Unlocking Sales Potential: Why bundling is a missed opportunity for merchants

Guest Author

When you’re moving into a new home, the excitement of creating your dream space is undeniable. But once the renovations are complete, the next big challenge hits you: furnishing. What style do you want to go with? How do you make it all come together?

 

As an eCommerce professional, I recently found myself in this exact situation. After buying a new home and completing renovations, it was time to furnish. Naturally, I approached this the same way many consumers might: I turned to Google. 

 

The customer journey from inspiration to decision 

 

The first step was deciding on a style. My searches started broad (things like ‘different living room styles’) and then became more specific. Eventually, I landed on ‘industrial living room style ideas.’ From there, I built a vision of how I wanted the room to look, then started hunting for individual items. 

 

But that’s where the friction started. 

 

When you’re ready to furnish a space, you just want to get it done all at once. After spending hours narrowing down styles and searching for specific items, I discovered that no retailer offered a comprehensive bundle to bring the whole look together. Instead, I was forced to jump between different websites, piecing everything together. If I wanted to get things on credit, I was looking at multiple payment plans with different merchants instead of just one finance agreement. 

 

It was a frustrating experience – one that left me wondering why merchants aren’t doing more to simplify this process. 

 

Why bundling is a missed opportunity 

 

Recent data indicates a decline in spending on home improvements and DIY by 7.3% year-on-year, with furniture stores experiencing a 2.2% drop. UK customers reduced their expenditure on home décor and furniture in 2024 – and financial constraints probably played a big role in that. So when people do want to spend, we need to strike while the iron’s hot. 

 

For merchants, the lack of bundled offerings represents a significant gap. Imagine the customer who, like me, has already done the hard work of choosing a style. By the time they’re shopping, they’re ready to buy – and willing to spend more for convenience.  

 

 

Bundling products that match and complement each other makes it easier for customers to make a purchase, while increasing the average order value for your store. 

 

How to create bundles that work 

 

Creating bundles isn’t as simple as grouping random items together. The key is to ensure the bundles align with what your customers actually want. This is where research comes in. 

 

There are many forms of research that can be used but conjoint analysis is probably the most a powerful tool to identify the combinations of products your customers value most. By presenting customers with different combinations of items and asking them to rank their preferences, you gain important insights into what they’re looking for in a bundle, what products they put together, what soft furnishings or accessories they would typically add. And thanks to advancements in technology, what used to take weeks or months can now be done much faster, giving you actionable data in record time. 

 

There are lots of providers offering conjoint analysis tools to help with this process. Companies like Sawtooth Software (free option available) or Qualtrics are great places to start. These tools help understand customer preferences at a granular level, so your bundles are curated to match their tastes. 

 

The role of finance in bundling 

 

Even with the perfect bundle, one barrier might remain: cost. Furnishing an entire room can be expensive (I speak from experience) and not everyone can afford to pay for multiple items upfront. That’s why I believe offering financing options for bundles is critical. 

 

By allowing customers to spread the cost of a bundle (of various sizes) over time, you reduce friction and make the purchase more accessible. Of course, they might be able to do this with individual items, but having a single finance agreement for the entire bundle makes a lot more sense and is significantly more customer-friendly. 

 

The bottom line 

 

If I could have bought the entire industrial look I envisioned with one click (and had the option to spread the cost on finance) it would have been an exceptional customer experience. Merchants who embrace bundling and make it easy for customers to pay are well-positioned to win in today’s competitive market. I know I’d be back for more. 

 

So, take it from someone who’s been through the process: bundling isn’t just a nice-to-have; it’s a game-changer. Invest in research, curate your bundles, and make paying for it simple. Your customers will thank you – and your bottom line will too. 

 

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