What is Product Bundling? Strategies, Tips & Examples

What is Product Bundling? Strategies, Tips & Examples

Cathy Carpetta

Cathy Carpetta

November 2, 2023


How can you boost your sales and stay ahead of the competition?

Many online retailers, like Amazon, harness product bundling, with the latter attributing up to 35% of its revenue to its "Frequently Bought Together" recommendations.

This comprehensive guide will dive deep into what product bundling entails and how it can be harnessed to your advantage.

1. Top 7 strategies to maximise sales with product bundling

1.1 How product bundling works

Product bundling is a marketing strategy where two or more products or services are combined and sold together as a package.

The bundle can be offered at a slightly discounted price compared to purchasing each item separately, thus incentivising consumers to opt for it.This approach offers several advantages, both for businesses and consumers, making it a powerful tool in the world of sales and marketing.

1.2 Differentiating bundle types for success

Pure bundles

Pure bundling involves offering products exclusively as bundled packages, meaning customers cannot purchase the items individually. This strategy encourages customers to buy the entire package, often at a discounted price.

Dyson styler famously known as Airwrap comes with all the different detachable heads as a set.

New product bundles

When launching new products, businesses can create bundles that include these items, allowing customers to explore the latest offerings while enjoying a value-added deal.

Makeup brand Fenty Beauty, founded by Rihanna, often introduces new makeup or skincare and limited-edition products in bundles.

New Fenty Beauty limited edition product bundles

For example, the “Prime + Set Essentials Instant Mattifying Set” includes its primer and mattifying powder. This not only promotes new products but also incentivises customers to try multiple items at once.

Mixed bundles

Mixed bundling, also known as custom bundling, gives customers the choice to buy a bundle or individual items. You can encourage bundle purchases by offering them at a lower price than the combined cost of individual items.

This way, some customers get a discount on specific items, while others pay the full price for what they choose not to bundle. This approach provides flexibility and a sense of personalisation.

An essential bundle that you can buy at a discounted price. The more you buy, the more discount you can get!

Unbottled, a solid-cosmetics brand, offers its three best-selling products in a bundle smartly called “Trio Bye Bye Plastic” that includes a shower soap, a shampoo and a face wash.

Research indicates that mixed bundling is particularly potent, while pure bundling has been found to decrease sales by more than 20% in comparison to mixed bundling.

Cross-sell bundles

Cross-sell bundling involves pairing products from different categories or brands, encouraging customers to explore a wider range of offerings.

Amazon's offering to add the two products together!

One of the most successful examples of e-commerce bundles is Amazon’s “Frequently Bought Together” type of bundle that displays relevant additional items on the product page, based on what a customer is browsing. Amazon attributes up to 35% of its revenue to these types of deals – a hefty chunk indeed.

Gifting bundles

Gifting bundles are curated with the intention of being given as gifts, often featuring corresponding items or themed assortments.

Skincare brand, Horace, created a “Skincare Gift Set” for the holiday season that includes their best-selling products, making them ideal gifts!

Inventory clearance bundles

When businesses need to clear out excess inventory, they can create bundles that include slow-moving or surplus items, providing customers with significant discounts.

Clothing retailer ASOS often offers clearance bundles of clothing, shoes, and accessories from past seasons. By bundling these items together at a reduced price, ASOS can clear out older inventory while offering customers a great deal.

ASOS 3 pack t-shirt sales

Buy-One-Get-One bundles

Buy-one-get-one (BOGO) bundles involve offering a free or discounted product when a customer purchases another item, encouraging them to buy more.

As in the words of Dan Ariely, the author of Predictably Irrational, "Zero/free is a source of irrational excitement; it’s called the 'zero price effect.'"

Explore these BOGO variations:

  1. Percentage discount: Customers receive a percentage off the second item when they buy the first at full price. For instance, enjoy 50% off the second item.
  2. Value reduction: For example, get $5 off the second product when you buy the first at the regular price. Common in clothing, beauty, and hardware.
  3. Buy X Get Y: Customers receive a free product when they purchase a specified number of items, like the classic "buy 2 get 1 free."
  4. Free samples: Brands offer complimentary samples when customers buy any product, particularly effective for introducing new product lines.
  5. Free gifts: It encourages purchases, receiving a free gift when buying a set of items is a common practice in cosmetics.

France's leader in Nutricosmetics, Lashilé Beauty, includes free gifts depending on the bundles you buy. For example, for three months, you can get a free pouch or for 6 months, you also get a free bamboo brush.

Different gift for each product!

2. The advantages of product bundling

Increase sales

Product bundling can significantly boost sales. The greater the number of products a customer purchases in a single transaction, the greater the average order value (AOV) they will have at the checkout. This can lead to substantial revenue growth.

Enhance customer value

Customers appreciate the convenience and value that bundled products offer. They can get everything they need in one go, saving time and effort. This enhances customer satisfaction and loyalty.

Competitive advantage

In a crowded marketplace, product bundling sets your business apart from the competition. It showcases your creativity and ability to cater to the diverse needs of your customers.

Inventory management

Bundling can help manage inventory more efficiently. It allows you to sell slow-moving products by pairing them with popular ones, reducing the risk of overstocking.


Cross-promotion is inherent in product bundling. When one product in a bundle gains popularity, it can boost the sales of other items included in the package.

3. The disadvantages of product bundling

Loss of individual sales

While bundling can increase overall sales, it may lead to a reduction in individual product sales. Some customers may only be interested in specific items.

Pricing challenges

Determining the right price for bundles can be tricky. Overpricing can deter customers, while underpricing may reduce profitability.

Complex inventory management

Managing inventory for bundled products can be more complex, as you need to ensure all components are available when needed.

Consumer confusion

If not done correctly, bundling can confuse customers, making it challenging for them to understand the actual value of the offer.

Customer resistance

Some customers may resist bundling, especially if they feel forced into buying items they don't need, which can result in negative customer experiences.

Reduced profit margins

Depending on how you price your bundles, profit margins on individual items may be lower than if sold separately.

4. Implementing effective product bundling

To maximise product bundling's potential and drive business growth, adopt a flexible and informed strategy.

4.1 Know your audience

Thorough market research is key to understanding your customers. Use your CRM data, surveys, and social media analytics for a comprehensive view.

Actionable tips:

  • Segment your audience based on demographics and buying behaviours.
  • Study past sales data for purchasing patterns.
  • Gather feedback through surveys and monitor social media for product discussions.

4.2 Choose related products

Successful bundling comes from combining products that complement each other, offering greater value together.

Actionable tips:

  • Examine purchase history for commonly paired products.
  • Use A/B testing to find resonating product combinations.
  • Pair popular items with complementary accessories.
  • Update bundles regularly based on customer preferences.

4.3 Pricing strategy

Ensure bundle pricing offers notable savings compared to buying separately, enhancing its appeal.

Actionable tips:

  • Calculate bundled product prices and set a suitable discount.
  • Provide tiered pricing options catering to various budgets.
  • Apply psychological pricing, like ending with "99" or "95".
  • Offer time-limited promotions to boost sales.

4.4 Marketing and promotion

Promote bundled products effectively, showcasing their unique value.

Actionable tips:

  • Design dedicated bundle landing pages with quality images and descriptions.
  • Use email marketing for tailored bundle promotions.
  • Share customer testimonials and unboxing videos on social media.
  • Partner with niche influencers to promote your bundles.

4.5 Monitor and adapt

Stay agile by continually assessing bundle performance and adjusting based on feedback and trends.

Actionable tips:

  • Use KPIs to evaluate each bundle's success.
  • Refine strategies with A/B testing.
  • Take onboard customer feedback for improvement.
  • Keep track of market trends and competitors.


A product bundling strategy can be your secret weapon for boosting sales and staying ahead. Understand your audience, choose smart product pairs, and strategise effectively to gain a competitive edge.

Follow these tips and a customer-focused approach to master it and achieve lasting e-commerce growth. Happy bundling! 🚀🛍️

Frequently asked questions
Everything you need to know.
What is the difference between pure bundling and mixed bundling?

Pure bundling offers products only as a bundle, while mixed bundling allows customers to purchase items individually or as part of a bundle.

Is product bundling suitable for small businesses?

Yes, product bundling can benefit small businesses by increasing sales, enhancing customer loyalty, and offering a competitive edge.

Can bundling work for both physical and digital products?

Yes, bundling can be effective for both physical and digital products, as long as there is value in the combination for customers.

How do I determine the right pricing for my bundled products?

Pricing should balance cost savings for customers with profitability for your business. Conduct market research and consider your costs when setting prices.

What are some creative ways to promote bundled offerings?

Promote bundles through marketing campaigns, email newsletters, and highlighting the savings and convenience they offer to customers.