The 80-20 rule also called the Pareto’s principal is applicable to your e-commerce sals too. Which means 20% of the products make up 80% of the sales. Well not exactly 80% but you get the idea.
Why are we talking about bundles? Because your top 20% products can drive further sales for you by bundling them with other products.
A bundle is a combination of multiple products which are sold together. For example: a pair of socks and a cap or a pack of 6 coffee mugs.
The benefit of doing this are many
- Sell more products in a single order which increases the order value and moves more product
- Pay less shipping per product because the products can be shipped together as a single package
- Leverage the popularity of one product to sell another less popular product.
- Market new products using the old ones which already sell well
- Give exposure to the popular selling products by having more listings on your website in the form of bundles
There is a lot room to innovate when creating bundles. For example a great bundle is shampoo and conditioner. It is so obvious to sell both together. You can do the same for your products. Find something from your existing catalog to bundle with your top seller. Or innovate and find a new product which compliments your best selling product.
Bundling products together can also be done with a discount on the total price. For example 10% discount on buying a set of 4 items.
All these practices are common in the world of retail. Major retailers have been using them to drive sales since the dawn of time.
We are taking about bundles today in the new context of e-commerce. Where the cost of listing a product is very less but keeping the product in the warehouse is much higher. So the best strategy is to find more than 1 way to sell the same product.
Selling bundles online needs a good backend for managing inventory. Consider that you are selling your best seller in 5 different bundles. You need to determine inventory for each of those bundles. And when there is a sale you have to reduce inventory for each of those bundles. All this cannot be managed manually. You need a robust and accurate software like Sumtracker.
Sumtracker can update inventory for bundles using the available inventory for its components. It will keep the inventory for all bundles accurate so that you do not loose any sales. Or get more orders than you can fulfil.
You can start using sumtracker for free by signing up for the 30 days free trial.