Product Bundling To Make More Money
Bundling products can help both the customer and the seller. Bundling can help you create something unique that will stand out from your competitors. In fact, product bundling is probably the most underutilized way to increase the revenue of the e-commerce store!
In this series of blog posts, we are investigating how to improve sales of any drop shipping business. We have discussed how to use tempting pricing to boost your sales in our last post. Today we are discussing an underrated strategy to increase sales – how to bundle your products!
So What Is Product Bundling?
Take a look at the image. You have probably seen something like this on many e-commerce websites!
This is an example of product bundling. In layman’s terms, it is a marketing strategy that involves offering several products for sale as one combined product.
You can bundle products that customers like together, or you can bundle complementary products. For example, If you sell stationery, you can make a bundle that includes pencils with erasers and sharpeners. Or you can even bundle only the pencils and give a discount!
You will usually find product bundling strategy in software and food industry, but almost all product and service industry can benefit from it!
Product Bundling Strategies
Now that you are familiar with product bundling, you might be wondering how to bundle your products. There are generally two ways to go about it.
1. Pure Bundling
These are available only as a bundle. The individual items in the bundle cannot be purchased by the customers separately.
2. Mixed Bundling
The items are available for purchase separately and also as a bundle.
So which of the two is for you? Unless you are a monopolistic industry, you should go for the mixed bundling strategy. Pure bundling restricts your customers choice. Mixed bundling is especially recommended for online shops with items that can be bought in large quantities such as t-shirts.
Benefit For The Seller
Why would you want you to bundle your products? Because it will help you increase your sales!
Grouping products together into a single-price bundle increase the perception of value to your customers.
Product bundling has a long list of benefits to the seller. It increases average order value or AOD for short. It is a metric that can help you increase the revenue of your shop. Product bundling encourages customers to spend more in your shop!
Product bundling also helps you to move stagnant inventory if you have any. However, since drop shippers do not carry inventory, this does not affect them.
Moreover, you can encourage customers to sample new or less popular products by making them part of a bundle!
Product bundling also influences customers’ buying decision, both at the conscious and subconscious level. Bundling improves customer’s convenience. They do not have look browse pages after pages in your website to find the products. A well thought out product bundle is convenient to your customers, and that might be the driver in their buying decision!
On the other hand, most of your competition will not take the time to bundle products. If you can bundle your products effectively and come up with something unique, it will lower the competition.
Benefit For The Customers
Product bundling is beneficial to both buyers and sellers. Bundling products can reduce the pain of paying since consumers do not have to know what the “right” price is for the products.
Most of the customers will research online before buying. The product comparisons and pricing knowledge increase the pressure on the customer the find the ‘right’ price. Bundling the products can help the price-sensitive customers to get what they want at a discount!
As mix bundles are becoming more and more common, it offers the customers more choice and convenience. This can lead to a happy customer. And as every businessman out there would say, happy customers make a business happy!