Product Bundling Strategy: Increase Your Shopify Store Revenue
Did you know that the average order value(AOV) of HVMN (an eCommerce brand) has increased up to 111% after it started to offer product bundles? You can also achieve that by implementing the proper & effective product bundling strategies into your Shopify store.
So, as a first step, you should learn the product bundling types that you can create in your Shopify store and check what you should avoid while bundling the products.
Then you should put in place effective strategies for increasing sales through product bundling.
Last but not least, utilizing a Shopify app to create the most powerful product bundles is preferable.
To ensure that you implement these steps correctly, we have explained them in detail in this article! Let's get started!
What is Product Bundling?
Product bundling is grouping several items as a single unit for one price.
Merchants leverage upsell bundling to motivate customers to purchase more products and make them spend more money. If the shoppers need all the products in the bundle, since they are purchasing at a lower price, it is actually a win-win situation.
Think about the menus you order in fast food restaurants. For instance, when you purchase a sandwich, drink, and cookie from Subway as a menu, you are paying less than if you would buy them separately.
So, the brand is guaranteeing selling drinks and cookies besides sandwiches, and it is also profitable for shoppers if they also want a drink and cookie.
What are the Advantages of Product Bundling?
Product bundling is beneficial for both shoppers and merchants. Let's take a look at why it is one of the greatest upselling & cross-selling methods that you can implement in your Shopify store:
1. Increase Sales
When you encourage customers to purchase more products together, naturally you are increase the average order value(AOV) of customers and gain more revenue. According to McKinsey, product bundling recommendations account for 35% of Amazon purchases.
So, offering related products to your customer is one of the greatest ways to boost your Shopify store sales.
2. Improve Product Awareness
Shoppers sometimes don’t try some products since they don’t think it is an item that they need. By utilizing product bundling, you can give them the opportunity to try a product that they would not have purchased as a standalone product.
One of the brands that effectively uses product bundling is Yves Rocher. When customers want to buy shampoo, they are offered a product bundle that includes shampoo along with other products (body spray, cream, etc.) at a lower price.
When customers purchase the bundle, they have the opportunity to try the body spray without the intention of purchasing it. And every now and then, they come across products that they really like.
3. Engage Customers More
When you offer product bundles to customers, you are giving them the opportunity to try multiple products, and there is a good chance that they will like at least one of them. As a result, they will continue to buy the product they enjoy in the future. This means you can boost customer engagement by utilizing product bundles!
Types of Product Bundles on Shopify
You can create product bundles on your Shopify store based on product and based on price. The crucial point you should consider while creating different kinds of product bundles is to optimize the shopping process to save customers’ time and effort. Let’s check how you can create product bundles in your Shopify store efficiently:
This is the product bundling method where you group the products based on their types. Let's check the most effective product-based bundling types:
A. Group Bundles
A group bundle is combining the items that customers frequently buy together.(ex: jacket & boots) You can implement this method by using the store analysis & statistics and create automatic group bundles easily.
B. Variant Based Bundles
A variant-based bundle is combining items based on their feature or substance. (ex: leather jacket & a leather hat)
C. Buy One & Get One (BOGO)
66% of shoppers say that BOGO is their favorite type of product bundle. So it is an excellent way to boost your Shopify sales.
With the BOGO product bundle, you offer customers a discount or free item in exchange for purchasing another item or set of products in this bundle. (ex: offering a free mouse with the purchase of a notebook)
D. Bundles Include Related Items
In this type of bundle, you bring related products together and offer them to customers as a bundle. For instance, a cosmetic brand could create a bundle that includes perfume, body spray, and body solution and offer it to customers as a single unit.
If you provide a product only in this bundle, it means you are creating a pure bundle and if it is a popular item, it could be an effective way to increase your Shopify revenue.
E. Bundles with Mixed Items
You can select some kinds of categories from your Shopify store and offer your customers the option of choosing three products from these categories and create a bundle based on their preferences.
For instance, if you sell accessories in your Shopify store, you can allow your customers to choose 3 products among the categories of bracelets, earrings, necklaces and have the cheapest one for free.
Also, by providing this offer, you can understand and analyze your customers’ preferences, promote your items in a more effective way and boost your Shopify revenue.
Based on price bundles are one of the customers’ favorite bundles since they don't want to miss out on any types of discounts or promotion opportunities. The key point here is to make them feel like they're getting a good deal even if they have to pay more for it. Let’s check the bundle types based on price:
A. Offering a Percentage Off
As we mentioned above, offering discounts are excellent motivations for customers to purchase product bundles. You can offer percentage discounts for the product bundles, promote them on your Shopify store and make customers feel lucky to get that deal. For instance, the promotion could be ‘20% discount for your third pair of shoes.’
B. Providing a Fixed Value Discount
You can provide your customers with a fixed-value discount when customers add bundles to their cart. For instance, you can offer a fixed price to add 4 items to customers’ carts. (ex: $100 for 4 t-shirts instead of $133)
C. Offering a Free Product in the Bundle
You can offer a bundle of products that comes with a free product which is one of the customers’ favorite campaigns. For instance, you can give headphones to people who purchase a phone for free.
Threads to Product Bundling
We explained the most effective product bundle types above. However, if you don’t know what you should avoid in this bundling process, it is possible to waste all your efforts while bundling your products. Plus, it may decrease rather than increase your sales, so it is better to check the points below :)
1. The Presenter’s Paradox
The presenter’s paradox is a psychological situation in which more is sometimes less valuable for people. In other words, one expensive / more valuable present could be more impressive than one expensive and one cheap present for the people who receive the gift.
For instance, imagine it’s your friend’s birthday and you bought very expensive boots & very cheap socks for her. It is highly possible that your friend will judge your present’s value as the average of the expensive and cheap ones. In other words, it is the tendency of people to evaluate the present as the average of the bundle instead of the sum of it.
That means it is better if you don’t bundle very expensive & cheap products together. Selling just one expensive item would be more valuable than making it a bundle with a cheaper item for shoppers.
2. Providing Customers with Many Options
The main aim of creating product bundles should be to make the shopping process easier for the customers by providing them with good deals as bundles.
When you create bundles that make shoppers think too much to make a decision, it would create a bad user experience. And shoppers may decide to postpone or cancel the purchase because of their confusion.
Shoppers don’t want too many options, instead, they want to see a couple of great options from which they can easily choose. That is why you should create the most preferable bundles and make things easier for the shoppers.
How To Increase Your Shopify Store Revenue: Best Product Bundling Strategies
As we mentioned before, creating product bundles are great ways to increase the revenue of your Shopify store. The key point is understanding the ways to create efficient product bundles and implementing them in your store. Let’s check our tips that will help you in this case:
1. Always Emphasize the Discount
Discounts are one of the best motivations for shoppers to purchase items. That means if you are offering a discount with your product bundle, it is better if you display this prominently on your Shopify store and promote it with push notifications, etc.
So, you can remind customers that there is a great offer waiting for them and motivate them to purchase.
For instance, if you are ordering a hamburger from a fast food restaurant and then you see a menu that includes hamburgers and fries with very little price difference. This offer would probably encourage you to purchase the menu instead of just the hamburger.
2. Offer Free Shipping
In addition to leveraging discounts, other kinds of incentives based on product bundling could also be an excellent way to motivate customers. For instance, a free shipping threshold is an effective way to convince shoppers to add more items to their cart and increase their AOV.
If you are ordering a sweatshirt from a store and it warns you and shows if you also add an item for $15, the shipping will be free and you won’t have to pay $10 for it, you would probably add an item instead of paying the shipping fee.
3. Offer the Bundles at Checkout
Receiving a good product bundle deal at the checkout may entice shoppers to take it since they already have decided to purchase at least one of the products.
Besides, when you offer the product bundle offer before the customer decides to purchase the product it may create confusion and they may postpone the purchasing idea.
4. Create Bundles with the Products that are Purchased Together
You can boost your sales by finding the products that customers prefer to purchase together and making them a bundle. So, you can make an offer that shoppers can't refuse and convince them to buy these bundles right away.
5. Add Unsold Items to the Bundles
You may have some unpopular products in your Shopify store that are waiting in your storage to be sold. You can add these items to your product bundles with a discount. So, you can motivate your customers to purchase more and move your dead stock.
Best Shopify Product Bundle Apps
ReConvert is a thank you page optimizer Shopify app that you can create another sales opportunity after the check-out.
With ReConvert you can increase your Shopify revenue by adding checkout upsell bundles. Besides, you can leverage a smart AI-product recommendation engine and create personalized bundle offers for your customers.
Also, you can leverage upselling & cross-selling and use your analytics dashboard to measure how your post-purchase upsell funnels are performing by utilizing ReConvert.
PickyStory is a Shopify app that directly focuses on product bundling and increases your store AOV. You can create any kind of product bundle including upsell bundle, bundle discount, combo product, BOGO, free gift, buy x get y, shop the look, and discount upsell.
Also, you can leverage AI-Powered cart upsell to create personalized offers for the customers and engage them more.
With Zoorix, you can increase your Shopify store revenue by creating product bundles and boosting the AOV(average order value) of your store without needing to attract more customers. Besides, you can create automatic bundles based on store orders with Zoorix.
Besides bundle upsell, Zoorix also includes multiple apps including Quantity Breaks, Slider, Cross Sell, Sticky Cart Drawer, Mix and Match & Warranty upsell.
Creating product bundles is an excellent way to motivate shoppers to purchase more items and boost your Shopify store revenue. For instance, Doe Lashes boosts its AOV(average order value) up to 86% by offering product bundles to its customers.
To make sure you also leverage product bundling in the most efficient way, we clarified all the significant points you should consider to create your product bundling strategy including the benefits of product bundling, types of product bundles, and the effective ways to boost your revenue by utilizing it.
Check them, find the most proper methods for your Shopify store and increase revenue!
Another effective way to boost the AOV(average order value) of your Shopify store is turning your Shopify store into a mobile app.
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