Everything You Need To Know About Bundled Discounts

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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.

What Are Bundled Discounts?

Bundled discounts are those wherein an eCommerce brand can offer multiple products together at a lower combined price as compared to the cost of each of the items bundled together. For instance, “buy any 3 men’s grooming products at just INR 999/-,” “buy any two lipsticks and get 15% off,” or “buy any three lipsticks and get 20% off.”

The concept is simple: the more items a shopper buys in bundles, the lower the price per unit, and the higher the sales.

The purpose of this discounting strategy is to encourage customers to purchase in bulk ensuring both the shoppers and the business benefit. Buyers can save their money by buying more items at a low price, and businesses can boost their sales within a short period of time, and even get their inventory moving.

What Is The Difference Between Bundled Discounts & Buy X, Get Y (BOGO) Discounts?

Most people usually get confused between bundled discounts and Buy X, Get Y discounts. While the underlying concept of the two discount coupons is the same, they’re quite different in application.

Here’s a table to understand the difference between bundled discounts and Buy X, Get Y discounts or commonly called (BOGO discounts)

Criteria	Bundled Discounts	BX,GY Discounts (BOGO discounts)
Definition	Offers a discount when customers buy one or more quantities of the same product/category/collection	Allows customers to purchase one or more item(s) at a regular price and receive another item(s) at a reduced price or for free.
Nature	Involves bundling multiple products into a single discounted package.	Provides a free or discounted product with the purchase of the same or another product.
Examples	"Buy a laptop and get 50% off on the accompanying software and accessories."	"Buy one pair of shoes, get the second pair at 25% price."
Applicability	Applicable to product bundles or packages.	Typically used for single-item promotions or pairs of related items.
Discount Calculation	Discounts are usually applied to the overall bundle price.	Discounts are applied to the second (or lower-priced) item in the pair.
Marketing Strategy	Encourages the purchase of related items together, promoting higher-value transactions.	Stimulates sales by offering additional items as an incentive, increasing product quantity.
Perceived Value	Makes customers perceive they’ve cracked a money-saving deal	Creates a sense of gaining extra value among customers by offering them a free or discounted item
Common in Retail	Commonly used in the electronics, fashion, beauty and personal care industry	Widely used in fashion, footwear, and consumer goods industries.

What Are The Benefits Of Bundled Discounts?

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

1. Encourages Customers To Buy More

Take a look at these numbers:

Nearly 70% of millennials will look for a deal before making a purchase.
Two-thirds of people say they’d purchase if they had a discount coupon, regardless of whether they initially planned to buy something.
80% admit they’d try a new brand if it offered them a discount.
48% of people will steer clear of brands that don’t offer deals.

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.

2. Increases Competitive Value

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.

3. Appeals To A Wide Audience

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.

4. Promote Up-sells & Cross-sells

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.

5. Optimises Discount Burns

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.

6. Uplift Conversion Rate

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.

7. Increase Average Order Value

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 Checkout

What 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.

1. Lowered Price Value

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.

2. Customers May Devalue Your Product

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.

3. Profit loss

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.

What Are Bundled Discounts By Gokwik?

GoKwik is a leading eCommerce enablement platform that’s been devising smart solutions to solve many critical issues faced by eCommerce brands in India. For instance, tedious checkout process leading to lower conversion rates, higher return-to-origin (RTO) rate due to cash on delivery order rejections/cancellations, reduced business profits, and much more.

Here, bundled discounts by GoKwik is a smart feature that allows eCommerce brands to leverage this discounting type on their websites using GoKwik services and witness an increase in conversions, customer retention, and repeat sales.

Besides this, GoKwik offers 200+ other types of discounting configurations that allow brands to cater their customers in a better manner and bag more sales than before.

Want to know more? Connect with us today!

What Are Some Examples Of Bundled Discounts By GoKwik?

Ideally, there are three primary use cases that most eCommerce brands leverage when employing GoKwik’s bundled discounts. These are as follows.

1. Condition & Outcome #1

Buy X Quantity (Product/Category/Collection) | At Y Fixed Price

This is essentially the most common type of bundled discount feature that;s used by most eCommerce brands today. Here, brands can offer a specific quantity of products at a fixed price. For instance,

Buy 3 Men’s Grooming Products At Just INR 999/-
Buy 2 Pairs Of Jeans For Just INR 1399/-
Buy 2 Packs Of 10 Toilet Rolls For Just INR 449/-
Buy 5 Lipsticks For Just INR 999/-

2. Condition & Outcome #2

Buy X Quantity (Product/Category/Collection) | At Fixed Y% Or Amount Off

In this case, brands can offer a combination of X number of products at a fixed Y% price or for a particular amount off.

For instance,

Buy A 5-piece Influencer Starter Makeup Kit & Get INR 199- Off
Buy 3 Borosil Containers & Get 20% Off

3. Condition & Outcome #3

Buy X (Cart Value) | At Fixed Y% or Amount Off

Here, shoppers need to add items worth a certain amount to get a fixed percentage or amount off on the total cart value.

For example,

Get 10% Off On The Purchase of Products Worth INR 2000/-
Buy Products Worth INR 3000/- And Get 30% Off On Total Cart Value

Also read: eCommerce Discounts: Increase Revenue & Reduce Cash Burn

What Are Some Industry Examples Of Bundled Discounts?

Many eCommerce brands across a variety of industries are leveraging bundled discounts by GoKwik to boost their sales and clock in high revenues. Let’s examine some popular examples to further illustrate this point.

1. Foxtale: Beauty & Personal Care Industry

Foxtale is a leading beauty and personal care brand that uses bundled discounts extensively to promote higher quantity sales. As visible in the image below, the brand strategically combines the most relevant products into bundles and offer discounts thereafter to make the deal highly attractive and increase the chances of higher purchases.

2. AirCase: Travel Accessories Industry

AirCase is a well-known brand in the travel accessories categories. Besides focusing much on offering high end travel luggage and accessories for the Indian audience, the brand also offers many tempting, exclusive discount deals which make a consumer avail the discount before it's gone. If you look at the image below, AirCase, through its homepage, persuades shoppers to make purchases over INR 1000/- to avail a 10% discount on the total cart value. This is form of bundled discount, powered by GoKwik.

3. Sanfe: Health & Wellness Industry

Over the years Sanfe has made its name in the Indian market as a leading and loved women’s health care brand. It too leverage the technique of bundled discounts to increase average order value and sales of a series of its products in a combined proposition. If you look at the image below, Sanfe, as a part of its Holi festive season, has rolled out a Buy Any 5 Products at INR 999/- Only offer to impose time sensitiveness of the discount and create a sense of urgency in the minds of shoppers.

Wrapping up!

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.

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AUTHOR

Atul Bansal

Head of Marketing

AUTHOR

Atul Bansal

Head of Marketing

Atul leads marketing at GoKwik, championing D2C brand building, growth strategies, scalable GTM for e-commerce, and data-driven customer acquisition. A former Amazon leader and IIFT MBA alumnus based in Bengaluru, he brings 15+ years scaling business across e-commerce, and fintech.

Everything You Need to Know About Bundled Discounts (2024)

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What Are Bundled Discounts?

What Is The Difference Between Bundled Discounts & Buy X, Get Y (BOGO) Discounts?

What Are The Benefits Of Bundled Discounts?

1. Encourages Customers To Buy More

2. Increases Competitive Value

3. Appeals To A Wide Audience

4. Promote Up-sells & Cross-sells

5. Optimises Discount Burns

6. Uplift Conversion Rate

7. Increase Average Order Value

1. Lowered Price Value

2. Customers May Devalue Your Product

3. Profit loss

What Are Bundled Discounts By Gokwik?

What Are Some Examples Of Bundled Discounts By GoKwik?

1. Condition & Outcome #1

2. Condition & Outcome #2

3. Condition & Outcome #3

What Are Some Industry Examples Of Bundled Discounts?

1. Foxtale: Beauty & Personal Care Industry

2. AirCase: Travel Accessories Industry

3. Sanfe: Health & Wellness Industry

Wrapping up!

Atul Bansal

Atul Bansal