Boost your Shopify AOV with product bundling
Rebecca Anderson
Boost your Shopify AOV with product bundling
For Shopify store owners, marketers, and designers, increasing conversion rates and maximizing average order value (AOV) are vital to staying competitive. Product bundling has proven to be one of the most effective ways to boost sales without additional marketing efforts.
In this blog, we’ll dive into an insightful conversation with Ohad Schachtel, CEO of Zoorix, a leading product bundling app for Shopify merchants. You’ll gain valuable tips on creating smart, compelling bundles that optimize the customer journey, as well as learn how to avoid common mistakes and ensure that your bundles perform to their maximum potential. Here’s the full transcript of our conversation, with key takeaways that you can apply to your own store.
Click To Buy, Episode 25: Product bundling
To get the full episode, listen in via Spotify or watch the video version on YouTube:
What is product bundling?
Becca (00:03):
Welcome back to the Click To Buy podcast, where we talk to e-commerce experts to get actionable tips that can help you turn clicks into customers. Today, I’m thrilled to be joined by a guest who has transformed the way many merchants approach product bundling. Ohad Schachtel is the CEO and co-founder of Zoorix, a leading bundling app that has helped thousands of Shopify merchants boost their AOV through smart bundling strategies. Ohad, thank you for joining us!
Ohad (01:39):
Thank you, Becca! I’m excited to be here. It’s always great to talk about bundling because it’s such an underutilized strategy that can really drive growth for e-commerce brands.
Becca (01:44):
Let’s kick things off by getting back to basics for anyone who might be new to product bundling. Can you explain what product bundling is and why it’s such an effective tool for increasing AOV?
Ohad (02:04):
Absolutely! At its core, bundling helps merchants sell more by leveraging their existing traffic. Instead of driving more traffic to your site, you’re increasing sales by offering customers additional, complementary products. Think about it like this: customers come to your store to buy a specific item, but what if you could offer them a bundle that makes the purchase more valuable or essential? For example, when someone buys an iPhone, they might not think about needing a phone case right away. But by bundling the phone with a case, screen protector, and maybe even a charger, you’re enhancing the overall value of the purchase for the customer, while increasing your AOV without adding any extra marketing effort. It’s a win-win.
Common types of product bundles
Becca (04:06):
That makes perfect sense. What are some of the most common types of product bundles that you’ve seen merchants use, especially on Shopify?
Ohad (04:10):
The most popular bundle is probably the classic “Buy More, Save More” bundle, where a customer buys a main product along with a couple of complementary items at a discount. This is often done to increase the perceived value of the purchase and encourage customers to spend more. Another popular bundle is the “Volume Discount” bundle, which gives customers a discount when they buy more of the same item. For instance, if you buy three units of a product, you get 10% off.
Then you’ve got BOGO, which stands for "Buy One, Get One." This is an effective way to move inventory quickly, especially when you’re offering something like “Buy One, Get the Second for 50% off.” Finally, mix-and-match bundles are becoming more common. These allow customers to choose items from a collection—let’s say shoes—and get a discount if they buy two or three pairs. It’s flexible and gives the customer control over what they want, which can be very appealing.
Becca (05:40):
It’s really interesting to hear how diverse bundling strategies can be. Let’s say I’m a Shopify merchant trying to figure out what kind of bundle to implement—what key factors should I consider?
Key factors for bundling strategy
Ohad (06:02):
There are a few things you should keep in mind when designing a bundling strategy. First, avoid confusing your customers. One common mistake I see is when merchants offer too many bundles on the same page. The customer doesn’t know what to choose, and as a result, they might end up choosing nothing. Imagine I’m throwing two balls at you—chances are you’ll drop both. It’s the same with bundles; if you give customers too many options, they’ll likely get overwhelmed.
Instead, focus on one type of bundle and optimize it. Once you’ve got that working well, you can experiment with other types. Secondly, be mindful of where you place your bundles on the page. We’ve found that the best placement is just below the “Add to Cart” button. If it’s too far down the page, customers may never see it.
Another key point is to simplify the customer’s decision-making process. For example, one strategy that’s been successful for many merchants is removing the option to buy just the main item. This forces the customer to consider the bundle as the primary purchasing option, which can drive sales.
Optimizing Bundles for Performance
Becca (10:02):
That’s really insightful. Let’s talk about performance. How can merchants optimize their bundles to ensure they’re performing as well as possible?
Ohad (10:10):
Great question! There are two main areas to focus on when optimizing bundles: placement and design. First, test the placement of your bundles. Should they be on the product page, the cart page, or even a dedicated bundles page? Each merchant might see different results depending on the type of product they’re selling and their audience. Second, test the design. Your bundle should feel like a seamless part of your store’s design. But even if it blends in, sometimes a simple change, like adjusting the color of the “Add to Cart” button, can have a big impact on conversions.
In terms of data, you should be monitoring conversion rates for your bundles. How many people click on the bundle? How many actually purchase it? Based on this data, you can make adjustments to improve performance.
Case studies of successful bundling
Becca (18:01):
Can you share any case studies or examples of brands that have successfully used bundling to boost their AOV?
Ohad (18:10):
Definitely. One example is a jewelry store that only sells 31 products, but thanks to bundling, they’re making over half a million dollars a month. They offer just three bundles, but each one is placed on a separate product page, which has simplified the customer experience. Zoorix is responsible for about 32% of their total revenue, and their AOV has increased by 10%. That’s a significant result from bundling just three products.
Another case study involves a store selling coolers. This brand uses cross-sell bundles, where complementary items are offered at checkout based on the specific cooler the customer is purchasing. This approach has increased their AOV by 44%. It’s a fantastic example of how bundling can be tailored to specific product types for maximum impact.
Becca (20:34):
That’s impressive! The first example shows how bundling doesn’t require a huge inventory to make a difference, and the second shows how tailoring bundles to product variants can really work. Do you have another example?
Ohad (24:23):
Sure! One more example is from a water sports gear company that offers 40 different bundles with just a 6% discount. What’s really fascinating is that their AOV is 64% higher than the store’s normal AOV. And even with that modest 6% discount, they’ve seen tremendous results. The lesson here is that it’s not always about offering the biggest discount—sometimes a smaller discount, combined with a smart bundling strategy, can have a huge impact.
Staying updated in e-commerce bundling
Becca (27:21):
With so many innovations happening in e-commerce, what’s the best way for merchants to stay updated on the latest bundling strategies?
Ohad (27:30):
The e-commerce space is constantly evolving, and it’s important to stay informed about new tools and strategies. For example, Shopify’s Shop App has become a new sales channel for many merchants, and we were one of the first bundling apps to integrate with it. It allows merchants to offer bundles in a way that’s native to the Shop App, and we’re seeing a lot of success with that.
There’s also a lot of exciting development in AI-powered bundling. Some merchants are using AI to dynamically create bundles based on customer purchase history, which can be incredibly effective. Shopify’s new APIs, like the cart transform API, allow for dynamic, real-time bundling based on customer behavior.
That being said, I think it’s important for merchants to focus on mastering the basics before jumping into the latest innovations. Once you have a solid foundation—good product bundles that are performing well—then you can start exploring more advanced options like dynamic bundling and AI-driven recommendations.
Final tips for merchants
Becca (29:48):
As we wrap up, what’s one final tip you would give to merchants who are looking to improve their customer journey through bundling?
Ohad (29:55):
My final tip is to keep it simple and focus on the basics. Avoid overwhelming your customers with too many options or complicated bundles. Test everything—placement, design, and the types of bundles you offer. By iterating on your strategy and making data-driven decisions, you can create a solid bundling foundation that will drive growth. Once that’s in place, you can start experimenting with more advanced features like dynamic bundling and AI.
Becca (30:16):
That’s great advice! Thank you so much, Ohad, for sharing your insights on product bundling. It’s clear that there’s a lot of opportunity here for Shopify merchants to increase their AOV and CRO by implementing smart bundling strategies.
Final thoughts
Product bundling is a powerful way to increase your Shopify store’s AOV and CRO. By following the advice shared in this interview, you can start optimizing your bundles, avoid common pitfalls, and stay ahead of the curve with innovations in bundling technology. To learn more about how Zoorix can help you take your bundling to the next level, visit their page on the Shopify App Store. And if you enjoyed this episode, make sure to subscribe to the Click To Buy podcast for more expert e-commerce insights!
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