For online pet retailers, the holiday season is an optimal time to achieve sales goals and attract new consumers, generating sizable revenues in the process. But many companies fail to capitalize on the gifting season. Retailers selling pet products online often experience disappointing sales during the holidays, perhaps because of lack of preparedness, poor planning, ineffective marketing, or some other issues.
Frequently, it’s due to the fact that pet retailers do not embrace the true “reason for the season”: gift-giving. For consumers, the holidays can be a stressful time. Customers want to make sure they purchase thoughtful gifts for everyone on their list, but often don’t have the luxury of doing extensive product research. This is where holiday gift boxes truly shine.
WHAT IS A HOLIDAY GIFT BOX?
The best thing online retailers can do to succeed is to simplify the gift giving process for consumers. Convenience is king around the holidays, and offering holiday gift boxes is one method online pet retailers can use to attract new customers and satisfy existing ones. Gift boxes are product bundles packaged with complementary items designed for the holiday shopper who wants a ready-made gift. Think toys and treats for cats, dogs, and other types of pets, thoughtfully curated in a holiday-themed box.
Built on the tried-and-true principle of product bundling, gift boxes represent a way for online pet retailers to stand out from the competition during the busy holiday season.
WHAT IS PRODUCT BUNDLING?
When eCommerce retailers sell product bundles, they package multiple related products together, then sell that package to customers for less than it would cost to buy the individual items separately. By taking this approach, eCommerce retailers can sell large amounts of items at higher margins while simultaneously giving customers a discount.
Product bundling is rooted in the economic concept of consumer surplus. This occurs when the price that customers pay for a product—or in this case, a bundle of products—is less than the price they’re willing to pay. Consumer surplus measures the additional benefit that a person gets from paying less than they were willing to.
Product bundling is an innovative approach to increasing the consumer surplus, making customers feel like they’re getting a bargain. Product bundles are only successful when consumers perceive the value of a bundle as greater than its component products.
Thanks to their convenience factor, gift boxes offer significantly more value than a traditional bundle. Consumers appreciate the ability to purchase a bundle that has been specifically assembled to be given as a gift. It saves them time and effort while providing them with a gift they feel is worthy of giving.
BEST PRACTICES FOR ASSEMBLING HOLIDAY GIFT BOXES
Creating gift boxes that customers actually want to buy isn’t a walk in the park. Thinking strategically about what products to include in your box—and how to market it—is important. Let’s examine some best practices for selling holiday gift boxes for pet lovers.
USE PURCHASE DATA TO FIND COMPLEMENTARY PRODUCTS
Gift boxes are most enticing to holiday shoppers when they include complementary products. You wouldn’t throw fish food, a chew toy, and catnip all in a single box, right? Holiday gift-givers are shopping with a specific pet—or type of pet—in mind, and your gift boxes need to reflect that.
Refer to your eCommerce purchase data to determine what items customers frequently purchase together, then create gift boxes with these complementary products. Consider creating separate individual boxes for cat lovers, dog owners, aquarium aficionados, and more.
TAKE A LOOK AT YOUR INVENTORY
Got a large stock of a specific item sitting dormant in your warehouse? Consider grouping it with other complementary products in a gift box to move stock quickly. Expecting a large shipment of a newly-launched product? Include it in a gift box with more established items to introduce it to customers and create buzz.
The possibilities are endless, but you’ll need to have a solid understanding of your inventory to create compelling gift boxes.
Products you include in gift boxes will need to be readily available throughout the entire holiday season, or else you risk selling disappointing customers by having to replace specific items, or needing to discontinue a gift box entirely before the end of the season. Make sure all products included in your gift boxes are easy to source and your fulfillment processes are built to withstand an increase in orders.
GET IN THE HOLIDAY SPIRIT WITH CUSTOM PACKAGING
It’s no secret that unboxing is a key element of the gift-giving experience. Attractive packaging for your gift box can help it stand out from your competitors’ offerings during the holidays, and create an experience to remember for your customers.
Using branded holiday packaging for your gift boxes can surprise and delight your customers while helping to build brand recognition. Get creating and include custom graphics, branded elements, seasonal gift tags, and more to create a memorable unboxing experience for recipients. Plus, compelling packaging is more likely to get shared on social media, expanding your brand’s reach and helping to build long-term relationships with more customers.
TAKING ADVANTAGE OF GIFT BOXES FOR THE HOLIDAY SEASON
Black Friday/Cyber Monday is right around the corner, meaning it’s time for online pet retailers to get their holiday strategies in order. The holiday season is incredibly competitive for eCommerce merchants, and putting together compelling gift boxes could be your chance to stand out in a crowded space
For online retailers, gift boxes can help:
- Increase average order value (AOV)
- Create brand loyalty
- Deliver superior customer experiences
- Make it harder for customers to comparison shop
- Move less popular products that might be taking up valuable space in warehouses or fulfillment centers
Connect with Codal today to learn more about launching holiday gift boxes to boost revenue and customer satisfaction.