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Thought Leadership & Enablement
April 19, 2023

Product Bundling: The Marketing Strategy You Need to Try

Want to increase your average order value and boost e-commerce sales? Learn how to implement product bundling in your marketing strategy.

Jenna Galletti
Content Marketing Specialist

As a marketer, you're always on the lookout for ways to boost sales and improve customer satisfaction. One strategy you may not have considered yet is product bundling — the art of packaging different items together to offer more value to your customers. 

In this article, we'll explore how product bundling works, why it's a powerful marketing strategy, and how you can use it to take your business to the next level.

What Is Product Bundling?

Product bundling is the process of grouping individual products together to create a new product that offers more value to customers. Product bundling is an effective marketing strategy that helps companies increase their sales, improve customer satisfaction, and gain a competitive edge in the market. Marketers can combine different products through various types of bundling, such as pure bundling, mixed bundling, or add-on bundling.

Pure Bundling

Pure bundling is a marketing strategy where two or more products are sold together as a single package or bundle. In pure bundling, the products are only available for purchase as part of the bundle and cannot be bought separately. This means that consumers have to buy the entire bundle, even if they only want one or some of the products included in it.

Pure bundling is often used to increase sales and profits by offering customers a discount when they purchase multiple products together. This can also create a perception of greater value for the customer, as they are receiving more products for a lower overall price. To make it a little easier to understand, here are some examples. 

A software company may offer a bundle of multiple programs that work together, such as a productivity suite that includes word processing, spreadsheet, and presentation software. The customer cannot purchase any of the programs separately and must buy the entire bundle. This can be beneficial for the customer who needs all of the programs but may be a disadvantage for someone who only needs one or two of the programs.

In both of these examples, the company is using pure bundling to increase sales and profits by encouraging customers to purchase multiple products at once.

Mixed Bundling

Table in a fast food restaurant

Mixed bundling is a marketing strategy where a company offers products or services together in a bundle but also allows customers to purchase the products separately. In mixed bundling, customers have the option to buy the bundle or only select products within the bundle. This gives customers more flexibility and choice, as they can purchase only the products they need or want, without having to pay for products they don't need.

For example, a cable TV company may offer a bundle that includes internet, cable TV, and phone services at a discounted price. However, the company may also allow customers to purchase each service individually, without requiring them to buy the entire bundle. This way, customers can choose the services they need without paying for extra services they don't need.

Fast food restaurants, like McDonald's, offer a bundled value meal that includes a burger, fries, and a drink but also allows customers to purchase each item separately at individual prices. For instance, a customer can buy a burger without the fries and drink or just the fries and drink without the burger. This provides customers with more flexibility and choice, as they can purchase only what they want or need without having to buy the entire meal bundle.

Gaming console manufacturers often offer bundles that include the console, accessories, and a popular game or two, all sold together at a discounted price. This can be advantageous for the customer who is interested in all the products being offered in the bundle. A customer who isn’t interested in the entire package can still buy the console, accessories, or games separately.

Mixed bundling can be a powerful strategy for companies to increase sales and profits while giving customers more choice and flexibility. By offering bundles and individual products, companies can appeal to different customer preferences and budget constraints. However, it can also be challenging to implement effectively, as companies need to balance the pricing and promotion of the bundle and individual products to avoid cannibalization of sales.

Mix and Match Bundling

Product bundling: customer looking at clothes in a store

Mix and match bundling is a marketing strategy where a company allows customers to choose from a variety of products and services to create their own customized bundle at a discounted price. In mix and match bundling, the company offers a selection of products or services that customers can choose from to create their own unique bundle, rather than offering preset bundles.

For example, a clothing retailer may offer a mix and match bundle that allows customers to choose any three items of clothing, such as a shirt, pants, and jacket, for a discounted price. Customers can mix and match different styles, colors, and sizes to create a bundle that fits their individual needs and preferences.

Mix and match bundling can be a powerful strategy for companies to increase sales and customer loyalty, as it allows customers to tailor their purchase to their specific needs and preferences. It also provides the customer with a sense of control and personalization over their purchase, which can lead to greater satisfaction and loyalty. 

However, it can also be challenging for companies to implement effectively, as they need to balance the pricing and promotion of individual items to ensure that the bundle discount is still attractive to customers.

Add-on Bundling

Another bundling strategy that has gained popularity in recent years is add-on bundling. This strategy involves offering customers a complementary product or service at a discounted price when they purchase a single product. Add-on bundling is often used in the e-commerce industry to incentivize customers to purchase additional items and increase the average order value.

When implemented effectively, add-on bundling can be a win-win situation for both customers and businesses. Customers receive a discounted price on a related product or service, while businesses can increase their sales and improve their inventory management. By offering related products at a discounted price, businesses can encourage customers to make additional purchases and increase their average order value.

Add-on bundling can also be an effective pricing strategy for ecommerce businesses that are looking to stand out from their competitors. By offering customers a discounted bundle of related products, businesses can offer a more compelling value proposition and increase their sales. This can be especially effective for online stores that sell gift bundles, as customers are more likely to purchase bundles of related products as gifts.

Finally, add-on bundling is easy to implement in the checkout process, as it can be added to the shopping cart as an upsell or cross-sell. This means that businesses can promote their bundle offers at the point of purchase, increasing the chances of customers adding the related products to their cart.

Benefits of Product Bundling

Product bundling: entrepreneur using a laptop

Now that you understand the different types of product bundling strategies, let's take a look at the benefits of product bundling.

One benefit is that it helps retailers to manage their inventory more efficiently. By bundling slow-moving products with popular products, retailers can clear out their inventory and make room for new products.

Product bundling also helps to improve the customer experience by offering a wider variety of products that complement each other. Customers are more likely to return to purchase from retailers who offer product bundles that meet their needs.

By providing a win-win situation for both the retailer and the customer, bundling can be an effective pricing strategy for ecommerce businesses. Not only can customers save money by purchasing the bundle, but retailers can also increase their average order value and boost e-commerce sales

When retailers bundle complementary products together, customers are more likely to purchase the package deal instead of individual items. The reduced price point for the bundled package offers customers an attractive deal, which leads to upsell and cross-sell opportunities.

Overall, product bundling is a smart and effective marketing strategy that can benefit both retailers and customers alike. By offering a variety of related products in a bundle, retailers can improve their inventory management, reduce marketing costs, and provide an enhanced shopping experience for their customers.

Examples of Product Bundling

As we now know, there are many different types of product bundling, such as discounted-price mixed bundles and pure bundles. Let's take a closer look at some specific examples of product bundling:

  • Nintendo game console bundle: When Nintendo introduced their new game console, they bundled it with popular video games to attract customers. This bundle option provided customers with a complete gaming experience at a reduced price point.
  • Shampoo and conditioner bundle: Retailers often bundle shampoo and conditioner together as a complementary product package. This bundle offers customers the convenience of buying two essential hair care products together at a reduced price.
  • Amazon mixed bundle: Amazon uses mixed bundling to promote new products by bundling them with related products. For example, Amazon may bundle a new book release with related books to entice customers to purchase the package deal.

Unlock the Power of Product Bundling for Your Marketing Strategy Today

Product bundling is a powerful marketing strategy that can help retailers increase sales, boost customer satisfaction, and improve the overall customer experience. By bundling complementary products together, retailers can offer a wider variety of products to customers while also increasing their average order value. 

If you're not already using product bundling in your marketing strategy, chat with us and give it a try today!

Jenna Galletti
Content Marketing Specialist

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