[New Era] Bundles AI: Auto-generate & sell the best performing bundles 🤖

Shopify Product Bundles: Ultimate Step by Step Guide to Bundles in 2023 [+ Examples]

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When done right, bundling your products is a highly effective strategy for increasing your average order value (AOV) and your store’s revenue. Today, more and more merchants utilize Shopify product bundles to sell more products.

So, how do you create bundles that are optimized for conversions? Our ultimate guide to product bundles has all the details you need.

Let's Dive In. What are Shopify Product Bundles?

Shopify product bundles are designed to help merchants upsell and cross-sell products to their customers. Upselling is the act of offering your customers more items to add to their cart for a better deal than they would get when purchasing a single item. 

It’s important to note that a “better deal” does not necessarily have to mean a discount – if you are offering additional products that add great value to your customer, this is a deal in itself and one of the key components of a great upsell strategy.

Product bundles on Shopify use leading and efficient tactics that expose your customers to more of your products (and often more discounts) that they a) will be interested in based on the products they intend to purchase and b) could benefit from.

A giftbox bundle from thegreenmumma.com

Why Should you Care About Bundles?

If your store’s sales are doing well, your products are popular,  and your customers are overall satisfied, that’s a great start. However, you may not realize just how much revenue you’re missing out on by not offering product bundles. 

Of course, it’s hard to see something that’s missing, but almost every merchant that sets up bundles throughout their store sees incredible results. 

For instance, one company was able to increase their average order value (AOV) by up to 300% when offering product bundles. Another saw a 54% increase in AOV when customers purchased product bundles. 

Even if you believe your sales are in a good place, how can you know what you’re missing out on? That’s why we recommend Shopify product bundles to all merchants who are ready to bring their store to a higher level of revenue.

A mix and match bundle from mynaturebookadventures.com

Shopify product packages are an essential tool for Shopify merchants, because they create numerous upselling and cross-selling opportunities. Gaining new customers is a crucial aspect of growing your business, but it’s also very expensive, and shouldn’t overshadow the importance of your existing buyers. Especially when you consider that the probability of selling to an existing customer is 40%-60% higher than selling to a new customer.

That’s a pretty big number, and it actually makes sense. As a customer, concentrating all of your shopping needs into one place can save you significant time and money (particularly when it comes to shipping costs), and makes your shopping experience much more convenient, flexible, and streamlined. 

As for the merchant, upselling and cross-selling deals create long-lasting and loyal relationships with your customers, increasing the chance that they will come back to your store. More importantly, selling to existing customers is great for improving your return on investment (ROI) rate. You will spend less money on attaining new customers, but still gain more revenue on larger-scale sales.

A three-pack product bundle from phasezeromakeup.com

All of these provide a win-win situation for both you and your customers. Customers are offered personalized, complementary and recommended products that are cleverly suited to their shopping style, all wrapped up in a discounted bundle. You are selling more products to each customer, increase your AOV and boosting your store’s overall revenue.

Shopify product bundles are suited for a large variety of industries – fashionbeautyconsumer goodshome design and even food & drink. Each one of these industries can reap the benefits of offering their customers product bundles in their own unique way. 

For example, a tech merchant can offer a bundle deal of a PC, screen and computer mouse. Or, a wine dealer can offer their customers the option to buy any 3 types of wine for a 15% discount. The options are pretty much endless, but it’s important to choose the right products to bundle.

How Should you use Shopify Product Bundles?

Shopify product packages work well when they are displayed throughout your store. Where you display your bundles will depend in part on your store layout and the journey your customers take as they navigate through your various pages. Some areas of your store where deals can be most effective include:

The question is, which location is the best for Shopify product bundles? The answer depends partially on the type of product bundle you are offering. So, let’s take a closer look.

The homepage is a great place to put BOGO (buy one, get one free) deals. BOGO deals can be extremely effective and are a great way to incentivize customers to purchase more products. Therefore, it makes sense to lead off with them on your homepage. Research has shown that 66% of consumers indicate that BOGO deals are their favorite bundle deal. Moreover, 93% reported previously purchasing at least one BOGO deal.

shopify product bundles
Example of a BOGO deal from try.pickystory.com

Individual product pages are great places for upselling strategies. Upselling involves getting customers to purchase additional products related to their original purchase. For instance, customers looking to buy a pair of shoes see an ad suggesting shoe polish. 

The customer may not have originally thought about purchasing shoe polish. However, they purchase the shoe polish because it makes sense to associate both products. According to research, upselling is roughly 20 times more effective than other strategies such as cross-selling.

shopify product bundles
dipalready.com upsells on their product pages

Shopify product bundles work very well at checkout when you suggest bundles that include a “free gift.” The idea of a free gift adds more value to the bundle. Free gifts work well at checkout because it compels the customer to finalize their purchase. This approach helps reduce cart abandonment and boosts conversion rates.

On the whole, upselling and cross-selling account for 10% to 30% of e-commerce sites’ revenue. Using Shopify product bundles is the ideal way to boost your e-commerce site’s overall revenue and profitability by upselling and cross-selling.

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Types of Shopify Product Bundles

So now that we know the importance of Shopify product bundles – how exactly do they come to life in your store? There are many types of Shopify product bundles to choose from. We’ll show you the best ways to bundle using the PickyStory app.

Automated vs. manual bundles

When installing PickyStory, one option you have immediately is to start using automated bundles. These bundles are created automatically using a unique algorithm that analyzes data of past best product combinations and creates recommended bundles based on them. The algorithm is constantly learning based on purchases made in your store and improves its efficiency over time.

This solution is great for merchants with a large product catalog. It needs some bundling assistance for bundling newcomers who want to get started quickly or merchants who are simply curious to check out which product combinations work best together.

If you want to take matters into your own hands, you can create manual bundles. With manual bundles, you can combine specific products that you wish to sell together and attach an optional discount of your choice

A matching set sold as a bundle from cipitria.com

When creating a bundle, you can choose exactly where to display it. This type of product deal is often most effective when displayed directly on your product pages. PickyStory’s bundles, by default, are displayed on the product page of all products included within the bundle. 

Manual bundles are a great solution for merchants that want to take more control over their inventory. For example, if you have an item that you want to sell more of, you can promote it in more bundles. Often, pairing a best-selling product with a slower seller is a great way to improve sales of a particular product.

Frequently Bought Together Bundles

Once the PickyStory app is installed, you can use automated bundles or create your own manual options. When you create a bundle, the default title is “Frequently Bought Together.” Customers see this displayed on product pages, below the product they are looking at (or wherever you choose to drag and drop the Bundle widget). Then, the customer can simply add the whole bundle to their cart in one click.

A frequently bought together bundle from glacierpeakholistics.com

Displaying products that have been bought in the past together with the product that the customer is viewing is a great use of social proof. You can probably identify with this philosophy. When seeing that others have bought certain items along with the one you are interested in, it raises the thought – maybe I need these items as well? While you can, of course, change the Bundle title, “Frequently bought together” is a powerful and highly effective phrase.

Moreover, this bundle is great for exposing customers to related items they may not have been aware that you had in your store. This feature is used by top e-commerce merchants such as Amazon, and it has even generated up to 35% of their sales.

Mix and match product bundles

Selling mix and match product bundles is a good solution for selling related products without forcing your customers to buy items that they don’t want. This offer is made by giving your customers the option to choose a combination of different products in one bundle. 

shopify product bundles
glow-fashion.com uses PickyStory to offer entire outfits as bundles

For example, you can offer your customers a deal to buy any combination of a bronzer, lipstick, and eyeliner for 20% off. This offer gives your customer a big incentive to go ahead and purchase a whole new makeup kit rather than that one beauty product. This strategy works for any industry. It’s just a matter of applying the same idea to your specific products (and customers). 

Variant-based bundles

A variant-based product bundle is another great way to give your customers flexibility, but without giving away too much. These Shopify product bundles let your customers choose from different variants of the same product before adding the bundle to their cart. 

For instance, when selling a bundle of 5 t-shirts, customers can choose which size, color, or how many of them they want to add to their cart. With the PickyStory app, you also have the option to limit the items in the bundle according to your preferences. 

For example, you can adjust the maximum number of each item the customer can add to the bundle, giving you more control over your inventory. You can also lock the quantity of a specific product so that a customer can’t adjust it within the bundle.

Product kits and tiered pricing bundles

Shopify product kits are a bundle type that makes great use of these previous features’ best aspects and maximizes them. With product kits, you can sell products on a larger scale while providing tiered prices

This means that you can offer several different levels of discounts for the same bundle of products, giving you a wide range of options. Let’s say you want to offer a discount on different combinations of bed set items. Here are some product kits discount examples:

By offering volume discounts, the customer is more likely to find a discount that is suits their shopping preference and that will be hard for them to refuse.

A product deal with volume discounts from samarbags.com

Combo products and bundles as products

Present your customers with bundles that offer combinations of different products. This type of bundle is great for merchants selling items that go together with other items, such as a game console, an extra joystick, and a game for 25% off. 

One of the huge benefits of this type of bundle is that customers don’t need to search your store or any other store in order to find what they need. You can present the whole package on one page – all they have to do is click on the “Add to Cart” button, and they can buy all products together. 

With PickyStory, you can create this type of bundle using the “Bundle as Product” feature. Bundles as products allow you to aggregate several different products and sell them as a single product in your store. Because it’s just like a regular Shopify product, you can add the product to your collections, advertise it across your marketing channels, and so on. 

top shopify stores
A PickyStory Combo Product from pairofthieves.com

This deal is particularly powerful for merchants. Because these bundles look like regular products, your customer doesn’t have to “opt-in” to the upsell deal. There’s just one add to cart button, which applies to all products in the deal. What’s more, when you create this type of bundle with PickyStory, your inventory is properly tracked for each product at the SKU level. The bundle can’t be sold if one of the components is out of stock. 

shopify product bundles
A PickyStory Combo Product from lushdecor.com

BOGO bundles

‘Buy One Get One’ bundles are a classic and efficient upselling strategy. Offer a free or discounted product when the customer buys another product for full price. This is a useful bundle to use when you have a product that is not selling as well as you hoped. For example – “Buy 2 pairs of sunglasses and get 50% off reading glasses for a limited time”.

BOGO bundles are also a great way to hand out free brand merchandise. For example, offer customers a free tote with your logo when they spend $100. The customer will not only be urged to increase their order value, but will also be walking around and representing your brand – an easy win-win!

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Discounts and Shopify product bundles

Discounts are a powerful way of incentivizing customers to spend. On the surface, discounts seem like a surefire way to entice customers to buy. But are they truly effective? Let’s take a look at some numbers to answer that question.

Based on these figures, it’s easy to see why discounts are so effective. Discounts are embedded in customers’ minds. So, let’s take a look at how you can map a discount-based strategy for your product bundle pricing.

Discount type Example
Percentage-based discounts: Buy X and get 10% off
A home and garden brand offers customers 10% off hoses with the purchase of a lawnmower.
Target price: Buy X + Y + Z for $150
A luxury brand offers $150 off with a minimum purchase of $1,200.
Buy one get one FREE
A food brand offers a free pound of coffee with one purchase at the regular price.
Spend over $200 and get X for free
A cosmetics brand offers a free nail polish kit for every purchase over $200.
Fixed price discounts: Buy X + Y + Z and receive $100 off
An electronics brand offers $100 off with the purchase of a computer, printer, and monitor.
Spend over $300 and receive free shipping
A watch retailer offers free shipping on orders over $300.

Build an Upselling Plan

With all of these different product bundle options, it’s important to make sure that you upsell in a manner that suits your store’s style in the best way possible. We recommend planning out your upselling strategy to make sure you see this goal through. Here are five steps to take when building an upselling plan:

1. Identify which products you can link to your catalog. Please remember that building an effective upselling plan entails finding items that directly relate to one another. 

2. Spread your upselling strategy throughout your site. Highlight the best deals on your homepage. Then, use pop-ups or banners on product pages to display recommended and suggested products. Lastly, offer quick deals on your checkout page.

3. Figure out the type of offer you plan to use. For instance, you can go with a BOGO deal or a dollar amount off.

4. Decide when you plan to run your deals. Please avoid running too many offers at the same time. 

5. Measure your store’s overall performance to determine which deals have worked best for you.

Define your target customer

Who are the people interested in your product? Adults or teens? Which end of the market are your products aimed at? Each type of shopper has its own buying characteristics. Determine who your main target audience is in order to focus your upselling techniques in a way most suited for them.

It’s crucial for your brand to have a clear target customer in mind. Otherwise, it may become extremely difficult for you to target your offers and deals toward your target customer. The question is, how can you define who your target customer is? The answer to that question depends firstly on your brand.

For instance, fashion brands market their items based on perceived customer preferences. Their marketing may target a specific demographic such as older customers. However, deeper market research may prove that a different demographic is the main driver of your products’ sales. 

So, how can you find out who your target customers are?

There’s a simple way to find out: ask them! Brands often reward their customers by asking them to fill out surveys in exchange for a discount code or coupon. In that survey, ask your customers the following questions:

Ultimately, your survey should gather the information you need to make branding decisions without being too invasive. Above all, reward your customers for giving you such valuable information.

Think about your customer's needs

What is your customer looking for when entering your shop? The goal of upselling is to have your customers exit your store without missing anything. Map out exactly what your customer needs beyond the target product. A product bundling example may be if your customer is buying a camera, you want to make sure they also buy a tripod, a strap, a case, batteries, and so on.

Make your offer a win-win deal

The next step is important in making sure that you reap the benefits of upselling. Offer your customers deals that are profitable for both sides. Upselling allows you to sell more products for less effort. This increases your AOV and return on investment (ROI).

Further, offering valuable deals to customers increases conversion rates and loyal buyers. Meanwhile, your customer receives awesome deals on products they showed interest in, or are likely interested in, and maybe weren’t aware that you had in your inventory. 

Pooling all of these items in one place and giving customers the ability to add them to their cart all at once makes their shopping experience smoother and more convenient.

shopify product bundles
zenbivy.com offers complete bed bundles with PickyStory

Map all the upsell points for product bundles

Upselling is at its prime when done at the right place and time. Doing it wrong may disrupt your customers’ experience and come off as a little too pushy. This reason is why it’s important to map out your shopper’s journey through your store and find the best upselling points. 

So, let’s take a look at the various point in which you can place offers and the type of offers that would work well.

Location Type of deal
Showcase your most popular deals, and showcase a variety of deals as your customers may not be interested in a specific product this early in the journey.
Individual product pages
Suggested and recommended products should go in this section. Make sure they are related to the product on the page itself.
Cart page
Offer more specific deals based on the specific products your customer has in their cart. It’s also a great time to incentivize free shipping.

Establish your goals

Every master plan needs to aim toward a certain target. Creating goals throughout your retailing journey is vital when it comes to taking your store to higher levels. Try to determine where you want to see your store in the near future. 

Here are five specific goals to keep in mind when planning your sales strategy:

Increase sales. Short-term sales generally increase when brands launch special sales promotions. Setting a modest goal like a 5% month-to-month increase helps set a target. As your sales increase, you can gauge whether or not your target is realistic.

Boost revenue. With a bump in sales, you can expect a boost in your revenue. While it may be difficult to predict a specific amount, you can link your project revenue boost with your sales increase. For instance, a 5% increase in sales should represent a 5% increase in revenue.

Attract new customers. Sales promotions may entice visitors to follow through on purchases. You can track your site’s conversion rate to measure this performance. This metric compares the number of unique visitors with the number of unique sales. The result should give you a glimpse of your promotions’ effectiveness. Anything about a 1% conversion rate is an encouraging sign.

Build customer loyalty. While attracting new customers is important, so is keeping existing ones. Your conversion rate can help you determine if your existing customers continue purchasing. By tracking your conversion rate for returning customers, you can see the proportion of your sales between new and existing customers.

Inventory turnover. Sales promotions are a good way to clear out stagnant inventory. So, tracking your inventory turnover is a great way to gauge your sales promotions’ effectiveness.

Measure your results

Make your upselling plan the most efficient by testing how well it actually worked. It’s really helpful to use an app that tracks your selling data and provides you with analytics. The PickyStory app tracks all of the sales made through your bundles, so you can see which bundles generated the most revenue for you. 

You can also easily calculate the conversion rate, return on investment rate, and average number of add to carts needed in your store to make a sale. Draw conclusions from all of the data collected in order to update your upselling tactics and create new goals.

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How to Create Shopify Product Bundles

Now that we’ve covered what Shopify product bundles are, it’s time to start creating. We’ll show you how simple this is to do with PickyStory. Here’s how to start selling bundles on your store:

Create a new "frequently bought together" bundle

Create your own manual bundles when you have product combinations that you would like to promote together. Manual bundles enable you to add specific products to bundles and attach discounts to them.

1. Enter the PickyStory app and choose “Create bundle”. Then, select “Frequently Bought Together”

shopify product bundles
shopify product bundles

2. Name the bundle (for your reference only) and save changes

3. Click on “Add product” to start adding products to the bundle

4.  In the “Discount” section, choose the type of discount you wish to use (if any)

5. Then, select the discount value and the Min. product quantity (this is the number of items that must be added to the cart for the discount to apply).

6. In the “Location” section, choose where to display your bundle by clicking on “Add location”

7. Add your bundle to an existing location, or select “Create location” 

8. Give your new location a name, and choose the relevant page type 

9. Once the location is set, return to the previous screen and click on “Customize in Designer”

increase aov with shopify product bundles

10. Inside the designer, drag and drop the widget onto the desired section of the page.

add bundles to ecommerce store upsell cross-sell

11. Click on “Save changes”. When you’re ready to push your bundle live, click “Publish”. 

frequently bought together amazon bundles
sell bundles as products shopify

Customize the bundle

To make sure your bundles match your brand and aesthetics, you can manually customize your bundles in many different ways.

Navigate to “Settings” >> “Text labels” and change the “Add to cart” text, along with all other labels. 

how to sell bundles on website

To customize the bundle widget:

After defining the bundle position (step 10 above), click on “Customization” to make modifications to the bundle’s display:

shopify build your own bundle

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Examples of Shopify Product Bundles you can Create

Top selling products

Present bundles of your top-selling products in order to create a sense of FOMO. These bundles provide your buyers with social proof, urging them to check out what the fuss is all about.

Complementary bundles

Complementary bundles are bundles made up of products that are related to each other. These could be the same items in different variants, different items that go well together, or items that are frequently bought together. PickyStory uses an Amazon-like algorithm that collects data from your store and can create these bundles automatically.

Slow sellers

Bundles are also a great way to sell items that are purchased less frequently. You can do this by creating manual bundles and adding these products to the bundle. Selling these items with better selling products and with an added discount creates a bigger incentive to purchase them. Carefully considering how you group products can have a big impact on your sales.

Promote your new collection

Use bundles to introduce your newest collection. You can create a special “New Collection Sale” and promote a bundle of your newest products with an added discount. This is great to make your customers feel like they are the first to get a peek of the newest collection and can urge customers to want to enjoy the deal before everyone else.

Promote your customers’ favorite picks as a bundle

Use your customer’s shopping data in order to create bundles based on your customer’s buying preferences. For instance, create bundles based on what your customer already has in his cart. You can also create bundles made up of items that your customer has shown interest in.

Test new products by bundling them with existing products

If you want to promote your new items, but not make it a big statement, you can integrate your items gradually into your store and add them into existing bundles. This is a great way to ease your newest collection into the store, without needing to create a big introduction promo.

Promote unique products only within bundles

If you have smaller items or any items that you don’t wish to sell one by one, sell them within a bundle. For example, offer your customers to buy a tote + a matching keychain with special product bundle pricing.

Partner with another related business to create valuable bundles to your customers

Teaming up with other merchants may seem counter-intuitive, but partnering up with related businesses can actually boost sales even more for both sides. Studies show that presenting customers with more choice based on partner merchants can help capture an additional 1%-2% conversion rate.

How to pick the best Shopify Product Bundles App?

Given that Shopify has no native functionality for offering product bundles, Shopify product bundle apps are the best way to start selling bundles online. There are numerous apps to choose from, and it’s critical to do your research and find an app that offers the functionality you require.

Questions to ask when looking for a Shopify product bundle app:

Shopify product bundles results analysis

A/B test your product bundles

A/B testing involves comparing two elements of a marketing campaign or website and testing which one drives more conversions. This is an extremely helpful tool in understanding which features you can benefit from the most. Businesses that do A/B testing to increase conversions have shown to bring in 223% more return on investment than businesses that don’t.

Set product bundles KPIs

In order to improve something, you need to know how it’s working. Key Product Indicators (KPI) are measures or landmarks that help you pave the way towards your retail goals. Use KPIs to identify and monitor which parts of your brand are working towards that goal and which parts aren’t as much. 

For example, your KPI can be: Sell 50 products for $10k in April. The app you choose to do so with should be meaningful in achieving your KPIs.

Adjust bundle locations and elements to improve results

The placement of bundles in your store may seem like a small thing to worry about, but with upselling, placement is key. Different placements target your customers in different ways. For instance, presenting a bundle straight on the homepage suits cases when you want to promote your products straight off the bat. 

Presenting bundles on the product page is better for cases when you want to gradually urge your customers towards purchasing your bundle. With the PickyStory app, you can customize bundle locations and test out which ones bring you the most conversions.

Begin Upselling with Shopify Product Bundles

Shopify product bundles are one of the leading ways to increase sales and boost revenue. After reading this article you can probably tell that this tool allows you to upsell in numerous different ways, each one utilizing proven effective tactics.

By bundling products together you create a more valuable shopping experience for your customers. They leave your store feeling rewarded – they just got more products for a better price. Customers are more likely to remember you as a brand where they can come back and keep making the best and most valuable buys.

Gaining loyal customers like these is an essential step in creating large-scale sales for a long term period. A combination of loyal customers for the long-haul is an extremely effective way to skyrocket your revenue.

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Personalize and offer deals just in time with PickyStory

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