Everything You Need to Know About Bundled Discounts (2024)

Did you know that Coca-Cola was the first ever company to introduce and offer discount coupons for free drinks to its customers in 1888? By 1913, the beverage behemoth had used more than 8.5 million of these discount coupons and skyrocketed its sales.

Discounts are an excellent way to grab a shopper’s attention and drive higher business sales. They serve as a bait to persuade customers to make the purchase before the offer is gone. While this psychological nudge has proven to be highly effective and beneficial for decades, offering the right kind of discount coupons at the right time is what makes or breaks the game. One such type is the “bundled discounts.”

Although brands today have the leverage to choose from 1000+ discounting configurations, in recent times, bundled discounts have proven to be an all-rounder.

In this blog, we’ll delve deeper into the concept of bundled discounts, the advantages and disadvantages of this discounting strategy, and how to set them up using GoKwik.

Read More: Maximise Black Friday Sale Profits With GoKwik’s 200+ Discount Configurations

So what makes bundled discounts so popular among eCommerce brands these days? Let’s dive deeper.

Take a look at these numbers:

These statistics and figures are telling one truth - shoppers cannot resist a good discount deal.

Here, bundled discounts serve as an excellent way to not only incentivise shoppers to purchase larger quantities of products at once, but give them a sense of achievement as well.

By offering reduced prices for purchases made in bundled form, shoppers get motivated to buy more items at once to take advantage of the cost savings. This not only increases a brand’s average order value but also boosts overall sales.

If an eCommerce brand is offering an almost similar product as that of its competitor at a much lower price, it is definitely going to turn heads. Moreover, converting them into bundled buyings can definitely help the brand differentiate itself from its competitors and attract more customers.

And everybody loves a good bargain!

Bundled discounts make your products more appealing and create a sense of value for shoppers who’re comparing prices. This can give your business an edge and help you stand out from the competition.

However, amidst offering discounts in bundled format, do ensure that the value proposition of your products are not lost. For many shoppers perceive that if some products are being offered in bundles, the items may be nearing their expiry date or are not good enough to be sold individually.

While discounts in general appeal to the masses, bundled discounts have proven to be more effective than many of its counterparts. Businesses benefit from an inventory and sales point of view, while shoppers benefit in terms of money saving. This is especially true in the case of FMCG, fashion, home improvement, and the beauty and personal care industry.

Another great deal about this discounting strategy from a business point of view is that it’s an excellent means to upsell and cross-sell items. For instance, “Buy Men’s Grooming Kit At Just INR 1999/-,” “Buy 2 Matt Lipsticks & 2 Nail Paints At Just INR 499/-.”

While it’s not just a way to promote the sale of similar products or that from other categories, it also helps increase average order value, business revenue, and move inventory.

Although the benefits of discounts are immense for eCommerce brands (as mentioned above), everything boils down to the right usage. Here, bundled discounts allow business to optimise the use of discounts by strategically creating the right mix or combinations of products. This ensures that discounts are utilised in the most effective manner helping drive sales while maintaining profitability, preventing excessive discounting on individual items.

The attractive nature of bundled discounts often serves as an excellent factor to make or break a shopper's experience. They are highly likely to complete a purchase if they’re able to encash some discount deals at the time of checkout and if it's something that adds extra value, they’re sure to convert. This results in conversion uplift, increased customer satisfaction, and higher repeat purchases.

Owing to the very nature of this type of discount; lowering the price of two or more items together, it often results in customers spending more than what they’d actually want to spend when they landed on a brand’s website. This increase in cart value contributes to a higher average order value and provides businesses with improved revenue opportunities as well as higher profitable transactions.Read More - Explore A Bouquet Of Exclusive Discounts & Offers With Kwik CheckoutWhat Are The Disadvantages Of Bundled Discounts To Keep In Mind?

Let’s now take a look at some of the hard hits eCommerce brands will have to take when using a bundled discount strategy.

As an eCommerce brand, when you’re lowering the prices of your products, you’re basically your new product pricing.

If eCommerce brands want to leverage bundled discounts to boost sales and grow revenue in a short time, they must remember that they cannot suddenly shoot up the prices of their products. A steep increase in price will definitely shoo your customers away.

Discounts can have a powerful psychological impact on customers, but it's important to carefully consider your pricing strategy. If the discounts are not well-planned, customers may start questioning why the product or deal is priced so low. This can be harmful because it may lead them to doubt the value of your product. Once the value of your product is seriously questioned, it can create trouble for your business.

It's a given fact that when an eCommerce brand plans to sell products at discounted rates, they're sure to miss out on profit. Brands must carefully calculate the risks before they roll out discount plans to ensure that they're not losing more money than they're making.

Discounts are of immense value. They’re one of those deals that not only benefit the brands offering these discounts but the consumers as well. Bundled discounts carry the same value prop, serving a win-win situation for both businesses and their target audience. If you too have an eCommerce brand and want to learn how to leverage discounts in the most effective and efficient manner to increase business sales, get in touch with our team today.