Are you looking for a way to increase your sales while providing better customer experiences and increasing retention rates?
Mastek contains other products and information you need, so please check it out.
Look no more &#; because there is such a win-win strategy, and it&#;s called &#;product bundling.&#;
Product bundling makes it easier for customers to find everything they need in one place while enticing them to spend more on your store.
In today&#;s post, we&#;ll look at product bundling from a 360° perspective: what it is, why you should consider it, examples of creative product bundles, and the 3 commandments of a successful product bundling strategy.
Let&#;s dive in!
What Is Product Bundling?
Product Bundling represents the marketing strategy of selling several products as a combined package and providing a better deal to consumers. Products in a bundle package will sell at a lower price than if the products were sold separately.
A well-thought product bundling strategy is a win-win situation, offering various benefits to both customers and businesses.
Consumers win because product bundles offer convenience and cost savings, as they can access several complementary products or services in a single purchase.
Businesses win because bundling can increase customers&#; average order value by encouraging them to purchase multiple items at once at a more attractive and valuable offering.
One product bundle example is McDonald&#;s choice in menus. The fast food restaurant offers value meals that include a sandwich, fries, and a drink bundled together at a lower price.
If the consumer opted to purchase the items separately, they would have to pay a higher price.
Instead, bundling these items encourages customers to choose the value meal over purchasing the items separately.
Benefits of Product Bundling
When talking about product bundles, a natural question needs an answer. If you will, the elephant in the room: &#;won&#;t selling more products at a lower price affect my bottom line?&#;
It&#;s a legitimate question, so let&#;s look at the benefits of product bundling strategies:
- Smooth inventory management
Product bundling empowers you to manage your inventory more efficiently, as you can create standard product combinations that are easier to manage and track. At the same time, bundling reduces the costs of storing and monitoring individual SKUs.
For example, a beauty supply store might offer a routine skincare bundle with several creams, serums, and accessories. Bundling the products together in a standard package will help you manage your inventory without risking overstocking or understocking individual items.
- Powerful value proposition.
Your customers come to you because they value your unique benefits. You can create a more robust and easier-to-perceive value proposition if you entice customers with attractive bundle deals.
Customers who buy multiple items at a lower cost feel they&#;re getting a better deal and more value from your brand than other brands.
Besides the obvious benefits of having a discount for product bundles, customers also love the convenience of getting everything they need in one transaction.
This convenience leads to customer stickiness, increased business & customer loyalty.
For example, suppose you&#;re an office supplier. In that case, you can provide a product bundle marketed as a &#;home office starter kit&#; that includes a desk, chair, and office supplies.
So you&#;re providing everything a person needs to set up a home office in one bundle, which creates a convenient, positive customer experience and encourages repeat business. While customers won&#;t need to purchase a desk monthly, they will need to restock office supplies &#; and they will return to your store.
Finally, we&#;re touching on the hot topic: can product bundles increase revenue?
Yes.
By bundling products, you&#;re leveraging the attractiveness of the bundled deal and encouraging customers to purchase products they may not have otherwise considered.
For example, Suppose you&#;re a fashion retailer. In that case, you can offer a &#;summer essentials&#; bundle that includes several items, such as shorts, sunglasses, and a hat &#; all at a discounted price. This bundle example would persuade customers who might have been interested in shorts to buy the additional products &#; even if they didn&#;t necessarily need them.
This increases the average order values, convinces customers to spend more, and ultimately increases your sales numbers.
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Types of Product Bundling
There&#;s more than one type of product bundling strategy, each with advantages and disadvantages.
Depending on the type of product or service you&#;re offering, your bundles can take one of the following forms:
This type of bundling refers to products or services sold exclusively together, and there&#;s no option for consumers to buy them separately.
For example, Microsoft Office offers a bundle of software products (such as Word, Excel, and PowerPoint) that customers can&#;t buy separately.
In contrast to pure bundling, mixed bundling refers to products that can be bought separately or as part of the bundle.
Mixed bundle examples are best showcased in restaurants. You can order the menu of the day (usually two courses + dessert) as a combo meal at a lower price, or you can order the courses separately.
Cross-selling bundles are usually made of complementary products and incentivize consumers to purchase items as a pack in a single order rather than buying them separately over a more extended period.
For example, sports retailers will offer bundles for weight training &#; including dumbbells, kettlebells, connectors, etc.
As these products naturally go together, it makes more sense for the consumer to purchase the entire bundle instead of the items separately.
For a joint bundle to work, two or more companies must create a bundle of their products or services.
For example, a traveling company might offer a bundle trip, including transportation and accommodation. In this case, three companies worked together to provide a complete consumer experience. The value proposition of this bundle will be its convenience instead of the price point.
Indeed someone could find cheaper accommodation. However, it&#;s more opportune to have someone else book a hotel instead of scouring the internet for discounts.
The last type of product bundling is when customers subscribe to receive a constant delivery of products as a bundle.
For example, a pet care retailer could offer a monthly subscription where pet owners get food, vitamins, and toys as a bundle.
5 Examples of Product Bundling to Inspire and Get You Going
Done right, product bundling can become a game-changer when trying to boost sales and offer greater value.
Let&#;s explore some creative and practical examples of product bundling that have proven to be a win-win for companies and consumers.
As we said, software companies usually offer pure bundling deals without neglecting the practical aspect of it.
In this example of bundling from Adobe, you can see how bundling comes to the convenience of the creative customer. Adobe offers multiple innovative tools, allowing customers to explore every avenue of their creativity and learn new skills.
Video game companies like PlayStation will create mixed bundling to increase their average order values. In this case, the consumer is promised a better, more immersive experience with a complete product package:
- Cross-sell Bundling Example.
A typical cross-sell bundling example comes from beauty product companies who try and offer a more convenient and streamlined shopping experience.
Cross-selling bundling also lets you showcase new or less popular products by pairing them with more well-known and highly desired products.
- Subscription Bundling Example.
An excellent example of subscription bundling comes from meal kit companies that create packages that include regular deliveries of pre-portioned ingredients and recipes.
The value of these bundles comes from the convenience of having a predetermined meal plan, with all ingredients delivered to your doorstep, at a convenient price.
How to Create a Product Bundling Strategy
Now that you understand what product bundling means and have seen a series of product bundle examples, let&#;s uncover the steps to an effective product bundling strategy.
- Identify the rights products for your bundle.
The first step in creating this strategy is selecting the products that make the bundle.
To ensure you choose products that complement each other and naturally go together, use your customer data to inform your bundling tactics.
What products are usually bought together? How often do customers buy them? Are there any complaints regarding the products? Are there returns?
This data will help you determine which products work best together and which ones cause problems. At the same time, you can predict the popularity of your bundles, as you can identify products in high demand among your target audience.
- Work on your pricing strategy.
When creating price bundles, you must find the balance between attractive discounts and wasted efforts.
However, your pricing strategy shouldn&#;t be limited to a discount alone. You could also set a fixed price for the bundle or offer a free product by purchasing a higher-priced item.
The idea here is to find a strategy that makes the most sense for your bundles, then test it.
- Find your target audience.
Research and understand who your target audience is before creating your bundles. For example, if you&#;re a sports retailer and one of your customer segments is made out of new moms, it wouldn&#;t make sense to offer a bundle of camping gear.
At the same time, offering workout equipment that helps the moms get back in shape would, instead, make much more sense.
Now it&#;s time to highlight the value of the bundle and shone a light on the savings customers will make, compared to purchasing the products separately.
Create appealing bundle names, promote the bundle on your website and social media, and offer limited-time deals to create urgency.
Now that everything&#;s decided, it&#;s time to release your bundles into the wild, analyze the results, then apply your findings to future product bundles.
You should test different bundling, pricing strategies, and marketing tactics to optimize your bundle offers and improve sales over time.
The 3 Commandments of a Successful Product Bundling Strategy
What makes the difference between an excellent bundling strategy and a pricing failure?
The mindset behind the process. Not all product bundles will sell like hot cake.
However, here are some product bundling tips to ensure your bundling strategy will indeed increase both sales and revenue while offering convenient deals that keep customer satisfaction levels high.
- Watch the logic behind bundling.
You shouldn&#;t necessarily package products just because you have bundling ideas. If the items in your bundles aren&#;t connected or grouping them doesn&#;t make sense, you&#;re wasting your time and brand reputation.
For example, bundling a dress and a pair of men&#;s sporting gear wouldn&#;t make sense if you&#;re a fashion retailer. There are few moments in life when this combination might make sense for consumers.
However, bundling a dress and a scarf would be a better, natural fit to attract consumers.
Try to think of products that naturally complement each other and go hand in hand instead of grouping random items from your product suite.
Look at your customer data to see the combination of products customers are already bundled together &#; that will give you an idea about the pairing you can offer and their prices.
- Ensure it&#;s in your customer&#;s best interest to buy.
The single purpose of product bundling is to encourage customers to spend more money to get a better deal.
Usually, this would translate into offering two or more products at a discounted price than items&#; prices if bought separately. Customers won&#;t feel compelled to take advantage of the discount if the discount isn&#;t attractive enough.
But what if you can&#;t afford to lower the prices or offer significant discounts? In that case, you should emphasize convenience above price. Enhance the customer experience by showcasing how convenient it is for the customer to buy the bundling, even if he doesn&#;t save so much money.
For example, you can bundle together often restocked products &#; such as pet food, water bottles, or even toilet paper. Consumers will get excited to get a more extensive stock at a better price without re-ordering that often.
This is how wholesale businesses operate. No one needs six liters of cooking oil in one go. However, many people prefer to restock once a month on all necessities instead of making weekly trips to the grocery store.
Whatever the case, make sure you&#;re verbalizing the advantages of bundling clearly, so there&#;s no doubt why the bundle is such a good deal.
- Don&#;t limit your customers.
Sometimes people won&#;t be interested in your product bundles because they genuinely don&#;t need the second product.
Customers who only want individual products might get frustrated and decide not to buy from you and switch to competitors.
In that case, you should always offer customers the opportunity to buy the products separately.
Wrap-Up
And there you have it: everything you need to know about product bundles.
With a bit of planning and creativity, product bundles can become a powerful tool in your arsenal.
So give them a try &#; your customers (and your bottom line) will thank you for it!
Frequently Asked Questions about Product Bundling
Which is an example of product bundling?
McDonald&#;s meals are a perfect example of product bundling. A menu usually includes a burger, fries, and a drink for a lower price than purchasing each item separately.
What are some examples of bundling?
Some examples of bundling include cable or satellite TV packages that offer multiple channels and services, software suites that bundle together different programs, and a technology company that offers a bundle of hardware and software for a lower price than purchasing each item separately.
What are two types of bundling?
The two main types of bundling are: pure bundling (offering items for sale only as a bundle and not individually), and mixed bundling (items can be purchased either as a bundle or individually.) Other types of bundling are joint bundling, subscription bundling, or cross-sell bundling.
What is a bundling strategy?
A bundling strategy is a marketing technique that involves offering multiple products or services for sale as a package, typically at a discounted price, to encourage customers to purchase more items and increase revenue. It can be used to increase sales, appeal to customer preferences, and gain a competitive advantage in the market.
A customer doesn&#;t always know what he wants. You have to push the sales of a few items so that your customers get to know about them and demand them in the future.
Explore more:Anyone own a laser welder?
The Ultimate Buyer's Guide for Purchasing Electric Steam BoilerIf you want to learn more, please visit our website bundling machine price.
That&#;s why selling the products that your customers didn&#;t even demand is a special art. Product bundling is one of the most effective tools to do it.
Let&#;s discuss some of the most successful product bundling examples so that you can learn from them and implement them similarly in your business to boost your sales.
Let&#;s start.
What Is Product Bundling?
As the name suggests, product bundling refers to combining different products into a bundle and selling them together as a single package. The bundled items may or may not be related to each other.
One of the simplest examples of product bundling is a set of colored pencils.
Product bundling helps both seller and buyer. The seller sells more products and the buyer receives more by paying less.
Sometimes, there is only one product in a bundle that is valuable for the customer. So, most customers unconsciously buy the whole bundle just because of that single product.
For example, a customer might like the bag of the shaving kit which is not sold individually. So, he prefers to buy the whole shaving kit that comes in his favorite bag.
Had it been not about the bag, he may have bought those shaving items from somewhere else. Or he might have ordered one or two items from that kit. But the shaving kit forced him to buy all the items.
Let&#;s discuss the benefits of product bundling.
Benefits of Product Bundling
The most important benefits of product bundling have been listed below.
Boosts Sales
It helps increase sales of your running items to manifolds. You can also use the bundling technique to sell your items that do not have much demand just by offering a special bundling promotion.
Helps Cross-Selling
You can cross-sell multiple items by bundling the right products with each other.
Introduces New Products to Customers
Bundled sales with your hot products can promote new products.
You can get rid of your dead stock using product bundling. You just have to make a plan and include dead items in the bundles that come with a special promotion.
Reduces Marketing Costs
Selling individual items requires more marketing and operational costs. If you use the bundling techniques, you can sell more items by paying fewer costs.
Product Bundling Examples
Following are the most successful product bundling examples with their key takeaways.
Meal Box
A meal box refers to combining certain eatables into one box that is sold as a complete set. McDonald&#;s Happy Meal is a very pertinent example of product bundling. It generally contains a burger, fries, and drink. In some countries, it also contains a toy for kids.
This package attracts most customers because if we add the individual prices of each item in a happy meal, it will be very high as compared to the price of a happy meal.
The toys solely included in the happy meal are also exclusively present at McDonald&#;s. That&#;s why kids who are fond of those toys often ask their parents to get them a happy meal.
What We Can Learn from Happy Meal
- Give your customers a complete package
- Let them try what they would not have ordered otherwise
- Monopolize with an exclusive item
Mystery Box
The mystery box is another great technique for bundling multiple items together. This practice is more common in e-commerce.
This box contains a few known items that surely have some value for the customers. The rest of the items are kept secret from the customers.
This increases the curiosity of the buyers and drives them to buy the mystery boxes.
In most cases, the price of the box is a little more than the prices of shown items.
Customers feel that they are getting more items for less price and the sellers include their slow-moving goods in the mystery boxes. So, it&#;s a win-win situation for both.
What We Can Learn from Mystery Box
- Only show some valuable products
- Leverage the element of surprise
- Bundle small and loosely-related items
Frequently Bought Together
Most customers tend to follow what others are doing. This example of product bundling makes use of this behavior.
Many e-commerce websites use this feature to sell more items in combination with the one that a visitor is about to buy.
The products are shown under the product page and description with a hint that customers can buy them together.
These suggestions are sometimes so perfect that a customer immediately places an order for the whole bundle.
What We Can Learn from Frequently Bought Together
- Utilize your product page to show more items
- Show related and valuable products
- Offer a discounted price for more items
Buy One Get One
This is another great technique of product bundling. Instead of offering a 50% sale on its items, companies give an extra item free of cost in addition to the one purchased.
This offer attracts the customers as they are getting two products for the price of one.
Whether or not the customers want extra items, this offer entices them to quickly take action as most of such offers are valid within a limited timeframe.
The customers usually think of buying the extra item free of cost so that they can either gift it to someone or use it in the future.
What We Can Learn from Buy One Get One
- A more productive way of sale announcement
- You can bundle a low-selling item with high selling one.
- Your customer base increases if a buyer gifts the additional items to someone else
Additional Pairs
This is another great example of product bundling, especially done in selling pairs.
Some companies only sell a specific number of pairs in a single order.
You can say that those companies are only willing to offer a product against a certain MOQ.
The above example is the #1 Best Seller on Amazon in dog boots. You have to buy four of them at once..
In this bundling strategy, the minimum number of pairs must not exceed 2 to 3 per order.
The retail customers can afford to buy 2 pairs. You may lose orders if you increase the minimum number of pairs.
Another factor is the price of a pair. If a single pair costs more than $30, you should not increase the minimum number of pairs.
What We Can Learn from Additional Pairs
- Bundle an additional pair of low-selling variants (less demanding color, etc) with a high-selling one.
- Give a little discount per pair to keep the deal attractive.
- Convince your customers to buy an additional pair in advance at a discounted rate.
Sold as Sets
You must have used the stationery sets in schools or cutlery sets in homes. Such products are sold as sets.
This has been a very successful product bundling strategy since its inception. It applies to almost every niche.
Using this strategy, the low-selling products can also be mixed in these sets to boost their sales.
The items in these sets may also be available as individual pieces. But again, the individual items would cost much higher as compared to the per product cost in the set.
That&#;s why many people end up buying some items in the sets that they would seldom use.
What We Can Learn from Sold as Sets
- Bundle similar items together to pose as natural sets.
- Show your customers that every product in the set is interlinked.
- Make them realize that individual products would cost them a fortune.
Niche Bundling
Some niches have a very passionate audience. You can combine their products in bundles to sell many items in a single package.
Their audience is more likely to buy the whole bundle just because of their interest even if they already have those items in general forms.
The screenshot shows the product bundling of items related to superheroes. As kids are very passionate about their favorite superheroes, they may buy these bundles without much thought.
What We Can Learn from Niche Bundling
- Simple items are redesigned into a passionate niche
- The products are of everyday use
- Low-cost products that can gain high volume sales
Gift Bundling
People often send a gift basket to their loved ones on their birthdays, anniversaries, or any other special occasion. Gift bundling refers to making a bundle of gift items.
This gives you an opportunity to combine a lot of items in one basket or a box to be sold as a single item.
If the presentation is nice, it will leave a positive image of your company. You can get inspiration from custom packaging ideas.
What We Can Learn from Gift Bundling
- Delivery timing is crucial
- Run aggressive campaigns during the gifting season &#; Q4
- Win the orders on the basis of your presentation
Product Bundling Examples of Brands
Now that we have discussed general examples of product bundling, let&#;s discuss some examples from famous brands for a better understanding.
Beast Kits
Beast is a brand that sells multiple items related to personal care. This brand utilizes the idea of product bundling quite effectively.
It has given many options by bundling different items together. Due to its different price range, you will find a bundling offer for almost every type of customer.
What We Can Learn from Beast
- Attractive bundle packaging
- Multiple bundles for travel, bathroom, gift set, etc.
- A perfect bundle for every need.
Sephora Makeup Kit
Sephora is a famous brand that sells a lot of jewelry items. They offer kinds of makeup kits that include various items for specific purposes.
Their multipurpose kits make it convenient for women to choose. That&#;s why their bundling ideas are very well-received.
Their multiple kit options are targeted toward every kind of customer.
What We Can Learn from Sephora
- Different bundling options to choose from
- Simple packaging to look decent and remain cost-effective
- Each item in the bundle is well described for easy selection
Kea Kit &#; Outdoor & Survival
There are many outdoor and survival kits available in the market but Kea Kit seems to have nailed it on Kickstarter. Their way of bundling and product selection has gathered good funding already.
They have three more kits inside the main kit that are meant for shelter, tools, and medical.
Their product bundling idea gives the confidence to the buyers that it contains all they need. In addition to that, they have stressed not including anything unnecessary.
Their smart kit contains over 30 tools and a first aid kit. This entices all passionate outdoor travelers to buy the kit without much research.
That&#;s why it has gained decent funding on Kickstarter.
What We Can Learn from Kea Kit
- Good organization of products (sub-kits) inside the bundle (main kit)
- Attractive and cool kit design
- Excellent presentation of the products
Manbox
Manbox is a renowned Canadian brand that is specialized in gifts in the men&#;s category. They also offer a customized Manbox in which you can include the products of your choice.
In addition to the customized box, they also offer multiple bundles on their website that are related to the kitchen, bbq, snacks, etc.
Their idea of selling special items related to men gives them a unique identity. They have earned a good reputation in Canada by their made-in-Canada products.
What We Can Learn from Manbox
- Unique identity in men&#;s products
- Cool wooden box for product bundling
- Liberty of choosing the products
Product Bundling Ideas
Let&#;s discuss some of the great and innovative product bundling ideas that you can implement for better results.
Buy More Pay Less
You can start an offer on your online shop that your company will reduce a certain percentage from every product as long as the customer will increase the number of orders.
You don&#;t need to make a special bundle packaging for this offer. You can just ask your warehouse staff to pack everything in a decent bag and dispatch it to the customer.
Best Sellers Bundling
If you run a general store, you can bundle your best-selling items together and offer them as a special package.
Although those items may already be having a great sale, this will further boost your sales.
Subscription Box
This is a popular idea in e-commerce where customers subscribe to your products. It can be on a monthly or a weekly basis.
If you haven&#;t yet introduced subscription bundling in your business, you can do it by announcing a special promotion on your website.
Complementary Bundling
If some items in your stock are not selling well, you can bundle them with your high-selling items as complementary products.
This will liquidate your slow-moving stock along with earning a good customer experience.
Lucky Spin
Some websites have installed lucky spin. It is a technique to hook your customers compelling them to stay on the website and keep shopping.
This technique is one step ahead of retargeting methods. Instead of losing a sale, it is advisable to earn a less profit margin.
You can use the lucky spin to give them a bundling offer of your choice so that they buy something from your website to be eligible for a bundling offer.
Customized Bundling
In this bundling idea, you can leave everything to your customers. You can ask them to make the bundle of their choice.
Let them select the products and enjoy a discounted rate on each item. You can also ask them to choose the custom packaging that they like.
You can charge for the packaging separately but this will be a fun exercise for your customers.
They may also want to do it during peak seasons when people shop online to send gifts to each other.
Seasonal Bundling
If you sell seasonal items, you can bundle the summer or winter essentials and market them as a discounted package. Everyone needs basic seasonal accessories.
You can make multiple seasonal bundles to attract every type of customer. This will also allow you to include your slow-moving items in those bundles.
FAQs about Product Bundling
Let&#;s read the answers to some of the most frequently asked questions about product bundling.
Why Is Product Bundle Pricing Effective?
Bundle pricing is always effective because it saves a lot of costs. As you don&#;t have to pack and ship every item individually, you can pass this benefit to your customers.
Moreover, as many products are being sold in one package, you also save on marketing and handling costs.
That&#;s why product bundle pricing is always effective and attracts a huge audience.
What Are the Most Common Types of Product Bundling in E-commerce?
There are 5 types of product bundling that are mostly used in e-commerce. They are mentioned below.
- Group Bundles &#; Add multiple products to the cart with a single button
- Upsell Bundles &#; Selling a related item with a product
- BOGO &#; Buy One Get One
- Mix & Match &#; Buy one thing from one collection and anything from another
- Frequently Bought Together &#; Suggested products to be bought together
How to Make Bundles in Shopify?
The easiest way to create bundles in Shopify is using a bundle&#;s app. Thre are many such apps on Shopify within a matter of a few clicks.
You just have to select the type of bundle and the products you want to include in that bundle and add it to your store.
Most bundles are added just like you add a product to your Shopify store.
Final Words
Product bundling is an excellent technique to increase your average order value. You can sell more products with small efforts and reduced costs. But it may not be as simple as it sounds.
Just creating a random bundle on your online stores will not guarantee that it will sell too. That&#;s why you need to learn from the successful product bundling examples shared in this article so that you can make effective marketing strategies for your bundles.
Do you want to source products at the most affordable prices to be included in your bundles? Ask for a free quote today and let our expert guide you about everything.
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