How bundling products leads to more profit and happy customers

Published on July 11, 2022

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Getting customers to visit your website can be expensive. Paid ads are an important tool to drive traffic to your store, but it can get costly. And not only that, getting customers to land on your website is only the first step. This is why average order value is one of the most important metrics to optimize for, and product bundling + upselling is one of the easiest ways to start.

Upsell product bundles to increase AOV

Selling multiple products together in a bundle is a great way to instantly increase AOV. You can incentivize customers to purchase bundles by offering a small discount, usually in the range of 5-15%. Customers are always happy to get a discount, which means they’ll be more likely to add bundles to their cart and check out.

It’s important to find the right discount amount that works for your use case. This will primarily depend on your profit margin, which can vary based on the products that are a part of the bundle. Like most things, it’s important to experiment with the discount amount so you can find the right balance of conversion rate and profit margins.

Bundle complimentary products together

In many cases, bundling complimentary products leads to a better customer experience. For example, if you’re buying dinner plates then you might want a set of glasses or cutlery to pair with them. Or if you’re buying a new snowboard then you probably need new boots or binding. You get the idea.

Bundling gives you the opportunity to enhance the customer experience by offering a holistic purchasing experience. Consider how your products can be bundled together to not only increase your profits, but also to leave the customer with a better purchasing experience. Happy customers are more likely to order again, without extra acquisition costs to bring them in the door.

Bundling helps you clear slower-moving inventory

Lingering inventory can be frustrating and costly, and bundling is a great way to sell your less popular items quickly. Pair your top-sellers with less popular items to clear inventory faster. If some items are still taking a long time to sell, experiment with the discount. A bigger discount will incentivize customers to purchase, and may be exactly what you need to help move out some inventory.

Looking for a place to start? Try Beluga Bundles today. We have an unlimited free trial for 30 days. Give it a shot, we think you’re going to love it.

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