Increase your ecommerce revenues up to 30% by creating bundles — a detailed to-do
Bundles are grouping of products. Today, we are going to discuss the basics of bundling and its utility. Hopefully we can convince you to try these out on your online store. For the ones among you who refuse to wait, there’s a tutorial on how to implement bundles in Shopify in the second half of the post.
What are bundles exactly?
Bundles are groupings of related products, created to increase the average order value of a store. You can find bundles in absolutely every industry: restaurants, clothing stores, grocery shops…
As far as grouping products goes, the principle is very easy to comprehend.
You wish to buy book A. It costs $15. Book B is similar to book A, for it mainly adresses the same subject, from a different angle. It also costs $15. The shop owner might think, correctly, that: “clients interested in buying one of those two books may also be interested in buying the other one.” And so he creates a special offer: book A or book B for $15 and the one you didn’t pick for $10. Or also, both books for $25. That way, you get more value for less money. So you are happy, and the store owner is happy.
Of course, this only works if people are interested in buying the items composing the bundle at a lower price. If you sell an unrelated book, even tough its price has been lowered, it may not be enough to encourage buyers.
Other configurations are possible. Seth Godin famously talked about selling a book in packs of12 copies for the price of 3. It’s a pretty fair deal! How does one restrain from essentially buying 11 extra books for the price of 2 ? And, because you only read a book once and that every copy is the same, you now have 11 copies to give to your friend. In that case, the bundle allows for ideas to spread much easier.
But how do bundles work?
The website that used bundles the most extensively is Amazon.com. Jeff Bezos & his team have pioneered several online best practices that we have been reusing ever since. In the case of bundles…