E-commerce stores want to earn more revenue; this isn’t surprising. There are many ways to do this, but product bundling is an effective method that does not require new products. This is a strategy for making and selling a collection of products to be bought together.
Many popular online stores offer an option to purchase several items at once. For example, ASOS will often display other clothing items that the model is wearing with an option to “Buy the Look.”
As larger online businesses are making the most of this strategy, smaller businesses should, too. This is why your e-commerce business needs to master the art of product bundling, and this post has outlined four steps to do just that.
Analyze the Buying Habits of Your Customers
When you wish to offer product bundles, you must first choose what products go well together. The best way to do this is to look at customer buying habits. You can do this through a variety of approaches, such as customer relationship management (CRM) systems, social media monitoring, surveys, and website analytics. These methods can uncover patterns in customer behavior, motivations, and preferences.
However, in relation to product bundling, businesses should also use cart abandonment data, customer feedback, and purchase history. You should specifically consider what products are purchased, when they are purchased, and how often. This can unveil which products are bought together frequently, allowing you to create meaningful and sought-after bundles.
Create a Variety of Compelling Product Bundles
With a better understanding of what your customers are buying, you can then begin to identify complementary products. You might have found that certain products are often bought together, such as face wash, toner, and moisturizer, and want to offer a bundle of these. This can make it easier for the customers who usually purchase these items in the one order.
You might also want to use the purchase history to sell product bundles. For example, when looking at an item on Amazon, you will find that there is a section that shows what other shoppers have purchased with that product. This is known as the “frequently bought together” feature. It should be kept simple to avoid over-complicating the bundling process and discouraging customers.
Use a Logistics Service that Offers Co-Packaging
Product bundling can also affect your packaging and shipping processes, and you can ease this responsibility by choosing a company that offers co-packaging, which is short for contract packaging. A co-packaging company will specialize in the packing of products, and it will often include services like assembly, barcoding, labelling, and sleeving. These companies can achieve this by utilizing equipment, expertise, and facilities that e-commerce stores might not have.
Partnering with a co-packer can benefit your business in a range of ways. For one, it will free up your attention and time to focus on the rest of your business. This could allow you to work on branding, creating new products, and upgrading your marketing strategies. In fact, some companies, like Ryder, go even further as a co-packer and will deliver product bundles to retail stores if required. The level of service you receive will depend on the contract.
Promote the Product Bundles with Attractive Pricing
Once the products have been bundled together and you know they will be packaged correctly, you can then start promoting them to potential customers. The pricing you decide on will help with this. It is best to determine the total value of the individual products in the bundle and offer a price that makes the bundle enticing. You might also want to consider applying a discount to the bundle price.
The price will help to promote the product bundle, but you should also display the bundles prominently on your e-commerce website’s homepage, product pages, and checkout pages. You should also reach out to customers through email marketing campaigns to update them on your new offerings.
To conclude, product bundling can be a wise choice for e-commerce businesses that want to expand their sales. This can boost product sales in a simple and sensible way without seeing a loss. Using the steps outlined in this post will ensure your expansion into product bundling is a success.
