Bundling helps you do much more with your existing stock and works wonders to boost sales. This blog discusses the advantages of product bundling and how it can be beneficial for your business. If you’d like to learn more about the best product bundling strategies, what mistakes to avoid, and examples of brands who do it well, then read on.
Every business has one main goal, to sell more products and make more revenue. A lot of effort regarding customer experience, maintaining product quality, shipping quality, and so on goes into a booming sales revenue. Aside from all the other strategies, product bundling always stands out. Why? Because it simply adds value to your customers' purchases. A happy and satisfied customer can significantly affect the profit your business makes.
To answer your first question, what does product bundling mean? It is a method of offering multiple services or products to customers as a single combined service or an order value package. In other words, product bundling is a type of package deal a brand offers its customers at relatively lower prices than individual counterparts of the products.
If you own a Shopify store and want to give the product bundling strategy a try, then the platform provides you with some of the greatest options. To create Shopify product bundles, you can use the Sales and Conversion category on your Shopify App Store. You will get more than 30 apps listed in the Shopify store that offers you the product bundling functionality.
Similar to Glood.AI, which enables you to offer personalized service to your customers, product bundling apps can help you to bundle the most relevant products together.
Undoubtedly, performing product bundling with proper strategies can bring immense profitability to companies. However, e-commerce businesses that offer multi-products are in a dilemma whether to provide their products at individual pricing or market them as bundles at bundle pricing.
When you offer product bundling at a bundle price, you sell a set of products for a lower price. This price paid would be significantly lower than the price you would have charged your customer if they had bought the product separately.
Hence, psychologically it influences customers to buy a bundle of products more frequently. Therefore, by inducing a discount via product bundling, you increase your profits by compelling customers to purchase more products than they usually would have.
Although product bundling is advantageous, doing it in the right way can only bring you desired results. There are many cases where product bundling has failed due to poor strategizing. Here we explore some of the best practices and tips that you must follow to sell your products in bundles.
Always bundle the related products together
If you are bundling your products, make sure they are relevant to each other. The chosen products must be complementary to one another. This practice is vital as it adds value to the customer's purchase. Otherwise, it will not serve as a compelling investment for customers.
For this, you need to put yourself in your customers' shoes and think carefully about which product combination can bring value to them. If the package deal contains products without a rhyme, the chances of customers putting their money elsewhere increases.
Offer a free item with your package deal
Customers love to get freebies, and that is a fact. Performing product bundling at an attractive discount gives them a reasonable incentive to purchase the package but, offering a freebie can make it even more effective. This offer has a high potential to give customers a nudge towards making a purchase. However, ensure the free item you offer is relevant to the main products in your bundle and complements your customers' bundle purchase.
Another benefit that you can get by offering freebies is getting rid of overstock issues. Giving away free products can be an excellent tactic to lower down your stocks of some specific products. Further, it will help you manage your inventory better depending on your customers' demands. This way, you will automatically free up considerable space, which you can use for stocking up other essential products.
Emphasize the involved savings
Customers usually love to feel like they are saving money at the time of making any purchase. Again, this is an important psychological factor that you can leverage in your product bundling strategy. Emphasize the part of your package deal that can satisfy your customers' belief they are enjoying an advantage that other people aren’t aware of yet.
A majority of customers have a specific budget to spend while making purchases. At the same time, they have different sorts of demands from their shopping spree. If you present them with an opportunity to save money they believe they need to save while making a purchase, it will 100% entice them. Therefore when you sell your products in bundles, make sure to emphasize the fact that they can save money if they purchase these products together instead of individually. It will encourage consumers to believe that they are getting an outstanding deal concerning their budget.
Make it clear to the customers how much percentage of their money they will save after they purchase your package deal. Also, let them know how much they will need to pay for separate items for comparison. When they see the drastic difference in prices for the same products, it will trigger a positive response.
Taking a data-driven approach
Whenever you are offering product bundling, make sure you choose a bundle based on accurate and relevant data. In simple words, never assume that a consumer who has an interest in a particular sort of product will also show equal interest in another. Instead, prepare your product bundling based on solid supporting data.
For this, you can use data regarding your sales. You can find this type of data collection with the help of your call centre software. With the availability of multiple data tracking software, e-commerce businesses have access to a considerable amount of valuable data more than ever. It helps them gain insights, enabling them to make better business decisions.
Try to get data on the following factors for practical product bundling:
This information will give you a clear perspective of what kind of items might be alluring to your customers when you bundle them together.
Also, make sure to avoid any approach that involves trial and error. If you bundle the products that are irrelevant and wrong as a combination, it will significantly decrease your sales margin. Aside from this, certain tools for e-commerce business can be effective in improving sales by providing you with more precise forecasting.
Provide product bundle offers at the check-out page
The check-out page is your last hope for generating a few additional sales. Also, offering order value products at the check-out phase can persuade your customers significantly. Hence, it is wise to offer your bundled products at the check-out page. By reminding your customer that they can save more money by leveraging product bundling with their existing item, they are more likely to take up the offer. Personalized product recommendations at the time they are checking out can be highly effective.
The brand offers product bundling with its package deal named lip kits. The package contains lip liner and lipstick as combination products. Today, the brand is one of the most successful Shopify sellers with a revenue of 600 million USD. Kylie cosmetics maintains a particular website section for their popular package deals.
NatureBox is a popular online seller of healthy snacks. To boost the value for their customers, they provide different kinds of snacks as a bundle product. The package deal by the brand is an effective marketing strategy for fitness enthusiasts. Aside from this, they also offer promotions and snack giveaways for the customers who participate in their contests.
Hellofresh is an online seller of ingredients that make a home-cooked meal healthier. The brand is showcasing an example of a pure product bundling method that is highly successful today. The brand is popular for providing package deals on ingredients that can help customers in preparing well-rounded meals. For health-conscious customers, the brand is pretty influential.
Product bundling is one proven method for making more sales of products both in offline and online stores. Due to the evolution of the art of selling in the e-commerce world, product bundling is marking its effectiveness. Today, product bundling is a more appropriate method than ever before due to the increase in competition among e-commerce sellers.