Monetization scheme

Product Bundling
Here product search is made efficient. When a consumer search for a product, the product will
be displayed. But along with that, product bundles can also be displayed which make the
customer buy additional products which he/ she never intended to buy earlier. For example,
when a customer search for a product such as Bread, he must be able to see bundles involving
Bread and Butter, Bread and jam etc. The bundles can be of different types.

1) Mixed and Match Bundling: These bundles will allow customers to choose similar products in
multiples. Here a few products are specified to customers so that they can pick and can create
their custom bundle from the options available
2) Less Known Product Bundling: Here, we take advantage of well-known products to sell other
products which are new or whose demand is low to bring more exposures to these products.
The more potent product will get the consumer closer to the weaker one.
3) Occasional bundles: The app needs to make sure that the collection of products is displayed
regularly on the base of different seasons and occasions. This product must be sold on a limited
period of time.
4) Pure Bundling: Here, products are provided when they are purchased only in a bundle. But
we need to be careful and need to bundle only those products which consumers are ready to
buy along with the other product. Here a more emphasis on savings is required so that
consumers feel that bundles are worth it.

The cost incurred here is making the app more efficient in product search, which can be part of
the Research and development cost incurred by the company. Also, it is not always necessary to
provide higher discounts to bundled products. The bundles where there is no need to provide
discounts is more about understanding the psychology of the consumer, so they buy the
products without discounts.
And when the products are sold on discounts, then the savings must be emphasized and must
be advertised at the checkout point. The cost incurred in providing discounts can be
compensated in other ways, such as this will result in movement of stagnant inventory,
especially in cases where goods are perishable, it is essential to move these items quickly. Also,
some of these bundling will result in the promotion of lesser-known goods.
So, with the right strategy and performance measuring, a higher revenue can be generated.