Product bundling is the perfect solution for stores looking to unlock their store’s earning potential.
At its core, product bundling is really just a pricing tactic where merchants group multiple products together and sell them as a package deal to create a new price point.
When done right, your customers will be ecstatic because they're getting a deal, and your business will see:
- An increase in average order value by selling more without increasing transaction costs
- Differentiation from your competitors and a decrease in comparison shopping
- A boost in sales for lesser-known products
Sounds simple enough - and it is!
It can sometimes be tricky to know how to bundle your products together though.
A lot of bundle types overlap while still having significantly different uses.
In this post we’ll go over examples and use cases for selling multiple products together to help you decide which is the perfect fit for your store including:
- Bundle by product (group bundling)
- Bundle by collection (mix and match)
- Buy X Get Y (BOGO style bundles)
- Component + assembled bundles
- Linked bundles (forced bundling)
Image from Costco.ca
Choosing specific products customers can purchase together, where the bundled products are still sold individually.
With product bundles, individual items are purchased together to create a combo or package of products, sold at a discounted price.
It's also the easiest type of bundle you can offer on your store!
First, you would choose a few specific products that you want customers to purchase together. This could be a bar set with an ice bucket and bottle opener, a few items from the same brand, or even just two complementary products (like a pair of shoes and socks to go with them).
Next, you would set the discount that customers will get if they purchase those two items together - and you're done!
Research has found that this type of bundle works best when the products in the bundle are sold individually as well, so keep that in mind when setting this up on your store.
Costco does a great job of creating “kitchen suites,” where they take individual appliances and sell them together at a discounted price. In the image above, you can see they’re selling a hood vent, dishwasher, range, and refrigerator for $5,999.99.
When purchased individually, it would cost the buyer $6,679.96.
Most people LOVE to brag about what a good deal they got, so they also include the SKU for each individual product in the listing so customers know exactly much of a deal they’re getting.
Another example would be selling digital products. Instead of selling individual song downloads, try packaging them together to create an awesome mixtape your target audience will love.
Image from bronuts.ca
Creating collection based bundles where customers can choose similar products in multiples. It's a great way to offer products in bulk that your customers actually want!
Another effective way to bundle products is using collections. With this type of bundle, it’s all right there in the name: you mix and match a few different products to put on sale for your customers to choose from, creating their own custom bundle.
You can set a quantity range for each bundled product, bundle multiple instances of the same product, or simply offer bulk discounts. On the back end, inventory is tracked as stand-alone products, while all the customer sees is a list of available products they can make their own selections from.
The best part about mix and match bundling is customers feel like they're in control of the transaction.
They get to buy exactly what they want for a discounted price, which would make any deal-hunter happy. In fact, research proves that custom bundling increases a consumers perceived value, boosting the likelihood they'll buy from you.
Sell donuts like the AMAZING ones above? Let your customers pick any 6 donuts they want to try to make their own variety pack. Clothing? Let them pick any top, bottom, and pair of shoes on your site for a “buy the look” bundle. And if you run a food delivery service, you can let them choose any breakfast, lunch, and dinner for the next day's delivery.
Image from tuckstudio.ca
Rewarding customers with easy to understand promos by combining relevant products together. Additional items can be included at a discount, or even for free.
One of the most powerful types of product bundling is the Buy X, Get Y offer.
This promotion gives customers a discounted or free item when they purchase a full price product. That product could be a stand alone item (buy this necklace and get a free pair of earrings), or it can be an item from a specific collection (buy any set of bedsheets and get any pillowcase for half price).
It’s a great way to drive sales of slower moving products, or to promote new items on your store.
E.g. Your store sells shoes, but no one is buying the shoe protector that goes with them. You can set up a “buy a pair of shoes, get a protector for half off” sale as the perfect way to clear out your inventory.
There are so many different sales you can run with this bundle type! Here are a few examples:
- Buy one (X), get one (Y) at 50%
- Buy one, get one free site wide (perfect for Black Friday)
- Buy two, get one free
- Spend $X, get a free gift
- Buy a dress, get 30% off any bag
Image from kidsracing.co.uk.
Selling multiple products together in a kit, or to create a customized product from smaller, individual items.
Component bundling combines multiple items into one new product. Stock for each item is tracked separately (individual items can still be purchased on their own) but the bundle will be sold at a fixed price with the customer making the selections.
Component bundles can be used by customers to build their own custom bike like the awesome ones above from kidsracing.co.uk. They can choose which tires, frame, and handlebars they want, all for one bundled price.
It’s also great if you sell cosmetics and want to let your customers build their own make-up pallets. They can choose which shades of eyeshadow, blush, and bronzer they want, creating their own personalized product. Or if you’re selling a video game bundle, they can choose which games and controllers they wanted added onto their console.
We won't go too deep into linked bundles because it has such a niche use, but it's still worth mentioning since it does have its use in the world of eCommerce.
With this type of sale, the individual products in the bundle cannot be purchased without the other item in the cart. So when one product is added, the linked item is automatically added as well.
This type of bundle is less common, but great for eCommerce stores offering services with fees associated with them.
E.g. Forced bundling can be used for adding on additional delivery fees for oversized items on your store, an installation fee for the hot water tank you just sold, or labour costs for the landscaping job your customer just booked.
Are bundles right for your business?
Offering bundles on your eCommerce store can help you create unique offerings to differentiate you from competitors, clear out aging inventory, and increase your average order value by incentivizing customers to buy more.
If you want to know more about product bundling and if it's right for your store, read this post on How to use Product Bundling to make money in eCommerce to find out:
- The psychology behind eCommerce product bundling
- Product bundling strategies and best practices
- How to use Google Analytics to find your most popular products to bundle together
Then head over to this post on 19 Google Analytics segments every Shopify store owner should be using and check out segment 12 to find out more about what products you should bundle together. It will tell you the exact products and product categories you offer that have the most repeat purchases, which are perfect for driving bundled sales.
What are the most popular product bundles you've ever offered on your store? Be sure to let us know in the comments below!