Bundle deals are one of the pillars of a successful online (or offline) business. No matter the place or state of the business, you can see bundles as a marketing strategy “everywhere”. By selling products in the form of bundles, the seller and customer will benefit greatly. Sellers can manage inventory, introduce new products, and increase sales and the customers can find their needed products more straightforwardly and also have the opportunity to buy exciting additional products.
But making bundle deals is not always a piece of cake! Sometimes a seller can make mistakes that affect the business, and the customers and even may decrease profit long-term. To avoid mistakes in product bundling, you’ll need to know where they stem from. This article is about bundles, the common mistakes, and how to avoid them.
Why are bundles beneficial to your business?
bundle deals are everywhere. From fast food chains to small online stores. What makes a bundle so interesting and widely usable? How is it that a bundle can take any form and be beneficial to everyone? Because:
It Increases Sales
pure bundling, mixed bundling, a discount, or even a simple holiday package: all bundles encourage customers to buy more than they originally intended, leading to higher average transaction values. This upselling strategy boosts overall revenue for the business.
Enhance Customer Experience
when you bundle complementary products, you automatically provide a more convenient and satisfying shopping experience. What’s better than purchasing everything one needs all at once?
Help manage inventory
you can use any kind of bundling strategy to clear out slow-moving or excess inventory. Just pair them with popular items and reduce storage costs and potential losses from unsold stock.
Further Reading: Trends in Product Bundling to Watch in the Coming Years
Become your Competitive Advantage
Unique and attractive bundles, paired with a good bundle pricing strategy can differentiate your business from competitors, providing a unique value proposition that attracts and retains customers.
Give a better-perceived Value
Customers often perceive bundled products as offering better value for money, even if the actual discount is minimal. It gives them the satisfaction of finding a good deal. This enhances their overall satisfaction and keeps them coming back.
Based on the type of your business and its unique features, there might be many more advantages and disadvantages of bundling in your journey. One of the best product bundle examples is “happy meals”, with their number one benefit being that they make customers loyal all around the world. Children (and parents) who order this meal once, will look for it in Mcdonalds in every city or country they visit. Now let’s read about some common mistakes in product bundling.
Try our shopify bundle app Today!
5 Common mistakes in product bundling (and how to avoid them)
Mistakes are for everyone. You will 100% mess up at some point at some point of your business. However, it always helps to know what issues people are facing, and how they’re handling them. Here are five of the most common mistakes in product bundling, and tips to avoid them.
Overcomplicating the Bundle
Remember that simplicity is the winning cart when it comes to making a bundling strategy. Creating complex bundles with too many products, hard-to-understand discounts, or complicated purchases, can confuse and overwhelm customers, leading to decision fatigue and abandoned purchases. Your customers will simply choose a more simple option in another option over you, so make the bundles as simple as possible.
Tip: Simplify your bundling strategy. Offer fewer, well-thought combinations that meet customer needs. Focus on products that naturally complement each other, so that people are attracted to them.
Incorrect Pricing Strategies
Pricing strategies can make a crucial difference in your sales and business. Setting prices too high or too low can undermine the perceived value of the bundle, either deterring customers or eroding profit margins. Discounts can be complicated, and this can be one of the potential disadvantages of bundling.
Tip: take time for market research, and see different prices and discounts. It’s also a good idea to study physical retail stores since they always have good discounts. Find the right path for your bundle discount and make sure the price always feels like the ultimate deal to the customer.
Ignoring Individual Product Appeal
One of the biggest mistakes in product bundling is bundling what “you” think is good, instead of researching customer behavior or gathering data. Product bundles should be exciting and attractive to their audience, whoever they are. Bundling unpopular or unrelated items with bestsellers can make the entire bundle less attractive, potentially turning away customers.
Tip: Ensure that each item in the bundle has individual appeal and adds value to the overall offering. Test different combinations to find the most appealing bundles.
Neglecting Customer Segmentation
As we said, each bundle type can have a niche audience. While some offers are appealing to everyone (like meals or skincare) some of them have a more exclusive audience type. Offering the same bundles to all customer segments can result in mismatched needs and low conversion rates.
Tip: Use customer data to tailor bundles to different segments. Personalized bundling strategies can better address specific customer preferences and increase sales.
Insufficient Promotion
Failing to properly market bundles can lead to poor sales, as customers may not be aware of the advantages of bundling. Bundle promotion is a very important step in the journey, so make sure to create a firm marketing strategy that includes bundles.
Tip: Highlight the bundle discount and the benefits of the bundle in all marketing channels. Educate customers on the disadvantages of bundling items separately to emphasize the value of the bundle.
Further Reading: Successful Case Studies in Product Bundling
Tailor your bundles the right way with Fast Bundle
Fast Bundle is a bundling app that automates your bundling efforts, with fast and data-driven processes. By using this app, you can make 6 types of different bundles, tailor their every aspect to your customer’s desire, and then present them the way you like. It’s designed especially for Shopify and is being used by thousands of small and big shops across the platform.
Fast Bundle is a great bundling app if you’re a Shopify newbie who needs a helper to get on with their work, or a professional shop owner who is scaling their business and doesn’t have a lot of free time to manually design bundles. To Avoid mistakes in product bundling and make the best of your business, Just sign up, install the app, and leave the rest to our professional app to design, customize, and automate your bundles.
