A product bundle is a combination of several products that are sold to a customer as a combined package. A simple example of a beauty and cosmetic brand product bundle can be a combined package of a face wash+toner+moisturizer.
Product bundling can enhance customer experience and increase the Average Order Value (AOV). As a McKinsey report mentions, 35% of purchases at Amazon come from recommendations made through product bundles.
So, as a cosmetic and beauty brand retailer, if you're looking for ideas to boost sales through product bundles, we have got you covered.
What are Beauty and Cosmetic Product Bundles?
Beauty and cosmetic product bundles are a strategy that brands use to combine two or more items from their product list to create a package for their customers. Products can be clubbed based on the issue they address, customer affinity, or relevance.
For example, bundles can be made based on different skin problems the products solve or product affinity based on the interest of the customer.
Product bundling benefits both brands and customers. Let's see how.
Benefits for brands
Improve AOV: By bundling relevant products together, you can offer better pricing than if they are purchased separately. This creates a value perception for the customer, who is likely to spend more than they intended. Bundling also offers cross-selling and up-selling opportunities that increase the AOV.
Avoid the risk of deadstock: Product bundling is an effective way to sell off low-selling products by bundling them with high-selling products. Thus, you can avoid the risk of piling up deadstock and manage your inventory effectively.
Improve sales: Effective product bundling strategies can improve sales, especially when competitors are not selling the same product as a bundle.
Discounted price: Brands often offer discounted prices on bundled products. This strategy appeals to price-sensitive customers as they can save a few bucks on purchasing a bundled product.
Streamlines the purchasing process: Product bundles streamline the purchasing process for the customers. Instead of browsing multiple products and comparing features and prices separately, customers can buy the products in one go.
Saves time: It also exposes customers to new products they otherwise wouldn't have known. Product bundling saves customers time and effort and offers a smooth transaction experience.
Effective Product Bundling Strategies for Beauty Brands
If you’re ready to try product bundling but unsure of which strategy to use, here are some product bundling strategies for inspiration for your beauty and cosmetics brand.
This is an effective bundling strategy where you combine products often purchased together to offer convenience and value. For example, if you notice that a customer who purchases a moisturizer also buys a cleanser, you can safely bundle the two products together in a package.
But how do you know which products customers usually buy together?
Analyze your past customer data and purchase history to identify patterns.
Create product bundles based on your findings.
Offer the product bundle at a discounted price or promote the benefits of buying the two products together to boost sales.
You can create bundles tailored to customer preferences, like skin type or beauty goals. Creating product bundles based on customer interests increases the chances of sale because the products are targeted towards the customer’s intent and create an emotional appeal to the customer. For example, you may want to create custom skincare routines for different skin types.
In this product bundle strategy, you allow customers to build their bundles from a selection of products. For example, a customer might want to build their monthly skincare regime.
Enabling customers to build their own product bundles empowers them to lead their shopping experience. It also saves time for the customers as they don't need to browse endlessly through all the product pages. Rather, they can choose their product and shop for them in one go.
Here’s an example of a brand that enables its customers to build their own makeup kits.
Pairing complementary products is an effective bundling strategy that lets you buy products that enhance each other's effectiveness. As all customers might not be aware of all the products available to help them reach their goals, this strategy gives them a comprehensive solution.
Increasing customer awareness is this strategy's primary goal, which eventually leads to more sales for the brand.
For example, a cosmetic brand might offer complementary product pairings of lipstick and lip liner sets.
By creating beauty product bundles based on specific beauty goals or needs, you make the shopping experience convenient for the customer. For example, an anti-aging skincare set might appeal to a customer who is looking to address the needs of their aging skin.
Creating promotional bundling like 'Buy One, Get One Free' or discounts for bundled purchases creates an urgency that prompts the customer to buy and explore new products and creates positive brand advocacy. For example, consider BOGOF offers of seasonal beauty products.
Such bundling strategies create a perception of added value for the customers and create a sense of urgency and scarcity that ultimately boosts the overall sales volume and increases the AOV.
Clearance Bundles for Old Inventory
This bundling strategy focuses on creating bundles of older stock at discounted prices to clear inventory. Brands usually adopt this approach when their inventory is old or needs to be cleared out to accommodate new stocks.
Customers benefit through this type of bundling because they can buy multiple products at a reduced rate. The discounted price creates a sense of urgency to avail of the deal for a limited period of time. This helps to boost sales for the brand.
Subscription-Based Bundles
Customers invested in beauty and cosmetics products often follow the same regime for at least a few months. Offering these customers with subscription options is a good way to keep them engaged to your brand for 3-6 months.
Ensure the customer receives the same set of products at a regular interval, offer them discounts to encourage them to buy subscriptions, and promote the benefits of sticking to the same products so that they don't explore other brand products during this time.
For example, try offering monthly beauty box subscriptions.
Has this already piqued your interest? Then here’s the success story of a beauty brand that has successfully strategized its product bundling offers to skyrocket its sales by $ 17,221.79 in 30 days.
Lathr, a handmade personal care brand for men, was struggling to introduce its store visitors to its entire collection.
And as the business grew, it became difficult to introduce personalized product bundles based on customer intent. This is when Lathr started partnering with a product bundling app for their Shopify store and installed Easy Bundles by SkaiLama.
With SkaiLama, Lathr could easily set up two types of product bundles on their Shopify store.
Now that we know the different product bundle strategies and the results it can achieve when done right, let’s see how you can successfully implement them for your beauty and cosmetic brand.
Combine fast-selling products with the slow-selling ones.
By combining a fast-selling product with a slow-selling one, you can avoid the risk of having a dead stock while helping the customers find your best-sellers.
Calculate the stock sales ratio to identify the slow-selling products and pair them with products that get you the maximum revenue.
However, do not just match products based on their popularity alone; keep relevance in mind, too, while paring.
Give a fun name to the combo
Give a fun name for your bundle combo that grabs immediate attention instead of using a generic name. Here’s an example of a brand that pampers its customers with a combo name: “You deserve it all.”
Solve a problem
Promote your bundles to solve a unique problem that your customers may have. Be specific about what's included in the bundle, why it's beneficial for the user to buy the bundle, and how to use it together. Be specific on how much one can save by buying the bundle.
Time to bundle up!
The ultimate goal of every beauty and cosmetic brand is to increase their sales while building a positive brand experience for their customers. Creating a product bundle is a great way to upsell by logically combining various products together.
Product bundling does not just help to increase the AOV; it also helps reduce marketing and fulfillment costs, boost loyalty, and avoid the risk of dead stock.
Product bundling helps to grow your business, so why not give it a try? You can take ideas from the different bundling strategies mentioned here or explore different innovative bundling strategies to enhance your brand's value and customer experience.
Irrespective of the product bundling strategy you choose to use, SkaiLama's Easy Bundles make it seamlessly easy to build product bundles on your Shopify store. It's easy to set up multiple types of bundles in your store, along with additional features like customizable layouts and gifting options with greeting cards, gift cards, and more.
FAQs
1. How do I know which beauty or cosmetic products to bundle together?
Analyze your customer purchase history to identify frequently bought items and most in-demand products and create bundles based on skin types, concerns, or product categories for best results.
2. What type of discount should I offer on my bundles?
The discount type should depend on your profit margins and customer expectations. Consider whether you want to offer fixed discounts, percentage discounts, fixed bundle price discounts, product-specific discount-based, or tiered or volume discounts on bundle size or value.
3. Can product bundling help me reduce inventory?
Yes, product bundling can help you move slow-moving products by combining them with popular items. You can track inventory levels for individual products and bundles, allowing you to optimize your stock accordingly.
Heading
×
Neetika M
Neetika is the founder of Skai Lama. Passionate about building SaaS, Product Development, and Marketing, she talks about eCommerce Growth, Product Bundling, Gifting, Retention, and Shopify.
Boost AOV with Easy Bundles
All-In-One Bundles: Bundle Builder, Box Builder, Build A Box, Gift Box Builder, Mix and Match Bundle
Boost AOV with Build your own Bundles and Gift Boxes!
Boost AOV with Build your own Bundles and Gift Boxes!
Easy Bundles is a seamless Bundle Builder, Build Your Own Bundle, Gift Box Builder app that offers Fixed Price Bundles, Discounted Bundles, & Mix & match Bundles.
Easy Bundles is a seamless Bundle Builder, Build Your Own Bundle, Gift Box Builder app that offers Fixed Price Bundles, Discounted Bundles, & Mix & match Bundles.
.webp)
.png)
.png)
.svg)
.svg)
