Product Bundling – An effective marketing for Online Stores
Product bundling is one of the most effective marketing tactics that you can apply to almost any online store. We will discuss all the things you should know about product bundling.
What is product bundling?
Product bundling is where more than 2 products are bundled or grouped. The final product is sold at a single price. For example, when we go to a restaurant one can combine burgers, coke, and fries into a single meal similar concept is applied to the Retail sector where a product is bundled to another one to make a single combo for purchase for eg Men and Women Watches or Deodrants and Perfumes, etc. The same thing applies to all industries.
How Product Bundling is effective
The product bundle is very much effective as it encourages the customer to buy more than 2 products at the same time. Further, customers can also know about various products that they have no idea about. You can also offer discounts on the final bundle. It becomes easy to introduce or promote new products. It gives us the option to sell slow-moving or dead stock products. Further during the festive season or gifting purpose product bundling comes with ease.
Types of Product Bundling
There are various product bundling that you can offer for your Online store.
1. Custom bundling
Custom bundling is where you can add some products yourself depending on how you see them. We recommend you to show relevant products here which customers are more likely to buy. For example, if you are selling wallets, you can also bundle them with a belt and tie. This kind of bundling helps customers in the selection of secondary products along with the primary ones.
2. Popular and Unpopular Product Bundling
It’s a common technique where some popular products are mixed with a few or one unpopular product. This will balance the scales of your store and people will also buy the unpopular product as it is in the bundle. For example, you can sell a keyboard cover (a less popular product) with a keyboard (popular).
3.UpSell Bundling
Upsell bundling is where you add an expensive product with the affordable one. The two conditions that you should follow here are that the product should be relevant and it should be more expensive than the current one. For example, you can sell smartwatches (expensive) along with gym products (less expensive).
4. Cross-Sell bundles
Cross-sell bundles are the procedure to bundle all the relevant products. This kind of bundling is generally preferred by grocers or by selling FMCG products. For eg along with fruits or vegetables you can add Dairy Products or you can bundle various Toiletry items.
5. Seasonal or Festive Bundles
Festive period or Seasonal time is best for Online Sellers to increase sales. They prepare their Online Store for this period, hence this kind of bundles help them a lot for more traffic. Depending on the festival, you can choose the products. For example, if it’s Halloween, you can offer a complete costume along with masks or décor items. Whether it’s Christmas, Diwali, or any other festival or Corporate Gifting many gift hampers are prepared for sale.
6. Slow Moving or Dead Stock Bundles
It’s similar to the unpopular and popular bundle but with a slight difference. Here, you can group all the products that are least selling. For example, you can pack USB lights, laptop cleaner, screen guard, and laptop keyboard guard in a single package. Take a look at websites like Amazon, they have it on most of the products.
7. Buy X Get Y Style Bundling
It’s the best way which you might be already offering. You can offer Buy One Get One Free. For example, if someone buys sneakers, they will get hip-hop shoes or sports shoes for free. You can also offer the pair of the same product (only applies to some products).
Important measures to take while creating Product Bundling
Now that you know all the things about product bundling. Let’s see some of the important things to keep in mind while creating product bundling.
1. Help you save on marketing
Make sure the bundle you are creating is easy to advertise. Whether it is a promotion or New Arrival or Clearance items bundling helps in marketing more than 2 items which are indirect saving your advertisement cost. Customers also become aware of many items in your store which they haven’t look at it. You can use Social platforms, Email Marketing or any form of Digital Marketing Product Bundling Is very effective in attracting more visitors to Online stores.
2. Sufficient Inventory
Here, you are selling 2 or more products at one go. Make sure there are enough items in the inventory. If one of the products goes out of stock, the entire bundle will be useless. So, keep proper track of inventory.
3. Profit Margins
Of course, most of you will keep in mind the profit margins. The goal is to price the product in such a way that you get enough profit margins and the customer gets a decent discount on the bundle. This brings us to the next point.
4. Analysis
Price analysis is not the only analysis you have to do here. Make sure the products you are adding to the bundle are relevant. In simpler words, you need to make sure that people are interested in that particular product. Analyze all the orders you are getting and see which products will be perfect for a bundle. You can surely create more than one bundle.
Closure
To conclude, if you want better sales, you should surely create some of the product bundles for your store. You can also create another category where you can display all these combos and bundles.
