In the world of online shopping, product bundling is a key strategy. It combines products to make them more appealing and boost sales. By understanding how people buy when products are bundled, businesses can improve their sales tactics.
This method helps sellers offer great deals, leading to higher average order values. It also makes it easier for customers to decide what to buy. For example, fashion stores and services like HelloFresh bundle products to attract more customers.
By aiming for discounts of 10% or more, businesses can encourage more purchases. They also use pricing strategies like the rule of 100 to keep products affordable. This makes sure products stay attractive, even if they cost more.
Product bundling does more than just increase sales. It shapes how people make buying decisions and improves their online shopping experience.
Understanding Product Bundling in E-commerce
Product bundling is a big deal in e-commerce. It aims to give more value and make shopping easier for customers. When you buy two or more products together for less than they cost separately, that’s bundling. It helps brands sell more and manage stock better, as a lot of items often go unsold.
Definition and Common Practices
Common bundling includes pairing things like shampoos and conditioners or snacks and drinks. This makes it simpler for shoppers to find what they need in one go. Using bundling can also cut down on marketing costs and make products seem more valuable, encouraging people to buy bundles instead of single items.
Types of Product Bundles
Knowing about different types of bundles helps retailers meet various customer needs. The main types are:
- Pure Bundles: These are items that can only be bought together, like meal combos or value sets.
- Mixed Bundles: Here, products can be bought separately or as a bundle, giving shoppers options.
- Discount Bundles: This offers a discount on a group of products, making them seem more valuable and encouraging more sales.
Companies like Athletic Greens use bundles, like “starter kits,” to promote their products with discounts on future buys. Choosing the right items for bundles is key to keeping quality high and keeping customers happy and loyal.
How Product Bundling Influences Online Purchasing Decisions
Product bundling greatly affects how we shop online, making it easier and less stressful. Over 85% of people say many of their shopping choices are made without thinking. Retailers use this to their advantage by grouping products together.
For example, Outdoor Voices bundles clothes to help shoppers choose easier. This makes shopping fun and reduces the stress of making many choices. It also makes customers feel good about buying everything at once.
Psychological Impact on Consumers
Bundling uses the power of perceived value and price anchoring. When a bundle includes a more expensive item with cheaper ones, it seems like a better deal. This can make customers spend more, increasing the average order value (AOV).
BaubleBar’s “Play By Ear” bundle is a great example. It lets customers pick three pairs of earrings for $48. This makes them want to buy more in one go. By setting prices this way, stores make bundles seem like a better financial choice.
Increase in Average Order Value (AOV)
Product bundling can really boost AOV, with some seeing a jump from $160 to $182 in just two weeks. This is great for online stores, where getting new customers is getting more expensive. Bundling not only makes shopping easier but also helps sell out slower items by pairing them with popular ones.
This approach also makes the unboxing experience better, adding to the customer’s sense of value. It’s a smart way to sell more while keeping costs down.
Perceived Value and Anchoring
The value created by bundling is good for both businesses and customers. Bundles are cheaper to market than individual products, helping stores make more money. At the same time, they offer customers a chance to save money, which they like.
As brands get better at bundling, they’ll likely see happier customers and more loyalty. This is key for their growth in the long run.
Luke Hunter is a consumer psychology and e-commerce expert, renowned for his deep understanding of consumer behavior in the digital marketplace. With a fascination for uncovering the psychological factors that influence online shopping decisions, Luke has dedicated years to researching and analyzing how consumers interact with e-commerce platforms.
