Promotional strategies can make all the difference in the performance of an eCommerce. Among the most effective are BOGO (Buy One, Get One) and Bundles. Both options can boost sales, but choosing the right strategy depends on your business goals, the type of product, and the behavior of your target consumers.
If you want to dive deeper into optimizing Bundles on Shopify, we recommend reading our article, "Strategies to Optimize Bundles in Shopify."
In this article, we’ll break down what each of these strategies involves, their benefits, and in which situations you should implement them to maximize your Shopify store's profitability.
What is BOGO?
BOGO is a sales strategy where a customer receives an additional product for free or at a discount when purchasing another. There are various types of this strategy, making it extremely versatile:
- Free BOGO: Buy one, get one free.
- Discounted BOGO: Buy one, get the second at a percentage discount.
Benefits of BOGO
- Helps clear inventory: If you have slow-moving or seasonal products, BOGO is a great way to move these items quickly.
- Increases perceived value: Customers feel like they’re getting more for their money.
- Encourages impulse buying: Attractive promotions encourage immediate purchases.
- Boosts customer loyalty: Offering incentives can motivate buyers to return to your store.
When to Use BOGO
- High-margin products: If your product margins are high, offering a second item at a lower cost or for free won’t heavily impact your profits.
- High-demand items: Offering BOGO on popular products can attract more buyers and encourage the purchase of multiple units.
- To promote new or lesser-known products.
What is a Bundle?
A Bundle is a strategy where you group two or more related products into one pack at a special price, offering a discount compared to buying the items separately. There are several types of bundles:
- Discounted Packs: A set of products sold at a lower price than if purchased individually.
- Complementary Products: Combining items that are used together, like a camera with a memory card.
- Custom Bundles: The customer selects the products to include in the bundle at a special price.
Benefits of Bundles
- Increase average order value: By grouping products, customers tend to spend more per order.
- Improve shopping experience: Bundles offer complete solutions, making decision-making easier and adding value.
- Help sell slow-moving products: Include low-rotation items with popular ones to boost their sales.
- Strengthen brand image: Offering complete solutions shows that you understand your customers and their needs.
When to Use Bundles
- Complementary products: If you sell items that are used together (e.g., phone + case), bundles provide a convenient and useful package.
- Product launches: Introduce new products alongside bestsellers to boost adoption.
- Competitive differentiation: In saturated markets, exclusive bundles can help your store stand out.
- Promotional campaigns or holidays: Like Valentine’s Day, Black Friday, or Christmas, when bundles are perceived as perfect gifts.
BOGO vs. Bundle: Which One Should You Choose?
Both strategies are valuable, but each has its advantages depending on your goals.
Why Not Both?
Many brands combine BOGO and Bundles based on seasonality, product type, or customer behavior. The key is to analyze your catalog, business goals, and the value perception you want to create for your customer.
Examples by Industry
- BOGO in Fashion: A clothing brand might offer "Buy one t-shirt, get another free" to clear stock and encourage additional purchases.
- Bundles in Tech: An electronics store could offer “Laptop + Mouse + Backpack with 15% off”, increasing average order value while simplifying the customer’s purchase.
- BOGO in Cosmetics: A makeup brand might promote “Buy one lipstick, get the second 50% off” to boost sales.
How to Implement BOGO and Bundles on Shopify with Planet
To execute these strategies effectively, you need a tool that allows you to manage promotions without hassle. Planet makes it easy to create BOGO and Bundle offers with:
- Automatic discounts: Planet lets you apply BOGO and bundle promotions without needing discount codes, making the process much smoother for customers.
- Customizable widgets: Planet’s customizable widgets ensure your promotions are visually appealing and easy to find in your store.
- Multiple promo rule compatibility: Combine different strategies without affecting the shopping experience.
Both strategies can be effective depending on your business goals. If you're looking to increase product volume, BOGO is your best bet. If your goal is to raise the average order value, Bundles are more profitable.
With Planet, you can implement both strategies in an automated and optimized way for better results without complications. Take advantage of smart promotions and take your Shopify store to the next level. Start today and maximize your profits!