more) of your selling friends that an item will be a great seller, guess what happens? What originally had one or two sellers now has 30+ sellers, and your rotation in the buy box is a very small percentage.
When a lot of sellers offer the same product, the probability is higher that the product’s price will rapidly decrease. It’s a typical supply-and-demand principle. The high competition and increasing number of offers cause some sellers to panic. The panicked sellers drop their prices to try to contend for the buy box. Consequently, the price drops rapidly and no one makes any money.
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 you do it correctly, you’ll be the only seller on your listing
Challenge #2: Scalability
If you are primarily a retail arbitrage seller, we feel your pain. Physically driving from store to store to find products, often for hours and days at a time, can be both time consuming and exhausting. It makes for a long day when, after you’ve been out in stores sourcing all day, you still need to go back home to prep and ship that inventory to Amazon.
Retail arbitrage is an excellent way to get your feet wet and to figure out if selling on Amazon is a good fit for you. However, the bigger your business grows, the harder it is to scale. You will need to take longer sourcing trips, visit more stores, and constantly increase the number of products you buy.
You can quickly lose the freedom and flexibility you’re looking for by continually increasing the time it takes to find more and more quality products.
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.
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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.
Challenge #3: Diversification
Have you heard the phrase “Don’t put all your eggs in one basket”? Every smart business owner knows that no single product lasts forever. Even if you have a killer private label product that is doing well, you still need to diversify. Eventually, you will need to change directions, add variations of your product or — worse — the trend dies out and you have to begin again with something new.
The great news about adding wholesale bundles as a means of product diversification is that the upfront cost and time investment are far less than investing in a full private label product.
With bundles, you can source products immediately through known wholesale distributors and get them to Amazon much faster than creating a brand-new brand or product from scratch. In as little as two weeks you can have a brand-new custom bundle available for sale on Amazon. We call bundles poor man’s private label because they have all the benefits of a private label product with none of the headaches.
While you are waiting for your next big private label idea to be manufactured, you could be selling bundles with the same benefits.
Whether you’re a new seller or an experienced seller looking to add some diversity to your business, we are passionate about helping other sellers grow and are ready to share their wholesale bundle strategies with you.
Check out our Wholesale Bundle System and save $50 using Karon’s special coupon code: MW50.
Meet the Bundle Queens
Kristin Ostrander and Amy Feierman — the ladies from MommyIncome.com — have more than 22 years of e-commerce selling experience, with the bulk of their time focused on Amazon. They’ve done it all, from book sales and retail arbitrage to online arbitrage, wholesale, and private labeling.
They are enthusiastic about sharing what they’ve learned to help other sellers succeed. To soak up more information, subscribe to The Amazon Files podcast. This weekly podcast is where they share their Amazon selling expertise with tips, fast tracks, and action-based strategies. In today’s post, they’ll share what wholesale bundles are and why bundles should be part of your business model when selling on the Amazon marketplace.
Have questions about being a successful Amazon private label seller? Talk to me below!