“Would you like fries with that?” – A simple question that McDonald’s used to increase sales and scale it’s business worldwide. Product bundling has been a common strategy for businesses to drive more sales and profits. So, what is a product bundling strategy? It’s a marketing approach where multiple products are packaged together into one and sold as a bundled solution offering benefits to both sellers and buyers.
Product bundling strategy is proven to significantly increase profits on sales and profits for sellers. Lower price points and convenience provide a better shopping experience for customers creating a win-win situation.
What Are The Benefits Of Product Bundling?
- Lead To More Sales And Profits – Product bundling can help increase sales and profits on each product over time. Besides that, product bundling can help lower the cost of goods sold (i.e. packaging fees), therefore increase your profit margins.
- Advertise New Products – Another great strategy for you to launch a new product is by bundling it with one of your best selling products. For instance, you can bundle your best selling anti-frizz beard oil together with your newly launched beard moisturizer to promote sales.
- It’s A Bargain For Customers – Customers typically understand that buying bundled products is cheaper than buying them separately.
- Convenience – Product bundling allows the customer to look at one single source that offers several solutions. If a customer has multiple needs and your product bundle addresses most or all of them, this is convenient for the customer so that they can make one stop instead of many.
- Acquiring A Large Range Of Customer – Sellers will acquire a large range of customers when selling bundled products such as customers looking for deals, customers looking for convenience or customers looking for products that complement each other.
Keep in mind that you should be selling individual products and also offer them in a bundle, rather than only offering one or the other. Customers must feel like you are offering them a choice and flexibility, rather than forcing them to buy additional products. There are multiple ways of bundling products and here are the three common techniques sellers can consider using.
This type of bundling is basically creating bundled deals with the same product. For instance, if a customer prefers a specific product such as coffee powder, they are more likely to buy extra to save time and effort for reordering. Another example would be selling the same product in 2, 4, or 6 pack because customers will most likely need more of it such as the soda can lid below.
This type of bundling works well because of its convenience. If you are offering any products that will save time for customers then you will always win. For instance, when you buy a new phone, what usually follows after that? Most people would buy a screen protector or a phone case or both to protect their new phone. The product bundling below allowed shoppers to make one stop instead of having to browse for screen and case protector separately.
New Or Lesser-Product Bundling
Another great way for product bundling is to bundle a successful product with a new or less successful product. By doing so, the more popular product will help the other product find its way into the marketplace and gain traction.
Pro Tip: Before creating product bundling options, you should understand customers’ buying behavior as this will help determine the ideal bundle that has a positive synergy together. For more product bundling ideas, you can check out the ‘Frequently bought together’ section in your product listing to see what customers are buying together with your products. This is known as cross-selling bundle.
Sellers not already offering product bundling can consider doing so. When offering product bundling, it is important to analyze profit projections as well for both individual and bundled options. Are you ready to use this product bundling strategy for your Amazon business?
Eugene is an Amazon business coach, consultant, and blockchain enthusiast. He helps aspiring and established entrepreneurs build a highly profitable Amazon FBA business so they can unlock their true potential. Learn more about him at https://wiseintro.co/freedomprofitsblueprint?