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Product bundling allows you to boost sales, grow your revenue, and improve your customers average order value (AOV).
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In fact, Forresters research states that upselling and cross-selling contribute to around 1030% of eCommerce revenues.
In this guide, we feature 15 actionable product bundling examples that you can easily experiment with, and alongside, 9 proven best practices that will help you convert plus 3 mistakes to avoid.
The post also covers:
9 Product Bundling Best Practices That Make Your Customers Hit Buy Instantly
3 Mistakes to Avoid While Product Bundling
Pure bundles are combinations of the same product or different products that shoppers cant buy individually.
This is why pure bundling is best applied when you want to mobilize your slow-moving products.
SquattyPotty, the FDA-approved pooping accessories maker applies this strategy on Invisibrush, their trademarked toilet brush + brush holder set, bundled with a replacement brush.
Another example of a pure bundle is Skinny & Cos Cleansing Balm 3-pack bundle, which also showcases an attractive bundle pricing example of quantity discounts.
Mixed bundles instantly reflect on bundle pricing choices.
While buying individual items may not make sense for your customers, getting them along with the items they need makes it more appealing.
Skinny & Cos travel kit of 100% organic cosmetic products is an example of a mixed product bundle that offers value to the customer
When it comes to gifting, mixed bundles can be a lifesavershoppers like them because they're not time-consuming. Some retailers use gift bundles as guides for their shoppers to match different occasions.
You can keep your gift bundles flexiblelike the gift crates offered by ManBox.
There are 3 ways you can use this kind of bundle marketing effectively and increase your AOV, an essential eCommerce metric:
GetFPV is a US-based drone and first-person-view (FPV) equipment retailer that features a dedicated drone bundles category using 38 of their fastest-selling units, featuring great discount deals.
As per a survey by AMG Strategic Advisors, 93% of customers prefer Buy One Get One (BOGO) bundles.
BOGO pure bundles may come as a multi-pack of defined volumetypically with a popular product at a discount and the less popular one at no cost.
Sometimes this kind of a bundle promotion allows buyers to decide their quantity.
Mixed BOGO bundles are effective for cross-selling products within the same category. In this case, buyers get a different additional product when they buy the bundle.
BOGO bundle types are prevalent, and nearly 7 out of 10 buyers agree its their favorite kind of product bundle.
Pro Tip: Offer free shipping discount on BOGO bundles to stop shopping cart abandonment.
This is the promotional bundle strategy that Jigsaw Health uses, offering free-shipping benefit for orders over $89 in the US.
An upselling bundle is a kind of bundling marketing tactic to increase the overall AOV of your customers. Using an upsell product bundling strategy can be 68% more effective than trying to grab a new customer.
Opting for an upselling bundle promotion can::
For example, Koh, a brand of cleaning products, presents an irresistible upsell bundle offer at checkout.
Because 96% of marketers agree that segmentation is the key to boosting product bundling offers, use eCommerce personalization to make your cross-sell bundles more effective.
This is one of the product bundling pricing examples where shoppers get convinced thanks to how well the bundle can help them solve several problems.
Pro Tip: Switch out single-product recommendations for cross-sell bundles on your product and checkout pages.
Heres an example from Vanity Planets cross-sell bundle recommendation:
A great product bundling idea to get repeat customers is subscription bundling.
This offers a lot of value to subscribers, keeps them engaged in more than one product, and helps fight subscription fatigue.
Subscription bundles come with doorstep delivery, discounts, and the flexibility of buyers choosing their box contents.
NatureBox, the healthy snack subscription brand makes a one-time order of snack boxes in any quantity.
Shoppers can cancel subscriptions anytime, and NatureBox will refund the unused balance from their last subscription payment.
DIY or do-it-yourself bundling marketing gives you benefits like:
DIY bundling marketing works well for several categories including fashion, tech products, gifting items as well as skincare and cosmetic products.
Culture Kings product bundles specify product combinations and volumes buyers can buildbut leaves the choice of brand, style, and size to them.
ManBox is a Canadian retailer of mens gift boxes, more like crates. The crates are handcrafted and filled with items based on themes like alcohol, new daddy gifts and fashion & grooming items amongst others.
Bundle offers for seasonal holidays, festivities, and sales promotion days like during Black Friday and Christmas can be effective conversion drivers.
You can also offer year-round bundles as specially curated, discounted bundles with a countdown timer for urgency. (Check this out!)
All curated bundles offered at specific times of the yearhaving good value and deadline-basedare seasonal bundlesheres an example from Amazon:
Inventory clearance bundling is a product bundling example that allows you to repackage stagnant, slow-selling, or surplus inventory to get new attention.
The main benefits of this type of product bundling include:
Kitting slow-moving replenishable SKUs with bestsellers is also a good practice in inventory clearance bundling.
Pro Tip: Use inventory clearance bundling to launch new products. You may also bundle new products with surplus or stagnant inventory as a mixed BOGO bundle promotion.
Heres an example from GetFPV. They use inventory clearance bundling to offer a selection of compatible parts for their drone DIY kit.
Keen to make your eCommerce products stand out through relevant descriptions? Read How to Write Product Descriptions: 11 Proven Ideas (with Examples)
The bundling of favorite items can help you share your product bundle pricing advantages with your customers.
Often they are just one product in multiple numbersan in-between with a long subscription model on one hand and a one-time purchase on the other.
Heres an example of this kind of bundle offer from health brand Hersthis is a great tactic if you want to establish loyalty in your customers.
Product bundling can be much more than landing a great deal.
This is where gamification comes into the picture. It is a technique you could use to turn bundling into an exploratory and joyful process just as Lush Cosmetics does.
Their two-step bundling process offers a few visible benefits:
To have a shopper avail a gift box with freedom of customization represents one of the best product bundle examples. In such an instance, youll have to define two aspects -
Daily Harvest lets their customers take their pick in the Gifts section of their eCommerce site.
They have at least two gift box options in this bundle pricing example that nudges:
If youve run out of product bundling ideas, try the staff favorites edition.
It conveys authority especially when customers arent clear about what product to choose.
This is one of the product bundle examples that lead to easier decision-making.
Colorescience has product bundles formulated as staff favorites.
The explanation and detailing demonstrate legitimacy and credibility. Staff edition bundles help in:
According to a Ypulse study, limited edition products are a favorite among Millennial and Gen Z demographics. 46% of 18-24 year olds and 45% of 25-39 year olds have bought limited edition products.
Limited edition bundles have the following benefits:
Heres an example of a limited edition bundle from Pai Skincare:
High-converting product bundling depends on how much you know about your buyers purchasing habitshere are some product bundle pricing strategies you might want to apply on your store:
Heres what to consider when bundling your products:
a) Bundling based on product sales performance
McDonalds combines high-performing products with less popular ones:
b) Bundling based on seasonal 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.
c) Bundling based on sales channels
If you want to drive growth for a new or underperforming product through a specific channel, a bundle product strategy can help.
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.
Bathorium encourages customers to purchase its bundle by adding a free shipping incentiveadding a bonus product makes the bundle more lucrative.
Make buyers problems suggest the kind of bundle product you create. Alpkit creates a bundle specifically for marathons.
But say you decide not to sell your product at a discount. Would it still convert?
That would depend on several factors:
Establish the net revenue you make from selling each product at its original price. This would give you the gross margin.
Once you know your gross margin, you can decide on the bundle pricing discount. Its best to keep your discounts between 5% to 20% of your gross margin.
In case youre faced with a dilemma, you can refer to these questions for naming inspiration:
Heres an example from Purple.
Adding bundled products at checkout is a great option to boost eCommerce sales.
Note this example from Best Buy.
A few things to remember when bundling products at checkout are:
Landing pages meant for product bundling solutions make it easy for buyers to check for offers and discounts. This is how ThirdLove creates a separate section for their bundles called ThirdLove Kits.
You must also read: Boost eCommerce landing page conversions: 18 scientific strategies
Its important to make sure that the free items youre bundling are relevant to the product/s added to the cart.
A superb use of freebies can be to deal with product overstocking. Offering extra product stocks as freebies can help bring down excess stocks.
The priority for most shoppers is to find a product that fits within their budget. So, make the savings bit visible for customers to weigh in.
Native makes its order compelling for customers by adding a savings optionthe subscribe feature comes auto-selected to nudge the customers in the right direction.
BNPL programs benefit retailers and eCommerce businesses by:
a) Encouraging new product trials
62% of customers think that BNPL options will replace credit cards. This will help customers try out new product bundles at your eCommerce store.
b) Boosting conversion rates
eCommerce brands that offer BNPL services experience a 20-30% increase in conversion rates.
c) Improving Customer Lifetime Value
BNPL options increase the ticket size by 30-50%. MyProtein offers two BNPL options on its product pages to encourage customers to try new product bundles.
MyProtein includes promo codes on its product category pages to make its product bundles appealingthis product bundle pricing invariably reduces cart abandonment.
When your bundling marketing isnt converting the way youd hoped, then watch out for these gaps:
To discover both high and low performing stock, calculate:
Stock/sales ratio (SSR) = Stock $ ÷ Sales $
A stock or sales ratio of one means that youve 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.
Pro Tip: Let the buyers dictate product mixes, and if you havent got the data to work that out, leave the product options open in a DIY bundle.
The most important thing to remember when creating high-converting product bundles is to make combinations buyers will find valuable.
Cross-sell bundle recommendations are usually a great idea. But for it to optimize the conversion of your website checkout page, allow a one-step click-to-buy process.
Consider offering various types of bundles as alternatives on your product pages.
There are a lot of easy ways to let shoppers find your product bundling offers:
a) On-site: Product bundling examples on Amazon and most retail stores are predominantly found on-site on different store pages:
Apply promotional bundles in the following ways:
b) Social: nearly 30% of marketers distribute promotional content on Facebook. Thats 10% more than the number of retailers creating for their websites. Perhaps the best way to decide is to choose the right community where you can find many of your target buyers.
c) marketing: You probably already have to send buyers follow-up emails to recover cart abandonment. Why not offer a sweeter deal while youre at it?
Moreover, 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:
Fundamentally, product bundling is of two types:
a) Pure Bundling
Pure bundling refers to product bundles containing the same or complementary products that arent sold individually.
Pure bundling is further divided into three subcategories:
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b) Mixed Bundling
In mixed bundling, customers have the option to choose the items in a bundle or buy them individually.
Heres an example of mixed bundling from Chewy:
Apart from pure bundling and mixed bundling, there are five types of product bundling:
a) Cross-sell bundling
Cross-sell bundling consists of a primary product and a complementary product that has no use without the primary product. For example, a nail polish and nail polish remover.
b) New product bundling
New product bundling includes a new selling product along with a best selling product. The best selling product is used as a nudge to reinforce the benefits of the new product.
c) Gift set bundling
Gift set bundling includes products that make for a great gifting experience. It is great for festive occasions such as Thanksgiving, Halloween, Black Friday etc.
d) BOGO bundling
BOGO or Buy One, Get One is a type of bundling containing a high-priced product paired with a similar item offered for free or at a major discount
d) Seasonal bundling
Occasional bundling are bundles created based on themes for particular occasions. This could include celebration bundles, gifting bundles etc. Heres a Valentines Day bundle from Colorescience.
Bundling is a fusion of upselling and cross-selling. While bundles consist of higher priced and lower priced products, upselling contains only higher priced products. Colorescience has a product bundle consisting of two higher-priced products and one lower-priced product.
Bundling can help increase your sales over a period of time and lead to:
- Higher AOV
- Rechanneling of excess stock
- Exposing customers to new product launches
- Lower marketing costs for individual products
- Improved seasonal conversions
- Better CX
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Every retailer shares a common goal: to earn more revenue.
The ways in which retailers go about meeting that goal vary, however. Some prefer to focus on their customer loyalty program. Others turn to expanding into B2B wholesale channels. And those are just two on an infinite list of tactics you can employ to increase sales.
Another great way to help retailers achieve revenue goals is product bundling.
But as with most other sales tactics, theres an art to bundling products successfully. Heres what you need to know.
Product bundling is a strategy in retail that involves creating and selling a curated collection of complementary products that can help you capture both casual browsers and eager-to-buy shoppers.
Sometimes products are bundled together as an upsell or a cross-sell.
With its sophisticated algorithms, Amazon suggests bundles of products that might appeal to customers based on past purchases.
For example, Amazon may suggest a product bundle if a customer bought an ebook reader in the past that includes a subscription to a digital book library.
Product bundles become especially popular during the holidays, but its a tactic that retailers can use year-round to generate sales.
Generally speaking, there are three types of product bundles:
A pure bundle contains items sold exclusively in that bundle.
For example, the Dyson Airwrap is sold with detachable blow-dry heads that you can only get when you purchase the set.
This type of bundling works by combining products sold separately at a reduced price.
A good example: Kylie Cosmetics lip kits. These kits are made up of a lip liner and lipstick, each of which can be purchased separately, but are bundled together for convenience (and because theyre complementary products).
Bundle pricing is offered at a discount or with an added value, while other times price bundles are curated.
A retailer chooses a few specific items that must be bought together in order to obtain the discount, or the bundle is offered as a general discount for purchasing multiple items. Buy-one-get-one (BOGO) discounts are an excellent example of a price bundle.
By offering a bundle discount on the total price or by adding a perceived value (like a free item), the customer feels they got a good dealeven though theyve likely spent more than they planned to.
Photo courtesy of: Neuroscience Marketing >Oddly enough, curated bundles can seem like a deal to a consumer even when it isnt saving them any money.
Now lets look at some product bundling examples you can learn from and implement today.
How you choose to put together a bundle will depend on your goals and individual products, but keep in mind that product bundling methods seem to be limited only by a retailers creativity.
One way to meet customer needs during holidays is to take a gift-giving approach to product bundles, which makes it easy for shoppers to find and purchase a done-for-you gift.
Clean beauty brand Lush uses this very approach. The gift section on its website features multiple product bundles at many price ranges.
It also merchandises the items together for in-store displays, and its hands-on associates can make smart recommendations for shoppers to get in and out of the store quickly.
Subscription boxes are product bundles in their own rightand theyre not just for ecommerce retailers. Many brick-and-mortar retailers have begun their own subscription box services.
WineCollective is just one example of a brick-and-mortar shop that has capitalized on an opportunity for product education and curation with subscription boxes.
After noticing several in-store shoppers struggling to purchase the right bottle of wine, they took the difficult decision-making out of the shopping process.
Wild One, a pet goods retailer, created a Harness Walk Kit that combines popular items with less popular items. The kit has a dog leash, harness, and a waste bag carrier.
The bag carriers arent as popular amongst dog owners, as many tend to simply keep bags in their pocket. But by tying the bag carriers to the much more popular and complementary leash, Wild One can move more bag carriers overall.
Some retailers have experimented with a mix-and-match bundling tactic, allowing shoppers to create their own collection of goods. This may seem counterintuitive to the idea of building product awareness, but you can still encourage product discovery by allowing customers to choose from a set group of products, limiting their choices to the items you want to promote.
Nutrition and supplement company HVMN found that by offering mix and match bundles (which allowed shoppers to select their own flavors of their MCT oil powder or Keto Collagen+ and build out their own product bundle), its average order value shot up to $108.
Womens fashion brand M.M. LaFleur also offers a build-your-own curated capsule wardrobe collection, which it updates regularly. When a customer purchases two or more pieces from the capsule collection, they get 15% off the items.
The brand saw a 20% increase in AOV for orders that included product bundles like sets, capsules, or bundles versus those that didnt (excluding sale-only orders). It also saw a 27% increase in items per transaction with orders including sets, capsules, or bundles.
This tactic isnt limited to online retailers, either. A retail store owner could take a similar approach by hosting a build-your-own gift bundle event or allowing in-store associates to help shoppers build their own bundles, with in-store gift wrapping available, too.
Bundling slow-moving inventory with popular products can help move stagnant items. When you bundle a more stagnant product with a popular one, youre creating a new product offering, which helps freshen up your old or overstocked inventory.
For example, a clothing retailer could bundle three slow moving items, like sandals and sunglasses, with a popular item like a dress, and offer the bundle at a lower price. This could encourage customers to save money and buy the bundle.
The process of creating a product bundle can vary quite widely, depending on the bundle, but there are some important principles to follow.
The products you choose to bundle will be determined by the bundle type you choose to accomplish your goal.
Lets look at how to choose bundled products:
Dont overdo it with the bundling strategy. Pick one or two approaches and lean in to those to ensure youre not overwhelming your customers.
If youre still unsure of where to start, analyze your stock-to-sales ratio to discover which products or categories are stagnating.
To calculate stock-to-sales ratio of a product, calculate the contribution a SKU or category makes to your total unit inventory and compare that to its contribution to your total unit sales.
Stock-to-Sales Ratio = Percent of Stock ÷ Percent of Sales
Calculating your bundles pricing can be straightforward if youre not offering any discounts.
To calculate the bundle price, you first need to know your gross margin on each product in the bundle. To calculate gross margin dollars of a product, subtract the cost of goods sold (COGS) from the total selling price.
Gross Margin Dollars = Ticket Price - COGS
Once you know your cost baseline, you can choose a discount that works for your brand (if youre offering one). A few rules of thumb for discounting:
Its also worth testing your chosen discount over time to see what performs best.
Naming your bundle impacts how you draw attention to your new offering.
An excellent naming best practice is to call the bundle by the benefit it provides a customer. For instance, belifs skin care bundles are all named for what they do.
The skin care bundle for dry skin is called Our Belief for Dry Skin.
Calling attention to the overall benefit of the bundle tells customers from the get-go why they should purchase all of these products together rather than just one of them.
There are many apps that work directly in your Shopify admin to create product bundles. Here are three, in no particular order, you can use to boost sales with bundle discounts:
EARLY ACCESS: Shopify's new app, Shopify Bundles, will allow you to easily create bundles directly in Shopify admin with the products and variants you choose. If you're a Shopify merchant and would like to be considered for early access, sign up here.
There are a host of ways to promote your product bundles, but lets take a look at some of the best practices retailers have developed over the years.
If your bundle is intended to offer a discount or value-add, its important to display that information prominently on your product page and within your marketing efforts. Making the discount a key part of the bundle reminds shoppers theyre getting a good deal.
As an example, womens undergarment brand ThirdLove prominently displays its build-your-own-bundle promotion on nearly every page of its site and highlights the cost savings.
Retail store owners will want to clearly display signage near their bundled or bundle-able products so customers recognize the deal, too. Sales associates should also be trained to mention the bundle as an option whenever a customer is looking at one of the individual items.
Another classic method is to promote bundles around holidays as easy gift options.
Many companies will create a gift guide landing page, which you can then promote via , social media, and in-app. Heres one example from mattress company Purple promoting its bundles as Valentines gifts:
Retail store owners can spotlight gift bundle displays by their registers with shoppable displays so customers can grab everything they need in one swoop.
Offering a bundle at checkout can help a customer pull the trigger on multiple items. Its also a smart move for ecommerce stores to increase profit margins and optimize their shopping cart experience.
At a brick-and-mortar, that may look like the sales associate mentioning that if the customer adds one more item to their purchase, they get 15% off everything. Online, it can be presented as messaging during the checkout flow.
Product bundling is a win-win for both retailers and consumers. Lets look at a few reasons its become such a popular tactic amongst retail and ecommerce businesses.
How does bundling items increase sales? Because it helps increase the perceived value of products in your customer's eyes.
Harvard Business Schools Vineet Kumar revealed the power of product bundling in a case study of video game console retailer Nintendo. Still today, retailers increasing their sales and AOV from bundling include:
Encouraging shoppers to purchase more items typically leads to a higher transaction amount, which is an efficient way to boost revenue. Bundling also reduces marketing and distribution costs, since customers discover products easier and order all of them at once.
While bundling can be used to provide discounts, it can also be used to build upsells into a package, thus blurring the focus around the price of individual items.
For example: when you purchase a new smartphone, you also receive a charger in the box. The charger isnt free, of course. Its cost is built into the s final ticket price. retailers know if customers had to purchase a charger separately, many wouldnt. Most of us already have the correct charger at home.
If you find that customers are often put out at the thought of having to purchase yet another small item to complete their set or experience, consider bundling those items to remove that obstacle to purchase.
Product bundling also gives customers the chance to try a product they wouldnt have typically purchased as a standalone item.
For one example of this, we can look to LoveSeen, a false lashes retailer. It sells a starter kit bundle that includes not only lashes but also lash glue and lash tweezers.
Most people dont try lash tweezers because theyre not entirely necessary to the process of applying lashes. However, when sent within the product bundle, customers have the chance to see how much easier lash tweezers make the application process. They may even discover that they would purchase another pair individually in the future.
While it may be a surprise, offering product bundles can also help boost customer loyalty. The reason: bundles give buyers the chance to try multiple products at once, which means more opportunities for them to find items they love (and then buy over and over again).
Product bundles are a great way to increase the perceived value of your products and improve the customer experience in your store. Use them for gift-giving occasions, dead stock, product awareness, and other creative ways to drive more in-store sales and improve your marketing strategy.
A bundling strategy is when a retailer packages complementary products as a group of items that can be purchased together. Retailers may offer a discounted price for bundle offers or add-ons.
Two common types of bundling are pure bundles and mixed bundles.
Examples of product bundling include offering a package of two or more different products together, such as a printer and ink cartridges, at a lower price than if purchased individually. Another example is bundling services, like combining a web hosting plan and a domain name registration.
A product bundle is a grouping of multiple individual products that are sold together at a lower price point, while a package usually refers to a single product that is sold with additional items.
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