10 Ways to boost E-commerce holiday sales with bundling and kitting

The holiday season presents retail e-commerce businesses with a great deal of opportunities while posing massive challenges at the same time. On one hand, the holiday season is the time of the year when consumers are in a shopping frenzy, looking for the perfect gifts for their loved ones and themselves. So the e-commerce holiday season is the right time to find a vast number of new customers and achieve increased sales and revenue.

It is evident from the data that holiday season representsa golden opportunity to boost your sales and increase revenue. It contributes significantly to a retail e-commerce company's annual revenue and profitability.

On the other hand, the competition is intense and everyone is fighting for the attention of the same consumers. So you need to explore every avenue and leave no stone unturned to ensure that the consumers see the value in your offerings and consider purchasing from you. Bundling and kitting are among those latest tools that help you increase your holiday sales and revenue.

In this article, we will explore 10 ways in which you can harness the power of bundling and kitting using an app like the Bundle Buddy app by Arizon Digital to maximize your sales during the e-commerce holiday season.

What is Bundling and Kitting?

Before we can explore the strategies, it is imperative to understand what bundling and kitting are and how they differ.

Bundling is the process of grouping related products into one convenient, value-loaded package to customers. It creates an appealing value proposition and more perceived value for customers compared to buying the same as individual items. For example, if you are running a grocery store, you can offer a bundle of products that are necessary for barbecue grills, including charcoal, thermometer, grilling tools, and a variety of marinades and call the bundle ‘BBQ essentials’. These items are typically used together for a specific activity, i.e. barbecue in this case. So they form a great bundle

All those items are related and the customer is bound to buy all of them separately anyways. But if you can bundle them together and cross-sell at a discounted price, then it adds value and becomes a compelling offering to the customer. It also encourages multiple purchases and improves brand loyalty. Bundling enhances the shopping journey by simplifying choices and introduces customers to new products. 

Kitting, on the other hand, involves creating a package by combining various items that are not necessarily related but complement each other. Though customers may be interested in buying them separately on any given day, when kits are created aimed at a purpose or an occasion, it creates a unique value. For instance, people buy scissors or tapes or home decor every single day as individual products. But they make sense together as a ‘holiday decoration kit’, which customers would buy together during the holiday season.

With a versatile and highly configurable bundling and kitting app like Arizon Digital’s Bundle buddy app, you can extensively customize your bundling strategy for the holiday season and make the most of it.

You can find more about bundling and kitting in detail in this article.

10 Ways to achieve more e-commerce holiday sales in 2023 using kits and bundles on your store

Following are 10 strategies that help you achieve a marked improvement in sales during the e-commerce holiday season 2023.

1. Enhance Average Order Value (AOV) through bundling:

The Average Order Value (AOV) is a metric that can be used to measure your sales performance. You can measure it by dividing the total order value you have got any given time period by the number of orders you got at the same period. With this metric, you can determine how much your customers spend inaverage, every time they place an order; higher the AOV in the months of November and December greater is your sales performance during your e-commerce holiday season.

You can raise the average order value, this holiday season, by bundling related products or by creating kits using the Bundle buddy app. You can strategically select the products that customers may want to buy together and offer bundles and kits at a discount price compared to the cost of buying the same separately as individual products. This can inspire your customers to buy more at a lower cost. These high value bundles and kits will help you achieve higher AOV.

1. Create themed bundles for a holiday season:

Almost every business has something special to offer to the customers for gifting during the holiday season. You can capitalize on the holiday spirit by curating themed bundles and kits that go well with the season, using the Bundle buddy app, and make the holidays special for your customers.

For instance, an online stationery store can offer water colours, washi tapes, craft papers and craft-making tools for children as a “Holiday Craft Making Kit" to tap their creativity and enable them to make holiday-themed crafts and gifts for their family and friends. This themed kit not only caters to the shoppers who want to buy gifts for the children but also inspires the children to create with the kit and evoke a sense of celebration.

1. Clear out old inventory with bundle discounts:

People prefer to buy whatever is new; so you need to stock products based on the latest trends. However, you need to clear your old inventory in the first place for that. Selling them at a discounted price can be a great strategy. But customers expect value, and offering a product that has no demand for a lower price is not enough to persuade them to buy. You can bundle them with a high demand product and give a more compelling reason to buy them together. Businesses involving clothes, jewellery, and accessories are a good fit for this kind of bundling strategy.

Bundlingusing the Bundle buddy app can be a powerful solution to move your old inventory out during the 2023 holiday season sale. The app enables you to mix products from your old inventory with the new products and offer attractive discounts on these bundles. It allows you to you incentivize shoppers for purchasing items that may not have high individual demand but become attractive as part of a bundle deal.

1. Harness personalized recommendations:

Personalization in e-commerce is expanding in many avenues. Bundling and kitting is one of those areas where personalization can make a significant difference. This holiday season, you can leverage customer data such as past purchases, search history, and shopping behavior to create personalized bundles using the Bundle buddy app. Highly personalized bundles and kits can increase the likelihood of conversion.

For example, nowadays, mirrorless cameras are preferred for photography as well as videography. The algorithm of a e-commerce camera store can be designed to determine whether a customer is a photographer or a videographer, based on the preferences and search history. Accordingly, it can automatically show the customer either photography bundles with a combination of a mirrorless camera, photographic lenses, filters, and a tripod stand, or a videography kit that contains a mirrorless camera, movie lenses, gimbal, video monitor, etc.

1. Offer convenience with activity-specific kits:

Holiday season is packed with activities ranging from family get together to parties, celebrations, and travelling. By determining the activities your customers will most likely be involved in during the holidays, you can create curated Kits and bundles that pack all the essentials for a specific activity or occasion, using the Bundle buddy app. It can providea high level of convenience for shoppers.

For instance, a camping gear retailer could curate a "Weekend Adventure Kit," including a tent, sleeping bags, and cooking equipment, simplifying the shopping process for outdoor enthusiasts.

1. Create urgency with limited-editionkits:

Things that are sold in limited numbers always have a high demand because of the exclusivity factor. You can use the Bundle buddy app to create limited-edition holiday kits and generate a sense of exclusivity and urgency. There is a caveat; you cannot create limited edition kits and bundles with commonly available items. You can create them with unique or rare items that are not typically available. This can drive your customers to make a purchase before these exclusive bundles vanish from the shelves.

Rare products such as say limited edition cosmetic items with unique fragrances or expensive products such as jewels with a high degree of workmanship and precious stones can be a part of these limited edition bundles.

1. Promote free shipping thresholds with bundles:

Shipping cost is one of the major expenses of e-commerce. When customers buy multiple products separately, they face the risk of adding hefty shipping costs to every single product they buy, making purchasing these products prohibitively expensive. Many shoppers usually add a few extra items to their cart to avoid the shipping fees, thereby increasing their overall spend.

You can capitalize on this need for lower shipping costs and encourageyour customers to reach the free shipping threshold by highlighting bundles that slightly surpass the minimum order amount. You can specifically create bundles and kits that are not too expensive beyond the free shipping threshold, using the Bundle buddy app. Even if the bundles do not reach the free shipping threshold, you can highlight how much the customers save in shipping costs by buying the bundle instead of buying them separately.

1. Convenience boost with giftwrapping services:

Unable to load the picture Holiday shoppers most often do not make purchases for themselves; they want to gift their purchases to someone during the holiday season. You can simplify the gifting process and make your customers’ gift purchases look special by offering to gift wrap bundled items together as a cohesive gift, rather than sending them as separate items in generic packages. It appeals to customers purchasing presents for friends and family.

The Bundle buddy app not only allows you to create flexible bundles and kits but also lets you create value-added embellishment options such as gift-wrapping the bundled purchases for your customers.

1. Clearly articulate cost savings

 The greatest benefit of buying a bundle or a kit is the cost savings. So it needs to be communicated properly to the customers. You can highlight the amount saved and effectively communicate the savings by mentioning how much they save by buying the products as a bundle instead of buying them separately as individual products. You can also highlight the discount percentage and offer price. You can employ persuasive messaging and compelling visuals to illustrate the exceptional value proposition of buying the bundle, andensure that the customers recognize the benefits.

1. Leverage influencercollaborations to create reach for the bundles:

 Sometimes, you need that extra marketing push to get the word out on your holiday season-focused bundles and their benefits to your customers. This is because if your customers do not know about your bundles and kits in the first place, they won’t know their benefits and cost savings. It can affect you and your customers.

So you can partner with influencers within your niche to create and endorse custom bundles using the Bundle buddy app. Collaborative efforts with influencers can significantly expand your reach and credibility, as these individuals can effectively market your bundles to their loyal followers.

In conclusion, the holiday season represents a significant opportunity for e-commerce businesses to increase their sales and revenue. Leveraging bundling and kitting strategies can be a game-changer during this time of year. To achieve good sales during the e-commerce holiday season 2023, you need the right kitting and bundling strategies. By implementing the aforementioned 10 strategies effectively, you can enhance your e-commerce holiday season sales, providing a win-win situation for both your business and your customers.

Arizon Digital is a full-service eCommerce agency for both B2B and B2C brands. We specialize in helping our customers prepare for the holiday season, taking every single detail into account. We offer numerous powerful e-commerce applications such as theBundle Buddy App that add features and functionality to your site and make your holiday sales shine. We connect talent and technology to deliver powerful, unique, and innovative eCommerce stores. Our expertise and experience help deliver compelling user experiences that will engage, convert, and delight your customers. 

Click here to check out the comprehensive list of services we offer and Connect with usto explore the creative ways in which you can tailor the shopping experience for your customers during this holiday season.