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What is Virtual bundling in E-commerce: Advantage of Virtual Bundle

What is Virtual bundling in E-commerce: Advantage of Virtual Bundle
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Have you ever wondered how certain “bundles” or “packages” on e-Commerce platforms are created? Sometimes, they’re bundled up with products of similar features; or new products of the same type you have never tried (for example, different flavoured chips!). Regardless, these bundles are often priced at a very good deal which can be tempting for customers to add into their cart for checkout.

Now, this strategy is called virtual bundling—and it is when a business groups together related products under one SKU. And turns out, the process is actually very simple when you have the right system helping you out. With just a few clicks, you can mix and match products available on your e-Commerce platform and “virtually bundle” them up. Often, e-Commerce businesses will use an inventory management software with e-marketplace integrations to help them out.

Advantages of Virtual Bundling

But before we jump into introducing the system, let’s look at some of the Advantages of Virtual Bundling.

1. Efficient Inventory Management

One great way to clear out stock or slow-selling products is by offering these products in bundles of hot-selling products. But keep in mind that you should only bundle one or two of these products and they must be related, or else customers will simply scroll away thinking that these deals are just a desperate sales attempt. Make sure you keep this thought in mind when choosing products for your bundle deals! If you’re ever in doubt, remember the rule of “bundle main products with related accessories”, and you’re good to go!

2. Flexibility

Whenever sales or holidays seasons are approaching, chances are your e-Commerce business is busy coming up with deals and promotions to hike up your profits. Virtual bundling is a great way to help you achieve your goals, as you can find your most popular seasonal products in inventory management systems and bundle them up under a single SKU (hooray to lesser clicks!). In addition, this flexibility allows you easily meet customer needs and change up your bundles accordingly. And in the long run, your e-Commerce business will have no problems managing any sales or holidays fluctuations.

3. Increase Sales

The first thing that customers would want to see on bundles are its discounted prices compared to adding in each individual product. Now, this is because bundles give customers a feeling that they’re saving on discounts and getting more from this deal—which is the whole concept that virtual bundling is founded upon. Remember to offer real value through your bundles (making sure there’s savings) because when you have good-selling bundles for your e-Commerce business, sales and profits will be rolling in. 

4. Convenience

Knowing e-Commerce customers, they have probably browsed through many other e-Commerce stores in search for the best deals for their desired products. By offering pre-packaged or bundled products, you’ll be presenting your customers convenience and chances are, they’ll be more than happy to add your bundles into their shopping cart as opposed to your competitors. However, make sure that you are adding in related products to your bundles to ensure consistency. After all, it wouldn’t make sense to bundle up a bag of chips with canned peas right? 

5. Customer Value

Did you know that bundles actually increase the perception of value? This is proven by two smart individuals from Havard Business School who found out that bundling for games, especially when customers are given a choice has helped gaming businesses secure sales (in this case, sales went up to 100,000!). Before you head into selecting your products for bundling, make sure you find out which are your most popular products and pair them with related items to make it more appealing. Other than making your bundles feel more “natural”, this strategy will ensure that customers are getting the most value out of their money.

Easy Virtual Bundling for your e-Commerce Business

Having understood the process and benefits of virtual bundling, we know that you can’t wait to get started. As pioneers of e-Commerce in the region, we offer end-to-end-e-Enabler services for various brand and retailers encompassing all major areas of e-Marketplaces. Trust in us as we at iStore iSend have the right logistics and technologies in place to help your e-Commerce business handle virtual bundling. With just a few clicks, you’ll be able to create and customise bundles for your e-Commerce business on our easy-to-use and comprehensive ODIN system.

We love to hear what you think or have in mind for your e-Commerce business. Reach out to us now and let’s have a chat over Virtual Bundling!

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