“My product costs $10 and I find it very hard to make money with such low-priced products. Do you have any advice on how I can increase my profits?”
We do. In fact, the OpenSky Buying & Merchandising team has years of experience driving higher order value and sales from lower-priced products. The answer is very simple–bundle products together to sell your goods at a higher price point, thus increasing your profit dollars on every order.
8 Reasons Why Bundling Works
1) Bundles increase your cart size
A bundle is a prepackaged way to upsell a customer, whether they’re buying multiples of the same item or a variety of related items. The more items in the bundle, the larger the cart size. That means more profit dollars for you.
2) Merchandising with the customer in mind
You’re the expert on your products and your fans respect that. Show your personal style and how your products could be used together. Match a pair of earrings to a necklace for a unique look or bundle two different supplements that can be used together. The possibilities are endless. When you do this, you’re helping the customer connect the dots through clever and tactful merchandising.
3) Offer more meaningful discounts
With an increase in the revenue, you will have more profit dollars per order. This will enable you to offer deeper discounts or free shipping. It’ll also allow you to subsidize shipping so it’s not as costly for the shopper.
Beautifully packaged baskets are an easy purchase for someone looking to send a gift. Don’t leave it to the customers to create gift baskers on their own by purchasing products individually–think for them! Create unique bundles and baskets that help narrow in on the product that’s best for their gift recipient.
5) New Bundles = Fresh Merchandise = News to Post
Creating a new product is always newsworthy. Adding new bundles to your assortment creates fresh merchandise for shoppers to engage with. It also gives you more news to post your followers both on and off OpenSky.
Exclusive product bundles are highly trafficked and shopped on OpenSky. Naturally, customers tend to gravitate to items they haven’t seen elsewhere.
Important: Even if the individual products within a bundle are sold elsewhere, your bundle may still be exclusive to OpenSky. Bundles that are only offered on OpenSky are defined as an exclusive product.
7) No listing fees
Finally, and most importantly, OpenSky doesn’t charge listing fees, so don’t worry about being charged an additional fee for creating new products. Try bundling your product a few different ways and see what works. If you see some are working and others aren’t, you should feel free to remove underperforming items.
Types of bundles
It’s important to look at your products through the eyes of the buyer and say “If I were shopping, what would be the most practical and cost effective way to buy the items I want?” In many cases, a gift basket is a great option. Not only do gift baskets allow you to include a variety of products in custom packaging, but the inclusion of a basket allows you to add extra dollars to the retail price without adding too much cost to you. Take JAVA & Co, for example. Their “Coffee Lovers Artisan Gift Bundle” tells a story, and is an appealing and impressive way to showcase their goods.
If you sell consumable products (items that can be purchased more than once) or lower priced items, bundling multiples of a single item together may be your best bet to drive more profit dollars per order. Buttermilk did this, taking a product that costs $13 and turning it into a two pack with a slight discount. By doing so, Buttermilk is guaranteed a higher checkout price, giving them the ability to offer the product with an additional 11% off, while charging a reduced shipping cost. In the end, this is a win-win for the shopper, and helps Buttermilk drive more profit per order.
If it’s a fit for you business, offering a starter kit can be a great way to drive new sales. Oliso created a starter kit in order to attract new customers who don’t currently vacuum seal their food. This is a 10-piece kit that includes everything the shopper needs. The starter kit is merchandising done right–thinking for the shopper and making it easy for them to buy with confidence.
Assembling items by theme is another way to bundle your products. Moody Sisters Organic Skincare created a coffee-themed gift set, bundling beauty products with the same scent as a curated bundle.
Show off all your flavors, scents and colors! If you have products with variations, put them together in a variety or sampler pack so customers can try out a few options and order their favorite next time around. Check out how The Crispery created a variety pack so that customers could try four of their most popular flavors. The variety pack is by far their most popular product.
Now that you have a good understanding of how bundles work and why they are effective, try creating a few of your own. Include #bundle in your posts whenever you create a new bundle moving forward. These products will begin to show up in member- facing emails more regularly.