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Best Inspiring Product Bundling Examples to Increase Revenue

If you are a retailer and interested in increasing your average order value and conversion rate, then this article is exactly what you are looking for.

Product bundling is an effective sales strategy that helps you manage and clear inventory by creating product bundles with incentives to attract customers to buy more. With such a positive impact, this is a sales method that every merchant should consider applying to their e-commerce career.

In this article, we will introduce you to the concepts and benefits of bunding products, and provide typical examples of types of product bundles. 

Keep reading to delve into the details!

What is Product Bundling?

Product bundling is an effective marketing strategy where several products or services are sold together in a single deal, usually for a discounted price. This simplifies the buying decision for customers while also promoting additional products.

For instance, in a fashion online store, a product bundle might include a dress, necklace, and shoes offered together with a 20% discount. This not only helps store owners advertise other products but also simplifies the buying decision for the customer.

Why Do You Need to Create Product Bundles?

1.1  Increase Your Average Order Value

Product bundling can increase the total value of each order. When grouping your products together you can offer an attractive deal for customers. These discounts incentivize customers to purchase more items than they originally intended, thus boosting the average order value.  

For example, McDonald’s provides a Happy Meal Combo including a burger, soda, and french fries with a 15% discount. Instead of buying an individual product in one purchase, your customers can buy this combo to receive a discount. Therefore, by providing this package, McDonald’s can increase the average order value.

1.2 Decrease Marketing and Distribution Costs 

Bundling products not only help you sell more but also decreases marketing and distribution costs by combining additional items together and advertising them as a single product. Moreover, packaging items together saves space, reduces inventory storage needs, and cuts down on packaging and shipping costs. It means that instead of paying for separate parcels, you only need to pay for one parcel containing multiple products.

For example, if you have 5 different products, you must market each product to sell them individually. However, by combining them into a product package, you only need to advertise a single deal. This way helps you save significantly on marketing and distribution costs.

1.3 Reduce Inventory Waste

Inventory is a problem every store owner will encounter, it increases your storage costs and is eventually discarded as waste. In this case, product packaging is the solution before it becomes a problem. You can combine slow-moving items with a better-selling product, customers will see this as a bargain and be more inclined to buy it. This helps reduce inventory waste, free up warehouse space, and reduce inventory holding costs.

Types and Examples of Product Bundling

2.1  Pure Bundles

Pure bundles help you limit the choices offered to the customers. It combines the same or different products in a single package. Besides, shoppers can’t purchase the items of the pure bundle individually. 

For example, Dyson successfully implements pure bundling with their Dyson Airwrap package. This set includes detachable blow-dry heads that are only available as part of the set and cannot be purchased individually.

2.2 New Product Bundles

This product bundle allows you to group your newly launched products with existing or popular items into a single package. This facilitates customer discovery of your latest product. Moreover, it takes advantage of the popularity of existing products for free advertising and increases visibility for new products. It’s also the fastest way to bring the buyers closer to the new item.

For example, Sony often bundles their latest Playstation console with a highly anticipated game. This method helps them drive sales of both the console and the game by capitalizing on the excitement surrounding new releases. By offering this bundle, Sony has succeeded in encouraging customers to purchase, creating an impression of the new product that makes this package an attractive choice.

2.3 Mix-and-match Bundles

The mix-and-match bundle strategy is quite useful when you want to give the customers the feeling that they have direct control over everything they purchase. It allows you to specify a few products for your customers to choose from and they can create customized bundles from available products. This method encourages customers to buy in bulk and enhances their shopping experience a lot. 

For instance, H&M often groups their popular items into different packages for customers to choose from such as three of their basic regular-fit jersey tops. Buyer can select the option they really want to purchase by their preference. 

2.4 Cross-sell Bundles

In this type of bundle, merchants can sell some items that might complement the main products. It usually is lower-priced items, accessories, or parts that go with a more expensive item. You may consider adding a discount on the total bundle or just for the cross-sell items. Plus, some online stores also create an area to let their customers know about the products that the same people like them often buy. In this way, they can catch the customer’s attention and then make them purchase more items in each deal.

For example, if a customer buys an iPhone, he would probably want to buy a case along with it. Therefore, the iPhone and case can be sold together as a bundle. 

2.5 Gifting Bundles

Gift bundling is an effective sales strategy, especially during special holidays such as Christmas, Easter, or Valentine’s Day. Consumers often have difficulty making purchasing decisions when choosing gifts for loved ones, so offering a gift package helps reduce gift-giving stress. Moreover, this is also an effective way to clear inventory for retailers.

For example, The Body Shop offers skin care product bundles in elegant packaging that are suitable as gifts for makeup enthusiasts. This not only simplifies the gift selection process but also enhances the shopping experience by introducing customers to a complete skin care regimen.

2.6 Inventory Clearance Bundles

In any store, there are always some best-selling and slow-selling items. This bundling strategy is especially effective in optimizing warehouse space and reducing inventory holding costs. It allows you to create an attractive package by pairing a popular item with a slower-moving one. Besides, adding discounts to the bundles also incentivizes people who are interested in the best-selling product to think this is a bargain and buy more of it.

For example, ASOS offers clearance packages of clothing, shoes, and accessories from the last seasons along with promotions. By this way, they can save inventory costs and increase AOV. 

2.7 Buy-one-get-one Bundles

Buy one get one (BOGO) means when you buy a certain product, you can get a discount on another product or get another product for free. This method is useful in increasing AOV and getting inventory off the shelves.

For example, Cotton On is a typical instance of the BOGO strategy. By offering a promotion where customers can buy one product with a discount rate and get another free item of equal or lesser value. This entices customers to purchase more than they initially intended, increasing your AOV.

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In conclusion, product bundling is an effective marketing strategy that can be used to achieve different business targets. It allows you to sell more and decrease marketing and distribution costs.

By exploring deep in this article, you can understand the goals of bundling types and how to optimize them for both in-store and online sales. You also should consider adding enticing offers that boost sales and profit, clear out inventory, and customer satisfaction. 

Finally, relax and watch your sales soar!

About Rin Nguyen

Rin Nguyen
Rin is a girl who loves to explore and challenge herself. She believes writing is a way to reach the world.

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