5 Tips for Selling in Bulk on Amazon in 2023
If you are familiar with the Amazon flywheel, then you will know that the two most important facets of selling on Amazon are improving the customer experience and optimizing your catalog selection.
Selling Bulk Case-Packs touches both of these and almost always increases your profitability as I’ll explain below.
As you walk through Costco, you’ll see products from Coca-Cola to toothpaste, that you can buy in huge quantities. Selling in bulk creates a better customer experience because the customer saves money, by amortizing shipping costs across multiple units.
From a business perspective, selling a full carton increases your average order value. By bundling multiple units into a single shipment, you can reduce your pick/pack/ship workload, which should contribute more to your profitability than a single-unit purchase.
For example our client sells medical gloves in bulk:
Single Box 100-Pack = $0.12/glove
Full Carton 1000-Pack = $0.05/glove
The savings are more than 50% because instead of paying UPS to ship 10 individual boxes, you pack them into a single carton and pass the savings on to the customer.
Another important benefit is that larger quantities lend themselves to selling to businesses, governments, and nonprofits. These buyers have bigger budgets, are less sensitive to shipping speed, and they are much less susceptible to buyer’s remorse/returns.
That’s why selling in bulk on Amazon is important. It opens up new opportunities for sellers on the platform. If you’re looking to maximize profits and expand your customer base, then you need to start selling in bulk.
For Amazon sellers like you, tapping into the potential of bulk sales could be a game-changer. You could appeal to individual customers and large organizations. The demand for bulk orders is growing and you have the chance to capitalize off it.
Let’s go over 5 tips I’ve learned throughout my years of selling in bulk on Amazon. We’re going to reveal market trends, learn about different selling strategies, and so much more!
1. Research Market Trends and Demands
Thorough market research lays the foundation for successfully selling in bulk on Amazon. Your research will help you find opportunities and identify customer demands.
It’s important to stay updated with market trends. Use an Amazon account to search up different keywords in your industry. Check that account’s homepage and see what products Amazon recommends to you. This could provide great insight into what the average customer is seeing.
Identify high-demand bulk products. Look for products that are frequently reordered or used in large quantities.
Monitor your competition. See if they’re offering bulk quantities. This could help you learn how high the demand is for bulk orders in your niche. They might have even missed an opportunity that you could take. This could give you an advantage with customers.
By staying informed about market trends and understanding customer demands, you can position yourself for success in selling in bulk on Amazon. This research will guide your product selection and marketing strategies, ultimately helping you cater to the needs of bulk buyers more effectively. Remember, adaptability and customer-centricity are the keys to thriving in the dynamic Amazon landscape.
2. Consider Variations for Different Quantities
When selling in bulk, it’s a good idea to offer different quantities. Some people might want to order more or less than others, so it’s great to be flexible. Offering product variations with different quantities is a smart strategy to cater to a diverse range of customers. By providing options, you’re enhancing the shopping experience and increasing the likeliness of making a sale.
Look at the competition and see what quantities they’re offering. Based on that research, establish your own quantities that align with customer demand. If 10-Packs are popular, then offer a 10-Pack. You could consider going up in increments of 10. So you’d offer a 10-Pack, 20-Pack, 30-Pack, etc. Or 10, 50, 100. It’s up to you!
Monitor the performance of each variation. See which ones are doing better. If the 100-Packs are performing better than the 10-Packs, then it’s likely that customers want even larger quantities. This could help you tweak the quantities.
Here, Angel Soft is using variations to show customers their 6-Pack and their 24-Pack options.
3. Display the Benefits of Buying in Bulk
It’s important to show your customers the benefits of buying in bulk. Your product page should also clearly reveal how many units are in that specific order.
To be clear to your customer, always include the quantity in the title. In the example above, Angel Soft says that there are “24 Super Mega Rolls”, and the image also says the same thing. If possible, then your bulk products should have unique packaging that reflects the quantity. If not, then consider doing something similar to this:
Our client doesn’t have unique packaging for their bulk quantities, but this gets the message across. The customer will receive the amount they ordered, but their box won’t have a big “1000” on it.
This bottle seller used a different method. This is a good way to convey a bulk order, but it might be confusing if the quantity is very large.
Moving on to bullet points, it might be a good idea to dedicate a bullet point to specifying the quantity.
Let’s do a bullet point for those bottles as an example:
- X WATER BOTTLES: Includes X water bottles in bulk for the whole team to stay hydrated and safe when outside or indoors!
The “X” is the quantity of bottles that comes with the order. This is a great strategy because it clears up any confusion that customers might have and includes the keyword “bulk” which could help with SEO.
Use infographics or lifestyle images to show your customers the benefits of buying in bulk. If you’re selling paper plates in bulk, then include a photo of a family having a fun backyard BBQ with your plates.
4. Monitor Inventory Levels
Keeping track of inventory is essential to long-term success with selling in bulk on Amazon.
Utilizing inventory management tools provided by Amazon and third-party sellers could help you track stock levels, sales velocity, and replenishment needs. Use these tools to make data-driven decisions regarding your inventory.
The tricky thing about selling in bulk at first is that you won’t know which quantities will perform best. This could mean that you might have too much stock or too little. It’s good practice to be prepared with stock and to even have safety stock. Safety stock could serve as protection against unexpected order spikes or delays in shipping.
Using software to notify you of when you should restock is a great idea. Setting reorder points based on historical sales data and lead times could help ensure a continuous supply of your bulk products. Your software should include forecasts. Forecasting techniques are very effective at helping you plan ahead and manage your inventory.
By diligently monitoring your inventory levels and employing efficient inventory management practices, you can avoid stockouts, reduce carrying costs, and ensure a seamless customer experience for your bulk sales on Amazon. Effective inventory management is essential to achieving sustainable growth and maximizing profits.
5. Build Strong Relationships with Suppliers/Manufacturers
Establishing strong and collaborative relationships with suppliers or manufacturers is a critical component of bulk selling. These partnerships are the foundation of your product on Amazon.
When starting to sell in bulk, you should communicate that clearly with your supplier or manufacturer. They might need to make some changes to support more sales and larger unit orders. Inform them of your expectations and timelines.
You also need to prioritize quality and consistency. If you accidentally sell one defective product, then a customer might not notice. If there are two defective units in a 10-Pack, then they’ll stick out like a sore thumb. Your customers might leave negative reviews citing a lack of quality control. This could really hurt your bulk sales and individual unit sales. Do regular quality checks yourself and communicate the importance of consistency with your supplier.
If you expect a fluctuation in orders, then communicate that ahead of time with your supplier. Especially for high-demand seasons or promotions. This ensures that you are both prepared to meet increased demand.
By building strong relationships with suppliers or manufacturers, you gain a competitive edge in the world of bulk selling on Amazon. Reliable suppliers ensure consistent product quality and timely deliveries, enhancing customer satisfaction. The trust and collaboration established through strong partnerships will lay the foundation for long-term success and growth in your bulk-selling journey.
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