Are you in search of a way to increase your average order value (AOV) and even your customer lifetime value (CLTV)? Then it may be time for you to give product bundling a spin on your ecommerce website!
In this blog post, we’ll cover:
- The definition of product bundling
- The benefits of product bundling
- Four types of product bundling
- Five examples of product bundling from leading ecommerce brands
Get ready for a crash course that will give you the foundation you need to get started with product bundling on your brand’s website!
What is Product Bundling?
Product bundling is a term used to describe when multiple products or services are combined and sold together as a single package, usually at a discounted price. This strategy is commonly used by ecommerce brands to encourage customers to purchase more items than they originally intended, thereby increasing AOV.
What are the benefits of product bundling?
Product bundling offers several advantages for both businesses and consumers:
Improved Customer Experience
Bundling products that are commonly used together can enhance the overall customer experience (CX). For example, a smartphone sold with a protective case and screen protector provides added convenience to the buyer.
Promotion of Less Popular Items
Businesses can bundle less popular products with bestsellers, ensuring that these items get sold and don’t sit as stagnant inventory.
Increase in Average Order Value
By offering bundles, businesses can increase the average amount customers spend per order which can significantly boost revenue.
Increase Familiarity with Your Broader Product Offering
Many of your site visitors may not be familiar with all of the different products your brand sells. Bundling products together can help educate shoppers about the full breadth of items your brand sells.
What are the Different Types of Product Bundles?
Pure bundles are when products are exclusively available as a package deal, not for individual sale.
Cross-sell bundles refer to when complementary products are offered alongside the main item, enhancing the overall purchase.
New Product Bundles
When brands pair new items with existing popular products, enticing customers to explore and discover new offerings these are called new product bundles.
Mix-and-match bundles enable customers to build their own combos by selecting items from a diverse range of products.
Examples of Product Bundling
The holiday shopping season can be one of the most wonderful times of the year to sell bundles! In the screenshot below, affordable beauty brand, Colourpop sells a pure bundle filled to the brim with 10 limited-edition holiday products. In addition to an emoji-filled product description, the brand also touts the savings associated with making this purchase on its product detail page (PDP)—only $125 for a bundle worth $182!
Interested in seeing more holiday website inspiration from leading beauty brands? Check out our blog, 5 Holiday Homepage Examples for Beauty Brands.
Dollar Shave Club
Subscription economy standout, Dollar Shave Club, offers its “Ultimate Shave Starter Set” at a very reasonable price of $4.50 to entice shoppers to sign up for its subscription program. This loss leader helps to get shoppers hooked on Dollar Shave Club’s razor subscription.
Want to learn more about the state of the subscription economy? Check out our report, How Brands Can Succeed in the Subscription Economy.
Jewelry, apparel, and houseware brand Poppy Angeloff, offers a wide range of bundles of the brand’s teacups and saucers. As seen below in the screenshot of the brand’s “Gift Bundles” category page, shoppers can buy different combinations of the brand’s “Pups on Cups.” While these bundles are pre-set by the brand, there are so many options to choose from that shoppers can still feel like they are mixing and matching.
Indoor plant brand, Rooted, offers shoppers the option to build their own bundle of 4 to 8 plants. The more plants a visitor adds to their cart, the more they save! Shoppers can browse Rooted’s extensive offering and click on each image to learn more about each plant before placing it in their cart.
Apparel brand, Free People, offers “giftable” product bundles featuring the brand’s popular items. Although the products in each bundle are pre-set, shoppers can still customize their selection by choosing different sizes, colors, and quantities of each item.
We hope that the information covered in this blog post gives you the foundation you need to start experimenting with product bundling on your website!