Boost Sales and Simplify Shipping with Smart Product Bundling
If you’re looking for a low-cost way to grow your e-commerce revenue, product bundling might be the strategy you need. By combining a group of products at a discounted price, and shipping them together in a single package, you not only give your customers more perceived value but you also encourage them to spend more in a single transaction. Product bundling can increase your Average Order Value (AOV) by as much as 20-30%, without the added cost of acquiring new customers or developing new products. When paired with a reliable 3PL partner to handle the fulfillment, product bundling becomes a streamlined, scalable way to boost profits and customer satisfaction.
Types of Product Bundles
Product bundling can come in many forms. As an e-commerce seller, you can be as creative as you’d like with what you offer. Consider these options:
Pure bundling contains items sold only in that bundle. An example of this type of bundle would be a skincare set containing cleanser, toner, and moisturizer only sold together.
Mixed bundling works well when combining products that are sold separately but are offered at a reduced price when bought together. For example, a T-shirt and shorts purchased together are offered at a reduced price over buying them separately.
Price bundling is simply offering a discount for purchasing multiple products together. In this case, the seller might offer a buy one get one free code for customers purchasing two items. Price bundling can be applied to your whole store or just to certain products within your store.
Cross-sell bundling promotes related products in a similar group. You’re probably familiar with Amazon’s “frequently bought together” section, which is a great example of this type of bundling. Here, additional complementary products are recommended based on your interests. According to McKinsey, 35% of Amazon’s sales come from its product recommendation section.
Upsell bundling involves suggesting a customer upgrade their purchase to include the original product they were interested in plus additional products along a similar vein. For example, if you are selling a cleaning product for car rims you could upsell a set that includes a brush to scrub the rims and tire shine to complete the look.
Plan a Successful Product Bundle
Creating a successful product bundle requires more than just grouping items together. Here are five key steps to help you design bundles that delight customers and drive sales:
Understand Customer Behavior
Creating the right bundle requires understanding your buyers. Take a close look at your sales data to see what customers already tend to buy together to anticipate what else they may be looking for while shopping. These metrics will also reveal the profitability of your products. Consider combining top and worst sellers together to craft a bundle that would move less desirable products off of your shelves.
Check Your Inventory Levels
Ensure you have the inventory available to sell and ship your product bundles. Missing one piece of your bundle means losing a sale on several items so you’ll want to confirm everything is in place for sales before you begin advertising your bundle.
Name Your Bundle with a Purpose
Get creative. Bundles are more fun to buy when they have fun names! Names can call attention to the theme of the products grouped together or the benefit of purchasing all products at once. For example, a “Pool Party Ready” bundle might include inflatable pool floats, a portable speaker, and a cooler all in one group.
Plan for Seasonal Success
It’s never too early to consider the busy holiday season when creating product bundles. Create a themed bundle that includes several products along a similar vein. A “Cozy Night In” bundle might include a fleece throw blanket, fuzzy socks and a scented candle. Once you have your bundle prepped and ready for the season, create a landing page with your gift package. Make shopping super simple for your loyal fans by promoting your landing page via email or on your social media accounts.
Review Platform-Specific Rules
Check all of your sales platforms to see if there are any rules or requirements for products sold in a bundle. For example, Amazon has specific requirements for bundling which can be found on Amazon Seller Central.
Streamline and Scale Your Bundling Strategy
A reliable 3PL partner plays a crucial role in executing product bundling efficiently. From organizing kitted products to ensuring accurate packaging and fast shipping, Sweetwater Logistics helps maintain the customer experience that bundling promises. Shipping multiple items in one box saves on postage and materials, and their new advanced inventory management system can track bundled inventory to avoid stockouts. If you’re planning seasonal or themed bundles, Sweetwater Logistics can also help you pre-kit and store those packages ahead of time, ensuring you’re ready for peak sales moments without the logistical stress.
Product bundling is more than just a clever sales tactic, it’s a powerful way to increase revenue, boost customer satisfaction, and simplify the shopping experience. By thoughtfully grouping products and adding creative touches like themed names or exclusive offers, you can entice buyers to spend more while feeling like they’re getting a great deal. With careful planning and attention to customer behavior, bundling can become a reliable, scalable strategy for growing your e-commerce business year-round.