People like to be told what they need instead of being forced to choose what they need. Remove the guesswork to gain the sale. You save the consumer from having to wade through tons of different accessories options, different replacement parts, and multiple other additional choices.
By creating a bundle with your expert selection of the best parts and pieces combined into one neat package for one price, you add value and make the whole process easier.
With a bundle, the customer no longer has to search for product after product, research compatibility, decide between this or that, read multiple reviews on multiple listings, etc. You gained devoted follower when you make the sale because you often have a unique combination that your competitors don’t have. Since you’ve done the research legwork for the buyer and everything is compiled under one price point, one shipping cost, one click to order, one delivery–you’ve eliminated many hurdles to get to a completed sale and made your life easier in the process with all of the effort you put in up front to develop this bundle.
Let’s examine a host of other benefits to your online business:
The average order price and profit margin go up. While you may be discounting the package deal when the customer orders your bundle, you are still selling multiple products at once. More is spent more per order than with most individual product purchases.
Every day your inventory sits in your warehouse unsold it is costing you money, not to mention taking up valuable space. If you can create a bundle out of some of your existing slow moving products, more inventory moves with the same number of orders. You may be able to use a popular item without great margin to move a slower item (and increase your margins at the same time) because you aren’t competing on price when the product offerings between you and your competition are no longer apples to apples.
You save time and money on shipping and handling. You end up keeping a greater percentage of the shipping dollars because of the savings from shipping multiple items vs individual ones and reduced packaging costs. You also save pick and pack errors when you create bundles in advance.
Sample Product Bundle Ideas to Consider:
For example: a product mix that fits a particular time of year–summertime picnic bundles, winter “cozy by the fire” snacks, holidays of all types, etc. You can take advantage of keywords with high conversion rates but low cost ppc.
Play on the philosophy: “If you enjoy this, you might also like that.”
What can you source with high perceived value but doesn’t add a lot of weight, fragility, or complexity?
Consider the vast array of products used just to clean a kitchen–just the kitchen! A money and time-saving bundle containing an assortment of the most enviro-friendly cleansers, dish soaps, floor waxes, glass cleaners, oven cleaners, sponges, textured gloves, etc. would be a great start.
Product bundling is about value and so much more. You create convenience as well as potential cost savings. Product bundling strategies will prove excellent e-commerce opportunities to lower costs and increase margins.
Guest posted by Richard Bogath. Rich Bogath is a Content Writer for Skubana, an all-in-one ERP system that seamlessly integrates with most sales channels, 3PLs, and warehouses. Rich is also a successful e-commerce director, business development specialist and consultant for the online industry. He also enjoys writing for the industry, instructing, cooking and participating in the shooting sports.