Ecommerce Bundle Strategy To Boost Revenue

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ecommerce-bundle-strategy-to-boost-revenue
ecommerce-bundle-strategy-to-boost-revenue

Last time, I had introduced you about upselling and cross-selling in action. Additionally, there is one more popular selling technique known as bundling. Ecommerce Bundle is the offspring of cross-selling and upselling. Bundling is also quite often used along with a discount to increase the perceived value of the offering.

Here’s more on the benefits of bundling.

What is eCommerce Bundle?

Sometimes called “package deals,” eCommerce bundles are generally made up of complementary items or, less frequently, similar items. The bundling technique is simple as it sounds. You bundle together the main product and other auxiliary products for a higher (or lower) price than what the single product is sold for (in total).

Examples of product bundles would be a fixed price meal at a restaurant or a beach kit that includes sunscreen, sand toys, flip flops and towels as one saleable item. In such case, bundling is somewhat similar to upselling and cross-selling.

How to eCommerce Bundle?

Some retailers only sell certain inventory items as part of a product bundle rather than offering them as either individual or bundled items. For retailers who sell the same items both individually and as part of a product bundle, the bundle tends to cost less than if a customer were to purchase those items individually. Making the savings explicit is one way to entice the user to purchase the bundle, though they might have intended to only purchase a single item on the site.

Bundle Details
Bundle Details

Bundles may be marketed as distinct items at any point in the online shopping experience, including the homepage. Or they can be automatically generated by online tools when a customer tries to complete the transaction, as in an “add this and save” promotion offer.

For example, Flipkart makes a compelling offer. Look how by bundling together the camera and two very related (even essential) products, also notice how there are multiple combos available.

eCommerce bundle at flipkart
eCommerce bundle at Flipkart

 

Product bundles can be especially popular with customers who appreciate the bundle’s discount and value speed or simplicity over the ability to tailor their product options.

Especially for online retailers, product bundles are appealing for several reasons:

  • Effectively increase average order value, by selling more without incurring higher transaction costs.
  • Makes it harder for customers to price-comparison shop and to bounce to the site with the absolute lowest price point.
  • Encourage cross-selling if the product bundle includes items from new categories

Pure Bundle or Mixed Bundle?

Pure Bundling is when products are made available only in bundles and cannot be bought individually.

Mixed bundling is when both options (individual buy and bundle buy) are made available.

Vineet Kumar from HBS and Timothy Derdenger at Carnegie Mellon University teamed up together and studied bundling as used by Nintendo in their video game market.

Revenues fell almost 20% when Nintendo switched from mixed bundling to pure bundling. In the gaming market, prices fall each day, so customers looking to buy just that one thing will choose to wait until it becomes available, likely at a cheaper price.
Similarly, a study on the effect of bundling in consumer goods market revealed that bundling is a great way to entice high-value customers of competitors to switch over. But it does not significantly help category sales and in some ways even discourages it because different category products are bundled together.

So should you use pure bundling or mixed bundling?

The safest option is to use mixed bundling: offer products individually and as bundle

Here’s a way you can use bundling: Specify a minimum order amount to qualify for free shipping. Customers who are looking to buy only one item are likely to switch to the bundle in order to raise order value and qualify for free shipping. Amazon does all of this brilliantly.

Amazon selling techniques
Amazon selling techniques

Ecommerce Bundle Plugin for WooCommerce

We had just informed you about a staggering useful strategy – bundling. You won’t be hesitated to apply bundling to your store any minute, will you? Fortunately, there are many plugins serve to utilize in WooCommerce this bundling technique. Such as…

WC Products Bundle

WC Product Bundle allows you to bundle two or more WooCommerce products together and sell them at a discounted rate. No complex configurations are required, just a few steps you can setup and sell Bundled Products.

Features

  • Creating bundled products with ease
  • Flexible pricing methods
  • Allows you to override bundle products Title and Short Description
  • Automatic stock management.
  • Powerful API to customize many UI aspects behavior
Wcpb bundled product type
Wcpb bundled product type
wcpb-individual-bundle-products-options
Bundle products options
wcpb-search-and-add-products-to-the-bundle
Search and add products to the bundle
Wcpb product page
Wcpb product page

 

You can find more about WC Products Bundle here.

YITH WooCommerce Product Bundles

With YITH WooCommerce Product Bundles you will be able to bundle easily! Set the quantity you want to bundle and choose every single product: bundle detail page will show them and your customers will be able to choose individually from the combinations you have created.

Features:

  • Create a product bundle
  • Assign how many simple products you want

This plugins’ workplace is rather simple to use and not much different from the above-mentioned extension. See more.

Also, check out:

Product Bundles.

Bundle toolkit from WooCommerce itself.

Finally,

So I just had shown you how bundle affects customer’s behavior and the technique to crack it. It’s now your part to utilize and make the most out of bundling strategy.

See also about other technique such as upselling and cross-selling.

Cheers!

 

 

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