Multi-packs are a versatile tool for many online sellers. Whether you are looking to increase the profits on cheaper items, or you are hoping to encourage customers to buy in bulk, multi-packs can be a great way to generate growth.
Though selling multi-packs may sound simple, it actuality presents a unique set of challenges for even the most experienced online seller. This is especially true when it comes to using Fulfillment by Amazon (FBA), so there are some important factors to take into account before you sell this way. Read on to learn when, why and how to get started down the multi-pack road.
Who should use multi-packs?
Of course, it almost goes without saying that before you spend your time strategizing, you’ll want to make sure your product will benefit from being a multi-pack. Generally, products that are consumable - e.g. food, household goods or office supplies - are the best candidates for multi-packs. If you have a unique item that a customer will probably only want one of - e.g. hand-crafted jewelry - multi-packs won’t be for you.
Assuming I do have a multi-pack friendly item, why should I implement?
There are many reasons to begin the move toward multi-packs, some of which may be more or less relevant depending upon your product..
- To help offset shipping and packing costs on cheaper items
One of the most common reasons our clients use multi-packs is to sell cheaper items that fall under the threshold for profitability. If you’re using FBA (and you should be!), then the minimum fees - ~$1.00 for pick and pack, and ~$1.10 for an item’s weight - will apply. Based on basic math, any item under $20 will verge on unprofitable, as these fixed Amazon fees represent a larger percentage of the gross sale. Creating a multi-pack that pushes your retail price over $20 builds a stronger profit for the lower-priced items.
- To offer your customer’s different price points
People love to feel like they have choices. Creating multi-packs can give your product a more flexible feel, and flexibility may just be what draws a customer to pick your product over another. Also, offering a variety of multi-packs can encourage sales around the mean. Let’s put this into non-mathematical terms. If you offer only a single item or a six pack, chances are the customer who intended on buying just one will probably stick with that plan. If you offer one, two, four and six packs, the customer is much more likely to consider buying somewhere in the middle range of two to four items. And of course, even selling that two-pack is a win for you.
- Encourage bigger purchases through quantity discounts
For the same reason people love shopping at Wholesale retailers, many customers will love megapack discounts. And the great thing is, your volumes increase and customers feel happy to be receiving items at a cheaper rate.
- Even if you already have multi-packs, consolidation is key
Whether you’ve been working with multi-packs for a while, or you’re new to the game, you should always create a single listing page for each group of similar products. This means if you sell tomato basil sauce in a variety of quantities, it will all appear in a drop-down menu on one page. This will allow you to build up more reviews faster, thus increasing your product’s credibility and the likelihood of getting your products higher in Amazon search results.
What are some challenges when implementing multi-packs?
In order to continue to use FBA, a seller must pre-pack the multi-packs, and send them to Amazon ready to ship. This can be an obstacle for sellers who are used to shipping in items exactly as they are manufactured.
- Secure packaging
You always want to make sure that your multi-pack is solid, taking into account the unique challenges associated with sending many items together. The last thing you want is for your multi-pack products to be damaged in the warehouse or in transit. In addition to thinking about a package being jostled against other packages in its journey, you must also think about how the item will interact with other items within the package as well.
- Adequate margins for each and every multi-pack
While you may have calculated margins for your original product, every different sized pack will produce different numbers. So, if you create the options of 3, 6 and 12 items, this means ensuring sufficient margins for each of those, and adjusting the prices accordingly.
Moving towards multi-packs can seem like a leap - especially when you consider the extra work of packing and calculating individual margins - but it is well worth the energy. Whitebox has had the good fortune of helping many clients with multi-packs. Whether you are planning to transition to multi-packs, or you just want to streamline and expand your options, Whitebox can help consolidate your products onto one page and design packaging that safely ships your item.