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Bundle Up to Hike Up the Average Order Value

Updated 10 December 2019

Why not sell two or more products together instead of selling a single one with the help of the product bundling?

Many savvy eCommerce store owners nurture this practice to rev up their average order value. And why not, it not only helps you increase your order value but also helps you deal with your store’s slow-moving & non-selling products!

Average Order Value (AOV)= Revenue ÷ Number of Orders

Rich examples of this strategy are Burger King & McDonald’s. These are well-known fast-food companies with both brick & mortar as well as online stores. And in both ways, they are cross-selling by creating their pack/combo meals. Thus, getting a good margin in their revenue!

product bundling

Good deals on burgers and fresh French fries entice customers to go for the meal combos!

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product bundling

You might have also seen movie theatres selling combo packs of popcorn with coke. Thus, gaining a huge margin.

Similarly, offering bundles at good rates on your online store can help you acquire customers, swipe your aging products, and of course increase your average order value.

The combo products should all-together cost lesser than the sum of the individual products of the combo. Otherwise, what’s the point right?

As Anthony Tjan summarizes:

If you are the customer pushing to unbundle the package, asking for a price breakdown is almost always to your favor. The choice is a good thing for you.

Clear out aging products

Product bundling is the perfect solution to combo up your slow-moving products with new ones. This way you’ll earn something from them instead of letting them rust in your warehouses.

product bundling

Promote New Launches

Moreover, you can use this bundling strategy to promote newly launched items in your store. For example:

Suppose you launched a new hair oil. So now, you can create a miniature of this new hair oil and sell it with your ongoing products like shampoo, conditioner, etc. This way, your customers will get to try the new launch without fully paying for it.

Make Marketing Easy

Look at it this way: If you are selling 5 different products individually, you’ll need to market them individually. Now if you are selling them as a buddle, you’ll market them as 1. Thus, reducing the marketing cost.

product bundling

The BOGO Strategy

One of the most potent types of product bundling is Buy X, Get Y offer. 
You can use this to sell your slow-moving products and also for promoting the new ones.

Few examples to implement this strategy are
Buy X and get 50% off on Y or Buy 2 and Get 1 free!

Make sure to create combos of related products, generally falling in the same category.

Sell Complementary Products Together

Things that are usually purchased together, for example, a person is likely to purchase a conditioner while buying a shampoo. So, instead of selling them apart, it’s good to provide deals to your customers by creating a combo. This is much more like cross-selling!

Cross-selling is a technique to make your customer spend more by making them purchase a product that’s complementary to what he has bought already.

Bundling the cost of small items into the price of high-end items.

Real-life Example: A hotel (per-night charges= $500) charges $10 for water bottle. This thing pisses the customers off. Now, on the other hand, if the hotel changes it’s per-night charges to $510 including a bottle of water, this seems fairly okay to the customers.

So, have you tried the product bundling strategy in your store?
If not yet and looking for a software to implement the same, check this out:

Pack & Combo Product App for Shopify

Lets you bring in various products together to create pack as well as combo product for sale on eCommerce stores.

Create packages by adding two or more types of products in the pack just with few clicks and update a new price to the package.
While creating a combo, you can add various products in it and customers will purchase the combo product by selecting proper variant, size, shipment separately for each product available in that combo.

Check out the User Guide: Pack & Combo Product App 

💡 Need Help?

Drop your query/suggestion at [email protected] or create your ticket at Webkul UV Desk.

Until next time. 👋

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