Tuesday , May 21 2024
Home > Shopify > Shopify Product Bundles: The Secret to E-Commerce Success

Shopify Product Bundles: The Secret to E-Commerce Success

Do you want to increase your sales and average order value for Shopify online store?

Shopify product bundles are one of the best marketing strategies to help you achieve this goal effectively. Unlike finding new customers can be difficult, expensive, and time-consuming, using Shopify product bundles is easier than ever. 

In this blog post, we will provide you with useful information about the Shopify bundle and how to apply it to your online store in the most optimal way. 

To know more details, let’s dive into this article!

Basic Knowledge of Shopify Product Bundles

1.1 Shopify Product Bundles vs Upsells vs Cross-sells

Shopify product bundles are an upselling tactic that combines different products as a single deal on an online store. It is most effective when the product’s total price in the bundle is less than the price the customer expected to pay for all of them. The gap between the two price rates makes consumers think it’s a bargain, which motivates them to buy more than they intended.

Additionally, Shopify product bundles are sometimes packed together as upsell or cross-sell to enhance revenue significantly.

Cross-selling is a sales technique where you recommend additional products to customers to suit their current selections. The main goal is to increase total sales by encouraging customers to buy items related to the targeted product.

For instance, if you are selling a dress on a Shopify store, suggesting shoes or a pair of earrings is a cross-sell. This idea makes the customer’s main product more interesting, useful, or complete.

Upselling is a sales technique where a merchant convinces a client to purchase a more expensive version of a product, upgrade a product, or add on extra features. It allows you to increase the average order value and improve the customer experience by offering products that better meet their needs.

For example, a customer is looking at a kind of foundation in a cosmetics store and the salesperson suggests a higher-end, more expensive foundation than the one the customer is considering purchasing.

1.2 Why Should You Sell Product Bundles on Shopify?

Product bundling brings benefits for both retailers and consumers. Here are some of the reasons to let you know why it become a popular sales tactic for businesses.

Boost Sales and Average Order Value

The first clearest benefit of product bundling is increasing your AOV and revenue. This feature mainly works by incentivizing your consumers to buy more at a discounted price than they originally intended to buy. 

Imagine your consumer is planning to buy a cup of ice cream for $5 and you offer to sell two cups for $7. They will feel like they’re getting a good deal and want to buy more than before. Therefore, it not only helps your profit margins spike but also customer sense of saving spikes. It’s a true win-win for everyone.

Reduce Inventory Effectively

One of the most simple ways to get your unsold products off the shelves is to combine them with best-selling products into a single package with a promo. When customers are interested in popular products in your store they also become aware of the existence of cross-selling products. It can be said that product bundling helps increase customers’ awareness of slow-selling products in your store, thereby facilitating their sales alongside more popular products. 

Improve Customer Experience

Consumers often love to receive free products and discounts when they make a purchase, and leveraging this sentiment is crucial for businesses in fostering long-term. When customers get the value of a promotion, it will help enhance their satisfaction and strengthen your brand loyalty. 

In addition, 66% of consumers have expectations that brands should understand their individual needs. Bundling products together is a good way to show that you care about what they want. By looking at what customers often buy together, you can create packages that make sense for them. This shows that you’re paying attention to their needs, which helps build stronger relationships and keeps them coming back.

Increase Competitive Advantage

In addition to the below benefits, bundling can make your store different from competitors and attract price-sensitive shoppers. Indeed, when you offer a personalized package with products in your store, make it as attractive and unique as possible. This will encourage customers to explore your store instead of your competitors, thereby increasing brand awareness and conversions.

Types of Shopify Product Bundles

Depending on the purpose of use, Shopify product bundles are divided into many different forms and versions. To make it easy to identify, we will divide it into two basic types: bundle based on product and price.

Below are some types of Shopify product bundles that you might see in many popular e-commerce stores. You can dive into them to apply them to your store effectively.

2.1 Based On Product

Group Bundles 

A group bundle includes items regularly purchased together such as an iPhone and its phone case. This package is typically based on customer purchase data and can be made manually or automatically on Shopify.

For example, Amazon often uses an area on the product page to suggest products that should be purchased with the main product.

Variant Based Bundles 

The variant-based bundles combine products together based on a standard product variety. It allows customers to choose the specific variant they want to include in their bundle such as size, color, or style.

Pack Bundles 

Pack bundling usually is used as an efficient strategy when selling items on a large scale such as buying 3 T-shirts with 20 percent off. It allows you to sell predefined mixed items as a package. 

Besides, customers can purchase individual products included in the package. A typical example of this type of Shopify product bundle is Kylie Cosmetics, they provide a package that includes a lip liner and lipstick purchased separately but are packed together for use convenience.

Mix & Match Bundles

This type of Shopify product bundle allows customers to compose the bundle by choosing from the products and associated variants. This method is very useful in researching your clients’ tastes or when there are seasonal specials. 

For example, choose any flavor of macarons from any variants but the total quantity should be exactly 12. 

Combo Product Bundling 

Combo product bundling is a collection of individual products presented to the clients as a single product in your store. It enables consumers to purchase an entire bundle by adding only one product to their cart. For instance, Sephora provides a set of skincare include necessary products to make your skin better. 

Buy One Get One (BOGO)

Buy one get one usually is used to encourage customers to purchase a particular product by offering a second item of the same or lower price at no additional cost. 

The majority of consumers like buy-one-get-one-free deals, and 93% have purchased them at least once in their lifetime.

2.2 Based On Price 

Product bundles sometimes come along with a discount or added value, while pricing packages are curated. Retailers often create bundles by selecting specific products that are purchased together at a discounted price. Offering a bundle discount, such as a free item included with the purchase of multiple products, can make consumers feel like they’re getting a bargain, even if they end up spending more than they initially intended.

Percentage Discount 

Percentage discounts are an effective way to entice customers to buy in bulk. It refers to a reduction in the price of a product or service, expressed as a percentage of the original price. This marketing strategy is often used in sales promotions, clearance events, or as incentives for bulk purchases. 

For example, If you buy 3 pairs of socks, you will receive get 38% discount.

Fixed Value 

The fixed value offers a predetermined discount to clients who add multiple items to their cart, often used alongside pack bundles. For instance, customers might be offered the option to select any three t-shirts for $50, rather than the usual $75.

Buy X Get Y

Buy X Get Y gives clients a free product when buying another item or spending a specified amount of money in-store. For instance, when you purchase a laptop, you can get Apple iCloud and Software for free.

How to Sell Shopify Product Bundles More Fluently?

3.1 Highlight The Discount Details

When offering product bundles on Shopify that include discounts or added value, ensure this information is prominently highlighted on your product page and in your marketing materials. This serves as a reminder to customers that they’re receiving a fantastic bargain. 

For example, The Body Shop prominently displays its bundle promotion on the homepage and emphasizes cost savings. They always show their bundles on their homepage to ensure customers see them.

3.2 Use Bundles for Gift Guides 

Promoting Shopify product bundles as gift possibilities is one of the smart marketing tactics during holidays. Building a landing page to guide how to get gifts for consumers is necessary, which you can then advertise via email, social media, and in-app. See an example of a cosmetic store, The Body Shop, promoting its loyalty bundles program: 

3.3 Offer Bundles at Checkout 

Retailers usually offer a bundle at checkout to encourage customers to purchase more items. For ecommerce stores, this strategy can help increase profit margins and enhance their shopping cart experience.

In a brick-and-mortar store, this may look like the sales associate telling the client that if they add one more product to their purchase, they get 10% off everything. It can be presented as messaging during the checkout process online. 

For example, Best Buy is a typical example of this marketing tactic.

    Shopify Product Bundles Examples And Practices

    Depending on your targets and products will determine the way you make a bundle, but remember that Shopify product bundle strategies are only limited by a retailer’s creativity.  

    Here are some practical product bundling tactics that you can consider to apply to your business immediately.

    4.1 Gifting Product Bundles

    One way to meet customer expectations during the holidays is by offering bundled gifts on Shopify, making it easy for buyers to find and purchase ready-made gifts.

    A cosmetic brand named Lush does this tactic very well. You can see that they offer gift boxes with a variety of goods bundles at different prices on their website. Most recently they offered gift boxes themed for the month that included their products and flowers in attractive packaging suitable as gifts. This grabs the customer’s attention, encouraging them to buy the product bundles.

    4.2 Subscription Boxes

    Subscription boxes are the most popular form of Shopify bundle products. Both online and brick-and-mortar stores offer subscription box services to encourage customers to buy bundled products. By bundling items, you can simplify the purchasing experience and provide greater value to customers.

    For instance, Lalo is a baby brand and they do this strategy effectively. They offer the majority of products as packages to simplify choices for customers and make online shopping more comfortable. 

    4.3 Build Your Bundles

    Last but not least, it’s a method of self-packaging the product, allowing customers to choose any items to make a package. The disadvantage of this strategy is that it doesn’t help increase customer awareness of the product. However, you can still encourage product discovery by allowing customers to select from a specific product collection and limiting their options the promote items.

    Nute, a detox juice brand, offers a mix-and-match bundle, that allows customers to choose their flavors of juice to create their product bundle. It helps satisfy clients and increase their average order value a lot. 

    You might also be interested in: 
    Comparison: Shopify Plus vs Magento 2
    Top 5 Best Page Builders for Shopify
    How to Create an Amazing Landing Page on Shopify

    Best Inspiring Product Bundling Examples to Increase Revenue
    Top 5 Best Bundle Apps for Shopify

    Conclusion

    The Shopify product bundle is an excellent strategy for increasing the average order value (AOV). It’s rapidly becoming the new upsell standard in eCommerce, benefiting both consumers and merchants. Customers enjoy a more comprehensive shopping experience and lower prices, while merchants sell more products and boost their revenue.

    I hope that via this blog post, you can get an overview of Shopify product bundles and use it in your store effectively. 

    About Rin Nguyen

    Rin Nguyen
    Rin is a girl who loves to explore and challenge herself. She believes writing is a way to reach the world.

    Check Also

    How to Increase Average Order Value on Your Shopify Store

    How to Increase Average Order Value on Your Shopify Store

    If you are an online store owner, you probably do everything to get the highest …

    Leave a Reply