Product Bundles: Strategies and Examples

Picture this: You’ve been on the hunt for a new coffee machine when you spot the perfect one — with an add-on of your favorite coffee grounds — at a discounted price. You can't resist the deal. That's product bundling at work. Product bundling is an ecommerce strategy that combines related items in one package to deliver more value and convenience. Customers love the thrill of a good deal, and bundling also gives businesses a hefty boost in average order value (AOV). Here’s how to craft winning product bundles that will resonate with your shoppers.

• What are product bundles?
• Benefits of product bundling
• How can AI help with product bundling?
• Types of product bundles
• Product bundling strategies
• How to create and manage effective product bundles
• Popular product bundling examples
• Common product bundling mistakes to avoid
• The future of product bundling
• Product bundling is crucial for commerce growth

Product bundling is a sales strategy that involves combining multiple products or services into one package. Also called "product packages" or "package deals", this approach can help you increase AOV, move slow-selling inventory, and enhance the ecommerce customer experience. You can use bundling to capture market share through attractive package deals while setting your brand apart with unique product combinations. Product bundling delivers what every shopper loves: Giving ‌more for less.

The primary goal of product bundling is to increase sales by offering great value propositions. This encourages customers to purchase more than they might have originally intended. (It’s hard to pass up a good deal, right?) With product bundling, you can move inventory faster, boost AOV, and generate more savings for your customers. The overarching purpose is to create a win-win situation where your customers get better value and you benefit from increased revenue per transaction while building stronger customer loyalty.

Product bundling benefits you and your customers because it simplifies shopping and increases sales. This is critical when you consider that most consumers (62%) say discounts and deals are their top priority when purchasing. While it’s true that product bundling can make a significant positive impact on your revenue growth — that's not the only benefit. Your bundles can also become a unique selling proposition (USP) if planned well. Let's look at some benefits in detail.

• Increased average order value (AOV): Bundling increases transaction values by encouraging customers to buy multiple items. Customers are more inclined to spend more when they see the value and savings a bundle generates.
• Better customer experience: Bundles simplify shopping by offering relevant combinations of complementary products, making it easier and quicker to buy related items. Customers who aren't sure which products go well together will particularly find this helpful.
• Seamless inventory management: Strategic bundling can balance inventory management by pairing popular products with slower-selling items, helping you clear excess or seasonal stock.
• Better profit margins: While bundles often offer discounts, they improve profitability by reducing per-unit marketing, packaging, and shipping costs. They also help maintain price integrity on individual items, protecting margins.

Improved marketing: Bundles emphasize the value of combined purchases and provide opportunities for seasonal promotions and special offers. Additionally, your ecommerce marketing messaging can highlight savings and convenience, improving customer engagement and boosting sales.

In the past, ecommerce merchandisers would spend days — and often, weeks — poring over data to determine the right products to bundle together, the right pricing strategies, and the promotional details. Now? Generative AI tools can speed up the process significantly and help merchandisers quickly create highly successful bundling strategies. Artificial intelligence (AI) can analyze large datasets like customer behavior, past purchases, historical sales, and more. It can also accurately predict which bundles will sell best, making it easier for you to manage inventory, especially during seasonal sales. Plus, you can use AI to automatically adjust prices and suggest personalized bundles based on each customer's unique shopping history and product preferences. New, innovative tools like AI agents make the process easy and intuitive. When merchandisers work side-by-side with autonomous agents, product bundling becomes scalable and more intelligent than ever.

Product bundles come in various forms — from simple combo packs to exclusive editions. You can design them to meet your target audience's needs and preferences. Check out these six types of product bundles to know more.

1. Discount bundles: This type of bundling combines similar products into a package deal at discounted prices. For example, think of a nighttime skincare routine with cleanser, serum, moisturizer, and a night cream. When purchased individually, these items cost more, but they become cost-effective when bought as a bundle.
2. Pure bundles: In this approach, products are available only as part of the bundle and can't be purchased separately. Think of a cable TV package that includes specific channel combinations.
3. Cross-sell bundles: This combines complementary but different products to encourage additional purchases, such as pairing a camera with a memory card and camera bag.
4. Mix-and-match bundles: This allows customers to create their packages from a selection of products. These are your usual suspects — "pick four items at $X" bundles to offer customers more freedom.
5. Upsell bundles: This pairs a core product with premium add-ons or upgrades to increase the total purchase value — for example, an annual gym membership bundled with personal training sessions.
6. Subscription bundles: Subscription bundles are regular deliveries of curated products or services for a fixed price, often at a discount. This typically includes monthly beauty boxes, weekly meal kits, or streaming services that bundle music, movies, and games.

Your product bundling strategy should involve a deep understanding of customer needs, market trends, and pricing strategies. Here are four bundling approaches that can help you get started.

1. Value-based bundling: This strategy combines products that naturally complement each other to solve specific customer problems or improve customer experience (CX). For example, a fitness company might bundle a yoga mat with resistance bands, a workout guide, and access to online classes. This creates a complete home workout solution rather than selling individual fitness items separately.
2. Price-based bundling: This strategy offers multiple products at a lower price than buying them separately. This gives customers a clear financial incentive to purchase your bundles. However, the discount should be significant enough to motivate buyers while still maintaining healthy profit margins. You can achieve this by combining high-margin items with lower-margin products.
3. Themed bundles: This strategy aligns product combinations with specific occasions, seasons, or customer interests to create timely and relevant offerings. Think of holiday gift sets, back-to-school bundles, or summer beach essentials packages, which tap into seasonal demand and create urgency around limited-time offerings.
4. Custom bundles: This strategy empowers customers by letting them build their packages from a selection of products, often with a sweet discount. For example, a coffee brand might let customers create a monthly box by selecting different blends, roast levels, and brewing forms.

Successful product bundles balance customer value and business profitability. It’s an art and a science that involves careful product selection, smart pricing, and continuous performance monitoring. And the biggest support for this will come from AI. Let's explore how.

• Choose the right products: AI can analyze your customers' purchase history data to identify products frequently bought together. It can calculate product margins, inventory levels, and seasonal relevance to ensure each item adds value to the bundle.
• Determine the right prices: AI helps determine optimal bundle pricing by analyzing historical sales data, competitor prices, customer behavior, and market trends to suggest pricing that maximizes sales and profits. Plus, it can adjust prices based on real-time factors like demand, inventory levels, and seasonal trends.
• Test bundle performance: AI can A/B test different bundle configurations, price points, and promotional messaging to refine your bundling strategy. It can test variables like bundle size, discount levels, and product combinations across customer segments to identify the most effective combinations.
• Optimize bundle strategies over time: AI can monitor metrics, including conversion rates, AOV, profit margins, and customer feedback, to evaluate bundle effectiveness. It can regularly review bundle performance against individual product sales to optimize your bundling strategy.

These examples show how companies — from global brands to SMB retailers — implement bundling strategies to boost sales, enhance customer satisfaction, and gain a competitive edge.

Best Buy’s camera and film bundles are a classic example of a product bundle upsell. You can’t take an instant film photo without the instant film. By coupling these items together in a deal, the business ensures that customers are more likely to put both items in their cart, rather than purchasing the add-on from a competitor.

E.l.f. Cosmetics , a beauty powerhouse focused on cruelty-free products for every eye, lip, and face, uses themed product bundles to bring value to its customers while increasing AOV. Paired with predictive sorting, tailored product recommendations, and its integration of commerce and marketing, the brand’s product bundle strategy undoubtedly contributes to its loyal fans and customer retention.

All said and done, a product bundling strategy isn't easy — it requires a lot of planning, effort, and research. Here are four common mistakes (and how to avoid them) when you create your bundling strategy.

1. Overcomplicating the bundle: Complex bundles with too many options or unclear value propositions confuse customers and reduce conversion rates. Keep bundles straightforward with clear benefits. For example, pair your hero product with one or two items that solve a specific customer need.
2. Underpricing or overpricing bundles: Setting bundle prices too low can reduce profit margins and devalue your products, while overpricing can make the bundle seem less valuable and hurt sales. Aim for a 15-25% discount off individual item prices to encourage purchases while staying profitable. Keep an eye on competitor pricing and regularly review your costs to find the best price point.
3. Failing to market bundles effectively: What's the point of curating incredible bundles but not promoting them properly? Consider showcasing them prominently on your home page or creating dedicated landing pages that highlight their value proposition. Put together a digital marketing strategy to target customers with relevant bundle offers.
4. Not tracking bundle performance: You can't optimize your bundling strategy without proper analytics. Track metrics like bundle conversion rates, AOV, and customer lifetime value (CLV). Review performance periodically and test different bundles, pricing, and promotions to improve results.

As customer needs evolve, so will your product bundling strategy. With AI, ‌quick pivots and changing trends are much more manageable. Here's what the future of product bundling looks like.

• AI and personalization: Advances in AI mean advances in personalization. AI can analyze vast amounts of data, like customer purchase history, browsing behavior, and preferences to create hyper-personalized bundle recommendations. Machine learning can predict appealing product combinations and adjust offerings in real-time. For example, a skincare brand might generate custom beauty bundles based on skin type, past purchases, and seasonal trends.
• Subscription models and loyalty programs: Bundling is merging with subscription services to create hybrid models that offer regular deliveries with customizable add-ons. Businesses are integrating loyalty programs, allowing subscribers to earn points for premium bundles or exclusive products. This trend is evident in streaming services bundling content with gaming and retail brands offering exclusive or “VIP bundles” to loyalty members.
• Augmented reality (AR) and virtual bundling: AR technology allows customers to visualize product bundles in their space before buying. Virtual experiences will enable real-time mixing and matching of products. For example, furniture retailers can show how a room set looks in your home, and recommend a bundle that fits your needs.

When it comes to a commerce strategy that increases revenue, customer satisfaction, and loyalty, product bundling solves multiple needs. Bundles are a tried and true way to move inventory faster, increase average order value, and stay ahead of your competitors. With Commerce Cloud, you can implement a solid product bundling strategy — fast. Save costs, get help from the ever-reliable Agentforce, and retain your customers.