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In the realm of eCommerce, the ultimate objective for businesses is to maximize revenue. However, convincing customers to purchase more than what they initially intended can be a challenging task. This is where product bundling on Shopify comes in!
thatBut before you jump into creating product bundles, it’s important to note that it’s more than just matching products with the same underlying characteristics.
If you want online shoppers to buy more during their visit, you need to get deeper than that. And in this blog, we’re going to walk you through everything you need to know about Shopify product bundling.
What is Product Bundling on Shopify?
Product bundling is a marketing strategy that involves combining multiple products or services as a package deal. It aims to incentivize customers to purchase more by offering convenience, value, and often a discounted price compared to buying the items individually.
Bundles can include complementary items that enhance the overall customer experience or variable quantities of the same product. Effective product bundling requires understanding customer preferences, identifying complementary products, and pricing bundles attractively.
What are the Benefits of Product Bundling?
When there are many ways to introduce online shoppers to the other products on your Shopify store, why should you consider product bundling?
Here are some of the benefits of product bundling:
1. Increase Average Order Value
Product bundling encourages customers to spend more by offering additional products or services together. By bundling complementary items, customers see the value in purchasing more items in a single transaction, leading to an increase in the average order value.
2. Cross-selling Opportunities
Bundling provides an opportunity for cross-selling related or lesser-known products. When customers purchase a bundle, they are exposed to other products they may not have considered before, increasing the chances of additional sales and introducing customers to a wider range of offerings.
3. Higher Profit Margins
Bundling allows businesses to sell products with higher profit margins alongside other items. By combining products into a bundle and offering them at a slightly discounted price, businesses can maintain healthy profit margins while still providing value to customers.
4. Decreases Marketing and Distribution Costs
Bundling can reduce marketing and distribution costs by promoting multiple products or services together. Instead of promoting each item individually, businesses can focus their marketing efforts on promoting the bundle, saving time and resources in advertising and distribution.
5. Competitive Advantage
Well-designed and attractive bundles can give businesses a competitive advantage. By offering unique and compelling bundles, businesses can differentiate themselves from competitors and attract customers who are looking for value and convenience in their purchases.
6. Inventory Management
Bundling can help manage inventory by promoting slow-moving or excess stock. By including these items in bundles, businesses can clear out inventory and avoid potential losses. It also allows businesses to showcase less popular items alongside popular ones, increasing their chances of being sold.
7. Increased Sales
Overall, product bundling leads to increased sales. The attractive pricing, convenience, and value offered through bundles can incentivize customers to make additional purchases. By capitalizing on customers' willingness to buy more, businesses can boost their sales and revenue.
8. Save on shipping costs
Another benefit that businesses can immediately see from product bundles is the savings on shipping costs. Instead of having to ship multiple products separately to the same customer over a period of time, businesses can bundle them together and ship them as one order. This is a benefit that even the customers would appreciate over a period of time.
What are the different types of product bundling on Shopify?
Now that you know the benefits of creating product bundles on your Shopify store, let’s understand the different types as well:
1. Pure Bundles/ Pre-curated Bundles
Pure bundles consist of a set of products or services that are sold together as a package. These product bundles in Shopify offer a combination of items that are intended to be used together or complement each other, providing convenience and value to customers.
2. New Product Bundles
New product bundles are created to promote and launch new offerings in the market. By bundling a new product with existing popular products or complementary items, businesses can generate interest, drive sales, and encourage customers to try out the new product.
3. Mix-and-Match Bundles
Mix-and-match bundles allow customers to choose from a selection of products to create their customized bundles. This type of bundle provides flexibility and caters to individual preferences, empowering customers to select the specific items they want while still enjoying the bundled pricing.
4. Cross-Sell Bundles
Cross-sell bundles involve combining products from different categories or product lines. These bundles aim to expose customers to complementary products they may not have considered purchasing otherwise. By bundling related items, businesses can encourage customers to explore and purchase additional products.
5. Gifting Bundles
Gifting bundles are designed specifically for occasions such as holidays or special events. These bundles typically include a combination of products that are suitable as gifts, making it easier for customers to find and purchase presents. Gifting bundles can enhance the shopping experience for customers and increase sales during festive seasons.
Here’s an example of a pre-curated gift bundle:
And here’s one of a build your own gift set bundle:
6. Inventory Clearance Bundles
Inventory clearance bundles are created to clear out excess or slow-moving inventory. By bundling these items together and offering them at a discounted price, businesses can effectively manage inventory and generate sales for products that might otherwise be difficult to sell individually.
Here’s an example of how a brand combines their slow moving sauce product with fast-moving ones:
7. Buy-One-Get-One Bundles
Buy-one-get-one (BOGO) bundles offer customers the opportunity to receive an additional product for free or at a heavily discounted price when they purchase a specific item. These bundles create a sense of value and can be effective in driving sales, attracting new customers, and encouraging repeat purchases.
8. Build your own bundle/ DIY bundles
Another one of the best product bundling strategies is to let online shoppers build their own bundle. Build your own bundle strategy gives them the ability to pick and choose the items they love the most to bag a collective deal on the same from the store. With more of what they actually love, this bundle is sure to become a fast-selling item on your Shopify store!
Here’s an example of one such bundle set up using Easy Bundles:
9. Buy more pay less bundles/ Discounted bundles
Another product bundling strategy that Shopify stores can set up is ‘buy more pay less bundles’. In this type of product bundle, the idea is to encourage shoppers to add more items to the cart to avail an overall cart total benefit. This could include a discount or reduced/ free shipping on their purchase.
10. Subscription bundles
A subscription bundle is a product bundling strategy wherein the customer can choose to receive a set of products repeatedly over time, in defined durations. For example, receiving their product bundle of monthly health supplements at the start of every new month.
11. Seasonal bundles
Product bundles based on seasons is another way to get your sales going. This typically includes considering consumer needs, preferences and requirements during a specific season or period of time. For example, creating product bundles for ‘winters’ or for occasions like ‘Valentine’s’.
Remember to subscribe to our blog to learn more about each of these product bundling strategies!
What are the Best Examples of Product Bundling?
While we have shared some product bundling examples above, let’s also take a quick look at some of the best strategies we’ve seen global brands using:
1. Rhode
Rhode, a cosmetic brand, has introduced a comprehensive package consisting of five products designed to nourish the face and lips.
Presented in its signature Rhode grey box, this kit follows a pure bundle approach, incorporating complementary products that work together or complement each other. This curated combination offers convenience and value to our customers.
The Rhode kit has garnered an incredible response in the market, with approximately 1K reviews contributing to an outstanding rating of 4.6.
The brand has also created additional product bundles focusing on lip care, known as the "Lip Trio."
2. Apple
Another example of a good product bundle is that of Apple. One of their most popularly bundled purchases is the Apple One. Instead of having to purchase or subscribe for different services from Apple like music, tv, arcade, fitness, news, iCloud and others, the bundles roll them all into one.
They have three product bundles created to cater to different audience segments based on the usage of services, making them more friendlier to subscribe to!
3. Barkbox
Barkbox is a popular pet essentials brand that sells toys, health and wellness products and accessories for dogs. They are one of the firsts to tap into the product bundling strategy with subscription and curated boxes at the same time, that are tailored as per the dog breed, age and of course, pet parent preferences.
By asking you to fill out a quick form, the brand gauges your dog’s needs and sets up a box that you receive at defined periods of time.
4. Amazon
Another good and commonly purchased example of a product bundle is that from Amazon. As per research, Amazon is known to drive almost 35% of their revenue from personalization - and that’s not just limited to displaying similar products. They also recommend bundled items based on the product a buyer is showing interest in.
Amazon smartly promotes bundles by displaying them like product recommendations on product pages. The buyer can even select/ deselect items from the recommended bundle and see the price offered to them.
5. McDonald’s
Take an example from a brand in the food and beverage industry - McDonald’s; because we’re pretty sure you’ve purchased a product bundle from them without knowing it was one. Think about all the Happy Meals you have bought from them and the different food items they give in it - a burger, finger chips, a cold drink, an optional snack and a toy.
Apart from selling you a number of items from their menu, their bundle also brings you joy - the perfect example of how product bundles can also benefit in offering an aha-moment to buyers!
Looking for more product bundling examples for your Shopify stores? Speak to our team of Shopify experts.
PS. We will be creating a list of product bundling examples across all industries on our blog soon. Don’t forget to subscribe to get updates!
How to Create a Product Bundling Strategy?
While there are various ways in which you can approach creating product bundles on your Shopify store, here’s a step-by-step we recommend following to cover all ground:
1. Decide what to bundle
Begin by carefully selecting the products or services you want to bundle together. Consider items that complement each other, offer additional value when combined, or have high demand. Understanding your target audience's preferences and purchasing patterns can guide your selection process.
Here are some best practices to consider for selecting product bundling:
- Leverage your sales data to identify patterns and insights regarding which products are commonly purchased together.
- Look for items that have a logical connection or offer a cohesive experience when bundled.
- Identify slow-moving inventory categories and consider bundling those items.
- Choose items based on bestsellers or items with high demand to increase the average order value (AOV).
- Review customer purchase history and identify recurring combinations of products.
📌 Pro tip: You can also create Shopify product bundles by analyzing the stock-to-sales ratio.
2. Calculate bundle price
Calculating the pricing for your bundle can be simple when no discounts are involved. Start by determining the gross margin for each product by subtracting the cost of goods sold from the selling price. Once you have your cost baseline, decide on a discount that aligns with your brand.
As a rule of thumb, brands with higher margins can offer discounts between 10% to 20%, while those with lower margins typically opt for discounts between 5% to 10%. It's recommended to test and evaluate the effectiveness of your chosen discount over time.
3. Name your product bundle
Naming your product bundle is an important step in creating an attractive and memorable offering.
Choose a descriptive name that captures the essence of the bundle, and highlights its unique value proposition. A well-crafted name can generate interest, create a sense of curiosity, and encourage customers to explore the bundle further.
4. Leverage a product bundling Shopify app
Setting up a product bundle is more than just finding the right match of items. There is a lot that a business needs to set up on the customer-facing front as well as the backend to manage and fulfil orders. This includes everything from where and how you promote your product bundles to monitoring the sales you make on them.
This is where making use of a Shopify product bundling app like Easy Bundles is highly recommended.
5. Monitor and optimize
Once you set up product bundles on your Shopify store, remember to monitor the response of customers to them.
Are they browsing through the product bundles, adding them to their wishlist or the cart? How many of them are making the purchase? Are they looking for more discounts or different products in a bundle?
Keep a close watch on what the data has to say so that you can create better product bundles that get you more sales!
Get started with Product Bundling on Shopify
Product bundling is a time-tested strategy for online businesses to increase their sales. When done strategically, it can help them not just encourage a shopper to buy more, but also boost product discovery, opening doors to many more upselling and cross-selling opportunities.
But creating personalized product bundles is easier said than done - especially when you’re handling it manually.
This is where Easy Bundles comes in - a Shopify app for product bundling, it enables you to build custom bundles for your target audience. From curated bundles to gifting bundles, the app also gives you the ability to customize the UI that online shoppers interact with, making them more engaging and natural to their browsing experience, leading to higher conversions.
Ready to set up product bundling on Shopify?
Book a demo with us to uncover the best product bundling strategy for your business.
Or simply install the Easy Bundles app for product bundling and get started.
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