Perhaps you’ve come across an item on Amazon with a blue stamp labeled “Add on Item,” and you are wondering what that means – Amazon Add-on Items.
In this blog post, we’ll cover Amazon add-on items, how they work and what to do if your products are.
What Are Amazon Add-On Items?
Amazon add-on items are lower-priced items that are too small and cheap to be shipped on their own but can be purchased together with other items as part of orders over $25, excluding gift cards.
These items can be products such as small home appliances, snacks, shampoo, office supplies, hygiene items, and many other low-cost items. Amazon mark these items with a blue “Add-on Item” banner.
Amazon introduced add-on items so that they don’t take a loss on shipping low-cost items. For example, if a product costs $5 and its shipping costs exceed that amount, it means Amazon will get a loss if they ship that product.
So, Amazon realized that they were making a loss by shipping products whose shipping fees exceeded the cost of those products and they opted to introduce the Amazon add on program.
This program elicited some controversy amongst both sellers and customers, initially.
Particularly, sellers of low-cost items felt like the program would take away business from them. For example, if an Amazon shopper wants to buy something that costs $5, the system may require shoppers to spend a minimum of $25 in order to be eligible to purchase the $5 item they want to purchase.
When a seller wants to purchase a specific product but Amazon requires that they spend a minimum of $25 for the product to be shipped, the seller is likely to abandon the purchase altogether. So it’s easy to see why the Amazon add-on program raises concerns amongst sellers.
While the Amazon add on program might pull down your sales, it allows Amazon to avoid making losses.
By the time Amazon ended the Amazon add on program, they had not revealed the criteria they used to determine the products that would become add-on items.
How Does Amazon Add-On Work?
Amazon add-on items allow buyers to access small and inexpensive items as part of orders over $25. That means you cannot purchase add-on items if you’ve not reached the minimum purchase threshold of $25.
For Prime members, purchasing add-on items as part of orders over $25 gives you Prime shipping benefits.
How To Find Amazon Add-On Items
However, you could use third-party sites such as So Cool and Amazon Add-On Item Finder to find Amazon Add-on items in the following product categories:
- Household, Kitchen, Office
- Outdoor, Garden, Garage
- Baby & Child
- Food & Grocery
- Clothing & Miscellaneous
- Health & Beauty
- Pet & Animal Care
- Games & Entertainment
What To Do To Erase The Add-On Badge
Although Amazon has ended the add-on items program, there are ways seller could eliminate the problem:
Switch to FBM
Even though Amazon FBA offers several advantages, including two-day free delivery and unlimited storage space, fulfilling low-cost items through FBA may attract the add-on badge.
The best way to avoid plummeting sales when your products are up to the add-on items section is to switch to FBM. While you’ll miss out on the benefits of FBA, using Amazon FBM will take care of your add-on items.
Avoid Selling Low-Cost Items
When Amazon adds your products to add-on items, it means that they think your products aren’t profitable if they are sold on their own. That’s a clear indication that it’s time to switch to more expensive products.
This will not only increase your margins but will also help you avoid the problem of add-on products.
You can utilize product research tools such as Helium 10, Jungle Scout, and AMZ Tracker to find more expensive products to sell on Amazon.
All you have to do is identify those products that are causing you the add-on problem and stop selling them.
You can leverage order management software for Amazon to track your product performance and identify which products are most profitable which the ones you’ll need to stop selling.
Increase Your Prices
Increasing your prices can get rid of the add-on problem. For example, if the cut-off price is $5, raising your price to $6 is a simple way to remove the add-on label without affecting your sales.
The disadvantage that comes with increasing your prices is that you could lose customers to your competitors.
Here’s a guide that will help you with pricing your products to avoid losing customers.
Bundle Add-On Items
You can bundle several complementary products to eliminate the add-on problem and sell more at the same time. This strategy works well for sellers with a smaller product catalog.
The only drawback to this strategy is that it can be time-consuming for larger sellers.
Use Amazon’s Small And Light Program
This program allows sellers to fulfill lightweight, low-cost, and fast-moving inventory under $7. Joining this program will eliminate the minimum order value of $25.
The FBA Small and Light program is also great for testing new markets and expanding the reach of your product lines.
Before Amazon ended the add-on items program, sellers dealing with small and inexpensive items on Amazon were somehow disadvantaged by the badge.
Sellers may see one benefit from add-on items. This badge could drive consumers to add multiple units of a product to their cart, resulting in more sales.
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