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