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Product Bundle

What Is Product Bundle?

eCommerce product bundle is a marketing concept based on the idea of offering multiple related items and selling them as a bundling solution at a usually lower price. It is a very powerful and effective pricing tactic for expanding the customer base significantly. It helps to increase sales volume and, consequently, revenue.

Product Bundle Examples

Computer stores can sell computers, software, and technical support in one package.
Sports supplement stores can sell amino acids, protein, and shakers in one package.
Travel stores can sell suitcases, 100ml airplane liquid containers, and travel pillows in one package.

Why Is Product Bundling Important?

Product packeting plays a very important role in different industries, most notably eCommerce. Moreover, it has become a trend and many companies even base their business strategies on consolidation. A product bundle pricing strategy allows you to increase profits by using a discount to entice clients to buy more items in the store than they might otherwise. In addition, it helps to get loyal clients by reducing their shopping time and preparing personalized packages.

Product Bundling Advantages & Disadvantages

Advantages

  • Reducing the cost of one transaction, including paperwork, logistics, etc.
  • Increasing the effectiveness of sales staff by eliminating the need to inform customers about individual parts of the package.
  • Competitive advantage by lowering the selling price of the package.
  • Increasing customer satisfaction and customer loyalty.

Disadvantages

  • Lack of guarantee that most customers will like the current package.
  • Negative impacts on the sales of your more popular items.

Types Of Product Bundling

  • Pure. It is a combination of two or more products that are not available for individual purchase beyond the package, making the bundle the only way to get them.
  • Leader. It is a combination of popular items with less popular ones. The idea is to use the popular product sales potential to increase the purchasing of the less popular goods. Separate purchase is also unavailable.
  • New Product. It is a combination of newly-launched items along with existing or popular commodities as a promotion to help customers discover your latest items.
  • The Mix-And-Match. It is a combination of clients’ chosen products that allows them to create their own custom bundles from the options available.

The Best Product Bundling Strategy

Product popularity data is a great resource for developing a successful product bundle strategy. This allows you to determine which commodities are disappearing from the shelf and which are taking up space in storage. If your slow-moving items complement your fast-moving items, you can combine them to create a package to help you clear out your warehouses.

You can also create famous item packs to make your leaders even more attractive. If you notice that the most common items on the market go well with each other, you can create a “sale” package of 2+ expensive items. You can then sell it for a slightly higher price than if you discounted each bundle product separately.

Product Bundle FAQ

What are some metrics to measure product bundle strategy success?

You can use such KPIs as increased average order value (AOV), inventory turnover ratio, and the amount spent on each transaction to analyze and improve your product bundling strategy. There are also secondary metrics that impact your offer including reduced marketing and distribution costs, decreased customer fatigue from decision-making, lesser sale time, and a better understanding of your commodities.

How to properly sell product bundles?

The right approach should be selected individually, depending on your goals and the type of eCommerce. But there are general recommendations that will suit everyone:

  • Use items that are often purchased together in bundles.
  • Don’t stop to sell products separately.
  • Recommend bundles in your banners under separate commodities, on social media, and in ads.
  • Make personalized bundles based on cookies.

What are some examples of non-obvious product service bundling?

Here are some non-obvious eCommerce product bundle ideas:

  • A box of chocolates when ordering a bouquet delivery;
  • antivirus software when buying a laptop;
    gift set of cosmetics;
  • 2 identical sweatshirts in different colors in one set;
  • set of shampoo + conditioner + mask from one series.

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