Shipfusion Blog

Understanding Product Bundling

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The eCommerce industry is constantly changing and evolving, with brands coming up with new strategies to grow their business. One of the oldest yet most effective tricks in the book has been product bundling.

When you bundle products together, it can lead to higher sales from customers who want everything they see on your site or more value for a low price. In this blog post, we’ll go over how you can effectively use bundled offers on your store!

The history of product bundling

Some would argue that Mcdonalds were the first to create product bundling with their iconic “trio.” Add a fry and drink to your burger for just a few dollars? What a steal! However, product bundling is a practice that goes way back before fast food graced our streets.

During the Crusades, Anglo-Saxon traders would offer beer to customers who bought their meats and loaves of bread. Today, companies simply tag these bundles with “buy one get X product free.”

The psychology behind product bundling

Product bundles are marketed by large brands as a great way to save money and get more value for your purchase. When customers buy multiple products simultaneously, they feel that they’re getting something extra special.

Humans tend to focus on the present moment, not thinking about future consequences. Companies know this and use it to their advantage with product bundles. When companies offer you more for less, customers are unlikely to think long-term of the benefits and drawbacks of buying in bulk.

When people buy products bundled together, they feel like they got a great deal. Think about when you bought a car, for example. Sure, that new car is sweet… but what if you could have gotten the same new vehicle plus two years of free oil changes?

It changes how people think about their purchases and makes them feel like they got the best value for their money.


How to create effective bundles in eCommerce?

From restaurants to technology companies, marketing teams have found ways to use product bundling effectively. In fact, it’s so popular that there are even companies solely dedicated to creating bundles for other companies.

Here’s a quick breakdown of how product bundling works:

Step 1

Find products with similar or complementary SKUS that customers often buy together.

Looking at your analytics data can help you pinpoint which customer is likely to purchase more than one of the products in your bundle. Grouping together like-minded items makes the most sense for these bundles.

Step 2

Create a bundle and apply a discount to it, your customers will perceive the items in your bundle as being at an even lower price than they would be if purchased alone, so make sure you get that discount visibly on your site! Don’t worry about losing some money upfront; we’re playing the numbers game here.

Step 3

Make sure your business model works for bundling. Just because something is popular doesn’t mean it will work for your business. You have to calculate how much money you make off each product in the bundle versus its price and determine if this type of advertising will work for your store.

Step 4

Promote your bundle! Because bundles are typically a more significant purchase, it’s essential to get your customers’ attention. One way to do this is by focusing on the value that they’re getting with every bundle versus how much they’re spending; this will make them think less about their pocketbook and more about the “special deal” they’re getting.

Step 5

Don’t forget to thank and reward your customers for buying a bundle. Offer coupons, free product samples, or other discounts on future purchases are all great ways to show appreciation!

Step 6

Finally, ship out your bundles! It can be difficult to do everything in-house, especially when your bundles include a lot of items. Some companies opt for a fulfillment center like Shipfusion to take care of everything that has to do with shipping. With Shipfusion’s custom inventory management software, you can oversee SKUs and how you choose how your items are assembled.  You can also group your items for advancements, demand kitting of your stock ahead of orders getting dispatched to clients, gauge when you should send more stock.

Customers who buy bundles are most likely your biggest fans, so let them know how much you appreciate their business with extra incentives.

Final Look

Product bundling works because it’s a win-win for businesses and customers. Customers love getting great deals, and companies can increase their profits with this tried-and-true marketing method.

Product bundling strategies are particularly effective in eCommerce because there are virtually no limits to the SKUs you can bundle together. Not to mention eCommerce fulfillment centers like Shipfusion that can handle all the logistics while you focus on your growth.

Shipfusion sets your business on autopilot and combines flexible, reliable fulfillment with powerful, real-time technology. Shipfusion has multiple fulfillment centers across the US and Canada– making it easy to manage your eCommerce business. For more information on how to set your business on autopilot, contact one of our fulfillment specialists today.

“Part of the theme at Shipfusion is that we don't constrain our clients. We work with them as business partners, which allows them great flexibility to work with other 3PL solutions and still take advantage of Shipfusion services.”

Dean Bentley-Falcke
Senior Solutions Architect and eCommerce Specialist
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