With an increasing number of sellers on a daily basis, consumers across the globe have multiple options for purchasing their daily needs. Considering the competition, start-up and small business may still be struggling to attract consumers, and even worst end up wasting hundreds of dollars in their marketing efforts with lesser returns.
I’m sure as a growing seller you may experiment with multiple product promotional strategies. Apart from focusing on costly marketing tactics, inventory management software can help you attract consumers in the most reasonable ways.
You may consider inventory management software to manage your daily stock tasks, however, the ones that are offering product bundling feature may get an idea about we are going to discuss below in this article.
Product bundling feature
Product bundling is allowing a competitive advantage over sellers who don’t have this feature in their inventory management software.
With this feature, sellers are able to list more than one or a group of products as a package helping consumers to make multiple purchases at a single price.
This strategy is not new but at the same time, I’m sure many sellers who have yet not adopted product bundling may be losing many potential opportunities in the most cost-effective ways.
Product bundling example
McDonald’s- the world’s largest hamburger and fast food restaurant can offer a good example of product bundling strategy in their combo deals.
Allowing consumers an ability to purchase the whole meal as a single order can encourage more and more people to take advantage of combo deals, instead of making multiple single purchases.
How does product bundling benefit consumers?
a- Pay less for more
Product bundling strategy allows sellers to list multiple products at a complimentary price- which means considering the overall price of each product separately consumers can end up paying less and receiving more via the product bundle offers.
For example: If you are dealing with clothing, offering a matching pair of trouser and shirt with a pair of branded shoes at a special price will make consumers feel the worth of receiving a branded item in their bundle product purchase.
b- Access to relevant products in one purchase
Consumers who are looking to make multiple product purchases may find your bundling package attractive rather than purchasing them individually from separate stores.
For example: If you are dealing with computer and computer accessories, clubbing laptop with headphones and speakers can ensure potential consumers gain access to primary items that are related to the usage of a laptop.
c- Enhanced purchase decisions
Offering multiple product bundles, chances of consumers gaining access to a mix of products including their favorite items can increase.
For example: If you are dealing with pet products, offering a bundle of pet food along with pet care products like pet shampoo can encourage them to purchase your product bundle for taking an advantage of receiving their other pet’s needs at a competitive price.
How does product bundling benefit sellers?
a- Awareness of new product line
Having an ability to bundle multiple products, automatically allows you with promotional opportunities for your new product launch.
For example: If you are dealing with branded clothing, combining your latest products with relevant fast-selling products can act as a cost-effective marketing tactic, as well as, help you spread visibility for your new product line.
b- Get rid of slow moving stock
Another effective advantage is to include your slow-moving products in your product bundling strategy.
For example: If you are dealing with mobile phones, can help you get rid of those outdated phones by including best-selling accessories in your product bundling strategies.
c- New opportunities to attract potential customers
Offering bundle product combinations can always help you divert all those potential consumers who won’t mind making multiple products purchases if offered at a better price.
For example: If you are dealing with grocery, bundling products can help garner consumers who are looking to purchase their multiple daily necessities in-one-go for a single price.
What are effective types of product bundling tactics that sellers can adopt?
a– Relevant product bundling
This is where you offer multiple products that can complete a consumer’s need. For example, sofa with matching pillows.
b- Mix-match product bundling
This is where you offer a combination of multiple options for the same product. For example, watch with matching straps and bezels.
c- Mixed product bundling
This is where you offer a combination of multiple products from the same brand. For example, eyeliner with mascara, eye cream, lip balm etc.
d- Mixed brand product bundling
This is where you offer a combination of products from different brands. For example, differently flavored wine.
Tips to run an exclusive product bundling strategy
Product bundling is surely a cost-effective and revenue-generating strategy, hence asking yourself the below questions can help you make the most out of this strategy.
Q1- Does your software include product bundling feature?
Having an in-built feature product bundling feature in your inventory management software will help you automate stock tasks and eliminate the risks of overselling.
Q2- Does your product line have a profitable marginal rate?
Product bundling strategy is offered at a special price, but if the margins of each product are low, may not allow you to offer a competitive pricing.
Q3- Do you have a marketing strategy in place?
You may offer the best product combinations in your bundling strategy; however, not making
them visible in front of the potential audience may not attract buyers.
Q4- Do you have a measuring tool?
Not all your product bundles would work on the first go; therefore, having a tool to track performance can allow you experiment and perform profitable bundling strategies with time.
Bundling products together or allowing product pair selection, can be an excellent way to complement consumer’s purchase decisions, however, offering the correct mix of products can help you differentiate your brand from your competitors while delivering a better shopping experience.