Product bundling is an effective merchandising strategy for cross-selling complementary products and enticing shoppers to spend more when they visit your ecommerce site.
When it comes to bundling, retailers can look to an unlikely source for inspiration: the restaurant industry. Lunch specials, prix fixe meals, and even Happy Meals are ubiquitous examples of product bundling. They combine dishes that go well together, and that would otherwise be sold a la carte, as a package. By offering meal “bundles” at exclusive times or at slightly discounted prices, restaurants succeed in getting diners to order more than just the entree they originally had in mind.
So, how can ecommerce retailers use these bundling techniques to their advantage? This article will fill you in on exactly what product bundling is and why you should be doing it.Â
What is product bundling?
Product bundling is a cross-selling technique that sells complementary products together instead of individually.Â
For the retail industry, product bundling could mean packaging a bike, helmet, and tire pump together instead of selling a bike on its own and hoping that customers will also buy their accessories from you.Â
Why should you bundle complementary products?
Bundling is an effective sales technique for several reasons.Â
First, product bundling helps you generate more revenue. Why? Because it’s a cross-selling technique that encourages customers to buy more items than they may have originally planned. According to Shopify, product bundling is responsible for between 10 and 30% of ecommerce sales.Â
Think about it: you’re making the shopping experience more convenient by showing customers what products they might need in addition to the one they’re primarily shopping for. For example, by selling sheets, a duvet cover, a duvet, pillow inserts, and a quilt together as a package instead of separately, you’re making it easier for customers to get everything they need in one order.
Product bundling can also prevent customers from going to the competition. Your shoppers may not realize that you sell accessories for the item that they’re looking for unless you make it very obvious through bundling. When you show customers that you’re a one-stop shop, they’ll be more likely to buy their intended item and complementary products from you, instead of going to competitors.
