Try this new and emerging strategy of bundling your shopping products together to see your revenue and average order value (AoV) increase!
Our most recent results have shown 39% increase in ROAS compared to standard campaigns and an AOV increase of 15%.
That’s not bad considering that the revenue is incremental running alongside standard shopping activity.
Additionally, bundling allows you to own more of the real estate in Google Shopping allowing you to push out competitors.
What is shopping bundling?
Bundling provides the ability to run a new additional campaign to sell the top bundles on your site.
Whether these be AI-powered or specific bundles you want to show. It’s all automated recognising stock availability and the customer is taken to a dynamic landing page where they can buy the bundle in 1 click.
How the combinations are decided will be discussed further down. An example of how shopping bundles may look can be seen below.
Who will shopping bundling work for?
To reap the benefits of bundling, it would be recommended that those that have a large inventory of 2000+ products or 500 SKUs have driven a partial conversion as measured in Google Adwords and a monthly minimum Shopping spend of £15k.
A larger inventory allows for the algorithm to create a variety of combinations that would tailor to greater audiences.
To carry this out you would require a bundling service provider, at Demandmore we utilise ‘Increasingly’ to bundle our products together. Expect to spend £1000- £1500 per month for a bundling service.
Best Practice For Shopping Bundling
There are a few different ways you may consider when segmenting your bundle campaign.
First is by the number of products you have per bundle, this is done with consideration of ROAS which changes alongside the product frequency.
Then looking at algorithms types there are three:
- Frequently bought – grouping together items that are commonly bought together
- Manual – grouping together similar products with a discount – buy 5 get 20% off
- Wide – grouping top performing products and creating different bundles
When it comes to setting up these campaigns there are a few considerations. Firstly if you’re going to use multiple campaigns you should make sure that you have enough conversion volume and spend to get at least 50 conversions per month so the machine learning works effectively.
Secondly, you may want to start narrower and then work out, from our experience starting out with just frequently bought together works well as these are the bundles that users are most likely to purchase together.
Once you’ve seen success here it makes sense then to expand to manual and wider bundle algorithms to see if you can find further areas for expansion.
We have found that performance can vary by the number of products grouped together as well as the algorithm type.
Therefore we would suggest making sure that you report on each of these segments separately. That way you can work out which algorithm types and bundle sizes to keep going forwards.
What Results Can I Expect From Product Bundling?
Travis Perkins are a UK-based building merchants and home improvement retailer who wanted to increase AOV and decrease the overall costs of sale.
They generated a bespoke product bundle feed and assigned custom labels for reporting.
By adding the bundles to the products in their shopping campaign they saw a 133% higher ROAS (14.4 compared to 6.2), 11% increase in average order value, and 53% decrease in cost per transaction for their bundled products compared to their standard shopping.
Stay ahead of your competitors with this innovative approach to increasing AOV and ROAS in your Google Shopping Campaigns. The key takeaways are:
- Find a trustworthy bundling partner.
- Test out different bundling types.
- Break your reports down into segments, by algorithm type or no. of products in a bundle.
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