Studies tell us that Shopify product bundling makes up 10% to 30% of overall online revenue. If used the right way, product bundles can transform your Shopify store. More customers, more revenue, and more profit. This is what bundling can do to your business. Read more about this powerful tactic and how it can make you win big time at Shopify.
In this article, we explore the concept of product bundles, discuss their various types, and learn why they are a game-changer for Shopify merchants. We will also discuss actionable steps to apply bundling strategies to maximize your profits.
Are you ready to take your e-commerce game to the next level? Let’s go!
Table of Contents
Product Bundling Explained
Product Bundling Meaning
Product bundling combines several products into a single package at a discounted price. It encourages buyers to purchase more items in one haul. B2B businesses use bundling to enhance value and simplify purchasing decisions. A good product bundling example is a skincare kit that includes a face wash, a toner, and a moisturizer.
Bundling convinces customers that they are saving money, making them buy even more. This is why the strategy works as a powerful psychological marketing tool.
Product Bundling Types in eCommerce
The product bundling strategies used most often include:
- Pure Bundling
Goods can only be purchased as a bundle, not separately. For instance, a gaming console that comes with two controllers and a game, but the controllers and game cannot be bought separately.
- Buy More, Save More
Customers are eligible for more discounts as they buy more items together. For example, For instance, a T-shirt shop might say: Buy one for $20, Buy two for $35, Buy three for $45.
- Gift Bundles
Pre-packaged sets are designed for holidays and special occasions. E.g., Valentine’s Day gift set including chocolate, teddy bear, and card sold at a reduced price.
- Frequently Bought Together
Suggesting complementary products based on customer preferences. E.g., on a Shopify store, if you purchase a laptop, you would see a suggestion offering you a discounted combo of “Laptop + Laptop Bag + Wireless Mouse.”
- Mixed Bundling
Consumers have the option of either buying individual products or buying a bundle at a discount. Example: Buy a shampoo and conditioner set for $15 together, or buy either one separately for $8 each.
Why Shopify Merchants Need Product Bundling
Bundling is a win for Shopify merchants in many ways:
- Improved customer experience
Provides a more convenient and value-driven shopping experience. Purchasing a camera bundle that includes a tripod and a memory card will save time and effort.
- Competitive advantage
Sets your Shopify store apart from the competition. E.g. A store has unique tech bundles that other stores do not offer, attracting more buyers.
- Increased revenue
Growing the total cart value per transaction. E.g., A buyer spends more buying a laptop + accessories bundle instead of a laptop only.
- Increases brand loyalty
Customers enjoy value-driven offers and come back for repeat purchases. E.g., A coffee brand offers a discounted monthly bundle, keeping customers coming back.
- Clears slow-moving inventory
Moves less popular products faster. E.g., adding older shoes to a sportswear bundle helps clear out stock quickly.
- Promotes cross-selling
Helps the customer discover new products that they would never buy separately. E.g., Bundling shampoo + conditioner causes customers to try both, not just one.
How Product Bundling Increases Profits
Improving Average Order Value (AOV)
Product bundling encourages customers to buy more at once. More AOV = More Revenue. And bundled deals look like a better value to customers. That psychology leads to more spending.
Encouraging Bulk Purchases & Customer Retention
Bundled purchases can save money, which customers love. They return to stores that offer great deals. Shopify bundles create long-term buying habits. Repeat customers spend more over time.
Bundling also creates a sense of exclusivity. Brand loyalty increases with limited-time bundles or even exclusive member bundles. Customers feel that they are getting deals that are not available elsewhere.
Reducing Marketing & Acquisition Costs
Acquiring new customers is expensive. Bundling increases revenue per acquired customer. Merchants maximize profits without extra marketing expenses.
Bundles also increase the effectiveness of ads. Customers are finding more value in deals and are thus buying more. Product bundling ads can easily grab the attention of customers.
Improvement of Inventory Management
Slow-moving stock gets sold faster when bundled with popular items. Bundling helps sell products faster and restock more efficiently. Businesses reduce storage costs and increase cash flow. By pairing old stock with popular items, merchants avoid waste and sell products faster.
Product Bundling Best Practices
Selecting Complementary Products
Select items that go well together. Such as a laptop with accessories. Consumers like bundles that are truly worth it. Unrelated products can reduce perceived value.
Analyze customers’ purchase behaviour to understand the best product matches. Use historical sales data to determine which items are often purchased together.
Product Bundling Pricing Strategies
Pricing is important for successful product bundling. Strategies include:
- Percentage Discounts
Reduce bundle price by a specific percentage. E.g., purchase a laptop + mouse + keyboard and receive a 20% discount on the whole purchase!
- Fixed-Price Bundles
Offer bundles at a lower total price. E.g., get a skincare bundle (cleanser, toner, moisturizer) for $50 instead of $65!
Offer bigger discounts on larger purchases. E.g., Buy 2 T-shirts, get 10% off; buy 3, get 15% off!
Encourages bulk purchasing while moving inventory. E.g., One pair of shoes gets you a second pair for free!
- Subscription Bundling
Recurring bundled products for consistent revenue. E.g., Subscribe and receive 10% off a monthly coffee bundle delivered to your door!
Creating Urgency with Limited-Time Offers
Urgent offers increase sales. No customer is going to want to miss out on a great offer! Limited-time bundles create scarcity and drive impulse purchases. Flash sale, countdown timer, and seasonal bundle discounts are good at creating a sense of urgency.
Using Data & Analytics to Optimize Bundles
Review sales data to look for bundles that have performed well. Track customer preferences for better bundling strategies. Adjust pricing based on performance insights. A/B test different bundle variations to determine the most effective combinations and pricing. Your Shopify platform has some great in-built tools to help you monitor performance.
Shopify Tools & Apps for Product Bundling
Built-in Shopify Features for Bundling
Shopify provides easy-to-use features for creating bundles. Merchants can manually offer discounts on grouped products. Simply click on the “Discount” from your Shopify admin page and create product bundles in a few minutes.
But you need more advanced tools for better efficiency in product bundling. This is why we have third-party Shopify bundle apps.
Top Shopify Product Bundling Apps
Several powerful Shopify bundle apps help you bundle items of your choice. Look at the following features that a good app offers:
- Automates discounts for bundled purchases.
- Provides flexible bundling and pricing options.
- Helps create exclusive bundle deals for better conversions.
- Customizable bundle widgets for a seamless user experience.
Selecting the Right App for Your Store
Things to keep in mind while choosing the Shopify bundle app:
- User-friendly: Ensure that the app works seamlessly with your store.
- Customizable: Select an app that fits your store’s needs.
- Pricing structure: Evaluate costs and ROI.
- Customer reviews: Look at the reviews from other merchants.
- Support availability: Strong customer support ensures smooth operations.
Common Mistakes to Avoid in Product Bundling
Bundling Unrelated or Low-Value Products
Customers ignore bundles with unrelated items. Ensure bundled products complement each other. High-value bundles create better buying experiences.
Overcomplicating the Bundle Offer
Keep bundling strategies simple. Complicated offers confuse customers. Easy-to-understand bundles drive higher conversions.
Overlooking What Customers Want and How They Buy
Winning bundles satisfy customer needs. Analyze purchase behavior to improve bundles. Data-driven bundling increases engagement and sales.
Failing to Promote Bundles
Promote bundles across multiple channels. Use email, social media, and website banners. Strong marketing boosts bundle visibility and conversions.
Final Thoughts
Product bundling is a great way to boost conversions and improve customer experience. Shopify owners can increase revenue for their stores by strategically bundling. The best Shopify bundle app makes bundling easy for you. Avoid common mistakes and refine bundling strategies with data insights.
Start implementing bundles today to maximize profits!
FAQs
What is product bundling in e-commerce?
Product bundling is when two or more products are sold together at a lower price
Why should Shopify merchants use product bundling?
It increases revenue, improves customer satisfaction, and optimizes inventory management.
How do I price product bundles effectively?
Use percentage discounts, tiered pricing, or fixed-price bundles based on customer behavior.
How can I promote product bundles on Shopify?
Promote bundles through social media, email marketing, and website banners to increase visibility.
What is an example of a product bundle?
A product bundle might include a shampoo, conditioner, and hair serum sold together at a discounted price. It’s a common way to group related items for convenience and savings.
What is the concept of bundling?
Bundling is the strategy of selling multiple products together as a single package, often at a lower price than buying each item individually. It encourages customers to buy more in one purchase.
What are the benefits of bundling products?
Product bundling increases average order value, helps move slow-selling inventory, and offers better value to customers. It can also improve customer satisfaction by making shopping more convenient.
How to do product bundling?
To bundle products, group complementary or related items, set an attractive bundle price, and showcase the bundle on product pages. You can use Shopify apps or built-in features to create and manage bundles.
