Product bundles
What are product bundles?
Product bundles are offers where several products are grouped and sold together under one product listing (known as a single SKU), often at a discounted price compared to buying each item separately. Retailers can either allow customers to build their own bundles by choosing specific items and quantities, or they can create pre-set bundles that combine products which complement each other.
With customisable bundles, customers have the freedom to select exactly what they want, tailoring the bundle to their preferences. Meanwhile, curated bundles give retailers the opportunity to personalise the shopping experience by pairing products that naturally go well together. Offering different types of product bundles gives customers choice and flexibility in how they shop.
How does a product bundling strategy increase average order value?
A product bundling strategy can significantly boost average order value (AOV) by motivating customers to purchase complementary items as part of a single package deal. By offering a discount on the bundle, retailers make the combined purchase more attractive, which often leads to customers spending more than they would on individual items alone.
Product bundles also create efficiencies for businesses. Retailers can save on marketing and fulfilment costs by promoting and shipping bundled products together. Customers benefit too, as they receive a better price on the overall bundle compared to buying each item separately. Even with the discount applied, businesses can increase overall revenue by selling more products in total. Creating bundles that fit customers’ needs and interests, paired with smart pricing, can help drive higher average order values and improved customer satisfaction.
