Product bundling is a famous yet effective strategy for ecommerce stores to skyrocket their sales, and increase the profits. This article will cover some tips we’ve learned by the time in the ecommerce industry.
So let’s get started!
It is easy to understand. When you have ten products, you pack and stack them separately. But if you are smart enough, you look for ways to minimize your work and amplify your targets.
Product bundling is not about merging ten products into one. But, combining relevant products in a single packing with a fair price is the basic goal of product bundling.
Well, it becomes easy to understand when you visualize real-world examples.
What Product Bundling Looks Like
A smartphone brand that offers you a separate pair of headphones alongside a phone, a fast-food chain that sells multiple items in a singular packaging, a service provider offering you Netflix and Amazon Prime in a singular offer.
These are a true and exact reflection of what product bundling looks like. And from the first look, I can easily say you feel productivity. But let’s just dive into this phenomenon.
The First Question: Is it Effective?
Consider this viewpoint from two different perspectives.
Firstly, let us consider the view of the customers. Suppose you visit a shop physically and look for a couple of products. At first, you will have to wander in the shop and look after different racks. There you will judge the items you need according to their price and your budget.
Moreover, you will have to calculate the total bill to ensure it lies within your limits. But if you find a pack containing almost all the items you need, wouldn’t it ease it all?
Now let us consider the seller. Sometimes, selling more products is not the key, but efficiency is. And for this, you have to give your users an incentive. Thus, having bundle packages will make sure they can easily decide on their favorite products.
And you can make more sales and please your customers.
In general, product bundling must:
- Offer customers relief from searching different products
- Present an economical shopping in comparison to the total price of all the items when not in a bundle
- Offer a packaging that contains almost all the necessary items which the users require
- Include a couple of key products which a user does not demand but will prove helpful to him in ways
Considering all the points, a business has to create the best product bundles to achieve success in the present market. It is challenging, but that is what every business demands.
The Second Question: Should I Consider It for Myself?
Some people do not care about anything as a product or an efficient tool. Instead, they want to know more about a specific option. And they are correct from top to bottom. Their ideas need clarifications and we have to include this section for them.
So if your business lies in one of the following categories, you must implement product bundling:
- Home décor
- Video games
However, many more businesses also lie in the category, but these seem the most popular ones. Consider a food business, for example. If you own a fast-food restaurant, you will see your competitors sending out items in such bundles. Some call them meal boxes, whereas some call them buckets. Similarly, cosmetic brands utilize this tool the most. Every rack and category on the website has at least one such bundle or package.
If you offer a low margin on your products, your company will benefit greatly from bundling techniques. This is all dependent on your relation with your customers. Suppose they feel positive and good about your products and your quality. They will love to make the most of what you give them in a pack. In short, such a technique is something everyone must look to invest in and adopt.
The Third Question: Do Top Brands Make Use of this Technique?
Many people like to investigate whether top brands make use of any feature. Or all they want is low-level sellers like we implement and take risks. But strategies such as product bundling have wide acceptance throughout the industry.
And here is a list of the top brands and companies making use of this strategy:
- McDonald’s is a top brand in the fast-food chain. And it uses its bundling ideally in its Happy Meal. It reflects the exact values of bundling. It even includes a free item such as a toy.
- Microsoft is another great bundling-using giant. It offers a fine pack of all the MS Office products where people find a discounted price rather than spending on every offer separately.
- Kylie Cosmetics is another top cosmetic brand worth in the millions. And what does it focus on? Only on lip products and that in a bundle and a singular box.
- Amazon makes prime use of bundles on its website. It offers bundles which is the primary reason for their success.
The Fourth Question: What are the Tips for Product Bundling?
After the basics, effectiveness, and identification that your business is capable of bundling or not, it is time to give the readers the pause to their anticipation. Owning a business but not making grounds or implementing the bundling method?
The Five-Point Strategy
Pack Relating Items
The basic principle in business and selling is that you must stick to your idea. This means whatever you are selling must not go out of your domain.
Similarly, packing items in a pack also requires considering this strategy. Thus, when including items in a bundle, you must make sure they relate to one another.
An effective strategy is to include a smartphone with a headphone product and a protective case. All of these items interrelate.
In essence, all three allow usage in conjunction. And hence such a bundle is what customers will attract and buy in bulk.
Everyone loves to get something for free, which your business must implement too. Let’s say you have arranged a bundle for $500 of five items, each costing $100. But you can increase the products from five to six for the same price.
However, this might look like a slight increase in the box. But it will attract people for once. Only because they are getting free items. And such an incentive will make sounds for your business as well.
Tell People They Will Save
A key aspect in business and marketing is to give people the sense that they are saving money by buying a bundle.
However, the basic necessity of a bundle is the same, i.e., to buy items at a low price.
A bundle offers a pack of a few items which seem expensive to buy separately. Thus, you need to advertise it accordingly. Packing these items is one thing but advertising it to its strategies is another. It is good to mention how much people will save on a bundle whenever you sell a bundle. Doing so will develop a solid and concrete feel in them to go for the purchase.
A Final Push at Checkout
You might have noticed that almost all big retail stores and supermarkets have some items near the billing counters. This is a way to make a final push to squeeze bucks out of the customers’ pockets.
While standing in the queues, people have a free mind. And once such things pop up, they get a feel to buy something else too.
Similarly, while you sell bundles of products, you must use the idea to include some extra incentives during checkout.
For example, to offer people a chance to double-up their bundle with another item and save extra. Their savings become your profit. And that too at their final steps in the shops.
Although such an approach is necessary for business, not everyone makes fine use of this. When packing items in a bundle. It is better to include items with wide acceptance and popularity in the near market. Such an approach will ensure you do not waste your packaging in a bundle with items of little or no interest.
The Fifth Question: What Should I Conclude?
In the end, if you own a business, you need different techniques to make it go sky high. You need to implement a key tool known as product bundling. This is a way to present the customers with a great incentive. Products that cost much more separately often go unsold. They come in a bundle that people can afford and buy in bulk with such a tool.