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The A-Z Guide On Product Bundling Strategy: Best Practices and Examples
Michael Hall
February 17, 2022

There’s no doubt now heading into 2022 that the way humans shop has forever changed.

Get this — global ecommerce sales are expected to reach a whopping $6.38 trillion by 2024. Online retail sales have skyrocketed since the onset of the pandemic and show no sign of slowing down anytime soon. With the ecommerce space witnessing one of the biggest booms in recent years, the race to win over market share is heating up! The question is — can you keep up?

There are one too many tricks in the book to up those conversions and keep your sales alive — promotional offers, referral discounts, going all out with personalization, tapping into mobile commerce — you get the drill. One of the most trusted and might we add rewarding tactics has to be product bundling.

This concept of offering a curated collection of complementary products at a discount is a great marketing strategy for online stores to drive in more revenue and keep the average order value (AOV) high. Before we tread any further, let’s get down to the basics and understand what product bundling means for online sellers

What is product bundling in ecommerce?

Product bundling is the process of grouping two or more complementary products together and selling them as a combined package. Combo meals, skincare kits, etc. are great examples of product bundling.

Product bundling strategy is a popular marketing technique in ecommerce that’s used for cross-selling (selling related products) or up-selling products (offering a better or more expensive version) all year round (especially around the holidays!).

Price bundling — what’s that all about?

Source: Keap

Product bundles are either offered at an exciting discount or sold at a special price, which is what we called price bundling. The bundled price for products being sold as a package deal is usually at a lower price than the cost of buying each of these items individually.

A perfect example of this is BOGO or Buy-One-Get-One — where an online seller could offer two products at the price of one, in which case the more valuable product takes the role of a “leader product”. Another example of bundled pricing is obtaining a discount when you buy specific complementary products together.

What’s interesting here is that in both these scenarios the customers end up feeling like they have struck a great deal and are saving up on money when in reality they have more likely spent more than they had planned for.

Now before we dive into how you can ace your product bundling game, let’s look up the numbers on this strategy:

Types of product bundling strategies that you can use for your online store

Here are some of the most commonly used types of product bundling strategies:

  1. Mixed bundling: This is a popular type of product bundling where each item in the product bundle is also sold individually. These items are grouped and sold together for convenience, like razor + razor blades or burger + fries.
  2. Pure bundling: This product bundling strategy groups products that are only available when bought together as a package deal. Take the Microsoft Office suite for example — the apps and cloud productivity services included in the suite are not available for sale separately.
  3. Same products: In this case, the same products are bundled together, offering the customer a discount on buying the same product in bulk. From offering daily essentials to personal care products, Direct-To-Consumer brands (DTC) use this product bundling strategy to increase their average order value.
  4. Excess Inventory: Slow-moving stock? No problem! Apply the product bundling strategy and bundle it with fast-moving (similar) products to clear out old inventory and make room for new ones.

How can a product bundling strategy help your ecommerce business?

We’re now going to explore some of the greatest benefits that your online business stands to gain from employing product bundling strategies:

More sales

Right on top of the list is what every online seller looks for — increased sales.

Bundling products together is proven to help businesses increase sales revenue by increasing the average order value. Buying multiple items at a time, even at a discount means that the customers are spending more than they would when compared to buying a single product.

This has a great effect on the bottom line of the business. When customers purchase more products not only do they pay a lump sum amount but they’re checking out with loaded carts — making this a great technique to increase your shoppers’ basket size.

Superior customer experiences

Bundling products is a great marketing tactic to make customers feel that they are getting to buy amazing products at an absolute steal.

Not only does this make them happy but grouping products that go well together is an excellent way to recommend products that customers never knew they needed. When there are too many options to choose from, online sellers who use bundling strategies to make personalized product recommendations, relieve the customer of decision-making hassles. Having the flexibility to mix and match products within an offered bundle further adds to the delight factor!

Greater brand awareness

Getting customers to buy new products and building awareness for your entire product range is no easy feat. Bundling these products with other popular items in stock is great to not only improve awareness and enable product discovery but also helps in reducing the surplus inventory of stagnant products.

Power up with pricing transparency

The fact is that customers never really like the idea of buying an additional product to complete their purchase or to enjoy the full experience of their purchase. By bundling these products together, you’re removing the blocker that comes up when an additional purchase (read: spend more money) has to be made.

Product bundling best practices + examples

Time to get you up to speed on how you can master product bundling strategies for your online store.

We’re sharing best practices with examples to make sure that you get this right. Let’s jump in.

1. Bank on data to know which products to bundle

Offering bundled products as a packaged deal makes a lot more sense when they are supposed to be used together. So leverage the data that you have, to discover products that are most often purchased together.

For example — toothbrush with toothpaste, socks with shoes, belt with trousers.

Amazon does a great job at this as shown in the below example.

Source: Measuring U

2. Display how much shoppers would save on a bundle

Who doesn’t love a great deal! Highlighting the cost-saving factor has never failed in enticing shoppers who are eager to find deals that help them save BIG.

In the below example, Webjet is clearly displaying the hotel savings that customers can enjoy if they book a flight with them.

Source: Webjet

3. Promote product bundles at checkout

A smart move to get customers to purchase more is to get their attention at checkout. This works much like a salesperson in a retail store, urging you to add on to your basket with one more product to get a discount.

Source: iHerb

4. Put the spotlight on the bundles

When you’ve got a snatch-worthy deal, you need to make some noise about it. By that we mean — position the offer right at the center of your home page and make sure that no one misses it.

Source: Kylie Cosmetics

3. Bundle fast and slow-selling products

There might be products that you’re struggling to sell. Teaming them up with the best-sellers is a great way to get them sold.

You’re also creating a new product offering that your customers will be more likely to purchase again. Check out how Sephora is adding a lesser-known lip mask with their mascara as a combo offer.

Source: Sephora

5. Create dedicated bundles pages

Another great practice that you could follow is setting up a dedicated page solely to promote product bundles.

There are shoppers that come looking only for such combo deals — giving them an entire page of bundled products will keep them coming back for more! Birchbox has created a separate page for ‘Birchbox Discovery Kits’ — a perfect example of showcasing all your curated combos in one place.

Source: Birchbox

Why is product bundling a MUST for online sellers?

For ecommerce businesses, product bundling works like magic when it comes to selling more products and increasing average sales orders. It’s the perfect hook to capture the attention of your shoppers, especially those that crave deals and discounts. Gear up to build irresistible product bundles and get your customers to shop more at your store!