How to Use Bundle Discounts in Your Shopify Store
In the e-commerce world, merchants always look for innovative ways to increase sales and customer satisfaction. The bundling discount will involve offering a discount when a single product is purchased together with other products, which encourages larger purchases and enhances the shopping experience as more value is attributed to the customers.
In this blog, we will cover the benefits of bundle discounts, different bundling strategies, best practices, and how you can set them up in your Shopify store.
What Are Bundle Discounts & Why Are They Effective?
A bundle discount is a pricing strategy where multiple products are grouped and sold at a reduced price compared to buying them individually. This approach works well because:
- The consumers place a higher value on bundled packages.
- This increases the amount of money customers spend, in turn increasing average order value.
- Moves stock faster, that is slow selling items.
- It complements the buying experience by putting related products in one package together.
Advantages of Bundle Discount
Here are reasons why Shopify sellers should consider bundle discounts:
a) Increases Average Order Value (AOV)
When customers see that there is a discount on purchasing several items at one time, they will add more to their shopping cart, thus increasing your revenue per order.
b) Increase Customer Satisfaction
Bundles give customers additional value, thus they feel like they are getting a better deal and this will build loyalty and encourage repeat purchases.
c) Moves Inventory Faster
Have slow-moving products? Pair them with best-sellers to clear stock while maintaining profitability.
d) Gives You a Competitive Edge
Attractive bundle discounts set you apart from other stores, thereby giving the customer another reason to shop at your store.
Types of Bundle Discounts to Boost Your Sales
Offering product bundles is a proven strategy to increase average order value (AOV) and drive more sales. With Rebolt – Bundle Products, you can create various types of bundle discounts to match your sales strategy. Here's a breakdown of the different discount types and how they work:
a) Fixed Bundle Discount
A fixed discount provides a set dollar amount off when customers purchase a bundle.
Applicable to:
- Product Bundle: Offer a flat discount when customers buy a predefined set of products.
- Quantity Bundle: Give a fixed discount when a customer purchases a certain quantity of an item.
- Frequently Bought Together: Encourage customers to buy complementary products with a bundled discount.
- Cross-Sell/Combo Offer: Pair related products and provide a discount to increase cart value.
- Build a Box: Allow customers to mix and match products while enjoying a fixed discount.
- Upsell/Add-on Product: Offer an additional product at a reduced price when added to the cart.
b) Percentage Discount
A percentage-based discount reduces the price by a certain percentage, making bundles more attractive.
Applicable to:
- Product Bundle: Offer a percentage discount on a curated bundle of products.
- Quantity Bundle: Apply a discount when customers purchase multiple quantities of the same product.
- Frequently Bought Together: Encourage additional purchases by offering a discount when buying related items.
- Cross-Sell/Combo Offer: Drive higher-value purchases with percentage-based discounts on complementary products.
- Build a Box: Let customers customize their bundle with a percentage discount applied.
- Upsell/Add-on Product: Incentivize add-on purchases by reducing the price.
- Smart URL: Give customers exclusive links that can apply a discount at checkout automatically.
- Post-Purchase: Offer an exclusive discount on a bundle after the first purchase to push for repeat sales.
c) Free Shipping
Free shipping for bundle orders could help lower cart abandonment and boost orders.
Applicable to:
- Product Bundle: Remove shipping costs for customers who buy a specific bundle.
- Frequently Bought Together: Make purchasing recommended products more appealing by waiving shipping fees.
- Cross-Sell/Combo Offer: Offer free shipping when customers purchase related products together.
d) Single Tiered Discount
A single-tiered discount applies a flat-rate discount based on a specific condition, often used in mix-and-match bundles.
Applicable to:
- Build a Box (Mix and Match): Provide customers with the choice of building their product bundle with a known discount.
e) Multi-Tiered Discount
A multi-tiered discount applies tiered levels of discounts subject to thresholds; the larger the quantity or value threshold, the lower the price paid.
Applicable to:
- Build a Box (Mix and Match): Encourage more purchases by giving increasing discounts with higher purchase tiers.
Best Practices for Setting Up Bundle Discounts
To succeed, follow these best practices:
- Choose the Right Products: Bundle items that naturally go together, like a camera and a tripod.
- Make the Discount Attractive But Profitable: Set a price that offers value to customers while maintaining healthy margins.
- Highlight Bundles on Product Pages: Use eye-catching banners and product descriptions to showcase bundle savings.
- Create a Sense of Urgency: Use limited-time offers to encourage immediate purchases.
How to Set Up Bundle Discounts in Shopify
There are two main ways to create bundle discounts in your Shopify store:
a) Using Shopify’s Built-In Features: Shopify enables you to create simple discounts using its automatic discounts and discount codes, but it has very limited bundling features.
b) Using an App Like Rebolt Bundles: For more advanced options, Rebolt Bundle Products lets you create customized bundle discounts with flexible pricing, dynamic upsells, and mix-and-match capabilities—perfect for increasing conversions effortlessly. Marketing Your Bundle Discounts for Maximum Sales
Marketing Your Bundle Discounts for Maximum Sales
Once your bundle discounts are set up, promote them effectively to maximize conversions:
a) Email Marketing: Send targeted emails to customers, highlighting exclusive bundle offers.
b) Social Media & Ads: Run Facebook and Instagram ads showcasing bundle savings.
c) Pop-Ups & Banners: Use website pop-ups or homepage banners to grab attention.
d) Product Page Cross-Sells: Display bundle recommendations on product pages to encourage add-ons.
Conclusion
Bundle discounts are one of the proven sales boosters, increasing customer engagement, and distinguishing your store. Done well-crafted bundles, with the help of tools like Rebolt Bundle Products, and effective marketing will provide you with higher conversion and a delighted customer.
Get Ready to Set Up Bundle Discounts. Now! Begin using bundle deals today, and watch the growth of sales in your Shopify Store!
