Like the great Abraham Lincoln said, “Set the right bundle, and everyone will win in ecommerce”.
Yes it is that easy. Only thing you need to be careful of is which products will be bundled together. Because If the products don’t seem relevant to each other, customers might see the bundle as a seller’s ploy. But if the items are chosen wisely, then the only problem you will have is money problems (mo money, mo problems).
The bundled sale comes with a quite “few” benefits:
Bundled products as a “great fckn deal”– The first and the most important reason that product bundling works is that customers see getting more than one product for a little higher price than a single product as a deal. Bundling products brings also customer loyalty because now they don’t need to go to another site and that is how they can save and get what they want and need in just one place.
Bundles increases the number of items you sell – If you would like to increase the number of items you sell, revenue per order or lower costs per order, than the bundle marketing is the best option for you. Why? Because within a single order, you will be selling several items.
Customers Get to Try Your Other Products – Some of your products might have been marketed more extensively than others. If your other products are of equal or superior quality as your most popular products, encourage customers to try them by bundling them together. You’ll need to measure the sales of the less popular varieties, to see if they’ll increase after the discount.
Sell Popular and Less Popular Products Together – Bundles are a great way of selling off stocks of less popular products. Just bundle together less popular products with stronger selling products. You can leverage the popularity of your best-selling items by enticing customers to buy it with other items on a discount as they’re making their purchase.
Should you bundle?
Everybody should bundle! Product bundling is a strategy that can absolutely work on the subconscious of your customer. But, you can’t just dive head-first into it. Here are few things you should consider:
You have to be careful so you don’t sell more than you actually have in stock. First world problems.
“Afford” part is also really important! The affordable part depends on your margin etc. You must strike a delicate balance, setting a price that is high enough to allow you to achieve a reasonable profit margin and yet low enough for shopper to see great deal in it. Always make sure and select items that you can afford to bundle. (you’ll have an increased average order value, but the margins on the individual items themselves will be lower.)
Remember – statistic is your best friend! Always and forever. You should constantly measure the performance of your bundles. It is the only way you can learn the most from them. Gather all the data you can, so the product bundling could be truly the best choice for growing your ecommerce business.
Give value: Shopper is the king. Are you ready to serve him? Never, ever underestimate the awareness of the todays shopper. They have more access to all kind of information and they can easily find out if they are being ripped off or not. If you want “repeat” customers or customers through referrals you should always give them value.
Always have in mind that the package you build must make sense for users to buy. You need to package products that are relevant to each other and which complement each other. The idea is to provide the customer with a package that is better than buying a single product. Customers must always see bundled product as a great deal!
What are you waiting for? Let’s fckn bundle!
Oh, we almost forget, that’s NOT all folks! Even if there is a really simple logic behind it, let say something about volume discount too. The more you buy, the lower the per-item price is. Pretty simple, right? 🙂 Just watch out that the items you choose for volume discount marketing are carefully selected.
This kind of marketing is a good option when you want to sell more or sell quickly, to clear inventory (reduce inventory cost), or simply reduce transaction cost.
Let’s do some real ecommerce magic together!