Product Bundling: What You Should Know About It

Why sell one product when you could sell four, our five, or even six?

As a savvy e-commerce store owner, you know you need to increase your average order value if you want to see increases in your profit margins and overall sales.

One smart way to do this is through product bundling.

Product Bundle Clothing is a price strategy that is fairly simple. You sell a range of products together for a combined price. This is different from customers simply adding various products to their bag separately because it plays on the psychological, economic idea that consumers will be more likely to make the purchase when there’s a significant perceived value.

By improving the value of what you’re selling, you’ll sell more and make your customer’s happy.

In this post, we’re going to look at three things. The benefits of bundling your products, a framework to help you do it successfully and we’ll share some examples of stores that get eCommerce product bundling right.

Let’s go!

What are the benefits of e-commerce product bundling?

• Your average order value will increase
• You will see an increase in your profit margins
• Your customers get to spend less time making decisions
• Harder to compare like for like products with competitors
• Shopping with you appears more valuable
• Product Bundling Framework

Although product bundling does offer a number of beneficial advantages for e-commerce store owners, there is still the challenge of implementing an eCommerce product bundle strategy that entices the shopper to buy, but also is profitable for the store owner.

The price of the bundle must be lower than the prices combined

There must be some sort of perceived discount for the customer, otherwise what is the point. In an ideal world, you should be aiming for around 10% or more discount. If it helps, make it obvious to the customer that they’re getting a valuable product discount.

Another method is the buy more and save. Although this is typically not a ‘bundle’ the buy more and save approach ensures customers will be rewarded for adding more to their basket.

It works well for the customers who are ‘umming’ and ‘ahhing’ about making that extra purchase. In their heads the conversation goes something like this: “Oh I want that extra item, but I should probably save money instead. Oh look at that, spend $50 and you get 10% off? I might as well buy the item then I get them all on a discount.

Successful eCommerce bundle examples

When you create Clothing Bundles packages, you get an opportunity to be creative while also increasing your average order value, and therefore, your income.

Let’s look at some examples of product bundling done right and evaluate what makes these specific product bundles so successful.

Accessories

Many products require accessories. Some are mandatory (like a lens cap on a camera that usually comes with the camera), but some are highly desired, but optional, like a tripod for a camera.

Bundling products of a similar nature is a great way to increase your average order value because customers are likely to be looking for similar things. Someone buying a DSLR camera is likely going to be interested in buying a different lens or a tripod to go alongside it.

E-Commerce Product Bundle Pricing Takeaways

As an e-commerce store owner, you have to think of yourself as a salesperson. You need to use psychological tricks to encourage consumers to spend their money with you over your competitors.

One way to do that is through product bundling.

When it comes to value perception and branding, offering product bundles will provide you with a significant advantage. Bundles, when done right, work in the way of increasing revenue, growing cost efficiency, and improving average order values.

But don’t forget to look at your own data to decipher what products you can afford to bundle together and what products you need to bundle together to provide maximum experience for your customers as well as maximum profit for you.