What is product bundling in an eCommerce business?

03/06/2020

Angela de la Vieja

Product bundling is a marketing strategy that is widely used by businesses to make consumers buy more than they had planned. It normally involves offering various related products or services and selling them together at a reduced price. This technique can be quite attractive for customers who appreciate package discounts and can make it more difficult for consumers to compare prices.

The set of products that you’re offering must be is cheaper than buying the products separately. You want consumers to feel like they’re saving by buying these kinds of packs so that they end up choosing them in the end. The main objective of this marketing technique is to create a set of products that provides more value together than apart.

The main benefits

These types of deals offer consumers a new way to save money.
If the customers feel like they’re saving money through your promotions, they’ll become loyal to your brand.
The increase in sales involved in this type of offer leads to greater stock rotation.

Types of product bundling

1. Pure bundling: this is a special promotion where you can buy the two items as a pack but can’t buy the products separately, creating a unique buying opportunity for the user.

2. Mixed bundling: in this case, consumers can purchase the items in the pack individually, but it’s cheaper to buy them in the pack. This type of strategy provides companies with a way to sell a larger quantity of products than if they were sold separately.

How to implement this strategy

Consider the needs of your customers. You mainly need to identify the needs of your customers to know what to add to your promotions.
Know what the competition is offering. Another key point is to know exactly what the competition is offering in order to be able to get good ideas about what to add to your offers.
Personalise the products for each type of client. It’s important to offer different types of packs for each type of profile. This will allow you to cover the needs of a wide variety of people.
Take advantage of the situation and innovate. This is a good opportunity to be innovative and gain an edge over the competition.
Use the freemium model. This is when you offer a product for free, which acts as an incentive for the consumer to add extras, with the option of paying a set price. This is a very good way to attract clients.

Set some limits. For this technique to be effective, you need to bear in mind that you shouldn’t include any products without value. Doing so could lead to dissatisfaction and your customers not making any further purchases in your store.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.