In the competitive world of eCommerce, increasing Average Order Value (AOV) is essential for sustainable growth. Product bundling has emerged as one of the most effective strategies to boost AOV by encouraging customers to buy more in a single transaction. Shopify merchants can leverage bundling to provide value to customers while driving more revenue per order. This guide will walk you through the concept of product bundling, how to implement it using Shopify, and best practices for promoting bundles effectively.
Product bundling refers to offering multiple related products as a single package at a slightly discounted price compared to buying each item separately. For example, a skincare store might bundle a cleanser, toner, and moisturizer, providing an incentive to buy all three at once. This strategy increases the customer’s perceived value and encourages them to spend more, boosting AOV in the process.
Bundling is effective because it:
Increases perceived value: Customers feel they are getting more for less.
Encourages larger orders: Instead of buying one product, customers purchase multiple items in a bundle.
Reduces decision fatigue: Bundles simplify the buying process by offering a pre-selected combination of products.
Clears inventory: Bundling slow-moving products with best-sellers helps clear out stock.
Improves customer experience: Bundles often solve customer needs more comprehensively, enhancing satisfaction.
In Shopify, product bundling is easy to implement and can significantly enhance both sales volume and AOV with the right approach.
Here are the most common types of bundles you can use to boost sales and AOV in your Shopify store:
These bundles are created by the store and cannot be modified by the customer. Example: A coffee shop bundles coffee beans, a grinder, and a mug as a single package.
These give customers the flexibility to choose products from a predefined list. For instance, a clothing store might allow customers to bundle a shirt, pants, and accessories of their choice.
This type of bundle incentivizes customers to purchase more by offering a free or discounted product with a purchase. Example: “Buy two pairs of socks, get the third free.”
These are specially curated bundles designed for holidays, events, or special occasions, such as Mother’s Day or Christmas.
Offer a subscription-based product bundle where customers receive recurring shipments of multiple products. Example: A beauty store offering monthly skincare product bundles.
Setting up product bundles in Shopify is simple, thanks to the platform’s flexible apps and built-in functionality. Here’s a step-by-step guide to creating bundles:
Several Shopify apps can help you set up and manage product bundles efficiently:
Bundler - Product Bundles: Allows for customizable bundles with tiered discounts.
Bold Bundles: Supports advanced bundling options like BOGO and cross-sell offers.
PickyStory: Helps create shoppable bundles on product pages and during checkout.
Once you’ve installed the bundling app of your choice, follow these steps:
Select the products: Choose which products will be included in the bundle.
Set pricing rules: Offer a fixed discount (e.g., 20% off) or set a bundle price (e.g., $50 for three products).
Choose bundle type: Pre-set bundle or build-your-own bundle.
Set inventory rules: Ensure your inventory management system adjusts stock levels for individual products within the bundle.
Highlight bundles on product pages: Make sure the bundle option is clearly visible on relevant product pages.
Create a dedicated bundle section: Add a “Bundles” section on your homepage to promote the offers.
Use high-quality visuals: Showcase the products in the bundle with high-quality images to attract attention.
Before launching, go through the bundling process as a customer to ensure the experience is smooth. Look for any technical issues and fix them promptly.
Create urgency with limited-time bundle offers. For example, “Get 25% off on this skincare bundle – Offer valid until Sunday!” This drives faster decisions and reduces the chance of cart abandonment.
Make sure customers see the value they’re getting. Clearly state how much they save by purchasing the bundle instead of buying individual products. For example, “Save $15 when you buy this bundle!”
Suggest complementary bundles on product pages or at checkout. Example: If a customer is buying a laptop, offer a bundle with a laptop bag and accessories at a discounted rate.
Send segmented emails promoting your bundles to different customer segments. For instance, you can send exclusive offers to VIP customers or first-time buyers to encourage larger purchases.
Showcase your bundles on Instagram, Facebook, and Pinterest with engaging visuals. Use hashtags like #BundleAndSave or #ShopifyBundleDeals to attract more customers.
Feature bundles prominently in your Black Friday, Cyber Monday (BFCM), or holiday promotions to maximize sales. Holiday-themed bundles are particularly effective as gifts and encourage customers to spend more.
Use Shopify’s analytics tools to track how your bundles are performing. Monitor metrics like:
Bundle conversion rate
Average Order Value (AOV) from bundles
Inventory movement of bundled products
Optimize your bundles based on customer behavior and feedback to ensure they remain effective.
Product bundling offers several benefits beyond just increasing AOV:
Reduces marketing costs: Selling multiple products in a bundle requires fewer marketing resources compared to promoting each product separately.
Boosts customer satisfaction: Bundles often provide solutions that meet customer needs comprehensively.
Encourages brand loyalty: Bundles with complementary products introduce customers to new items, encouraging repeat purchases.
Improves inventory management: Bundling allows you to clear slow-moving inventory by packaging it with popular products.
Consider an online fashion store that bundled a scarf, gloves, and beanie during the winter season. The store used Shopify’s bundling app to set up a limited-time offer with a 20% discount. As a result:
The store saw a 15% increase in AOV during the campaign.
Customers reported higher satisfaction, as the bundled products solved their winter needs.
The store managed to clear out overstocked scarves that had been slow-moving items.
This example illustrates the power of product bundling to not only increase AOV but also enhance the shopping experience and improve inventory turnover.
Product bundling is a powerful strategy for Shopify merchants looking to boost Average Order Value (AOV) and drive more sales. Whether through pre-set bundles, build-your-own options, or limited-time BOGO offers, bundling creates value for customers and encourages them to buy more.
By using Shopify apps to set up bundles, promoting them strategically, and monitoring their performance, you can optimize your store’s revenue potential. With the holiday season around the corner, there’s no better time to experiment with bundling and watch your AOV soar.
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