When you bundle your Etsy products, you sell more with every order. And when you sell more, your business makes more profit. So if you want more cash in your pocket, here are 5 reasons you should start bundling products in your Etsy shop.
Here’s how it works: Instead of customers buying one item with every purchase, they buy multiple. It sounds pretty easy. But there’s a little more to it. Keep reading to see why you should consider bundling your Etsy products and the best ways to do it.
What does it mean to bundle your Etsy products?
Essentially, product bundling combines two or more items under one order. So instead of customers buying one product with every purchase, they have the option to buy a bundle to get two (or more) products at a discounted rate. This creates value for your customer, increases the desirability of your listings, and helps you move more products at one time.
The benefits of bundling products have been around as long as there’s been trade. Department stores creating couples’ gift sets around Valentine’s Day is a perfect example of an effective marketing strategy that gives customers more bang for their buck.
The idea of bundling Etsy products gives customers the feeling of saving money when buying two or more products versus buying the two items separately. But in order to offer real value to your customers, they’ll need to save money — not just think they did.
In addition, the popularity of bundling items together leans on the fact that consumers often compare prices before committing to a purchase – something ubiquitous on a niche marketplace like Etsy!
Here are 5 reasons to bundle your Etsy products and start selling more to your customers.
#1. Bundling Etsy products increases your average order value (AoV)
Average order value is a business metric that’s vital for you to understand if you want to maximize your profits.
The higher your AoV, the more customers spend at your shop each time they make a purchase. And since bundling your Etsy products gives customers more value for their money — they’re more susceptible to spending more in your shop with each visit.
When customers know they’re getting a good deal by buying more for less, they’re ok with spending a little more money than they originally intended.
#2. Bundling Etsy products improves the desirability of your listings
Bundling your Etsy products makes it easier to market your discounted items as a sale. Which of these social media ads looks better to you?
As you can see, it’s more effective to make a social media post about a socks and boxers bundle in the lead-up to Father’s Day than to make an individual post about both.
This is because you’ll spend the same time marketing two products as you would for one of the products in that bundle.
What’s more, you’ll also save on shipping and packaging costs.
#3. Bundling Etsy products helps you move more products
Products you make in bulk, then leave on shelves to sell sometime in the future don’t always move as fast as you want. This is known as dead stock, which ties up money in holding costs.
If you can’t sell those products, you’ve wasted time and money creating them.
In eCommerce, it’s common to see fast-moving products bundled with slower-moving products. The goal here is to move your dead stock out with your already-selling products.
If customers see that you’re offering a highly desirable product that comes with an extra “gift” that’s only a few bucks more, you may find that they’ll opt for the bundle.
#4. Bundling Etsy products makes the decision-making process easier
Analysis paralysis is something that buyers on marketplaces like Etsy often face: “There are too many options. I’m not sure if I’m making the right decision, so I won’t buy anything.”
But by creating bundles, you’re simplifying your listings while providing extra value for each purchase. For example, an Etsy buyer that sees your bundle in search results next to a competitor’s stand-alone product will often learn to purchase the listing that comes with more.
If you haven’t already noticed a pattern, consumers love a deal. And they’ll often make their purchases solely on whether or not the product they’re buying is offered at any level of a discount.
#5. Bundling Etsy products simplifies your workflow
The previous point simplifies the buying process for your customer, but this point is how bundling simplifies the selling process for you.
Bundles help make the sales process more efficient for your customers, making the back-end process much easier for you.
Think about it this way: when you control which products are bundled in your Etsy shop, you can hone in on the listings you’ll fulfill most often. And when you worry less about which variation of products customers will most likely purchase, you can streamline your workflow for your inventory items that are always going out the door.
In short, bundling products gives you less inventory management to fumble over during the order fulfillment process.
Ways to bundle your Etsy products
Now that we know why product bundling is so powerful, let’s look at the different ways to bundle Etsy products in your shop.
Offer multiple products as gift sets
Etsy is a trendy marketplace for buying quality gifts for anyone meaningful in your life. For example, if you know your products are aimed at a target audience that’s frequently on the gift-receiving end, bundle your most popular products and sell them as a gift set.
Combine these products with unique packaging, gift-wrapping, an unboxing experience, and a hand-written greeting card.
Now, you’re not only selling ready-to-give gifts but also adding an additional convenience that’s unmatched by most sellers on Etsy.
Buy one, get one free
Do customers typically buy more than one product from your shop? Or do they buy one item during your peak season, and you never hear from them again?
When sales are slow and the orders aren’t coming in, think about bundling two high-quality (but inexpensive) products together and selling them for the price of one. And once you have a new customer in your eco-system, you can encourage them to purchase from your shop again (for one of your more expensive items) during your busy holiday season.
Bonus points if you can get this customer to subscribe to your email list so they’ll remember you when they return to Etsy to buy something else.
BOGO is a concept that works very well with fast-moving consumer goods and other relatively inexpensive products that move fairly quickly.
Last chance sales
How often do you employ sales for end-of-season or low stock? These sales periods offer a great opportunity to bundle items together. For example, if your shop is doing away with a certain product line, you can bundle your remaining stock to help them move more quickly.
Again, this is an excellent way to sell your usual products at a higher profit margin while unloading some dead stock at a lower profit margin.
Cross-sell products from your Etsy shop
If you know your customers well, you know how your product provides them with a solution.
As a result, you may find that you’re selling complementary products that aid in the solution your customer seeks. For example, a mouse pad and a laptop bag.
Bundling these products together works well when you have a main “expensive item” and a “gift item” that comes with the set — such as a new cell phone and a phone case.
When you market this bundle as getting a cheaper “free” product, customers will be more inclined to go with your listing that is seemingly giving something away.
Offer simple bundles only.
What’s your most popular product? Consider bundling it with a new product that doesn’t sell as much, then remove that standalone listing.
When you make a popular product available exclusively with a new product, you bank on the popular product to help you get your new product line in the hands of more customers.
Offer Etsy’s Free Shipping Guarantee
Of course, we had to mention Etsy’s free shipping guarantee. While this isn’t a method of bundling your products on the listing side, this aids in delivering the same result: more sales.
If you sell products at a total value of less than $35, you can encourage shoppers to purchase multiple products until they reach the threshold for free shipping. So if your products fall in the $1-$12 range, your customers will need to purchase 3 or more to get free shipping on their order.
And if your customer has to choose between paying $8 shipping for one item or spending a few extra bucks to get more items AND free shipping, they’ll choose the option for free shipping more often than you think!
Over to you
Bundling your Etsy products together is a great way to stand out from your competitors.
With some research into your market pricing, your product bundling can significantly impact your brand’s revenue and pass on more value to your customers.
Do some testing with product bundling and find what works best for your Etsy shop and your customers!