You can maintain your business with consistency, but you can grow it with the right mix of consistency, risk, and experimentation.
Bundling is a technique used by online and offline retailers to manage their inventory more efficiently while boosting sales and profits. The method involves coupling products together to form a bundle or kit. However, the products that you bundle together should be related or hold value to your audience.
While bundling may be a time-intensive activity, facts from a recent study corroborate that the technique is instrumental in improving conversions:
Buy-one-get-one prevails as one of the most popular forms of bundling, as connoted by 66% of the consumers, quoting BOGO as their favorite type of deal. On the other hand, 93% of the consumers said they purchased using a BOGO promotion at least once.
Another report by Econsultancy indicated that eCommerce websites that use the ‘upselling’ work 20x better than their counterparts.
As per a recent study, upselling and cross-selling alone can boost eCommerce revenue by 10-30%.
Now that we understand that bundling can be pivotal to a business’s growth let us start by understanding how bundles work.
What products can you bundle on your e-store to strengthen your business? Read on to find out!
What are bundles?
Bundling and kitting is the technique of combining multiple products to make a deal more appealing to consumers. A Shopify bundle serves the consumer’s needs, but it also helps sellers sell a considerable volume of items from their inventory.
Shopify bundles and kits are priced at relatively discounted rates than the combined cost of all its individual components. Even at a reduced rate, the bundles sell so well that sellers can recuperate much beyond the profit margin on most of the unique products.
You want to get your products in front of the most buyers possible, but you have a budget to consider, and not all channels come with the same cost.
With Shopify bundles, you can make your products more accessible without spending a fortune on marketing. It enables you to offer shoppers a discount while still making a profit by selling two or more of your products at once as a package. Plus, Shopify bundles also help with conversions by giving customers the convenience of getting multiple products in one order.
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What are the benefits of Etsy and Shopify bundles?
A recent study on Nintendo conducted by Harvard Business Schools accurately recorded the powerful impact of bundling on sales numbers. Here’s what the study indicated:
Essentially, many brands are hesitant to bundle their products together, fearing it’ll cannibalize their sales or lead to customer confusion.
It’s a gamble when bundling products together – hitting the right combination of products may not always yield favorable results. There is no guaranteed payoff, but the payoff has the potential to be huge.
The study proves that the gamble is worth it; Nintendo sold 100,000 units of video games and consoles in bundles, whereas when only bundling games together, they sold 20% less.
Product Bundling is an excellent way for Shopify sellers to stay organized and provide customers with a curated shopping experience. It is also beneficial for retailers because it gives them greater control over their inventory and allows them to sell bundles of like-items and off-season stock.
Here’s why sellers on Etsy and Shopify bundle their products:
Generates more sales: Bundling increases the perceived value of products in your customer’s mind. So while deal-hunters bag a good deal from your store, you sold multiple items in a Shopify bundle, leading to more sales, as opposed to an individual item with a lower monetary value. Shopify bundles can also help you raise the average order value of your products. You typically increase their transaction amount by encouraging shoppers to buy more items through bundles and promotions frequently – an incidental way of multiplying your revenue.
Boost customer satisfaction and retention: Consumers who feel that they landed a good deal are more likely to revisit your store. As per a study, 79% of the consumers believe themselves to be ‘deal-hunters,’ making promotions and offers prime to their experience. Pricing your bundles at a discounted rate and giving people the satisfaction of knowing they’ve scored a good deal can help create a brand advocate.
Provide convenience to shoppers: People visit eCommerce stores for the convenience of ordering from any place in the world, at any time. The critical challenge is to engage consumers when they face a ‘decision fatigue.’ Fortunately, Shopify bundles make that easier – with prepackaged kits and bundles, they wouldn’t have to struggle with choice or second-guessing.
Increase awareness for new launches: Ever noticed how beauty and skincare stores slip in a sample or trial sachet of their latest launches in your bag at checkout? That is how many retailers get the word out about their new launches. Shopify Bundles can help get the proper exposure for your new product. It opens your launch to an audience who is already trusting you with their purchase. If the product succeeds, consumers will likely come back for more. Think of it as a soft launch to gauge the response of your audience.
Aids in stock clearouts: Etsy and Shopify Bundles and kits are helpful in getting sellers out of an over-stocking situation. You can clear off-season or slow-moving stock by coupling it with a popular, high-selling item. And yet, for a consumer, the deal will still have a higher perceived value. So, you end up with a clutter-free inventory, and your customers get a bargain – win-win!
What products should you create Etsy and Shopify bundles with?
Here’s what you should focus on when planning a strategy for bundles and kits:
Top sellers: Sell more of what sells the best with bundles. Offer enticing deals to new and returning customers by bundling your best-selling products.
Like-items: Mix like items together to complete a buyer’s experience. For instance, if they’re buying a sweater, add a scarf or socks to the deal.
Hot favorites: Analyse sales reports and couple up their all-time favorites to give them a personalized experience. For instance, if someone buys leather boots from you, they might come back for leather shoe wipes.
Slow-moving items: If you have a slow-moving item stuck on your shelf, the best way is to bundle it with best-selling items or feature them as a gift.
New launches: You can soft-launch and test the response to a new product by bundling it with a high-performing item. The response could help you draw better market insights about the product.
Cross-bundling: Cross-selling is common with big-ticket items such as cameras, consoles, and laptops. When only selling laptops, consider partnering up with sleeve sellers or bag retailers; together, feature a bundle of complete equipment.
Overcoming the challenges with Etsy and Shopify bundles
Bundling is mutually-beneficial for both sellers and consumers. Still, it comes with its challenges – the biggest one is running out of stock for all items in your bundles. Sellers without an automated inventory management system are more vulnerable to this risky situation. So, unless your inventory forecasts sales, sends you low stock alerts, or receive regular deliveries from your supplier, you may be at the risk of a stockout.
Another common problem that sellers face is the inability to track individual SKUs of each bundle component. A master SKU keeps things organized but may not be much help if you want to track missing or stolen items. Thus, an automated system that syncs SKUs across all inventories is key to running a disruption-free inventory.
How Sumtracker boosts your sales with Etsy and Shopify bundles
When you’re dealing with multiple eCommerce channels, Sumtracker is all you need – an intuitive inventory management tool that keeps your inventory a step ahead.
- Auto-sync multiple eCommerce storefronts: Sync your inventories across 6 of the most sought-after eCommerce channels to stay on top of your inventory.
- Experiment with bundles and kits: Run experiments with different bundle and kit combinations to identify what sells best, test promotions techniques, product descriptions, photographs, and strategies to carve your way to the top.
- Never oversell your inventory: Get timely stock updates and always have an optimum inventory level with Sumtracker’s low stock alerts.
- Analyze reports and forecast sales: Examine sales patterns, best-performing items, and slow-moving stock; create sales projections and always stay at the forefront on your eCommerce channels.