What is bundle pricing?
Article topics
- What is bundle pricing?
- The benefits of bundle pricing
- The two different types of bundling
- Nine ways to use bundle pricing to your advantage
One of the easiest ways to get customers to spend more money online is to sell them products they weren’t anticipating buying.
Bundle pricing is a fantastic way to increase sales, shift stock, and encourage new customers to give your products a try.
In this article we’ll explain the benefits of bundle pricing, the different types of bundles you can offer shoppers, and how to make the most out of bundling.
What is bundle pricing?
Bundle pricing is when you group two or more products together and sell them as a single unit.
When done right, this pricing strategy encourages customers to buy more.
You might already be offering bundle pricing on your website and not know it. Deals like ‘buy one get one free’ and ‘buy X products for £X’ count as bundle pricing as you’re offering selected products for a discounted price.
The fantastic thing about bundle pricing is that all types of businesses can use it, from eCommerce stores and restaurants to software-as-a-service (SaaS) providers.
The benefits of bundle pricing
Bundle pricing benefits shoppers as it means they can save money compared to buying items individually. But what does it mean for you?
It increases average order value
Average order value (AOV) tells you how much customers spend per order.
Bundle pricing can help you increase AOV, as it incentivises shoppers to buy more and encourages impulse purchases.
It helps you appeal to new customers
It can be hard to market your eCommerce store to new customers, especially if they’re not sure which product is right for them.
Offering different versions of your product to try can remove indecision and lead to them becoming loyal shoppers in the future.
It helps you shift stock
Bundle pricing can help you get rid of less popular stock – for example if you pair a fast-selling item with a slow-selling one.
This can help you clear your inventory and make way for new products.
The two different types of bundling
There are two different types of product bundling you can use on your online store – pure bundling and mixed bundling.
Pure bundling
Pure bundling is when you make a product available which is not available for purchase individually. For example, the cooler below is only available as part of a bundle, you can’t buy it separately on the site.
By offering a high-value exclusive item that prospective customers really want, you can increase the chances of them buying your bundle.
Mixed bundling
Mixed bundling is when you give shoppers the option to buy the bundle as well as the separate parts of the bundle individually.
This strategy is common on Amazon. It makes it more convenient for customers to buy a bundle of relevant, related items they might not have considered purchasing, often at a discounted price.
How to use bundle pricing to your advantage
Bundle pricing is a brilliant way to increase revenue online. However, you need to do it right.
Create bundles that are too expensive or contain products people don’t want to buy, and they can be a waste of time and resources.
Here are our top tips for creating bundles that bring in the sales.
1. Choose the right products
The trick to successful bundling is to choose the right items to sell.
You need to select products that work well together and that your target audience wants to buy.
Data is key. Look at your sales records to see what your target customers buy together and when.
Is there an optimal number for product bundles? There isn’t. However as a rule of thumb, the simpler you can make your deals, the better.
It’s also important to consider the presenter’s paradox. This is when people consider the average of the components rather than the sum. So by pairing an expensive product with a cheap one, shoppers may assume the expensive product is less valuable than it is.
A study by Harvard Business Review showed that people were more likely to purchase an expensive home gym on its own than when bundled with a fitness DVD.
This means you need to ensure shoppers see all elements of your package as having a relatively equal value.
2. Determine the right price
As well as the right products, you need to consider the right price point for your bundle to make a profit.
The price will vary depending on your goals. For example, if you’re selling a high-value bundle, you’ll want to make more profit than if you’re trying to shift unsold stock.
A good starting point is to know how much markup you want to make from each bundle sale and go from there.
Remember that you don’t necessarily have to sell your bundle at a discount. A 2022 study showed that supermarket shoppers bought food bundles at a non-discounted price because the bundles simplified the shopping experience.
A/B testing can be helpful. Experiment with different price points and see which leads to the most sales.
It’s also essential to…
3. Sell the benefits through words and images
It’s not always about the price; it’s about the value. Selling the benefits of your bundle means you can sell more bundles at an increased profit.
For example, consider holiday clothes bundles. You’re not just selling shorts and t-shirts, you’re selling a comfortable day at the beach, a stylish weekend at a festival, a bank holiday barbeque with friends and loved ones.
Think about the value and write your bundle copy in line with this. Don’t forget to accompany your copy with stunning photos!
4. Consider seasonal fluctuations
Some bundles will do better at certain times of the year than others. For example, you’re more likely to sell a swimwear bundle in the summer than in the winter.
This means it’s crucial to plan ahead. Think about which bundles you’ll sell at what time of year, and make sure you’ve got enough stock to cover demand.
5. Use extensions to manage your bundles
Managing your bundles can be hard. However if you use a dedicated eCommerce platform like WooCommerce or Shopify, there are extensions you can use to build and monitor your bundles.
These free and paid-for extensions make it easy to create bundles and automatically apply discounts when shoppers buy a specific combination of items.
Shopify extensions include Bundler, Vitals, and Pumper Bundles, and WooCommerce extensions include Product Bundles, Smart Product Bundles, and Bundle Builder.
6. Let customers pick their products
A quick win when it comes to bundling is to give customers a choice over which products they include in their bundle. This gives them more flexibility, increasing the chances of them making a purchase.
We created a package builder for one of our clients, Canvas Tent Shop. This section of the website lets customers choose the elements they want to include in their package, with discounts for bulk purchasing.
7. Add trust signals
A trust signal is a piece of information that shows your website is credible and trustworthy.
Using trust signals like reviews, accreditations, and payment logos on your bundle pages can entice shoppers to make a purchase, especially if they’ve never bought from you before.
According to TrustPilot, the presence of trust signals makes two-thirds of customers more likely to buy.
8. Promote your bundles on the right marketing channels
When you’ve created a bundle, it’s important to advertise it all across your website, including on:
- Your homepage
- A dedicated category page
- Related product pages
You can also promote your bundles as cross-sells or up-sells across your website and on your checkout page.
You can also use your marketing channels to encourage customers, both new and existing, to check you out. Leverage email marketing, paid advertising, and social media to showcase your bundles.
Retargeting ads are a great way to entice shoppers who previously visited your store to come back and finish their purchase.
9. Check your stats and adjust your bundles accordingly
Finally, it’s vital to regularly check your bundles to make sure they’re performing as well as they should. Look at:
- Conversion rates. How many people who visit your bundle pages make a purchase?
- AOV. Are your bundles increasing the average order value and if so, how much by?
- Reviews. Are your bundles resulting in positive or negative customer feedback?
- Customer retention. How many new customers make a repeat purchase on your site?
Review your metrics and use them to make changes. Altering the price or the content of your bundles may lead to an uplift in sales.
Need help creating brilliant bundles for your eCommerce store?
Need help creating brilliant bundles for your eCommerce store?
Bundle pricing doesn’t just encourage customers to buy more but can tempt new shoppers to make a purchase.
Take the time to choose the right bundles and promote them to the right customers, and they’re a great way to increase sales!
Want to get started with promoting bundles online? Our eCommerce experts will help you set up your site and develop powerful marketing campaigns to draw shoppers to your store.
Contact us today – we love to talk all things eCommerce!
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