Product Bundling is a marketing strategy that leverages seasonal inventory and customer demand. Allowing retailers to increase their profit margins and target their marketing efforts more effectively. Take value meals, gift bundles, summer kits, and toiletry sets for example. Brands often offer these to attract and encourage customers to buy complementary products with their top-selling items.
In this blog post, we’ll share how you can work out the most value of product bundling and the five benefits of product bundling that would give your business the advantage.
Get your Inventory Moving
Nobody wants slow-moving inventory, but not every product on your shelf sells as well as your bestsellers. Finding the right pair to bundle with dead stocks will help boost sales and keep your inventory moving, saving you from additional costs from items stuck in your warehouse.
Increase Perceived Value
If you’re looking for a win-win situation, this is it.
Cohesive product bundles and associating them with a specific idea or theme encourage your users to consider features that might not be available in a product on its own. When you focus on themes and purposes for your bundle, you can also make it easier for your customers to select the one that is best for them. Which, in return, improves your overall conversion rate and increases your average order value and revenues.
Improve your Sales
Customers buying two or more products at once, talk about exciting! Aside from the increase in perceived value, one of the benefits of product bundling would be an improvement in your sales. Package deals create synergy between different elements of your business, allowing you to charge for additional value.
Such gift sets or promos attract new customers and influence their buying decision. Resulting in higher product sales for your business, improved customer retention, and loyalty as you promote brand awareness.
Have you ever experienced picking up an item from a store and saying, “This would go well with…”?
When you create product bundles, you also provide your customers with the set they need. Instead of having them buy items one by one, this will save your customers time and effort from going through your website or store looking for the products they need individually.
It’s a Steal!
A good bundle equals a happy customer. Getting additional items worth more than what they pay for would give them a rewarding feeling from their purchase. This will give your store and products positive feedback, leaving them wanting more in the future.
The bottom line is that bundling products together, whether complementary or two different items of the same type, can benefit a brand in several ways. Not only does it help save costs, but it also comes with a host of other benefits for the brand.
Product bundling can lead to increased sales by attracting more consumers, being used to manage inventory levels more effectively, and encouraging customers to revisit. It’s fast become recognized as a strategy any retailer must adapt and understand if they want any hope of competing against online retailers, who have done this successfully for years.
This strategy would also be effective if you track your inventory efficiently, keep your operations well-managed, and use accurate sales data to create bundles that fit your customer’s interests. Zayls can be the right tool to help you with tasks like assembling and managing your bundles.
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