What is product bundling? 7 examples & tips

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Product bundling is an effective marketing and sales strategy for product promotion, allowing businesses to take advantage of of cost savings and time-limited offers.

When done successfully, product bundling can help to significantly boost sales and revenue, maintain a healthy profit margin, and manage inventory efficiently. This approach allows you to create offers tailored to each customer’s needs, resulting in business growth.

This comprehensive guide explores various types of product bundles, including pure, mixed, price, and BOGO bundles. We’ll also discuss real-world examples from brands that showcase successful bundling strategies and cover strategies for promoting your product bundles — from website banners to the checkout process.

By the end of this guide, you’ll understand how to implement product bundling to your business to gain maximum profits.

Let’s dive in.

What is product bundling?

Product bundling is a marketing strategy combining multiple products or services in a single package for a discounted price. This approach entices customers to buy more products since they get a discount compared to buying these products individually. 

Beyond sales, it helps with inventory clearance and cross-selling. For instance, when products aren’t selling as well as expected, bundling them with popular products can help clear excess stock.

Below is an example of a typical product bundle from Glossier. The company simplifies its customers’ shopping experiences by providing well-curated product combinations that cater to their needs:

Benefits and risks of product bundling

Bundling products can benefit your business in several ways, like creating appealing offers and streamlining purchasing decisions. As a result, you can potentially increase your overall revenue. Here are more key benefits to consider:  

• Increase average order value: When a customer comes to purchase just one item but perceives value in your bundle offer, they can end up buying more. This automatically increases your average order value (AOV). 
• Move slow-selling inventory: If you’re struggling with a stagnant inventory, you can bundle it with a popular product. The appeal of the popular item can entice customers to purchase the bundle, effectively clearing inventory and freeing up warehouse space.
• Introduce customers to more products: Bundling products lets you inform customers of the other available items on the shelf. Customers may not have considered purchasing those items individually, but bundling them can entice them to try new products.
• Boost conversion rates and sales: Businesses offering personalized bundles can simplify the buying process, enabling visitors to convert to paying customers. They’ll also buy more products, increasing sales volume and profits.
• Enhance customer satisfaction through perceived value: Customers appreciate the added benefits of complementary products to enhance their primary purchase. For example, bundling a television with a matching stand can create a more complete and satisfying customer experience — it shows that you’re thinking of their needs. 

While product bundling offers several benefits, it’s important to consider the potential drawbacks. Understanding the risks involved will help you take proactive steps to mitigate them. Here are some of the downsides of product bundling: 

• Lower profit margins for high discount bundles: Excessive discounts on bundle offers can reduce your profit margin as the overall revenue per unit sold decreases. However, carefully considering your prices can ensure they remain profitable while still providing value to customers.
• Risk of unsold inventory for unappealing bundles: If product bundles fail to provide a better deal, customers may pass on them. In the end, you may have excess inventory, potentially leading to write-offs or clearance sales to reduce storage costs.
• Complicated inventory management and tracking: Managing inventory for bundled products can be more complex than tracking individual items. This can be difficult for businesses with large product portfolios or customizable bundle offers.
• May obscure individual product performance metrics: When selling products in pairs, you may not be able to track the performance of each individual item. That’s why you’ll need a comprehensive tool to monitor the performance of both bundled and individual product sales.

The most common types of product bundles

There are different types of bundles, depending on what a brand wants to achieve. Understanding these various bundle types can help you choose the most effective strategy for your business. Let’s explore the most common ones and how you can leverage them.

Pure bundle

In a pure bundle, customers can’t buy the products separately as they’re only available together. While this can work well for limited-edition products, it may seem unfair to customers who only want a portion of a product or service.

Microsoft 365 Personal is an example of a pure product bundle. For the price of one, you’ll get several applications that can’t be purchased as standalone items:

Mixed bundle

A mixed bundle offer allows customers to purchase individual items from a product bundle. This approach gives customers more flexibility, caters to a broader range of customer preferences, and drives higher sales.

See how The Skinny Food Co. bundled different sauce flavors. Customers can get this bundle at a discounted price, but they can also easily purchase outside the bundle offer:

Price bundle

With a price bundle, the price of each product changes when bought together. This strategy can be highly effective in encouraging customers to choose the bundle over individual items. So, instead of buying each item individually, they can get it all at a discount.

Cécred is a notable example of using price bundles to attract customers:

BOGO bundle

The buy-one-get-one (BOGO) bundle offers a second product for free or at a discount when a customer purchases the first. This strategy not only incentivizes sales but also works for clearing out slow-moving inventory.

BOGO bundles can be particularly appealing to customers looking for a great deal, especially if they’re already looking for the items within the bundle. 

In the product bundling example below, Kerrits allows customers to buy a top at a discount if they buy the tights:

Discover how Kerrits engaged customers and increased its revenue-per-email by 50% Read the case study

Product bundling examples

Now that we’ve covered the basics of product bundling, let’s explore some real-world examples. From themed collections to customizable options, each example demonstrates a unique approach that you can adapt to your business to skyrocket sales. Here are the examples by bundle type: 

• Themed bundle (To’ak chocolate)
• Product family bundle (Skandinavisk)
• Gift bundle (MASC)
• Subscription bundle (Wandering Bear Coffee)
• “Build your own bundle” (Snif)
• Essentials bundle (Brooklinen)
• Brand-specific bundle (Body Armor 4×4)

Themed bundle (To’ak Chocolate)

Type: Mixed/ BOGO

Themed product bundles combine products for a specific theme, occasion, or lifestyle. The marketing strategy involves studying your customers’ demographics and purchase history. This way, you can thoughtfully choose products that fit the chosen theme and work well together. 

To’ak’s product bundling example was sent via email, specifically targeting moms. This approach can build stronger customer relationships by providing them with unique and memorable experiences, showing that you listen as a brand.

Product family bundle (Skandinavisk)

Type: Mixed/price bundle

The primary goal behind pairing products from the same series is to promote cross-selling. As customers become aware of the complementary product, they’re more likely to try it, especially if there’s a discount. This can increase the total value of each purchase, thereby boosting revenue.

In Skandinavisk’s case, it’s bundling two products from its SKOG series: Wash and Lotion. This bundle offers an opportunity for customers to get their usual lotion and try the new SKOG Wash at a reduced price:

Gift bundle (MASC)

Type: BOGO/mixed bundle

Gift product bundles work well together as a set, making it easier for customers to find the perfect gift for a loved one. Also, they’re often packaged aesthetically, so customers can purchase these bundles and forego gift wrapping. It appeals to customers who want a hassle-free gifting solution.

In the product bundling example below, MASC sends a targeted email to its customers. For a larger purchase, they can get free products designed for a weekend getaway or everyday gym use. This makes the offer more appealing to customers who are planning a trip or looking for convenient products that complement their active lifestyle:

Subscription bundle (Wandering Bear Coffee)

Type: Price/mixed bundle

A subscription bundle is a recurring delivery of products or services, often at a discounted rate compared to individual purchases. This bundling strategy is commonly used for products consumed regularly, such as food, beverages, or personal care items.

Wandering Bear Coffee showcases an ideal example of a price and mixed bundling method. The discounted price per box provides excellent value for customers, while the subscription option generates a steady income stream for the company:

“Build your own bundle” (Snif)

Type: Mixed/price bundle

Allowing customers to personalize their bundle gives them a sense of control and satisfaction, which is the core of a “build your own bundle”  approach. This bundle type not only allows for multiple product purchases but also caters to a broader range of customer tastes and preferences.

For example, Snif allows customers to create personalized fragrance bundles by selecting multiple scents at a discounted price. This level of personalization enables buyers to visualize the value of their purchase, boosting their trust in the brand. 

Essentials bundle (Brooklinen)

Type: Mixed/BOGO/price bundle

Essentials bundles are designed to offer customers a complete set of products for a specific activity or lifestyle. By grouping related items often used together, these bundles offer both convenience and value. They can be tailored to specific customer segments, like students, parents, or new homeowners.

In the example below, Brooklinen offers bedding bundles that include sheets, pillowcases, and duvet covers for a coordinated bedroom set. This technique provides customers with a convenient and affordable solution for their bedding needs:

Brand-specific bundle (Body Armor 4×4)

Type: Mixed/price/BOGO

In a brand-specific product bundle, multiple products from the same brand are combined and offered as a single package. It works well for introducing customers to new products within the brand’s lineup. However, the products must be related to each other, such as different flavors of a food product.

Body Armor 4×4 creates vehicle-specific bundles. Each pair includes multiple off-road accessories designed to fit particular car models. Also, customers receive a discount on each item when they purchase the products together:

How to promote product bundles

Boost your product bundle promotion with tested and proven strategies. Whether you’re looking to boost sales, increase customer satisfaction, or move inventory faster, these techniques will help you effectively market your bundled offerings.

• Use website banners
• Share bundle offers in popups
• Use marketing emails
• Create a dedicated bundle builder page
• Add bundle offers to the checkout

Use website banners

Website banners can capture the attention of your website visitors. You can place them on your homepage, product pages, or other strategic areas with high foot traffic. This allows you to quickly and easily highlight your bundle offers.

Sculpt’s website banner showcases the products customers can add to their bundles. It also highlights the discounted price and provides a clear call to action:

Share bundle offers in popups

Popups come in handy when your website banner already contains other marketing messages or promotions. They can be strategically timed, such as appearing when a customer is about to leave the website. This ensures that your bundle offer is prominently displayed and difficult to miss.

Olive Your Heart strategically employed a popup to showcase its limited-time bundle offer, appearing at the optimal moment when a customer is considering a specific product on the website. This ensures maximum visibility and engagement for the offer:

Use marketing emails

Emails offer a direct, personalized channel to engage customers with rich visuals, detailed product descriptions, and clear CTA buttons. As a result, you can easily showcase your bundles and highlight their value proposition and savings in detail.

With email marketing software like Omnisend, you can access a wide range of features for creating product bundling email campaigns. Omnisend’s segmentation tools, for example, enable you to target specific customer segments with tailored messages, ensuring your bundle promotions reach the ideal audience.

Below is an example from B-Wear, an Omnisend customer. The email features bundle promotions and limited-time offers for a specific occasion or holiday.

Case study Want to know the secret to B-Wear’s success?  Learn how B-Wear used email campaigns to boost sales and generate 40% of its revenue.

Created a dedicated page for bundles

A separate page for bundles allows you to provide detailed information about various bundles in one area. This way, it’s easier for customers to discover and purchase your product bundles. You can also optimize your product bundling page for search engines to improve visibility and attract organic traffic.

You can implement this strategy in two ways. First, create a page for all your bundle offers like Lenny’s did here:

Second, utilize a “Build Your Own Bundle” interactive builder. This allows customers to create personalized bundles based on their preferences. Using this method, Hooked Coffee customers can mix and match coffee options to create their ideal bundle:

Add bundle offers to the checkout

Introducing bundles at checkout is a great way to increase ecommerce sales. By offering related products as last-minute additions, you can encourage customers to enhance their purchase. You can even sweeten the offer by displaying the discount with a countdown timer.

Here’s a buy-one-get-one product bundling example from Best Buy. At checkout, it offers complementary products for free with an option to accept or remove them.

Summary

In this guide, we’ve explored product bundling and the different types of product bundles. This marketing strategy offers several benefits, such as increasing average order value and clearing slow-moving inventory.

Successful bundle selling requires understanding customer preferences and creating perceived value. For instance, themed, gift, subscription, and “build your own” bundles cater to different customer needs.

Lastly, remember to utilize our bundle sales promotion tactics: website banners, popups, emails, and dedicated pages. You can even add bundle offers during checkout. These strategies can help maximize the impact of your product bundles.

Just remember to balance the benefits with potential risks, like reduced profit margins. This ensures that your approach is both effective and sustainable.