If you’re looking for ways to increase your online sales, you’ll be interested to know that Forrester, a leading research firm, has discovered that product recommendations are responsible for 10-30 percent of online revenue. If you’re not selling kits and bundles now, or if you could use that strategy more often, you may be able to increase your online sales with very little effort. You already have all the products you need in inventory; you’re simply presenting them to the shopper a bit differently.
What Are Kits and Bundles?
- Gardening kit: gloves, hand trowel, spade, rake, hoe, hose, loppers
- Scrapbooking kit: designer papers, tags, photo frames, templates, digital graphics
- Auto scratch repair: scratch repair pen, set of polishing pads
As you can see, if people looking for a scratch repair pen, the odds are they’ll also need polishing pads. It’s not necessary to sell these items packaged together. You can simply inventory the items separately, but present them to the shopper as a kit.
A bundle is basically the same thing, but the items are more frequently things that aren’t required but are often purchased together. For example:
- You don’t need a bookmark to read a book, but those items are often purchased together.
- You may not need a power surge protector when you purchase a laptop, but they are related.
- You may not need French fries when you order a hamburger, but they make a great bundle.
Why Do Companies Bundle Products?
Frequently, companies create kits or bundles to increase sales. Bundle pricing is often lower than purchasing the items separately, so the shopper is getting a deal. Even though pricing is lower, the company is still increasing revenue.
Bundling also gives the company a better chance of selling the products that appear in bundles. Rather than one listing on a website, the product is now listed multiple times: once as a standalone product and several more times as part of kits or bundles.
Sometimes, companies bundle items to introduce a new product to the market. Not only do these companies increase sales, but they can also increase their market share in a new product category. Other companies may bundle a top-selling product with a slow-moving one to boost sales or eliminate slow-moving inventory.
How Do Companies Bundle Products?
If you’re running an e-commerce website, the question that probably comes to mind is: Sounds great, but how am I supposed to keep track of all this inventory? It is an issue, especially when you’re selling the same products both as an individual purchase and as part of one or more bundles.
The answer is that you need a flexible inventory, order and warehouse management system that can handle kits and bundles with ease.
Zenventory Can Help
The Zenventory system allows you to designate specific product SKUs as “kit masters.” The kit master SKU produces a bill of material showing the component SKUs that should be included when the kit or bundle appears in an order.
Zenventory will accurately track the number of components that are in stock and whether they’re being sold as part of a bundle or as separate items. In addition, you’ll be able to track the total number of kits that can be sold based on the in-stock inventory of all the components. It’s an easy way to manage the kit/bundle strategy by keeping an accurate inventory, regardless of the order types you use.
Find out how Zenventory can help you use kits and bundles to increase sales while easily managing your inventory. Schedule a demo today, call us at 1-800-268-6296, or drop us a line for more information.