How to Build a Better Bundle

While any sale is welcome to brands in today’s highly competitive e-commerce market, maximizing the sale to the consumer once you have their attention is obviously a more attractive proposition. Properly packaged and presented, product bundling is a standout tactic to give consumers the best possible value while selling them more of what you already know they need.

It’s not just a case of multipacks and more of the same — when curating products for a bundle it’s essential that the items complement each other and provide added value to the customer. The products need to be intelligently aggregated in a way that enhances the customer’s experience and/or convenience.

The cost of the bundle obviously needs to be competitive, but there's a distinct skill in creating bundles that attract attention and culminate in a purchase. Thinking creatively means not simply sticking to the obvious shelfmates, but rather seeking out less obvious connections to broaden the potential customer base. Think of a bundle as a mind map — a central key product with other related or associated products added, creating a whole family of relationships and a wide choice of bundle components. Creating differentiated bundles that show imagination and insight can put your brand ahead of the competition and position your marketplace as an innovator.

As well as being cost-aware, consumers are often time-poor, as well as impatient — they're becoming used to selecting and completing their purchases with just a couple of clicks. This is where bundling delivers convenience and speed. Searching for new school trousers for your growing child? Find them … and bundled in are polo shirts and a sweatshirt. Customers just need to choose size and color and click once to buy the lot. Without realizing it, customers are having decisions presented to them. As the purchasing process isn't interrupted by having to search for complementary items, the transaction is more likely to be completed. Furthermore, next time school outfits need replacing, it’s likely that customer will remember the ease of purchase and return to your site, increasing loyalty and lifetime value.

Bundling is also a highly effective way of promoting less popular or more pedestrian items, but shouldn't be seen as an exercise in shifting low grade stock. Customers will see through that pretty quickly. Therefore, the items must be of good quality. They're probably not the most exciting items, but no less useful all the same. This approach also makes for more efficient inventory management. Combining an unremarkable product with a higher profile best-seller helps avoid stagnant and unbalanced stock levels. Faster moving stock can mean reduced storage costs and most certainly mean better cash flow.

Successful e-commerce sites and marketplaces will always be looking for ways to engage more customers, move more stock, and maximize profits. By leveraging the process professionally, thoughtful bundling can significantly boost sales, increasing the average order value and the average selling price, as well as delivering enhanced convenience to your customers.

Alan Chester is vice president of e-commerce at Luzern eCommerce, a managed e-commerce acceleration platform.