Want to get more sales for your online business? Try product bundling.
Product bundles are a great way to boost sales, clear your inventory, and bring awareness to your products! But how do you create effective product bundles for your ecommerce store?
Read on to find out.
What are product bundles?
Ever shopped in a supermarket and seen signs that read “3 for $10”? That’s the classic example of product bundling.
Product bundling happens when businesses group certain products together and give them a lowered price. Bundles can consist of the same product or a few complementary products.
Essentially, product bundles encourage customers to buy more to enjoy greater savings.
The psychology of product bundles
Here’s why product bundles work. They give customers the impression that they’re getting a better deal. Companies make use of product bundling all the time to tap on consumer psychology to drive sales.
Harvard Business School did a study and found that when Nintendo used product bundling to market video games, sales for these products went up by 100 000.
Interestingly, when Nintendo forced customers to buy product bundles – customers only had the choice of buying product packages only – sales dipped by 20%.
What does that tell us? Product bundles only work when customers are given the choice to buy a single product. Side-by-side comparison of price points for a single product against bundled products reinforces the impression of increased savings.
Consumers like to feel like they’ve made the decision to enjoy more savings. Without the option to buy a single product, consumers may feel that they’re forced to buy more products that they don’t need.
Benefits of product bundles
1. Increase your sales
Customers love getting discounts. Having product bundles on your website will help to create interest and increase conversion.
Think about the Nintendo example above. The company sold a whopping 100 000 more units with its bundled sales strategy. Incorporating product bundles into your online store will help you bring in more revenue and increase your average order value.
2. Clear your inventory
Inventory takes up space. And that can cause quite a headache even for small businesses.
Bundling slow-moving inventory with more popular products can help you reduce your surplus inventory. Stagnant items won’t be sitting in your storage space and you can move on to bringing in new products for your online store.
3. Increase product awareness
Product bundles give customers the chance to try products that they wouldn’t normally buy if it was a stand-alone item.
Take face rollers for example. Most consumers don’t need to use a face roller to apply moisturizer to their face. However, by pairing these products together, you give customers an opportunity to try a product they may not have bought on its own.
Tips to create effective product bundles for your shop
Now that we know all the amazing benefits of product bundling, let's dive into how we can make it work for your business!
1. Bundle popular items with less popular ones
We hinted at this earlier on. If you want product bundles to work hard for your business, make sure to bundle popular products with those that are less popular.
Stagnant items are difficult to clear. Sometimes, even discounts wouldn’t do the trick. Instead of slashing prices with steep discounts, consider putting them in a bundled set. This gives customers the impression that they’re getting more bang for their buck.
Cococart’s business analytics give you just the insights you need to make your product bundles. The data shows you which are your top-selling and slow-moving products so there’s no need for you to manually keep track of your inventory.
2. Group complementary products together
Product bundles with various complementary products generate more interest than bundles with more of the same product. It gives customers a chance to try something new and you might win over a new customer on a product they didn’t intend to buy at first.
Here are some examples of complementary product bundles:
Food and beverage niche
1) A mix of cookies and brownies in a bundle
2) A mix of cookies and tea bags
1) A necklace, earring, and bracelet set
2) 2 pairs of earrings and a jewelry box
Art and crafts niche
1) Prints paired with picture frames
2) Ceramic planters with planter hangers
If you’re a one-product business or don’t have many complementary products, consider collaborating with another small business. Look for a small business that sells products that go well with yours and create a bundle.
You’ll get to increase your exposure, brand awareness, and create new business opportunities for yourself!
3. Emphasize savings
Product bundles work because of their perceived savings. So emphasize that! Tell customers how much they’re saving when they purchase your bundle instead of buying a standalone product.
Besides slashing the price point on your website, get on social media and tell customers about your new product bundles. Create an IG story or Carousel post to show them the price difference and amazing savings they can enjoy!
4. Turn bundles into gift guides
Instead of promoting a “Cookies + Brownies bundle”, call it a “Valentine’s Day Gift Bundle” or “Sweet Birthday Surprise Bundle”. Get creative with the names!
When you turn bundles into gift guides, you’re giving customers a reason to buy your products. That’s why the best time to have product bundles is during festivities. Customers are willing to spend on special occasions – so give them a reason to!
Ready to start selling bundles on your online store?
Cococart’s product bundle feature is just what you need to rake in your sales! Try out the feature now on your Cococart store. Or if you haven’t signed up for one, get started today for free.