Everything To Know About Product Bundling To Boost Revenue

Everything To Know About Product Bundling To Boost Revenue

Yusuf Shurbaji
May 29, 2023
min read


  • Product bundling is a marketing strategy where complementary products or services are paired together, often at a reduced price, which can benefit both customers and retailers by enhancing customer experience and maximizing revenue.
  • Mix-and-match bundling allows customers to curate their ideal package from a selection of items, which caters to individual preferences and encourages more purchases. It can be effective in industries such as personal care products.
  • Mixed bundling, as employed by fast-food restaurants like McDonald's, combines popular items into a value meal at a lower price, aiding in increasing the average order value (AOV) and enhancing inventory management.
  • Cross-selling, a form of product bundling, encourages customers to purchase additional complementary items to the original product, enriching the shopping experience and boosting the AOV.
  • Gift set bundling provides benefits like increased sales for eCommerce retailers and convenience for customers who appreciate a well-designed, occasion-specific gift set.


Product bundles are a go-to marketing tool for a reason — they don't just elevate the customer experience, but they also give sellers a considerable edge by bundling complementary products.

Product bundling is a marketing strategy that can benefit everyone: for customers, bundling can really help them feel like they’re getting the best value. For you, when done right with suitable products and timing, product bundling can seriously boost your revenue stream.

If you have at least two products or services, consider incorporating product bundling into your marketing plan. From the types of product bundling to figuring out the right pricing strategy, dive into all things product bundling and rev up your revenue with Prismfly.

What Is Product Bundling?

Product bundling groups two or more products or services into a single package. By combining multiple offerings, companies can move their products more effectively, and deal-seeking customers can get extra bang for their buck.

This win-win appeal has made product bundling wildly popular. Let's check out some examples of product bundles so you can better appreciate their usefulness and value for both sellers and consumers alike.

What Are the Different Types of Product Bundling in eCommerce?

Bars of soap and different containers displayed aesthetically

There are many bundling types, each with unique advantages that cater to different business goals and customer preferences.

From pure bundling to mixed bundling, these marketing strategies offer something for everyone. Popular products can become even more irresistible when combined with what feels like freebies for customers, even though in reality you may be trying to move dead stock or working toward inventory clearance.

But what exactly are these different types of product bundling, how do they cater to various customer needs, and how can retailers employ them to maximize revenue and improve customer experience? Here are some of the main types of product bundling and how you can use them to your advantage.

Pure Bundling

Pure bundling offers a selection of items exclusively as a single package. This approach works wonders for eCommerce businesses looking to create a sense of exclusivity while maximizing perceived value. 

By pairing complementary products or services, retailers can encourage buyers to invest in the entire bundle, often at a reduced price compared to purchasing individual items.

For example, tech giants like Nintendo may bundle limited edition game consoles with limited edition versions of video games, with both the console and the game only available as part of the limited edition bundle.

Mix-and-Match Bundling

Unlike pure bundling, mix-and-match bundling groups standalone products into a single, convenient package. 

This product bundling strategy lets customers create their perfect package by choosing from a selection of items. Because of this, mix-and-match bundling caters to individual preferences, enhancing the customer experience and encouraging more purchases. 

Mix-and-match bundles utilize products or services that customers typically purchase together. 

For example, mix-and-match bundling could be useful for personal care products like shampoo and conditioner, where the manufacturer sells the two items in a bundle deal at a cheaper price than if you were to buy them individually. Fast-food restaurants like McDonald's capitalize on mixed bundling by offering value meals that combine popular menu items for a lower price. 

This bundling type simplifies the sale for the seller and the consumer by providing the add-on at a reduced price. Mixed bundling helps boost average order value (AOV) and improves inventory management by moving products more effectively. In turn, customers save money and enjoy the convenience of acquiring multiple items in one fell swoop at a discounted price. 

Cross-Sell Bundling

Differing from an “upsell” where a customer is encouraged to purchase an upgraded or costlier version of the same type of product, cross-selling is when the seller suggests related products or services to supplement the customer’s original purchase. 

Cross-selling can be as simple as the cashier at a fast-food restaurant asking if you want fries with your order.

Cross-selling encourages customers to buy additional items that are complementary to the original product, enhancing the shopping experience while also boosting average order value. 

New Product Bundling 

New product bundles pair time-tested products with new products. Bundling a new product with bestsellers introduces customers to the new product, increasing the likelihood they’ll buy it as a standalone item in the future. 

This approach helps generate buzz around the new product and eases its introduction into the market. By leveraging existing favorites, eCommerce retailers can smoothly integrate new offerings and create excitement for loyal and new customers alike. 

New product bundles are especially helpful during product launches and subsequent rollouts.

Buy-One-Get-One-Free Bundle Offers

Buy-one-get-one-free (BOGO) bundles incentivize customers by offering an extra item at no additional cost when purchasing a designated product — and free product offers are a powerful customer motivator. 

BOGO bundles are a staple in several industries, especially retail, as they stimulate sales and move inventory quickly. By offering exceptional value, eCommerce retailers can attract deal-seekers, increase customer satisfaction, and foster long-lasting loyalty among their shoppers.

Gift Set Bundling

Gift set bundling thoughtfully curates a collection of complementary items, creating an attractive, ready-made gift. This approach simplifies the gift-giving process, saving shoppers time and effort. 

Sellers might arrange select products into gift sets oriented toward holidays like Mother’s day or Valentine’s day, or they may arrange sets specific to certain events; for example, a housewares retailers might bundle products into wedding gift sets to target couples’ registries or attendees looking for a wedding-specific gift.

With gift set bundling, eCommerce retailers benefit from increased sales, while customers appreciate the convenience and stylish presentation of a well-designed gift set that's perfect for their specific occasion.

What Are the Basics of Product Bundle Pricing?

Different tools organized neatly

Compiling different products is just the first step toward creating a successful, marketable bundle — what clinches it is their price point. 

For a bundle to be a sensible purchase decision, the bundled products need to be priced with a value-based incentive in mind. 

Let’s run through a hypothetical scenario to demonstrate the principles behind a bundle pricing strategy that delivers results. 

An Example of How To Price a Bundle

Imagine you're an eCommerce retailer selling skincare products. You decide to create a bundle consisting of a cleanser, toner, and moisturizer. Individually, these items cost $25, $20, and $30, respectively, totaling $75. 

To price this bundle effectively, it needs to be more competitive than the total of each item’s individual price. A $75 bundle, for example, doesn’t have compelling value in this case; the customer can buy each product separately for the same price. 

To encourage customers to purchase the bundle, you might offer it at a discounted price of $60, offering $15 in savings by bundling. 

This attractive pricing strategy entices shoppers to opt for the bundle instead of buying individual products, increasing your average order value. By carefully considering product costs, profit margins, and customer preferences, you can craft a bundle pricing strategy that drives sales, moves inventory, and delights your customers with exceptional value.

Experimentation and Pricing

Bundling products can affect a seller’s margins, so it works best when you implement it strategically. 

The best way to determine an optimal discount for a bundle is through split testing. By experimenting with different rates, sellers can better understand what kinds of bundles (and at what prices) their customers are most likely to buy, while still protecting their margins.

When Is Product Bundling Effective?

There are plenty of scenarios where product bundling presents advantages for the seller. Let’s go over a few instances where the right product bundling strategies can boost revenue.

During New Product Releases

Introducing a new product to consumers is costly. Even if the new product is strong, it won’t matter if the customer doesn’t know about it. Product bundling minimizes your ad spend by using popular products to your advantage.

Pairing your new product with a tried-and-true product does your marketing for you. It gently introduces your new product to your customer base, cutting back on your ad spending to beat algorithms and generate revenue.

During Holidays

The holidays are prime time, with upticks in traffic and consumer spending across many industries. With more consumers coming through the door — and willing to spend more than usual — bundling is a prime strategy for sellers.

Sellers can more effectively cross-sell to create a larger market basket on every purchase. For industries that benefit from the gift-giving atmosphere of the holidays, bundles tailored for customers’ convenience make for an easier sale and favorable margins.  

During Slow Periods

Slower periods can put pressure on a business. While sellers can’t control the market, bundles can provide some recourse to drive up traffic when things naturally slow down. 

A compelling bundle is an effective marketing tool to drive consumer spending because a good deal is a strong motivator. The right bundle at the right time can drive traffic and build momentum to offset slower periods.

For Inventory Clearance

Dead stock on the shelf isn’t doing you any good. 

For one, dead stock can be an inventory management headache. Poor-selling products that take up space can block up revenue streams. When sellers need to move their inventory fast, bundling provides an elegant solution that can increase perceived value of all items in the bundle. 

What Are the Benefits of Product Bundling for Customers?

A person holding a basket of different food items

A key factor behind why product bundling is so effective is its appeal to customers. Let’s go over a few of the benefits of bundling that draws consumers in. 

Getting Multiple Products at a Discounted Price

You can’t beat a good deal, and nothing makes for a better deal than being able to save money by getting the products you want at a bundle price.

Everyone is at least a little bit budget-conscious when making a purchase, and a discounted price for multiple products can help consumers feel more confident in their purchase. 

Exposure to New Products

Retailers aren't the only ones reaping rewards by bundling new products. Customers, too, can discover fresh offerings they might have otherwise missed, thanks to these promotional bundles.

Bundling helps eliminate some risk for shoppers who are afraid to spend money on something new to them. With new product bundling, shoppers can more confidently try a new, unfamiliar item without fearing a wasted investment since it's accompanied by a product they already know and trust. 

This approach to bundling fosters a sense of reassurance and excitement for customers, allowing them to explore new offerings with a sense of security and minimized risk.

Access to Seasonal Discounts and Exclusive Bundles

Bundles can target specific times and demographics, as demonstrated by their usefulness in holiday or special event promotions. 

Customers stand to benefit from these seasonal or exclusive discounts — holiday expenses can add up fast, as do special events like weddings. Product bundles that cater to these niches give customers a welcome discount during high-spend occasions.


Bundled complementary products provide customers with a useful package of products they need at a preferable price point.

Pre-bundled product sets can be a huge advantage for customers wading into unfamiliar territory. Starter packages for software products are an excellent example of how bundles equip the customer with a convenient, all-in-one product that gets them everything they need.

How Can Product Bundling Boost Revenue?

The opportunities that product bundling present for sellers and customers alike is clear. But how does product bundling translate into actual results in your KPIs? Let’s zero in on specific areas where product bundling can impact your revenue.

Product bundling boosts revenue generation in several ways. Here are a few to consider.

Use Product Bundling To Strengthen Your Customer Base

A business’s customer base forms the foundation of its revenue stream — the former sustains the latter. Product bundling promotions that address customer needs will create an enduring customer base, which solidifies revenue streams.

Bundles build up customer bases in several ways. New product bundling can engage existing customers by exposing them to new offerings, which can give them with the company. Starter pack bundles engage new customers, helping them get acquainted with a company’s product line.

Use Product Bundling To Drive Business

A stable business retains as much control over its revenue as possible. Revenue depends on the steadiness of business; the income streams need to keep coming. Product bundling affords sellers the rare opportunity to drive business and sustain their revenue.

A BOGO promotion can work wonders for a business going through a lull. While promotional bundles like these can lower a seller’s profit margins, they provide a healthy influx of revenue until business picks up again.

Use Product Bundling To Lower Customer Acquisition Costs

Customer acquisition costs are necessary to grow a business, but they strain a seller’s budget. Product bundling provides an elegant solution to CAC, minimizing marketing costs while generating revenue.

Product bundles provide opportunities to target niche demographics, potentially turning them into long-term customers. Bundles that target holiday demand or special events draw in new customers who may introduce the bundle to others as a gift.

Use Product Bundling to Increase AOV

A higher average order value — AOV — generates more revenue. Product bundling promotes higher levels of AOV by incentivizing customers to buy more products for a better price. It prevents customers from purchasing individual products, encouraging them to increase the dollar amount in their shopping cart: a $60 bundle delivers more revenue than a $25 solo product.

Whether through mixed bundling or cross-selling at the point of sale, product bundling increases AOV and grows revenue with every sale.

Looking to learn more about the potential of product bundling? Check out Prismfly’s portfolio for demonstrative case studies.

Product Bundling To Boost Revenue

The reason for product bundling universality is simple — bundling works. Product bundling is a straightforward marketing strategy that delivers results for your KPIs, especially for your revenue. 

No matter your industry or niche, you can use product bundling to find new customers, strengthen your relationship with existing ones, streamline your inventory clearance, and more, all while sustaining a healthy boost to your revenue.

Product bundling can provide a massive leg-up for eCommerce businesses. Start bundling your products today. Connect with Prismfly; find a partnership to help you scale up your eCommerce store.