In the competitive and quickly changing landscape of online retail, finding strategies to get and keep customers is important. One strategy that many online shops use is called “product bundling.” This strategy is how businesses put together related items and sell them as a single package on a single product page. Bundling products for a discount helps shop owners recommend related items, improve average order value (AOV) and units per transaction (UPT), and ultimately increase their customer base and loyalty.
Bundles are also a strategic choice within a conversion rate optimization program. Bundled products make it easier to shop and incentivize shoppers with a good discount on a group of items, increasing the chance that they’ll purchase from a business at all.
In this blog post, you will find out more about how bundles are a great tool for eCommerce businesses, how to make bundle packages, and some tips on making bundle deals that your customers will respond to and ultimately purchase.
Types of Bundles
Making bundles is beneficial for stores to sell more items and earn extra money. It’s called a bundle when they put two or more products together in a special package. When people find it’s a good deal or a nice way to get what they need, they’ll buy a single bundle with multiple items, and ultimately the store makes more money. There are several ways to bundle products:
1. Cross-Selling Bundles
One way is to combine items that go well with each other via cross-selling. If you’re selling video games, you could bundle a game console with several games and extended storage. This approach helps customers get everything they need to use a product in one package.
2. Upselling Bundles
The other way to combine products is to encourage people to want to buy better products—upselling. You can do this by offering a bundle of regular and fancy products. It’s like saying, “Hey, if you buy the luxurious items, you get some regular items too.” This makes customers want to spend more.
3. Discount Bundles
When you buy several of the same items at once, like a shirt or a phone, you can encourage visitors to purchase by providing a saving per item through what we call “discount bundles.” Instead of buying one item at a time, they can buy a larger quantity in a single purchase, and they pay less for each one. Businesses can reduce their per-item shipping costs, and increase their AOV by using discounted bundles.
4. Themed Bundles
Putting together themed items, known as themed bundles, is a way to create a special shopping experience for people who love a particular hobby. Imagine a pickleball-themed bundle that makes it easy for pickleball fans to find what they want (and more)For example, a bundle could have a cool pickleball bag to carry gear, a pickleball mug for enjoying drinks after playing, and a cute pickleball keychain to show off the love for the game.
These bundles not only make it simple for shoppers but also make it easier for companies to display related products side-by-side, reducing the amount of time a customer spends browsing (and potentially missing items they’d purchase).
5. Gift Giving Bundles
For the thoughtful gift-giver, bundling provides a one-click opportunity to find a themed gift that the recipient will love. Customers respond well to bundles designed thoughtfully. For example, they may be looking for items to send to a friend during surgery recovery. They could come across a ‘Get Well Soon’ themed bundle, with comforting essentials like cozy blankets, soothing teas, and inspirational books.
By bundling together items that complement and enhance one another, the gift becomes a heartfelt gesture that transcends the sum of its parts. Whether it’s a friend on the mend or a loved one in need of a pick-me-up, these thoughtfully assembled bundles embody the sentiment behind the well-wishing message, making them a cherished and memorable way to show you care. By assembling these thoughtful gifts as a bundle, you can simplify the decision for your customer and make it easier to purchase a thoughtful gift.
6. Exclusive Items Bundles
Retailers put these bundles together with items that are either limited or hard to find, creating a sense of excitement and wanting among customers. Insiders get special access to exclusive bundles that contain unique products, making them feel more special.
Insiders, like loyal customers or those in exclusive programs, get to buy these special bundles before everyone else. This not only excites customers but also helps the store get more attention. It’s like having a secret club where everyone feels important and gets access to the best and trendiest items. These bundles reward your loyal customers, reinforcing their connection to your brand.
7. Occasional Bundles
This way of bundling products works well for holidays, special occasions, and times of the year when people have specific needs. For example, flower shops can put together special packages just for Valentine’s Day, offering different sets of flowers along with candies, chocolates, and thoughtful greeting cards.
Beauty stores can create special travel kits for the busy seasons, including smaller versions of facial cleansers, toners, and SPF 50+ creams. Doing this kind of bundling helps companies make more money during holidays and special times.
8. ‘Buy One Get One’ Bundles
The ‘Buy one get one’ bundling strategy is a smart tactic often used by eCommerce businesses. With this method, when you purchase a main item, you can enjoy a discount on another complementary product or even receive a second product for free. This works especially well for products that people typically buy only once.
For example, in the electronics industry, most customers won’t need to buy the same hair dryer repeatedly. By offering a free or discounted complementary product, businesses can encourage customers to add more items to their shopping carts at a lower overall cost.
Bundling enhances the value of your products by adding extra features or items to the initial purchase. You can customize your product offerings based on your customers’ preferences, making your business stand out from competitors. This approach also helps clear out older inventory, increases the perceived value of your items to customers, and boosts overall sales.
Why Bundles Are Great for Your Online Store
Sometimes, stores have sales where they sell bundles for less money than if you bought everything separately. This makes customers feel like they’re getting a really good deal, so they buy more.
Customers might find it hard to choose from a wide range of products available. This can make people tired, and they might leave without buying anything. Bundles make it easier because the store picks out items that go well together. So, you don’t have to think too hard. This helps you make up your mind and purchase more products.
So, making bundles is a smart way for stores to sell more products and make more money. It’s like giving customers good deals, helping them choose, and making them want to buy more.
Online stores like to find ways of getting more customers and making more money. One effective strategy they employ is selling bundles. Bundles are products put together to make a package. They help both the customers and the stores a lot. Let’s see how:
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Enhancing Customer Experience: Customers always want good deals and a good shopping experience. Bundles give them both at once. When you group similar or matching things, it’s exciting for customers. They buy more and feel happy because they save money.
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Increased Average Order Value (AOV): Bundles make customers want to buy more. When they see a bundle with a lower price than buying things separately, they think, ‘I’ll get this.’ This leads them to spend more, which benefits the store.
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Inventory Management and Stock Clearance: Stores can use bundles to handle their inventory better. If certain items aren’t selling well, they can be included in a bundle to clear inventory. Also, when customers buy bundles, they often take the popular and not-so-popular items. That’s good for the store’s stock. Upselling and Cross-selling Opportunities: Through bundles, stores can recommend additional items to customers. If you buy one thing, they say, “Hey, take a look at this bundle.” You might find these items interesting.
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Marketing and Promotional Strategies: Bundles can make sales exciting. Stores can say, “This bundle is on sale only for a short time.” It encourages people to make purchases quickly. Also, when they show bundles on the main page of the website or in emails, more people come to check them out.
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Differentiation and Competitive Advantage: In the online ecommerce world, your site has to stand out. Bundles contribute to making them unique. When you offer things that go together, it’s convenient for shoppers, and they like that.
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Simplified Decision-Making Process: At times, having too many choices can be overwhelming for people.
Bundles are like ready-made collections. You don’t need to pick each thing; it’s all there. It’s like making shopping easy and fun.
How to Make Bundles for Your Online Store
To make high-converting bundles for your online store, you need to plan carefully, know your customers, and use your products in the best way. Here’s how to do it step by step:
Step 1: Know Who Likes Your Products
- Ask people what they like and what they need.
- Figure out what things are often bought together.
- Listen to your current customers to learn what they want.
Step 2: Pick the Right Products
- Look at your store’s things and find ones that go together.
- Choose products that fit well or help each other sell.
- Only mix things that make sense.
Step 3: Make a Plan
- Set goals for your bundles like selling more or making space for new products.
- Think of ways to see if your bundles are working.
Step 4: Make Strategic Bundles
- Make bundles that give people a good deal.
- Be creative and make bundles that no one else has.
- Make special bundles that don’t last forever.
Step 5: Show Why Bundles Are Great
- Tell people why your bundles are amazing with words and pictures.
- Show how your bundles go together and help people.
Step 6: Put Bundles in the Right Place
- Display your bundles where people can see them.
- Use bright pictures or special signs to get attention.
- Use pop-ups or big signs for special deals.
Step 7: Get People Excited
- Make people want to buy more by offering better bundles.
- Suggest more products when people check out.
Step 8: Keep an Eye on Your Bundles
- Watch how your bundles are doing with some analytics tools.
- Look at how much people buy and what they like.
- Change your bundles when you need to.
Step 9: Tell Everyone About Bundles
- Use different ways to tell people about your bundles, like emails, social media, and ads.
- Share your bundles with your friends and family.
Step 10: Try New Bundles
- Mix and match your bundles to see what people like.
- Check how your bundles are doing and make changes to keep them fun.
- Remember, bundles should match your store’s style and make your customers happy. By making good bundles and showing them off, you can make your online store better and sell more items.
How to Test Different Bundle Ideas for Your Online Store
In online stores, using special deals (bundles) can stimulate higher purchases, but you have to be strategic about it. We need to make sure our deals are what our customers like and help us sell more.
A/B testing, which is also called split testing, is like a scientific experiment. We experiment with different bundles to see the most effective one. We show these deals to some people and see what they like the most.
To do this, we follow a step-by-step plan that helps us figure out which deal is the winner. Once we find the best deal, we use it in our store to make more people happy and buy more items. We keep doing these tests over time to keep getting better and better at making people happy and selling more things. It’s like a continual process of trying new strategies to achieve excellence.
Start Implementing Bundle Strategies in Your Ecommerce Business Today to Grow Sales & Profit Margins
Bundles can help your online store make more money and keep customers coming back. They also make your store stand out from others.
To make bundles work, you need to learn about what customers like, look at what your products do, and keep an eye on how well they sell. This will help you pick the right products to bundle together and choose the best prices.
You also have to check how well your bundles are doing by looking at what people buy and what they say. This way, you can make your bundles better and sell even more items.
Want help using bundles for your online store? Talk to our ecommerce experts for free at Experiment Zone. We can give you free advice on how to use bundles to make your store better and make more money.