In 2006, Amazon gave 35 percent of its revenue as cross-selling.
This was an incredibly candid comment from the e-commerce giant, and it has not provided any updates since.
It’s safe to assume that this number will rise given the company’s obsession with personalization and optimization.
Imagine this: a third (or more) of your revenue comes from items your customers purchase on top of the original purchase. It’s no surprise that Amazon reported global revenues exceeding $469 billion in 2021.
To unlock the power to upsell and cross-sell, you don’t have to earn an annual income that is equal to the GDP of Belgium.
This is possible for all e-commerce businesses. All you have to do is give your customers compelling reasons to purchase more than one item.
Product bundling is one of the best methods to do that. Let’s look at some examples.
9 Killer Product Bundling Examples
What is Product Bundling?
2. Bloom & Wild
3. Anastasia Beverly Hills
5. Sweaty Betty
What is Product Bundling?
Bundling products is the process of grouping multiple products together and selling them as one package. This can often be cheaper than selling them individually.
Online stores can increase their average order value by product bundling. Bundling products with bestsellers can be a great way to get rid of less-expensive or discontinued products.
We’ll show you throughout the article that product bundling doesn’t have to be one strategy. Bundles can come in many flavors, including:
Pure bundling. Pure bundling is where the products are not available separately. You can find an example of everyday life beyond e-commerce by turning on your TV and looking at the electronic program guide. For the most part, those channels can’t be bought individually–they’re either available as a bundle, or not at all.Mixed bundling. Mixed bundling is the opposite to pure bundling. It involves a bundle of products that can be purchased separately. Often, the customer will be able to build their own mix-and-match bundle, helping them feel like they’re in control of the transaction.Cross-sell bundling. Bundling is the act of adding a product to your purchase, usually with a more expensive item. For example, if you buy a new smartphone, the retailer will throw in a case or pair of headphones. This bundling strategy allows consumers to purchase one full-priced item and get another product at a substantial discount or even free. This is especially popular for large-ticket or one-off purchases.
This is all there is to it.
Let’s now take a look nine examples of product bundling that you can “borrow”.
Harry’s is best known for its subscription service but it also offers an e-commerce shop and product bundles are a key component of its offerings.
Regular readers of the Sleeknote blog know that we love Harry’s marketing strategy and are big fans. It’s not surprising that product bundling is so effective.
Demonstrating how your products complement each other is the key to this. You don’t have to sell egg whisks or suspender belts in order for them to make sense together as a product package.
Harry’s Skincare Essentials Set is described here as one product that contains “three must-haves” rather than a random assortment of three.
The message makes it seem like you can’t afford one without the other (even though Harry’s sells each separately).
2. Bloom & Wild
This article was written in February and I found myself bombarded by Valentine’s Day ads on social media. Which brings me to my next product bundle example from Bloom & Wild flower delivery service.
Customers are encouraged to include a box of fancy chocolates with their flower order to make a thoughtful V-Day gift.
This is an example of the value of a seasonal package. It ties in to a key date or event.
Gift-giving can be stressful for most consumers. According to 79 percent, finding the right gift is the most stressful part of the holiday season.
Your customers will be grateful that you offer gift bundles to make it easier and less stressful.
3. Anastasia Beverly Hills
You can use a variety of clever tactics to “sell” your bundles.
Anastasia Beverly Hills, a cosmetics brand, uses many of them to promote their Flawlessly Ever After Bundle, which was launched before Valentine’s Day.
Let’s take an in-depth look at the situation.
Anastasia first breaks down the bundle in its components to help you understand what you are getting.
You can see that each product comes with its own review score, price and pricing. This helps to create an impression that every product is desirable.
Also, there are no weak points.
Anastasia also lists the price of the bundle along with the “full cost” (i.e. The total price of all individual products.
This makes it clear that you are getting a great deal and not just a bunch Anastasia wants to get rid of.
This article has previously focused on mixed bundling. We all know that there are many types of product bundles.
ASOS offers an example of pure bundles, where the products cannot be purchased individually in the same store.
ASOS should sell the camera bundle as a complete bundle. When you think about photography products, you might not automatically think “ASOS”. The retailer doesn’t want to clutter its huge warehouses with unending camera accessories. Instead, the retailer offers them in a bundle.
Another great thing about this product bundling illustration–ASOS clearly states that it is an exclusive bundle
This is the only place you will find this product selection in one bundle at this price.
5. Sweaty Betty
Have you ever heard the expression “always be closing?”
This is the kind of thing that high-powered salespeople would do in their morning stand-ups to yell at one another over a cup of coffee. It’s not a lie, as many salespeople will tell, but there is a lot to it.
It’s never too late to close the deal. This is also true for product bundling.
Bundling is something that retailers can introduce to customers once they have landed on a particular product page or after they’ve added a product in their shopping cart. Bundling is a way to get the customer to buy this product with another product.
Sweaty Betty, a yoga brand, does things differently. You can find a whole category dedicated to product bundles on this site:
Scroll down to see additional messaging explaining how bundling works.
…and emphasizes the added value it provides:
This is a smart strategy because customers are already convinced to bundle it with another product once they have found the one they like. This means that you get more products per transaction and a greater average order value.
Bundling products seems common sense, and it is. There are a lot of scientific reasons for it.
The Journal Procedia Computer Science published research that shows bundling can lead to higher profits for retailers and greater savings for consumers. It’s a win-win situation.
We are now on to the next H&M example. H&M bundles two of its basic sweatshirts in a mixed package.
These sweaters are priced at PS9.99 each when sold separately, so they’re not considered premium products.
H&M: What’s the point? It’s obvious that it is reducing margins already very tight by offering such low-priced products in a bundle.
Consider this: Selling these items together saves the retailer shipping costs and reduces stock levels in its warehouse.
H&M is likely to save very little on this bundle, if any. This bundle might even be a net benefit.
Murad, a great example of how to show the value of a product package in the world of skincare brings us back to the topic of skincare.
It repeatedly mentions how the 3-Step Glow Bundle’s $37 price is lower than the total price of individual products.
The customer is left in no doubt that they are receiving a substantial discount.
Murad takes the time to explain the three components of the bundle.
The descriptions of the bundle make it sound more than the sum of its parts to me.
You could purchase each item separately. You can buy them individually, but by buying them all together you get the tools you need to give your skin a healthy, bright glow.
This makes the offer seem like a no-brainer.
Paperchase demonstrates how to use “buy 1 and get one” bundles to increase your average order value.
We all know that bundling is a strategy where customers buy one product and get another product (or the same product) at a lower price.
This is great for stationery products. I won’t buy another pack of pens if I have one set.
Paperchase offers a 50% discount on a second package, tempting me to buy an additional pack that I wouldn’t normally make for several months (if ever).
This strategy has another clever element: it encourages customers to try different products. Although I may be a fervent fan of rollerball pens I have never tried a fineliner.
Paperchase has opened up new revenue streams for me by expanding my stationery-based horizons. If I like my fineliner experience I may buy more in the future.
Sometimes product bundling can be so subtle that you don’t even notice it.
HelloFresh, like many other meal delivery companies in recent years, uses subtle pure bundling.
You’ll be amazed at the variety of recipes it offers.
HelloFresh doesn’t want to sell red onions, bell peppers and beef mince separately.
A meal delivery service’s value to its customers and subscribers comes from bundling the products together, creating an easy-to-follow recipe and shipping it directly to their door.
This is how it can justify charging $50+ per week for its services.
Product bundling can be used to describe a wide range of cross-selling and upselling strategies.
Customers can mix and match products, offer bundles of products they don’t want to sell separately, or bundle together accessories that are lower-priced with high-ticket products. The results are the exact same: you sell more products and increase your average order value.
Your customers will be more satisfied, which makes them more likely to purchase from you in the future.
Sleeknote’s first article, 9 Product Bundling Ideas That Will Boost Your Revenue, appeared first on Sleeknote.
By: Emil Kristensen
Title: 9 Product Bundling Examples That’ll Boost Your Revenue
Sourced From: sleeknote.com/blog/product-bundling-examples
Published Date: Fri, 18 Feb 2022 14:07:54 +0000
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