Unlock higher average order value and customer satisfaction with smart bundling strategies on your Shopify store.
As a Shopify merchant, you’re constantly looking for ways to grow your business, increase sales, and provide more value to your customers. One of the most effective strategies I’ve found to achieve these goals is product bundling.
Product bundling involves grouping several individual products together and selling them as a single unit, often at a combined price that offers a perceived discount or enhanced value compared to buying each item separately.
But it’s not just about throwing a few items together. The real magic, and the focus of this guide, lies in the pricing strategies you employ for these bundles. Get it right, and you’ll see a significant uplift in your average order value (AOV) and customer satisfaction.
Why should you even consider product bundling for your Shopify store? From my experience, the benefits are multifaceted. Firstly, it’s a powerful way to increase your AOV. Instead of a customer buying one item, they’re enticed to purchase a collection, immediately boosting the transaction size.
Secondly, bundling can help you move slow-moving inventory. By pairing a less popular item with a best-seller, you can clear stock more efficiently without resorting to drastic markdowns on individual items.
Thirdly, it enhances the customer experience. Bundles offer convenience, saving customers time and effort in finding complementary products. They also often perceive greater value, feeling like they’re getting a ‘deal’ or a curated solution.
Finally, bundling can simplify the purchasing decision. When you present a well-thought-out bundle, you’re essentially telling the customer, ‘Here’s everything you need,’ which can reduce decision fatigue and lead to quicker conversions.
Before we dive into pricing, let’s quickly touch upon the types of bundles you might consider. There are pure bundles, where products are only available as a set (e.g., a software suite). Then there are mixed bundles, where items can be bought individually or as part of a bundle.
You can also create complementary bundles, grouping items that naturally go together (e.g., a coffee maker and a bag of specialty coffee beans). Or consider kit bundles, which provide all the components for a specific task or project (e.g., a DIY craft kit).
Seasonal or themed bundles are fantastic for holidays or special occasions, offering a curated collection that fits a specific event. And don’t forget the classic ‘Buy One Get One’ (BOGO) or quantity discount, which can also be seen as a form of bundling.
Now, let’s get to the core of it: the pricing strategies for your Shopify product bundles. This is where you can truly optimize for profitability and customer appeal.
**1. Discounted Bundling:** This is perhaps the most common and straightforward strategy. You offer the bundle at a price lower than the sum of its individual components. The key is to make the discount attractive enough to incentivize the purchase.
You can implement this as a fixed percentage off (e.g., ‘Get 15% off when you buy the bundle’). This clearly communicates the savings and is easy for customers to understand.
Alternatively, you can offer a fixed amount off (e.g., ‘Save $20 when you buy the bundle’). This can feel more tangible to customers, especially for higher-priced items.
Consider tiered discounts for bundles too. For example, ‘Buy 2 items, get 10% off; Buy 3 items, get 15% off.’ This encourages customers to add more items to their cart, further increasing your AOV.
**2. Value-Based Bundling:** Instead of focusing solely on discounts, this strategy emphasizes the convenience, curation, or premium nature of the bundle. You might even price the bundle at or slightly above the sum of its parts if the perceived value is high enough.
Think of it as offering a ‘solution’ rather than just products. For instance, a ‘New Parent Starter Kit’ might include a baby monitor, diapers, and wipes. The convenience of having everything in one purchase justifies the price.
This strategy often works well with a ‘Good, Better, Best’ approach. You offer different tiers of bundles, each with increasing value and price, allowing customers to choose based on their needs and budget.
**3. Cost-Plus Bundling:** This is a more internal, foundational pricing method. You calculate the total cost of all items in the bundle, then add your desired profit margin. This ensures profitability, but you’ll still need to compare it to market prices and perceived customer value.
While not a customer-facing strategy, it’s crucial for setting your baseline. Once you know your costs, you can then apply discounts or value-based markups strategically.
**4. Psychological Pricing:** Leverage human psychology to make your bundles more appealing. This includes using ‘charm pricing’ (e.g., $49.99 instead of $50), which makes the price seem lower.
Another powerful tactic is ‘anchor pricing.’ Always display the original, higher price of the individual items next to the discounted bundle price. This highlights the savings and reinforces the perceived value.
Creating a sense of urgency or scarcity around bundles (e.g., ‘Limited Edition Bundle,’ ‘Only 50 available’) can also drive quicker purchase decisions, tapping into the fear of missing out.
**5. Loss Leader Bundling:** In some cases, you might price a bundle very aggressively, even at a minimal profit or slight loss, to attract new customers or drive sales of a specific product. The goal here is to get customers into your ecosystem, hoping they’ll make future, more profitable purchases.
This strategy requires careful consideration and is typically used for high-demand items or to introduce a new product line. It’s about long-term customer value rather than immediate bundle profitability.
**6. Subscription Bundles:** If your products lend themselves to recurring purchases, consider offering subscription bundles. Customers sign up to receive a curated bundle of products regularly (e.g., monthly coffee subscription, quarterly beauty box).
This provides predictable recurring revenue for your business and immense convenience for your customers, often at a slightly discounted rate compared to one-time purchases.
Implementing these on Shopify can be done through various apps available in the Shopify App Store, which offer robust bundling functionalities. For simpler bundles, you might even be able to create them manually by adjusting product variants or using discount codes.
Regardless of the strategy you choose, remember these tips for success: Know your customer. What problems are they trying to solve? What products do they typically buy together? Use your sales data to identify natural product relationships.
Test and iterate. Don’t be afraid to experiment with different bundle combinations and pricing points. A/B test your offers and analyze the results to see what resonates best with your audience.
Clearly communicate the value. Make it obvious to your customers what they’re getting and how much they’re saving. Use compelling product descriptions and visuals for your bundles.
Manage your inventory carefully. Bundling can complicate inventory tracking if not set up correctly. Ensure your system can accurately deduct individual items when a bundle is sold.
Finally, market your bundles effectively. Feature them prominently on your homepage, product pages, and in your marketing campaigns. Use email marketing and social media to highlight the benefits of your curated collections.
What do you think about these strategies? Have you tried any of them on your Shopify store, and what were your results?
Product bundling, when executed with a smart pricing strategy, is more than just a sales tactic; it’s a powerful way to enhance your customer’s shopping experience, increase your average order value, and ultimately, drive sustainable growth for your Shopify business.
By understanding your customers, analyzing your data, and creatively applying these pricing principles, you can transform your product offerings and unlock new levels of success.
