Product bundles are popular amongst consumers. Bundles offer discounts and convenience among other benefits to customers. For eCommerce retailers, product bundles help increase average order value (AOV), improve brand loyalty, and inventory management.
There are different types of product bundles. In this blog, we focus on one type — variant product bundles. You’ll learn how to set up variant bundles, their benefits, best practices, and more.
Let’s get started!
What are variant product bundles
Product variant bundles are a selection of products or services put together and offered as a bundle. The items in a bundle can be different based on customer preferences. For instance, the core product remains the same but customers can create a customized version of the bundle. For example: instead of buying one notebook, a customer can choose to buy a bundle of 5 or 10 notebooks. Or, instead of just buying one pair of socks, a customer can buy three pairs of different styles and sizes and buy it as a bundle.
Benefits of variant/variable product bundles
Apart from increasing AOV, there are many more benefits of variable bundles. Let’s explore some more benefits in this section.
1. Increased customer satisfaction through customization
In variable bundles, customers can choose many different variants around a core product. Customers can buy their selection of products as a bundle at a discounted price. This ease of customization and the ability to buy the products they prefer at a discounted price leads to increased customer satisfaction, eventually leading to higher loyalty.
2. Enhanced upselling and cross-selling opportunities
With variant product bundles, you can upsell and cross-sell products related to the core product. For instance, if a customer is showing interest in buying a water cooler, you could cross-sell a yearly maintenance and cleaning service to them as a bundle, at a discounted price. This also helps increase your AOV and profits.
3. Improved inventory management and product turnover
Variable bundles also help with better inventory management. For instance, you can push products that are overstocked, products from the old stock, or products of a high value to increase the AOV.
4. Higher average order value
Shopify product bundles have a higher AOV compared to when products are bought individually. Even though the bundled products are offered at a discount, a bundles price is higher than individual products because it has multiple products. Variable bundles allow customers to select variants of products and hence, customers tend to buy more in one go.
Designing effective variable product bundles
Here are some actionable steps to design variant product bundles that customers will love and drive success for your business.
1. Structuring bundles with options for customization
For creating variable product bundles, start by selecting one core product. This is the product around which other products can be bundled. You can then include related products and services that can be added to the bundle. For example, these add-on products could be accessories, additional services, accessories, etc. that customers can choose based on their preference.
You can also create multiple tiers or levels of customization to match the needs of various customer segments. The pricing structure for multi-tier bundles can be flexible and variable based on the products selected by customers.
By incorporating real-time pricing adjustments based on the variable bundles created by customers, you can enhance customer experience on your Shopify store. Moreover, customers can also decide the products they want to buy based on their budget.
2. Presenting bundle choices clearly to customers
When listing and displaying bundles on your Shopify store, ensure you follow the best practices so your bundles get noticed. Use images, clear copy and description, videos, and show each product of the bundle.
Make the customization process easier by incorporating a user-friendly interface. Break down the selection process into easy steps. Starting with the core product, guide customers to select other products for the bundle.
Include filters and search tools to make it easy for customers to add products. Additionally, also provide comparison tools that allow customers to compare options. These features ensure speed, product relevance and informed decisions.
3. Ensuring a seamless experience in customizing bundles
Customers expect eCommerce brands to have advanced features that make their shopping experience easier. For instance, for your variant product bundles, you can have interactive configurators that enable real-time adjustments in product pricing, etc.
Customers often tend to use online chat services for assistance during shopping. Enable live chat support on the website, WhatsApp chat, etc. for a seamless experience. You can also enable product recommendations based on AI to show customers product options. Use an efficient Shopify product bundling app to automate these tasks.
Moreover, create a mobile-friendly interface for your Shopify store. Busy shoppers often shop on the go on their mobile devices. Hence, it is critical to make your Shopify product bundling strategy mobile friendly.
Step by step to set up variable product bundles
Follow these steps to get started with your variable bundles. Once you get the basics right, you can easily optimize and adjust your bundling strategy.
1. Decide your variable product bundle basics
When planning your product variant bundle, define clearly how you want to structure your bundle. How many products, what kind of products, and how many variables you want to offer in each bundle. Having clarity from the beginning will ensure you set up a robust bundling strategy. Pro tip: Use an efficient variant product bundling app built for Shopify.
2. Define your pricing strategy
Once you have clarity about your product bundling structure, it’s time to come up with strategic pricing methods. You can use multiple strategies for pricing. However, ensure it is beneficial to customers and keeps your bundles profitable. Refer to the next section for pricing ideas.
3. Create variant product bundle listings
Next, it’s time to list your Shopify product bundles on various platforms so reach out to your target audience. Your potential customers may be spread across channels, such as your website, third-party shopping websites, social media, etc. Create clear listings for your bundles on all channels.
4. Promote your product bundles
The best way to promote your Shopify product bundling is to display it on various platforms where your target audience spends time. Alongside, create promotional offers, such as seasonal discounts, offer incentives such as free shipping, etc.
5. Monitor and optimize variable bundles
To ensure your variable bundles remain relevant, monitor their performance and make adjustments. For instance, monitor factors such as sales, conversions, profits, etc. Make seasonal adjustments. Keep track of market trends and change your bundles accordingly.
Pricing strategies for variable bundles
To attract customers and drive sales of your variable product bundles, try these pricing strategies. Ensure you select the strategy that aligns with your products, target audience and business goals.
1. Base price with add-ons
This pricing structure is simple and straightforward — customers can add extra products in their variant product bundles at an additional cost. For example, a core product – t-shirt – can be bundled with a pair of socks, a belt, and a packet of handkerchiefs. The customer is charged the total amount minus any discount amount.
2. Tiered pricing
Offer different variant bundles with a tiered pricing structure. For example, Bundle A with 2 products, Bundle B with 3 products, and Bundle C with 4 products. Each tier can be priced based on the number of products and level of customization or additional products chosen by costumes.
3. Volume discounts
Another way to price your Shopify variable product bundles is based on the volume or the number of products. For example, buy 2 and get 5% discount, buy 3 and get 10% off. This pricing strategy helps increase sales as well as helps you sell overstocked products.
4. Percentage-based discounts
Percentage discounts can also be offered on the entire bundle. For instance, don’t offer discounts on individual products; rather offer a fixed percentage discount on the entire bundle. However, for this strategy, you must ensure you offer products that are feasible for you to offer in a bundle with percentage discount.
5. Fixed price for customization
For many retailers, variable prices might be tough to track. There’s a solution for that – fixed price for customization. For instance, allow customers to choose any three products for a flat discount of $20. In this structure, the discount amount remains constant, no matter the price of the products chosen.
6. Dynamic pricing
In a dynamic pricing structure, the price of the variable bundle changes based on the products selected by customers. The Shopify product bundle app will use algorithms and automate the price dynamically. For example, the price of a t-shirt bundle will adjust automatically based on the size and color selected.
7. Promotional pricing
One way to attract customers to variant product bundles is to offer promotional pricing. For example, limited-time discount or flash sale on variable bundles. Promotional pricing can help you promote bundles as well as clear overstocked inventory much faster.
8. Loyalty and membership pricing
Another pricing strategy for variable product bundles is to offer exclusive prices for loyal customers who have bought variable bundles regularly and for members who have joined your membership or subscription program. For instance, offer these customers an additional 10% discount.
9. Bundled savings guarantee
Use bundled sayings strategy based on your requirements. For instance, if you have products that are lying in your inventory for a long time and you know it’s going to be hard to sell them, offer bundled savings on them. For example, offer a bigger discount on purchase of a bundle with that specific product in it.
10. Subscription-based pricing
Another way to promote variable product bundles is via subscriptions. Make the variable bundle a part of your subscription offering. For example, offer a bundle every quarter. Or create bundle subscriptions. For instance, customers receive a new customizable product bundle every month.
Get started with your Shopify variant product bundling
Depending on your products, services, and your industry, you can set up relevant product variant bundling strategies for your Shopify store. Follow the above steps and strategies to ensure you get the basics right. Moreover, use an efficient bundling app that helps automate tasks and manages your bundling business 24/7.
Meet Appstle Bundles and Discounts – a Shopify product bundling app designed to help retailers set up and manage variable bundles.
Install Appstle Bundles & Discounts on your Shopify store today!
