Just as the name suggests, bundling means offering several products for sale by combining them together into a package. It is just like bundling several flowers together into a bouquet.
It is a popular way for eCommerce merchants and retailers to sell more of their products and increase their profits.
4 Reasons why product bundling works
- It helps you to create pricing opacity: When you are using product bundling in your store, then shoppers will not have access to the individual prices which helps to create opacity as you can easily combine cheaper products with higher-margin products. For example, if your store sells dumbbells at $22 each and has recently introduced protein powder priced at $15. On its own, shoppers might view the powder as overpriced and thus not buy it. However, if you bundle the two products together and price it at $35, you end up creating a good deal that the shoppers wouldn’t let go of.
- It helps you to sell unsold inventory: Your store will always end up having some dead stock that you want to sell off immediately. For example, if you want to sell your stock of cosmetics then you can bundle them up with some high-selling product of a good brand. This way, you’ll offer a great deal to the customer and they’ll end up buying it.
- It can help you to increase the average cart size of shoppers: Whenever shoppers visit your store or look for it online, most of the time they already have the list in mind that they want to buy. However, you can persuade them to buy some additional products by offering some catchy deals. For example, if you are selling soaps for $5 each, then you can bundle six of them together and price them at $26, which is a saving of $4 for the shoppers.
- It helps to reduce the pain of buying for shoppers: By offering your customers some really good deals on packages, you can reduce the cost for them and make their buying decision easier than ever before.
Which products can be bundled?
You should prefer to create a package out of products that complement each other and can be used together. For example, if you are selling a laptop then you can include a free pen drive or a USB cable.
The second tip is to keep a track of user behavior and the products they buy frequently. This can help you to create user-specific deals.
Examples of successful product bundling
- Kylie Cosmetics: It offers unlimited eye-catching deals such as lip kits that include lipstick and a lip liner in a single pack.
- Naturebox: This company often bundles different healthy snacks together in one package.
- Amazon: Amazon has mastered the art of product bundling as they suggest useful virtual product bundles on their site and make huge profits out of it.