Bundling products has become an essential tool in e-commerce for increasing revenue and customer willingness to buy. Studies have shown that up to 30 percent of retail sales are generated through up-selling and cross-selling with product bundles. In the following, we delve into the basics of product bundling and provide valuable tips on how online retailers can use this strategy to achieve higher shopping cart values.
What is Product Bundling?
The term product bundling refers to the joint sale of similar or complementary products or services in a single sales unit. The bundle is considered a standalone product with its own item number, shop page, and description. Essentially, there are two types of bundles: subadditive bundles, where the price is lower than the sum of the prices of individual products, and additive bundles, where no discount is granted.
Advantages of Product Bundles in E-commerce:
Product bundles offer numerous benefits to both consumers and online retailers. Consumers can save money by purchasing product bundles since they are typically cheaper than buying the included products individually. For the online retailer, bundles lead to a higher average order value as customers tend to buy more than originally intended. Additionally, bundles allow for more efficient inventory reduction and reduce marketing and packaging costs. Personalized bundles enhance the shopping experience and customer loyalty.
Offer Selection: By providing your customers with various bundles to choose from or allowing them to customize bundles individually, you increase customer satisfaction. This enables customers to find a bundle that matches their individual needs and preferences.
Highlight Price Benefits: To convince customers of the benefits of the bundle, it's important to clearly communicate the cost savings. Clearly show how much money customers can save when they purchase the bundle compared to buying the included products individually.
Utilize Data for Personalization: By analyzing your customers' search and purchase history, you can create personalized bundles. This allows you to combine products based on the individual interests and needs of your customers. This increases the relevance of the bundles and boosts the likelihood of a purchase.
Strategically Place Bundles: Ensure that your bundles are prominently displayed and easily accessible. Promote them on the product pages of your individual products and make sure they are easy to find through your online shop's search function. Good placement increases visibility and the likelihood of customers purchasing a bundle.
Keep It Simple and Clear: Avoid overly complex bundles that could complicate the purchasing process for customers. A simple bundle should represent a time-saving opportunity for customers to buy multiple products with a single click. Avoid too many combination options to avoid overwhelming customers.
Bundle Equivalent Products: When combining low-cost products with high-priced items, it's important to ensure that the overall value of the bundle is attractive regardless of the price. Customers often perceive the value of a bundle as the average of its individual components. Make sure the low-cost product provides clear added value and extends the utility of the bundle.
Step 1: Creating a Product Bundle
To create a product bundle in your Smartstore online shop, go to the "Products" menu in your Smartstore admin area. Click on "Manage Products" and select the option "Create Product." Choose "Product Bundle" as the product type, which you can find in the "General" tab. Save the product.
Step 2: Adding Products to the Bundle
After creating the product bundle, you can add products to the bundle. Go to the "Bill of Materials" tab and click on "Add". Activate the checkbox in the first column to select one or more products from your catalog. Use the search function to find products more quickly. Click "Apply" to display the selected products as part of the product bundle. You can remove the association of products by clicking "Delete" for each bundle component.
All simple products, except those requiring recurring payments and downloads, can be part of a bundle. Group products and existing bundles cannot be combined into new bundles. A product can be added multiple times to a bundle, and each bundle component can be individually configured, which can be useful in conjunction with attributes.
Step 3: Adjusting Bundle Settings
There are three important options for controlling the behavior of a product bundle: "Price per Bundle Component," "Shipping per Bundle Component," and "Display Bundle Component Individually in Cart."
The "Price per Bundle Component" option allows you to set the pricing of the bundle. You can enable this option to consider the individual prices of the bundle components. With "Shipping per Bundle Component," you control the pricing calculation of shipping costs. When you activate the "Display Bundle Component Individually in Cart" option, the price and quantity of the bundle components are shown in the cart.
Step 4: Editing Bundle Components
If you want to edit a bundle component, click "Edit" next to the item in the bill of materials. In the "General" tab, you can adjust the product name, short description, quantity, discount, and other details. On the "Attributes" tab, you can set the attributes for the bundle component.
Please note that unpublished products can never be part of a bundle!
Now you have learned the steps to create an attractive product bundle in your Smartstore online shop to offer great deals to your customers. Use this strategy to increase your revenue and make your customers happy!
Do you have further questions about tips and tricks for your Smartstore shop? Call us or send us an email. Our Smartstore team is here to assist you personally!