Business Growth, Guest Posts, eCommerce

Product Bundling - How to increase sales

BY Guest Contributor 7 Sep, "16

GorillaLab’s Bryce and Camila are Shopify and TradeGecko experts. They work with their Shopify clients to implement inventory management software. In this guest post, they share their tips on how product and price bundling can help retailers to sell more.

What is product bundling?

Product bundling is when you offer several items as a combined product. It is also referred to as discount combos, sets or kits. For business owners, bundling products offer you a great opportunity to sell more, and here are three reasons why:

  1. Upsell

    Price bundling gives you the opportunity to offer discount combos to your customers featuring additional products. You’ll be able to encourage customers who were on the fence about adding another item to their shopping cart to buy more. For example, if they buy a bundle of three items instead of just one, they’ll be able to enjoy a better deal. 

    You’ll be able to increase your order value easily, and offering customers good value for money is often the best incentive to get them spending. Another benefit of offering a package deal is that you’re encouraging customers to try new features or items that they may otherwise ignore. 
  1.  Convenience

    With one click customers can buy a set of products without having to search through your store and add each item to the cart manually. For example, think about a tableware store selling a range of plates, cups and cutlery in the same style. If you wanted to encourage customers to purchase the whole set, you could present a customer with pop-up upsells before they navigate away, or rely on related products to guide customers’ purchase.
    product-bundling-convenient-how.jpg

    On the other hand, you could help remove the distractions and offer a single, well thought out bundle. You could easily upsell your products in one go by creating convenient packages that feature all three product types based on the number of guests.

    This way, you’ll also be able to encourage customer loyalty by offering your customers a great shopping experience and a great deal.

  2. Customer experience.

    By curating products that go together into bundles, you save the customer from forgetting something that they may need. If someone’s buying a digital camera, there’s a high chance they also need an SD card or a carry case. Offering product bundles makes for a better customer experience since consumers look to companies to provide curated options that save them from the mental exhaustion of dealing with too many choices.

    After all, we can all agree that sometimes it is nice when someone else makes our life easier by making the decision for us by ensuring that we have everything we need.  

How to implement product bundling in your business

Now that you know some of the benefits of offering product bundles, how do you determine what products to bundle together?

Here’s three easy steps to help you identify product bundling opportunities:

  1. Look for buyer behaviour patterns
  2. See what products customers buy together
  3. Use your expertise in the field and choose products that complement each other

For example, if you’re running a skincare company, you may notice that customers tend to purchase matching bottles of body wash, body lotion, and perfume together. You may want to package these together and sell them as a set at a discounted rate so customers feel like they’re getting a great deal on their skincare purchase!Product-bundling-woodlot.jpg
Photo credit: http://shopwoodlot.com/collections/all/products/palo-santo-package

You may want to also look at your lowest sellers. Bundling products offers you the opportunity to eliminate products that aren’t selling well before they turn into dead stock.

On the more technical side of things, bundling products may require inventory software. With inventory software, you’ll be able to sell your bundles while keeping track of your inventory levels across individual SKUs.

If you’re interested in setting up product bundles on your Shopify store, getting inventory software like TradeGecko will let you calculate how many bundles you can create, receive reports on the sales and inventory levels of these, and you’ll even be able to sell in pack sizes of your choice.

For more information about setting up product bundles, contact GorillaLab at hello@gorillalab.com.au!

--

About the authors:

GorrilaLab-B-C.jpg

Camila is the creative half of the GorillaLab team, with a background in architecture, design, fashion, and retail. Bryce has spent over 15 years in IT management, specializing in systems integrations for NGOs, governments, and larger corporations. Together, they understand the importance of building a customer experience that is both well-designed and flawlessly engineered.

 

--

See also:

5 Reasons why managing inventory with SKUs is so important

Free inventory management tools to grow your business effortlessly

How to optimise inventory turnover: 9 tips

Subscribe to our email updates

Get the latest expert advice and tools for your business

Maybe later, thanks!

Subscribe for insights into building world-class eCommerce companies