How a Bundle Strategy can increase AOV?
Being an ecommerce seller, you must be exploring the ways to increase AOV and in fact might have found the various effective ways to increase sales and ultimately the AOV and ROI. To improve the sales rate there can be many solutions like faster inventory checkouts, lower shipping rate, offers and deals to have more transactions. In this series, the bundling of the products has emerged out as the new ecommerce skill that has various advantages including the above-mentioned solutions. With bundling strategy, you can reap the benefits of quick and larger checkouts, lower inventory fees and more importantly can increases average sales order value.
How can you implement Bundling strategy to your ecommerce store?
- Including a combo offer always works as a magnet to attract customers. For instance, a lunch box with a water bottle can be a sales boosting combo when targeted to the right audience who are looking for the same but individually.
- The combo offer with money saving deal is a fuel to start the vehicle of buyers to make more purchases.
- When you bundle the products in one set, you should include the products that can supplement each other. For example, with the mobile device, you can give a combo deal of microphone headset.
- Make the bundle of the most useful products for the buyers. More the usefulness a buyer can feel, more immediate he will make the buying decision.
- Including the accessories of the devices in the bundle can be effective way to add more sales as buyer always explore the associated accessories individually and when he finds all the useful and necessary products all in one together, the chances of purchasing a bundle will be more.
- Displaying the bundle offer below the cart encourages the customers as such deals prove as money-saving deals for them.
- Consider every age group while you make bundle and make kit for every individual, couple and even families and groups. This opens the door for all type of audience to come to your store, adding sales to your store.
Advantages of Bundling Strategy
The bundling strategy is working as the magic wind for the ecommerce sellers and increasing the sales rate at the faster rate. We have listed out many reasons actually advantages behind the ecommerce sellers are opting bundling strategy.
Attract more customers: Customers always get attracted to the deals and offers and more when they prove useful and money-saving for them. Offering a bundled product set drives more customers to your store which in turn increases sales rate.
Add sales: As the combo and bundles offer more products in one set and comparatively at some lower cost than the individual purchases, the chances of having more buying clicks at those bundles are always more.
Bundling helps in faster inventory movement: When you are selling 3 or 4 products in one set, and the buyers click on such set, all the products move out simultaneously from your inventory that making more space in your warehouse. Here, if you are using Amazon’s ‘s FBA, then, you have to pay Amazon for all the products you are keeping in the Amazon’s inventory and being in the combo they all get moved out from the inventory at the same moment thus saving your money for inventory management.
Increases Chances of winning buy Box: If you are an Amazon seller, then, implementing a bundling strategy will work as a magnet to attract more sales and eventually increases your chances of winning buy box on Amazon. Amazon keeps the track of your sales rate and number of customers coming at your store and can mark you as the best seller and give you the buy box so that you can add more sales to your Amazon store.
Reduces extra expenses: Bundling the products altogether reduces the extra cost of inventory as well as shipping and handling charges. Also, it reduces the marketing cost, as in one advertisement you can promote all the products thus saving individual promoting costs.
Last but not the least,
Increases AOV: The overall impact of increasing sales due to bundling strategy helps in increasing the AOV of your ecommerce store. As the number of sales increases, it impacts the average order value (AOV) and this directly take your sales graph to the mean and peak. To know more tactics about how to increase AOV, read our blog Simple but Dynamic Tactics to Increase AOV.
Bundling strategy is appearing as the effective technique to drive sales to your store. But while bundling, being the vendors and merchants, you must know the customer’s demand and according to the choices of the customers and buyers, you should mix the products to make it a bundle. The useful products in one set always excite the customers. So, make your bundle ready for your customers and increase your sales graph.