5 Discount Techniques to Improve Your Shopify Product Bundles
Published May 2, 2023.
According to a survey by Criteo, 93% of shoppers in the United States say that "discounts and offers" are a crucial factor when deciding to make a purchase. Shopify stores can utilize bundling to help encourage sales and be more cost-effective by, for example, targeting existing customers since it's cheaper than customer acquisition. Stores can optimize bundling strategies through discount options to further maximize sales and profits.
» Try these 4 easy Excel discount formulas for your e-commerce store
How Does Shopify Bundling Work?
Product discount bundling is a marketing strategy in which retailers combine multiple products to offer a lower price than if each item were purchased individually.
You can easily enable product bundling for your Shopify store with the following process:
1. From your Shopify admin dashboard, go to your products page and select "create new product." This will be the parent product for your bundle.
2. Create a variant for each of the products you wish to include in the bundle. Be sure to set the inventory for each variant to zero so that customers cannot buy the products separately.
3. Make a new collection and call it "Bundles."
4. Include the parent item (from step 1) in this collection.
5. Turn on collection discounts. This is done in the Shopify admin dashboard > Sales channels > Discounts.
6. Create a new discount with the type "Collection."
7. Finally, pick the "Bundles" collection you created. Specify the amount or percentage of the discount and save your adjustments.
Keep Track of Product Performance With Ease
Get an easy-to-access overview of your product profitability and pricing performance from one dashboard.
- Gain insight into your real profit per order.
- Easily identify your most profitable products.
- Access data from anywhere using mobile or desktop devices.
BeProfit allows you to integrate multiple Shopify stores for an aggregated view of your business performance. So, you can make informed discount bundling decisions to help improve your revenue and profits.
» Find out ways to boost product profitability for your e-commerce store
Techniques to Optimize Your Shopify Discount Bundles
To optimize discount packages, you can use various tools, like Shopify apps, and customize your approaches in the following ways.
Create Urgency
Discounts can increase urgency by creating a sense of scarcity or limited availability. For example, offers that last only for a holiday weekend can encourage customers to take action and purchase before the discount expires.
This sense of urgency can:
- Significantly improve store conversions
- Boost customer satisfaction because of discounts
- Increase store revenue because customers may be more likely to buy higher-priced items to take advantage of discounts
Emphasize Savings
Jonah Berger, a marketing professor, suggests the Rule of 100, which states that dollar savings tend to be more effective on higher-priced items, and percentage savings are more effective on lower-priced items.
Discount shipping rates can also help highlight savings. The Wall Street Journal reports that customers are four to five times more likely to buy when free shipping is available.
Making the overall cost of your package more attractive can help because:
- Customers are more likely to purchase
- Revenue improves
- Profit margins increase
Keep Monitoring ROI
Once your discount bundles are in place, it's key to evaluate their performance and your ROI. This can offer useful insight that can be used to improve sales, such as:
- Identifying how cost-effective the discounts are
- If the current discount strategy results in good conversion rates
- Ensure the discounts aren't leading to massive revenue losses
- Make informed changes to discounts and bundling techniques
Target and Personalize Bundles
Creating personalized discount packages can be more effective for your store as it allows you to meet the needs and preferences of individual customers. This can be done using data, such as:
- Browsing habits
- Purchase history
- Wishlist items
Implementing personalization into discount bundles can increase customer satisfaction and retention because customers may feel understood and valued. Ultimately, this can encourage higher AOVs, which can boost revenue.
Bundle Related Items
If unrelated items are bundled together, discounts may not be effective. For example, combining expensive items with inexpensive items may make customers less inclined to buy if they are only interested in one item.
By bundling related items that complement each other, businesses can
- Increase the perceived value of the bundle
- Encourage customers to purchase more items
- Improve revenue even when the bundles are discounted since AOVs may be higher
Bundling Types
- Pure bundling - Two or more products are sold together as a single unit at a lower price than if purchased separately. This can encourage customers to purchase more than one item, thereby increasing sales and revenue.
- Frequently bought together - Items that are commonly purchased together are bundled at a discount. Using data to identify which items are commonly purchased together, you can imply suitable bundles, which can up AOVs.
- Buy X, get Y free - Customers receive a free item when they purchase a certain quantity of a product. This can incentivize customers to purchase more, increasing sales and revenue.
- Cross-selling and upselling - Customers are encouraged to purchase related or upgraded items in addition to the item they're already purchasing. This can boost AOV, add personalization, and increase revenue.
» Need help? Check out these proven tips you should try for boosting Shopify sales
Boost Your Shopify Store's Bundles Strategically
Practical discount bundling can have a significant impact on a store's bottom line by increasing the AOV, improving customer retention, and driving sales. Through implied urgency and personalization, among other tactics, you can optimize your discount bundling strategies. Then, using platforms like BeProfit, you can monitor the performance of your strategies and make informed adjustments to ensure you're staying profitable.
