Every ecommerce business owner knows the challenges of keeping inventory moving, attracting new shoppers, and keeping existing customers happy. One way to accomplish all three is to sell your products in bundles. Let’s look at what product bundling is, the benefits, and some simple tips on how to do it.
What is Product Bundling, and Why is it Important?
In the simplest terms, product bundling is offering multiple items – typically sold individually – as a combined bundle for a reduced price. Product bundling is important because it gives ecommerce sellers the chance to upsell their inventory and increase average cart value, while at the same time creating satisfied and loyal customers.
What are the Benefits of Product Bundling?
There are many benefits to product bundling for both consumers and retailers.
- One advantage of using product bundling is that it allows you to offer your customers products they may have been on the fence about buying, in combination with something they were already planning to buy. Not only are you increasing your profits while still offering your customers a good value for their money, but you’re encouraging your customers to try new products they may have ignored otherwise.
- Product bundling is also convenient for the customer. Instead of having to search through a store’s entire online inventory and add items to their cart one at a time, customers can instead buy a bundle of the same products they were looking for.
- Research shows consumers actually appreciate curated suggestions, as long as it’s not done in a pushy way. Curated options keep customers from feeling overwhelmed with too many choices and often include items the customer may have forgotten otherwise. By ensuring your customers have all their needs met, you make their life easier – and they are likely to become repeat shoppers.
10 Tips to Optimize Product Bundling
There are a number of ways online sellers can optimize their product bundling. Below are a few tips for making the best of your bundles:
One of the most important things to remember when attempting to optimize your bundles is to be aware of customer value perception: customers will always go with products that they deem the most ‘worth it’. The four main types of perceived value are functional value, monetary value, social value, and psychological value. Hit on one or more of these values in the product descriptions for your bundles to encourage your customers to buy.
Mix It Up
Instead of pure bundling, utilize mixed product bundling. People are more likely to purchase bundles that have different items as opposed to a bundle of the same exact product. Use artificial intelligence to help you craft the most appealing combinations. Customer data such as browser history and past purchases can help you personalize your offerings and improve your relationship with the customer.
Ensure that Bundles Make Sense
Make sure to cross-sell products that go well together. It is important to create a bundle with products that go together - whether that means they can be used together or that they just complement each other.
Bundle Slow Moving Stock
Bundle less-popular products or items that are overstocked with best-sellers to reduce inventory. By pairing slow-moving merchandise with more popular items, you increase your inventory turnover rates and lower the chances of ending up with dead stock.
Pair main products with accessories. For example, if a company sells phones, they should consider bundling phones, SD cards, and phone cases together, as the latter two items are likely to be forgotten by customers.
Your customers will only purchase your bundles if they have enough incentive. Ensure the products within the bundles make sense together, and that the price of the bundle is lower than the price of the two items when bought individually. If the customer isn’t saving any money, there’s no reason they would purchase a bundle.
Test, Test, Test
Try A/B testing to find the best combination of products. Also called split testing, A/B testing is done by presenting 50% of users with an alternate version of your bundle. This allows you to directly compare different bundles in order to see which will sell more.
Promote your bundles. There are several ways to do this: one is advertising your bundles on the main page of your website. This way they get more exposure to customers visiting your site. Also consider offering bundles to your customers on your checkout page, based on the products in their cart. Upselling drives an estimated 4% of all online retail sales and can give your revenues a nice bump.
Give Bundles Their Own Spot
Creating a separate page to display all of your bundles is advantageous because online shoppers who are in a hurry and looking to save money will be able to see all of your bundles on the same page, as opposed to having to look through individually priced items as well.
Listen to Customers
Be consistent and pay close attention to your customers. Pay attention to buyer behavior patterns, as they tell you what is selling and what isn’t, allowing you to better decide what items to include in your bundles.
Final Thoughts about Product Bundling
Product bundling is beneficial to both consumer and seller. The consumer pays less for more products, saving them money. It allows the seller to get rid of old stock, introduce new stock, and increase profits. When used correctly, it has been proven to effectively and efficiently raise sales.
See a Demo of Product Bundling in Action!
Our Urban Hipster Drupal Commerce demo site is a fully featured example of what you can do with Drupal Commerce. We've set up some basic product bundles that you can try out for yourself. Visit the demo site (click the banner below) and view any product with the 'Bundle and Save!' flag.
Laura Gayle is a full-time blogger and creator of the Business Woman Guide, a trusted resource for women trying to start or grow businesses on their own terms. Laura is passionate about ecommerce and the ways technology is helping to rejuvenate the American dream.