Amazon has officially rolled out virtual product bundles in beta in the UK and while at first glance, it looks like a simple merchandising feature, the reality goes far beyond that. Virtual product bundles can help brands to achieve profitable sales in a simple and easy to use way.
As an Amazon growth expert at Fluid Marketplaces, I believe that for brands that are already selling multiple SKUs through Amazon FBA (fulfilled by Amazon), virtual product bundles are worth considering.
What are virtual product bundles?
Virtual product bundles allow Amazon retailers to combine two to five existing FBA ASINs into a single bundle listing without physically packaging them together.
The key benefits to Amazon brands are:
- A virtual bundle does not require new product SKUs to be listed.
- No relabelling required.
- No additional prep or packaging runs.
- Amazon fulfils each product separately but presents them to the customer as one curated offer.
Virtual bundles are a simple and straightforward tool for brands that also support sell-through and profitability.
The commercial opportunity for brands
Virtual product bundles are a sound way to increase revenue for Amazon brands.
1. Increase average order value
Rather than relying on “frequently bought together” to build the basket organically, brands can shape it deliberately:
Examples include:
- A hero product paired with a refill
- A core SKU with a complementary accessory
- A ready-made gift set
- A product and its cleaning equipment
Providing genuinely valuable bundles can help to increase basket values in a manner that does not increase Amazon advertising costs. This can therefore have a hugely positive impact on profits.
2. Deliver value without eroding price
Repeated discounting can have a weakening effect on long-term pricing strategies. Bundles allow brands to offer perceived value without lowering the standalone price of your hero SKU.
For customers there is the benefit of a saving when buying a virtual bundle when compared to purchasing the items separately, while at the same time, brands benefit from keeping their core pricing structure intact. That balance protects both your brand’s profit margin and brand equity.
3. Improve inventory efficiency
If certain SKUs rotate more slowly, bundling can help to move that older stock in a planned and intentional way, allowing it to be cleared more efficiently.
Pairing products well can support stock flow without the need for heavy promotions, which contributes to healthier inventory management over time.
4. Easy experimentation of product combinations
It’s easy for brands to launch and test different combinations to see what is most popular with customers and which are most profitable.
The situations where virtual product bundles make sense:
Virtual product bundles are particularly effective when:
- Your brand holds consistent FBA stock across multiple SKUs
- Products have natural cross-sell relationships
- The product range allows for logical groupings (e.g. discovery sets, size progressions, curated gifting combinations)
- Your brand operates in categories suited to gifting or product pairing
- Your brand is preparing for peak trading periods such as Prime events or Q4
What to consider before utilising virtual product bundles
As with any Amazon tool, the detail on how it is executed is vitally important.
- Referral and fulfilment fees add up across different products, so ensure the combined contribution still provides profitability.
- Ensure pricing drives incremental value, and doesn’t simply shift single-unit sales into bundles.
- The bundle listing still requires strong imagery and clear messaging to convert effectively.
To seize the opportunity provided by virtual product bundles, Amazon retailers need to use them in a deliberate way.
Virtual product bundles won’t replace a strong core strategy. But used thoughtfully, they can increase basket size, protect pricing integrity and support more efficient stock movement, strengthening performance without increasing spend.
How can Fluid Marketplaces help with virtual product bundles?
As a specialist Amazon growth agency, if your brand is exploring how virtual product bundles could strengthen its Amazon performance, Fluid Marketplaces can help to structure, price and position them strategically to maximise impact. Contact us here to arrange a chat about the services we offer to help Amazon brands to grow profitably.
