Hello and hope everyone is having a great summer so far. My plans of leaving my job this week is on-hold because my replacement didn’t show up for her first day of work. I hope to find someone to replace me as soon as possible.
But despite my personal life situation, Amazon FBA still goes on and over the 4th of July weekend I worked on my 3rd bundle.
One of the bundle items is the sponge that I’ve been selling since January and have posted about on my Facebook page a few times. Here’s one of the posts:
I make between $4.00 and $5.00 on each sale. It’s not a lot, but it’s a great “shipping sponge.” Since the sponge is so small and light-weight, adding a few to each of my shipments pays for the inbound shipping fees.
SPONGE RUN IS OVER – AMAZON FOUND MY SPONGE
On July 4th, I went to the store to buy some more of the sponges. As always, I scanned them in but this time, I saw that Amazon is now on the listing and selling it for $3.00 less than what I was selling them for. 🙁 If I were to match Amazon’s price, my profit goes down to $1.56.
Fighting back – Making a Bundle
At first, I was just going to walk away without buying any sponges. But then I started looking at the items displayed next to the sponge and a bundle idea started. Since I know that sponge sells, why not bundle it with another item or two?
I scanned in other supplies displayed next to the sponge and chose two that if bundled with the sponge will make a great ________ kit. (Sorry, but I want to keep this bundle private for now).
Like the sponge, both pieces are small, easy to pack and inexpensive. I bought five of each and rushed home to crunch the numbers further and to start working on the bundle.
Tip: Find small, inexpensive and replenishable items to bundle together. Remember, they need to be complimentary items that provide convenience and value to buyers.
Since I love Excel, I used it with the Amazon FBA Revenue Calculator to calculate my initial selling price and profit:
So if a customer were to buy all three items separately, they would end up paying $29.52 at the current Amazon selling prices. I set my price a few dollars less to make my bundle a better value for the customer. This still gives me a $11.20 profit which more than doubles my money.
The way I calculated the profit was by inserting the ASIN of the largest-sized and most expensive bundle item into the FBA Calculator. I used a selling price of $26.95 and a buy cost of $9.17. I do realize that the other two items will add size and weight to the first item and the actual profit may be a little less. Once the first bundle sells, I’ll check the numbers and adjust the selling price up or down if needed.
Creating Images that Meets Amazon’s Criteria
The next step that I do is create my bundle images. Here’s the equipment that I used for this bundle:
- iPhone 5c Camera
- a solid color cloth for my background
- natural sunlight
- FutoFuze and Photoshop Elements
Here’s the steps that I used to take my main bundle image:
Please note, the sponges shown in the pictures below are not my bundle items. They are just old garage sponges used for example purposes.
Put cloth on ground and place bundle items on top.
Get a closeup of products.
Use FotoFuze to get the white background.
Download image to computer and then use Photoshop Elements to crop the photo and resize it.
Here’s the finished image:
To be honest, I just discovered FotoFuze over the holiday weekend because I couldn’t remove the background quite right on one of my bundle items using Photoshop Elements. The item was inside a plastic bag and I had a hard time separating the plastic bag color from the background color. I finally was able to get it right with FotoFuze.
I really like FotoFuze and will start using it for now on. But in the past, I’ve always used Photoshop Elements for all of my photo editing. To learn how to use Photoshop Elements and to learn more about Amazon’s Image requirements, check out this blog post.
Tip: Use natural sunlight and a solid background color for your picture-taking.
I use Karon Thackston’s Amazon Advantage: Product Listing Strategies to Boost Your Sales ebook to help me write my Bundle listings.
One point that she teaches is that you need to list both features and benefits in your bullet points. A great way to find benefits for your items is to read the customer reviews. I did so and immediately found a great benefit for my largest item. Just about every customer raved about how great this product does______.
Writing the bullet points helped me write the description. For the keyword research, I used Karon’s “Quick and Dirty Keyword Research Method” where she shows you how to use both Amazon and Google to find your keywords.
It didn’t take me long to come up with a title and I was able to write the whole product listing pretty quickly.
Tip: Read customer reviews to help find the benefits!
More Work Now = Less Work Later
Bundles do take extra time to process with all of the extra front-end work of creating images and writing product listings. But once you’re done with that, then you have your own unique item. Granted, other Sellers including Amazon can get on the bundle listing later.
To prevent future competition, some people add in a personal touch to make their bundles harder for other Sellers to duplicate. For example, they may add personal instructions on how to use the bundle and count the instructions as a bundle item. I’m not doing that with this bundle though.
For now, I don’t think this bundle will get much competition because the sponge is pretty hard to find. So far, I’ve only found it at two stores in my area and I have never seen it at any of the big national stores like Walmart, Target and Walgreens.
What I like about this bundle is that I just need to sell 9 or 10 bundles to make a $100 profit. This is better than the 20 to 25 individual sponges that I had to sell to make that same $100.00 profit.
Tip: Find a few bundles that’ll make you $10.00 or more. This will save you scanning time later. My goal is to get ten bundles going.
If you’re interested in doing bundles, here are a few courses. I have the first three listed below, so let me know if you have any questions on any of them.
Amazon Bundles – Basic and Advanced Strategies
by Debra Conrad
Amazon Advantage: Product Listings Strategies to Boost Your Sales
by Karon Thackston
For writing your product listings
Learn more about creating titles in this blog post
Product Description Boot Camp
by Karon Thackston
This live training digs deeper in writing product descriptions and starts on July 16th.
The registration is closed. Be sure to sign up on the sales page for the replay!
Learn more about product listings in this blog post
As always, I love to hear from you! Please say “hello” in the comment form below or on my Facebook page.