Bundling is a Great Tool for Better eCommerce Sales.
Does bundling work in this age and time? Does it help boost eCommerce sales?
With the advancement in technology and the surge in online sales, the importance of bundling has only increased. It is another tool that you can use for better eCommerce sales. This means eCommerce businesses are benefiting from bundling up products or creating effective product mixes or package deals. With countless businesses vying for a market share in the global eCommerce marketplace, bundling a few products to offer the best price has a potential to attract customers and boost sales at the same time. Procurement as a Service can help find new products for bundling.
Product Price as a Key Factor
The play of price remains a factor in the customer’s choice of a product. This is exactly what most sellers focus on – improving pricing. Though a solid pricing plan is important, you cannot emphasize much on lowering the price, as it could easily translate into a high volume, low profitability model. The wrong price could ultimately lead to an ultimate demise, since profitability is critical to the survival of a business.
So What is the Best Way Out?
To preserve profitability, the old strategy of product bundling promises to offer a competitive edge to eCommerce businesses. Not only does bundling help in differentiation, but also presents numerous other benefits. For example, with bundling by sellers on Amazon, they can enjoy:
- Exclusive ownership of the buy box
- Great marketing flexibility
- Less number of risks compared to manufacturing an entirely new product
- More choices for shoppers to buy a bundle at one go and save
Related: 3 Quick Shipping Tips to Increase eCommerce Sales and Customer Satisfaction.
Creating the Right Mix
In order to create an effective bundle or product mix, you must first try to understand your customers’ purchase behavior. What are the customers’ wants and needs?
Next, you should be able to manage multiple vendors and assume greater responsibility in the supply chain, which includes knowing when to reorder products, preparing complex FBA shipments, and quickly identifying the product combinations or bundles to be phased out.
It is important to determine if customers have a tendency to purchase certain goods at the same time. Once this is done, your focus should shift toward establishing kit viability. This could help you identify several bundling opportunities.
Evaluate these opportunities based on different criteria, which may include:
- Projected demand, supply, and profitability
- Relationship with vendors
- Marketing the kit at the most attractive price
- Supply chain management plan
- Returns policy
- Product liability risk
- Compliance with bundling rules for your online retail marketplace
The best marketing strategy is to launch one or two bundles initially to identify the best performing combinations. However, it is important to remember that bundling may not always work for every niche. You may want to test different strategies to gain a competitive advantage and get the best results.
Related: 4 Key Points in Building a Successful eCommerce Business.
Bundling offers merchants one of the best opportunities to offer a more convenient shopping experience for customers, helping them find exactly what they want in less time and effort. This would result in satisfied customers, and happy customers mean happy business!
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