Ecommerce Growth

eCommerce product bundling: Best practices + Mistakes to avoid

Is your product bundling strategy reaping good ROI? In this post, we share proven Dos and Don'ts that make sure bundling gives the most bang for your buck

eCommerce product bundling: Best practices + Mistakes to avoid

Product bundling is a popular strategy most store owners use to boost their revenue. 

However, not all brands get it right while crafting the perfect product bundling strategy.

In this post, we discuss 10 product bundling best practices to set you on the right path + 3 mistakes to avoid.

10 product bundling best practices that make your customers hit buy instantly

There are several things to keep in mind when bundling your products. For example, deciding on what products or making intelligent pricing decisions for those bundles.

So let’s explore how to get your pricing, bundling, bundle naming, and other crucial parts of your bundling right.

1. Decide which bundles to go for

Knowing what products to bundle together will determine whether your bundles perform or not. That’s why you must rely on data to make that decision. 

Here’s what to consider when bundling your products.

a) Bundling based on product sales performance

If you’ve complementary products where one performs better than the other, you can bundle the better performing products with the less performing ones to boost sales. You can also pair new products that do not receive much attention with well-known products that people already know and buy.

McDonald’s does this well. 

example of product bundling from McDonald’s

b) Bundling based on the product’s sales trends

Some products tend to sell at certain times of the year or when certain events happen. 

Therefore, you can offer bundled offers containing those products with complementary items.

Another possibility is if you notice that a product is declining in sales and you want to boost it. 

Then, you’ll bundle that product with some of the highest selling products to clear the one with declining sales off your shelves.

c) Bundling based on sales channels

If certain products sell better on Amazon or other channels you sell from, but you want to drive growth for a new or underperforming product through that channel, bundling can help. You’d bundle the high-performing products in that channel with the product you want to give a lift in sales.

d) Bundling based on offers, discounts, or free shipping

You might use products with high-profit margins for your bundling offers that include free shipping. You’d encourage buyers to get free shipping for a group of products when they buy them together, thereby increasing your AOV by incentivizing buyers with free shipping.

You can use a similar tactic for discounts and other special offers. Remember, the goal is to incentivize your buyers to shop for your most profitable products.

Bathorium encourages customers to purchase its bundle by adding a free shipping incentive. 

 example of product bundling with free shipping

It also displays the free shipping information prominently below the CTA as well as the header. Adding a bonus product also makes the bundle more lucrative. 

2. Fix your goals, then your bundle price

Discounted bundles require special care to set the appropriate discount percentage. However, you may also decide to bundle products just for the non-price benefit it provides the buyer.

Bundles that are not discount or price-focused draw their value from solving a buyer’s problem. Plus, value-focused bundles do wonders for your inventory control and revenue.

Alpkit creates a bundle specifically for marathons. 

example of benefit-focused product bundling 

A customer interested in a marathon would require all of the products together. However, individual items such as the jacket would cost €120. Purchasing the bundle helps them save €98. 

A great deal, no doubt!

But say you decide not to sell your product at a discount. Would it still convert?

That would depend on many factors:

  • The product type,
  • Individual product costs,
  • Target buyers, and
  • Product or sales seasonality

For instance, in a Harvard Business Review study, simply bundling two products of a wide value margin to up your sales volume on the cheaper one will undervalue the expensive product.

A straightforward solution is to establish the net revenue you make from selling each product at its original price. This is your gross margin.

Once you know your gross margin, you can decide how much of it you’re willing to take off. To be prudent, it’s best if you keep discounts between 5% to 20% of your gross margin, depending on the ratio of gross margin to the cost of the product.

Don’t leave anything to chance. Coming up with a strong eCommerce pricing strategy to drive better conversions.  

3. Think about your customers before naming your bundle

The name you give your bundle will draw attention to it. 

Shoppers are attracted by benefits. Naming the product bundle after a benefit will improve the chances of customers purchasing it. 

example of benefit-based product bundle names

An example is Belif’s products that sell for $76, but in a bundle, the two products sell for $55. 

They named that bundle after the benefits it offers buyers Skincare Solution for Dullness and Dryness. 

In case you’re faced with a dilemma, you can refer to these questions for naming inspiration:

  • Which audience will benefit from it?
  • How long or short should it be?
  • Should it be descriptive or imaginative?
  • How should it reflect the brand?

Here’s an example from Purple.

example of naming product bundles

Not only are the bundles centered around a theme but also have catchy names. It makes the product aspirational. A Snooze + Snuggle Bundle seems like a nice addition for the customer. 

The added incentive of saving 15% makes it even more appealing. 

4. Checkouts are ideal places to introduce product bundles

Adding bundled products at checkout is a great option to boost eCommerce sales. 

It helps customers see the opportunity to complete the purchase and get extra benefits from completing their purchase.

It’s also a great way to reinforce the customer’s purchase intent. This is because of the subtle urgency. This little psychological hack makes customers consider purchasing something that’s worth their money. Bringing in this decision while they’re checking out improves the chances of conversion. 

Check out this example from Best Buy

example of bundling products at checkout

They offer product recommendations along with the one the customer selected to bundle together. They also highlight the price savings that customers can get when they choose the offer. It reduces the customer effort by already selecting the items and adding a CTA—making part of the decision for the customer, improving the chances of conversions.

For example, discount bundles at checkouts incentivize buyers to go ahead with the purchase and allow you to sell more products at once.

Again, you can introduce the bundle on a new page after the customers click on checkout. It can offer product recommendations that can make their total purchase even more valuable. 

A few things to remember when bundling products at checkout are:

  • They offer benefit to the customer
  • They are related to the items already added to the cart
  • They are not too pricey as that’ll deter the customer

5. Create separate landing pages for bundles

You can create independent landing pages for your bundles to encourage buyers to shop the product bundles. This practice is excellent for promoting bundles that tie high-selling products with lower-performing items or clear old stock.

In-app promotions, email, social media, and even paid advertising are great ways to promote these products. The landing page would feature all the individual products you included in the bundle and then show the buyer the bundle pricing, so they can see the savings you get.

It’s a great place for buyers to check for offers and discounts. Clearly displaying your offers will help customers easily discover them. 

This is how ThirdLove creates a separate section for their bundles called ThirdLove Kits.

example of bundle landing pages

These bundles are personalized and curated with the customers in mind. Plus they offer savings options as well. So a win-win!

You can keep updating them overtime to keep the offers fresh and relevant. You may also tie them to seasonal holiday periods or occasions or create separate categories such as monthly bundles.

6. Go for freebies during overstocking

Freebies are something every shopper loves. It’s also a hard-to-resist incentive to ignore. 

While you can experiment with discounts, freebies are also something worth a try. 

However, it’s important to make sure that the free items are relevant to the product/s added to the cart. Just adding a free item that isn’t useful for the customer won’t add much value. Relevant product recommendations will be compelling for the customer to make the purchase. 

Another superb use of freebies can be to deal with product overstocking. Offering extra product stocks as freebies can help bring down excess stocks. You can balance your inventory and map it to customer demands. This offers you enough space to introduce new products or models. 

7. Highlight the savings for customers

The surest way to convince customers to go for a bundle is by highlighting the savings they are going to avail. 

Customers love getting discounts and saving money for their purchases. An incentive of getting more value out of their money is going to convince them into a purchase. 

There’s also a feeling of novelty attached to this since it makes customers feel they’re getting an exclusive benefit. 

The priority for most shoppers is to find a product that fits within their budget. Hence savings are a great incentive for them. 

So, make the savings bit visible for customers to weigh in. 

Native makes its order compelling for customers by adding a savings option. 

example of highlighting savings option in product bundling

The subscribe feature also helps in boosting customer loyalty. This option comes auto-selected to nudge the customers in the right direction. 

free conversion rate optimization

3 mistakes to avoid while product bundling

We had shared in our earlier post the product bundling examples that work. 

However, there are a few bundling examples that don’t work as well. Some bundle attempts can backfire and have the opposite result: discourage buyers from going through with the sales process.

For instance, bundling can back customers into a corner and leave them with little choice, especially in pure bundles where individual items are not available separately.

Take the Nintendo example. Nintendo’s mixed bundle of gaming consoles and video game software were a huge hit among video game lovers. The idea was that the addition of video game software to the bundle decided to buy a gaming console so much easier and worth it; what a bargain!

At the time, Nintendo also offered these products as individual items customers could buy separately if they wanted. As a result, they made more sales by over 100,000 gaming consoles and a million video game units.

However, it didn’t work so well when Nintendo offered buyers this bundle as the only option. Instead, Nintendo’s revenue declined by 20%.

Another serious aspect of bundling that can undermine your efforts is bundle pricing. The wrong bundle pricing strategy will create an imbalance where a product sells more in a bundle than an individual unit. If the bundle is heavily discounted, then profit is lost while the bundle offer lasts.

When your bundle doesn’t convert the way you’d hoped, then watch out for these rules that you should never break when bundling products:

1. Don’t ignore target consumer data

First off, you don’t want to bundle products no one wants to buy. For inventory clearance bundling, consumer data will help you decide what lead products to bundle with a stagnant one.

What products do your customers buy most, and how likely will they purchase a complementary or alternative product if provided?

Perhaps a more reliable way to discover stagnating products in your inventory list.

Stock/sales ratio (SSR) = Stock $ ÷ Sales $

You calculate SSR for each stock-keeping unit (SKU) per period, usually monthly. A stock or sales ratio of one means that you’ve entirely sold off all stocked volume of the product in that month. Comparing the stock/sales ratio of all your products will also show the products customers buy more.

The effectiveness of any eCommerce marketing strategy depends on many variables, and one of the most important is buyer preferences. Let the buyers dictate product mixes, and if you haven’t got the data to work that out, leave the product options open in a DIY bundle.

Trial and error is not the only way to understand target consumer habits. Through segmented testing, you can find out what works for your target buyers across several demographics.

2. Don’t be restrictive with your bundling tactics

Less is more, simple is easy, and all that—yes. But mix things up a little, incorporate other strategies to get buyers’ attention.

The most important thing to remember when creating high-converting bundles is to make combinations buyers will find valuable. How you achieve that should only add to the fun and not reduce its efficiency.

However, keep the overall buying process simple, easy, and straight to the point. Cross-sell bundle recommendations are such a great idea. But for it to optimize the conversion of your checkout page, allow a one-step click-to-buy process.

Buyers aren’t interested in going through a complicated checkout process. Instead, 9 out of 10 buyers will abandon their cart if checkout is complicated.

3. Don’t make your bundles hard to find

There are a lot of easy ways to let shoppers find your product bundling offers. We’ve highlighted some of them in other parts of this guide, but here’s a more comprehensive list:

a) On-site: Product bundling examples on Amazon and most retail stores are predominantly found on-site on different store pages

example of product bundling from Amazon

On these eCommerce sites, product bundles are,

  • Used as gift guides,
  • Offered at checkout (as personalized product recommendations: relevant to cart, and not too expensive),
  • Displayed as welcome message, exit-intent popup, or used as a banner,
  • Category page (for category mixes), or product page (as product recommendations, relevant to the product of interest),
  • Found on dedicated bundle pages.

b) Social: nearly 30% of marketers distribute promotional content on Facebook. That’s 10% more than the number of retailers creating for their websites. But, you could promote your bundle on any social media platform you want or are more comfortable with.

Perhaps the best way to decide is to choose the right community where you can find many of your target buyers.

c) Email marketing: You probably already have to send buyers follow-up emails to recover cart abandon. Why not offer a sweeter deal while you’re at it? Moreover, email message personalization is easier to achieve than website personalization.

Whichever channel you choose to promote your product bundles, getting buyers to notice it is the priority. Consider these essential criteria and decide how to optimize them for better conversion:

  • Product bundle packaging.
  • Optimize bundle campaign design to emphasize bundle savings.
  • Product bundle naming.

Product Bundling: an integral part of your sales strategy

Bundling is a smart way to boost your in-store and online sales. With time, it has only been growing in popularity. 

With steep competition and rising customer acquisition costs, bundling is a strategy that’s effective in improving customer lifetime value.

Product bundling is an easy way to make your offer more attractive to customers, increase their order value, and balance your inventory. A win-win for all!

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