How to Use Bundling as a Growth Strategy on Amazon

Amazon product bundling represents one of the most powerful yet underutilized growth strategies available to sellers today. By strategically combining complementary products into a single purchase, sellers can dramatically increase average order value, enhance customer satisfaction, and build stronger brand recognition.

However, recent policy changes from Amazon have significantly altered the bundling landscape, requiring sellers to navigate new compliance requirements while maintaining creative marketing approaches.

In this comprehensive guide, you’ll learn how to leverage bundling as a growth engine for your Amazon business in 2024 and beyond, understand the latest policy changes, and implement data-driven strategies that comply with Amazon’s evolving marketplace rules. Whether you’re a private label brand owner or an established reseller, mastering bundling can transform your Amazon business performance.

Understanding Amazon bundling—definition, types, and policy changes

At its core, Amazon bundling involves grouping related or complementary products together to create a new offering that provides enhanced value to customers. Rather than selling items individually, bundling allows sellers to create convenient packages that solve multiple customer needs with a single purchase.

Types of Amazon bundles

Physical bundles: Pre-assembled packages containing multiple products shipped as a single unit.
Virtual bundles: Digital groupings of products that appear as a single listing but are fulfilled as individual items from separate inventory.
Cross-sell bundles: Items recommended together through “Frequently Bought Together” sections and sponsored placements.

2024 policy changes

Amazon has implemented significant restrictions on bundling practices, primarily to enhance product quality control and brand integrity. The most notable changes include:

Bundles can now only be created by brand owners or original manufacturers
Cross-brand bundles are prohibited unless the seller owns all included brands
Resellers must obtain a Letter of Authorization (LOA) from the brand owner
All products in a bundle must come from the same brand (with limited exceptions for gift baskets)

According to Amazon’s official policy documentation, these changes aim to “ensure product authenticity and improve customer experience by preventing unauthorized bundling practices.” The marketplace has begun enforcing these policies through listing suppressions and inventory restrictions, with full implementation expected throughout 2024.

Core benefits of product bundling for Amazon sellers

When implemented correctly, bundling provides substantial advantages for both sellers and customers, creating a win-win situation that drives business growth while enhancing shopping experiences.

Seller benefits

Increased average order value: Bundles naturally increase transaction size, with data showing average increases of 15-40% compared to individual product purchases.
Enhanced inventory management: Strategic bundling helps move slower-selling inventory by pairing it with high-demand items.
Reduced fulfillment costs: Shipping multiple items as a single unit often reduces per-item fulfillment expenses.
Brand strengthening: Bundles create opportunities to showcase brand cohesiveness and product ecosystem benefits.
Improved search visibility: Bundle listings capture additional keywords and search intent, expanding organic reach.
“Semi-private label” opportunities: For authorized resellers, unique bundles create differentiation from competitors selling the same products.

Customer benefits

Simplified shopping: Bundles save customers time by combining items they would likely purchase separately.
Product discovery: Introducing complementary items helps customers discover useful products they might have overlooked.
Value perception: Bundle discounts create a perception of enhanced value, even when modest.
Solution-oriented purchasing: Well-designed bundles solve complete problems rather than addressing single needs.
Gift-ready options: Bundled items make convenient, thoughtful gifts without additional shopping effort.

For private label sellers, bundling offers unique advantages including product line extension without developing entirely new SKUs and opportunities to introduce customers to newer or less established items within the brand portfolio.

Types of bundles you can create on Amazon (within policy)

Understanding the different bundle formats available on Amazon is essential for developing a compliant strategy that maximizes sales potential. Each type has specific requirements, advantages, and best-use scenarios.

Physical bundles

Physical bundles are pre-assembled packages containing multiple products that are shipped as a single unit. These require proper preparation before sending inventory to Amazon’s fulfillment centers.

Requirements: All items must be from the same brand (unless you own multiple brands); packaging must clearly state “sold as set”; unique FNSKU barcode required
FBA considerations: Must be pre-assembled before shipping to fulfillment centers; cannot be created from existing FBA inventory
Best uses: Complementary products with clear use cases (shampoo + conditioner); starter kits; product + accessories

Virtual bundles

Virtual bundles allow Brand Registry sellers to create bundled listings without physically packaging items together. When a customer purchases a virtual bundle, Amazon ships the individual components from existing FBA inventory.

Eligibility: Brand Registry enrollment required; all products must be FBA; maximum of 5 ASINs per bundle
Limitations: All products must be from the same brand; hazmat items restricted; media cannot be bundled with non-media
Advantages: No pre-assembly required; uses existing inventory; can be created and adjusted without inventory changes

Virtual bundles provide exceptional flexibility for testing combinations without inventory investment, but require careful content optimization to maximize visibility in search results.

Cross-sell bundles

Cross-sell bundles leverage Amazon’s recommendation systems and sponsored placements to suggest complementary products without creating formal bundle listings.

Implementation methods: “Frequently Bought Together” suggestions; Sponsored Products; Amazon Posts; Storefronts
Benefits: Works around brand ownership restrictions; maintains individual product performance metrics
Limitations: Less control over purchase likelihood; multiple checkout steps for customers

Gift and subscription bundles

Amazon maintains specific exceptions for gift baskets and subscription bundles that follow particular guidelines.

Gift basket exception: Must be properly categorized as a gift basket; requires professional packaging and presentation; limited to appropriate categories
Subscription bundles: Can be created through Subscribe & Save programs; maintains recurring revenue streams

When developing your bundling strategy, consider which format best aligns with your product line, brand status, and business objectives. Many successful sellers implement multiple bundle types to maximize market coverage and sales opportunities.

Learn more about creating compliant bundles through Amazon’s Virtual Bundle Creation Tool within Seller Central.

Creating a successful bundling strategy: data, pricing, and optimization

Developing an effective bundling strategy requires a methodical approach based on customer behavior data, strategic pricing, and continuous optimization. The most successful Amazon bundles arise from systematic analysis rather than intuition alone.

Step 1: Data analysis

Begin by identifying high-potential bundle candidates through careful examination of customer purchase patterns:

Market Basket Analysis: For Brand Registry sellers, use Brand Analytics to identify products frequently purchased together
Order history review: Analyze past orders to spot recurring product combinations
Customer reviews: Look for mentions of products customers use together with your items
Competitive research: Study successful bundles in your category for inspiration

Step 2: Product selection

Choose bundle components strategically to maximize appeal and profitability:

Complementary functionality: Select items that work together to solve broader customer problems
Price point balance: Include a mix of higher and lower-margin products
Inventory considerations: Incorporate slower-moving inventory with popular items
Seasonal opportunities: Create themed bundles aligned with holidays or seasonal needs

Step 3: Pricing strategies

Effective bundle pricing creates perceived value while maintaining profitability:

Value perception: Offer 10-15% discount compared to individual purchase prices
Margin protection: Ensure the bundle maintains acceptable profit margins after discounting
Testing approaches: A/B test different price points to identify optimal conversion rates
Psychological pricing: Use price anchoring by showcasing the combined individual prices

Step 4: Optimization

Maximize bundle visibility and conversion through strategic listing optimization:

Title engineering: Create clear titles that incorporate “bundle,” “set,” or “kit” along with key components
Enhanced imagery: Show both individual components and the complete bundle together
A+ Content: Use comparison charts highlighting the value of bundled purchasing
Keyword expansion: Target additional search terms relevant to the combined use cases

Step 5: Promotion and measurement

Launch and refine your bundles with strategic promotion and data-driven improvements:

Launch tactics: Use Sponsored Products, coupons, or Lightning Deals to gain initial traction
Cross-promotion: Highlight bundles within individual product listings
Performance tracking: Monitor conversion rates, review sentiment, and comparative metrics
Iteration: Adjust components, pricing, and messaging based on performance data

Successful brands like kitchenware manufacturer HexClad have leveraged bundling to increase average order value by over 35% while introducing customers to their broader product ecosystem. Their “Chef’s Essential” bundle combines their best-selling pan with complementary tools, creating an entry point to their brand that drives future purchases.

Avoid common pitfalls such as creating bundles with mismatched components, inadequate value perception, or poor visual presentation. Most importantly, ensure all bundles remain compliant with Amazon’s latest policies to prevent listing suppression.

For deeper insights into data-driven bundle planning, explore Amazon’s Brand Analytics Dashboard which provides valuable market basket analysis for registered brands.

Adapting your approach in light of Amazon’s updated bundling policy

Amazon’s evolving bundling restrictions have fundamentally changed the landscape for many sellers, requiring strategic pivots to maintain growth. Understanding how to adapt while remaining compliant is critical for continued success.

Strategies for brand owners

If you own your brands or manufacture your products, leverage your advantageous position:

Expand product lines: Develop complementary products specifically designed for bundling opportunities
Create tiered bundles: Offer good/better/best bundle options at different price points
Seasonal refreshes: Rotate bundle components quarterly to maintain freshness and relevance
Virtual bundle experimentation: Test multiple combinations using the virtual bundle tool before committing to physical inventory

Options for resellers

Resellers face greater restrictions but can still implement effective strategies:

Secure authorization: Obtain Letters of Authorization (LOAs) from manufacturers allowing bundle creation
Distributor relationships: Develop exclusive distributor agreements that include bundling rights
Pivot to cross-selling: Optimize “Frequently Bought Together” placements through strategic pricing and promotion
Private label development: Create your own complementary product lines that can be bundled with resold items

Gift basket compliance

For sellers utilizing the gift basket exception, ensure strict adherence to Amazon’s specific requirements:

Proper categorization: List only in appropriate gift-related categories
Professional presentation: Use high-quality packaging materials and professional assembly
Clear marketing: Position explicitly as gifts rather than product bundles
Documentation: Maintain supplier invoices and assembly documentation

Policy violation mitigation

If your listings face compliance issues, respond promptly to minimize business disruption:

Immediate action: Address suppressed listings by either updating to comply or removing non-compliant bundles
Documentation preparation: Compile brand ownership proof, LOAs, or manufacturer documentation
Appeal process: Submit clear, concise appeals through proper Seller Central channels

One large reseller recently experienced automatic suppression of over 200 bundle listings after Amazon’s policy enforcement escalated. By quickly pivoting to an authorized distributor model with formal LOAs, they were able to restore 65% of their listings while transitioning the remainder to cross-sell strategies, minimizing revenue impact.

Stay vigilant regarding policy updates, as Amazon continues to refine and adjust implementation details. Some categories have seen slightly different enforcement timelines, and certain restrictions may evolve based on seller feedback and marketplace performance.

Need help ensuring your bundling strategy remains compliant? Request a comprehensive compliance review to identify risks and opportunities in your current approach.

Measuring bundling success and optimizing for growth

Implementing effective measurement systems allows you to quantify bundling impact and continuously improve performance. Strategic tracking and optimization separate successful bundling programs from underperforming experiments.

Key performance indicators

Track these essential metrics to evaluate bundle effectiveness:

Bundle conversion rate: Compare against individual product conversion rates
Average order value (AOV): Measure increase compared to pre-bundling baseline
Bundle contribution: Percentage of total sales coming from bundled offerings
Inventory turnover: Acceleration of slower-moving components when included in bundles
Buy Box win rate: Competitive advantage created through unique bundles
Return rate: Quality indicator comparing bundle returns to individual product returns

Analysis tools and methods

Leverage Amazon’s native tools and external analytics to gather actionable insights:

Business Reports: Track unit session percentage and conversion rates by ASIN
Brand Analytics: Monitor search term performance and market basket analysis
Advertising Console: Evaluate bundle performance in sponsored campaigns
A/B testing: Systematically test bundle components, pricing, and presentation

Optimization strategies

Use performance data to continuously refine your bundling approach:

Component adjustments: Replace underperforming items based on customer feedback
Price experimentation: Test different discount levels to find optimal conversion points
Listing enhancement: Improve images, bullets, and descriptions based on search term data
Seasonal refreshes: Update bundles to align with seasonal trends and shopping patterns
Bundle retirement: Systematically discontinue underperforming bundles to focus on winners

Leading Amazon agencies report that well-executed bundling strategies typically increase category revenue by 20-30% while improving overall catalog efficiency. The most successful sellers maintain a 70/30 ratio of proven performers to experimental bundles, allowing for continuous innovation while maintaining reliable revenue streams.

Establish a regular bundle review cadence—monthly for high-volume categories and quarterly for slower-moving products—to ensure timely adjustments based on performance data. Document performance trends to identify seasonal patterns that can inform future bundling decisions.

Looking for advanced analytics to maximize your bundling performance? Explore our full-service bundle performance analysis to uncover hidden opportunities in your product catalog.

Conclusion

Amazon bundling remains one of the most powerful growth strategies available to sellers, even as marketplace policies evolve. By developing compliant, customer-focused bundles based on data-driven decisions, sellers can significantly increase average order value, enhance brand perception, and create meaningful competitive advantages.

The most successful bundling approaches balance creativity with compliance, focusing on genuine customer needs rather than merely combining products. As Amazon continues refining its policies, sellers who maintain flexibility while prioritizing value creation will find bundling remains a cornerstone of their growth strategy.

Whether you’re a brand owner with full bundling privileges or a reseller adapting to new restrictions, the fundamental principle remains the same: create compelling product combinations that solve customer problems more effectively than individual purchases could. With strategic planning, careful measurement, and continuous optimization, bundling will continue generating substantial returns on investment throughout 2024 and beyond.

Frequently asked questions

1. What is Amazon’s bundling policy for 2024 and beyond?

Amazon now restricts bundle creation to brand owners or original manufacturers; cross-brand bundles are not allowed unless the seller owns all brands or holds a Letter of Authorization. Gift baskets are an exception under strict category rules.

2. Can resellers create custom bundles on Amazon?

Generally, only with explicit authorization from the brand owner (LOA) and only if all products are of the same brand. Otherwise, focus on virtual or cross-sell bundles within policy limits.

3. What is a virtual bundle on Amazon, and how does it work?

Virtual bundles let Brand Registered sellers group 2–5 FBA products as a set without pre-packaging; Amazon fulfills individual items as one order. Bundles must meet brand and category requirements.

4. How can I determine the right products to bundle for growth?

Analyze your sales data and use Amazon’s Brand Analytics/Market Basket Analysis to identify products customers already buy together. Match product combinations to solve real customer needs.

5. How do I monitor the performance of my Amazon bundles?

Track bundled ASIN sales, conversion rates, share of total sales, and AOV using Amazon’s Seller Central reports and analytics dashboards. Optimize or retire bundles as needed for maximum impact.