Are you looking for new ways to earn more revenue through your Shopify store? If so, then you should look into bundling products together.
Product bundling involves selling two or more items together in a bundle.
Examples of product bundling include starter kits, complimentary items, cross-selling, and upsells. Bundles can capture the attention of hardcore shoppers looking for deals. They’re also great for attracting casual browsers.
So if you want to learn how to bundle products on Shopify, you’ve come to the right place.
We made a guide containing everything that you need to know to bundle products with success. Read on to learn how you can master the art of product bundling.
Defining Product Bundling
First, let’s clearly define what constitutes product bundling.
It’s the act of complementary packaging products together as a group. There are lots of different ways that you can go about creating bundles. Cross-sells and upsells can also qualify as product bundles.
- An upsell occurs when you persuade your customer to make an upgrade. An example would be suggesting a more expensive or premium version of one of your products. Tacking on an extra item on the checkout page is an example of an upsell product bundling.
- A cross-sell is when you sell related products together. Let’s say that you sell homemade ceramic pipes through Shopify. To create a cross-sell bundle, you pair your pipe with a cleaning kit and brand lighter.
Another common technique is to create unique packaging for your bundle. That will add extra appeal to your potential customers. Not only is the bundle a great deal, but it has a unique and exciting presentation.
There are two main types of product bundles. They are:
- A pure bundle. Bundles are considered pure when they contain items exclusive to the bundle. An example would be a screwdriver that comes with five removable heads. You won’t be able to purchase the heads individually, as they only come with the bundle.
- A mixed bundle. A bundle is mixed when it contains items that you can buy separately. An example would be the aforementioned ceramic pipe bundle. While the pipe, cleaning kit, and lighter come in a bundle, you can buy them all separately as well.
Understanding Price Bundling
To make your product bundles even more appealing, you can use price bundling. That means that you offer your bundled items at a discounted price. You can also add extra value or curate the pricing.
Your goal should be to entice your customers to take advantage of a fantastic deal.
That’s a big reason why buy-one-get-one-free bundles are so wildly popular. Let’s stick with the example of the ceramic pipe. The bundle should have a lower price than buying them all separately to make it an appealing deal.
If you buy the pipe bundle, it costs $30 for everything. If you buy the pipe, kit, and lighter individually, it will cost $35 plus the tax for each transaction.
Wise price bundling will make your customers feel as if they’re saving lots of money. They can even feel this way when they’re not saving money or are spending more than they would have.
The perceived ‘added value’ of getting extra items is powerful.
It’s a great way to get your customers’ focus off of the price of each item. Instead, they will focus on buying the bundle and its various products at a great rate.
Some Product Bundling Tactics
Now that you know more about bundles let’s learn how to bundle products on Shopify. There are lots of techniques you can use when it comes to product bundling. To make things easier for you, we’ve gone ahead and compiled what we feel are the most effective ones.
Also, don’t be shy about coming up with your ideas for bundles. You can get as creative as you’d like, as there are no rules or limits. You may come up with the idea that takes the marketing world by storm, so don’t put a cap on your creativity.
Subscription Boxes
In recent years, subscription boxes have exploded in popularity. A subscription box is a fantastic example of a product bundle. ‘Loot boxes,’ soap and shave clubs, and foodservice subscription boxes are trendy right now.
E-commerce stores aren’t the only ones joining in on the fun. Lots of businesses with physical locations are joining in on the craze. Customers love them because they take the guesswork out of shopping. They also arrive at their front door, which is a huge benefit. They can also deliver tremendous value. Bundles of cheese, wine, soap, and shaving items are popular subscription box ideas.
Gift Bundles
A great way to utilize bundles is for specific gift ideas. Birthdays, holidays, and anniversaries are all viable here. The idea is to bundle together some special items for each occasion. For example, you could compile a birthday bundle of beauty products.
Customers love gift bundles because they take the stress out of holiday shopping.
If you’re having a hard time shopping for your mother-in-law, why not go for a pre-assembled gift bundle? Another bonus is that they come with multiple items, increasing the recipient’s chances to like at least one of them.
So if you want a sure-fire way to sell bundles, make some gift bundles for all the holidays. Shopping during that time of year can be very stressful, and bundles help reduce that stress.
DIY Product Bundles
It’s crucial not to limit yourself when thinking about creating product bundles. The increasingly popular idea is to put the power into the hands of your customers.
In other words, you allow them to build their product bundles.
While that may seem counterintuitive, it makes a lot of sense if you think about it. Allowing your customers to create a bundle will lead to lots of product discoveries. They’ll get the chance to explore your inventory and see what you have to offer. As a result, they’ll pay closer attention to your products than they usually would have.
To incentivize your customers to create bundles, you should add discounts. An example would be offering 10% off for each item added to the bundle. You can also use the classic buy-one-get-one-free technique. The more that you can do to make your bundles more appealing, the better.
How to Create Product Bundles for Shopify
Now that you’ve got some ideas on how to bundle items, it’s time to learn how to create them. There are some best practices that you need to know to create a successful bundle.
Deciding What to Bundle
First, you’ll need to decide which products to include in your bundle. To do so, you need to choose which type of bundle you want to create. The most common types are:
- The buy-more-save-more bundle. Do you have some stagnant inventory that you can’t seem to move? Then it’s time to throw them into some discounted bundles. That way, you can move your slowest items and see some much-needed revenue from them.
- Quantity discount bundle. The goal of this bundle is to sell multiples of a singular product. In this scenario, you’ll need to choose replenishable items for your bundle. You can either select your bestsellers or some slower-moving items as an experiment.
- Data-analyzed bundles. That is a bundle where you dive into your customer data to see which items are most bought together. If many customers buy pipes with cleaning kits, it’s a good indicator you need to start selling a bundle.
To start, take a long look at your inventory. Which items are selling the most, and which aren’t? Are there products that you desperately need to move before they expire?
Asking questions like these is how you determine your bundles.
It would be best if you never created a bundle on a whim or for no reason. Every product bundle should have a clear purpose and goal for your business. You can use bundles to move stagnant items, increase revenue, and attract new customers.
Deciding the Bundle Price
Next, you’ll need to calculate the price for your bundle. If you aren’t offering any discounts, then it will be straightforward.
To get started, you need to know each product’s gross margin. Don’t know how to do that? Don’t worry; it’s pretty simple. All you need to do is subtract the cost of goods sold from your total selling price.
- Gross margin dollars = Total price – the cost of goods sold
Once you know this number, you’ll need to choose a good discount. Here are a few guidelines to follow:
- For margins above 50%, take 15%-20% off the subtotal
- If the margins are less than 50%, your discount rate should fall between 5%-10%
Using Bold Bundles on Shopify
The best way to create a product bundle on Shopify is to use the Bold Bundles app. It makes setting up product bundles a total breeze. Not only that, but you can set up buy-one-get-one-free bundles and promotions in no time. You can even let your customers create their own bundles. There are loads of amazing features to use here, including:
- Frequently Bought Together section on the checkout page
- BOGO promotions and bundles
- Bundle by product
- Bundle by mix and match
- Multiple discount types
- Automated bundles
- Effortless inventory tracking
As you can see, the team at Bold Bundles thought of everything when creating this app. If you plan on using product bundles for your Shopify store, then this app is a must-download. Follow this link to get started with the bold bundles app.
How to Bundle Products on Shopify ( quick video )
Concluding Thoughts
There you have our guide on how to bundle products on Shopify. Product bundles are a fantastic way to increase your revenue and find new customers. Remember to pay close attention to the products you choose to bundle. Every product bundle you create should have a clear strategic purpose for your store. You should also carefully calculate your discounts. If you discount too much, you could end up losing money on every sale. As long as you stick to this guide and use Bold Bundles, you should be able to create successful product bundles on Shopify.
For more great content to help you develop your Shopify strategies, check out the rest of the merchant posts on the site. If you want to see a list of our top recommended Shopify apps visit this link here.
