Product Bundling
As a merchandiser, you aim to sell more products and earn more revenue. You have many tactics at your disposal to accomplish this including the broad buckets of marketing, branding, sales, and product merchandising. One specific product merchandising tactic proven to increase average order volume (AOV) is product bundling.
Leading brands use product bundling to sell more items, earn more revenue, and improve their customers’ experience. Whatever the industry, many consumers have come to expect product bundles and price bundles, which means choosing the right type of product bundle is essential to your brand’s commerce success.
Product bundles come in traditional and dynamic forms.
Traditional product bundles offer customers a prepacked collection of products. For example, a video game company might offer a traditional bundle with a game console, two controllers, and 2 pre-selected games.
Dynamic product bundles give buyers the ability to choose the options within a bundle. In a dynamic bundle, the video game company would first identify a few major components, such as a game console, controllers, and games.
Then, the company would offer specific options within those components. For example, a buyer would select one of three game consoles, two of five controllers, and two of 10 games. This way, consumers have the ability to choose the options in the bundle. Some dynamic bundles might even allow buyers to select which components to buy – for example, electing for four games and one controller instead of two games and two controllers. In short, dynamic product bundling gives consumers choice and control.
Whatever the format, product bundling is when multiple related products are sold together to the same buyer at the same time in one package.
5 Product Bundling Advantages
Product bundling is popular because it improves commerce bottom-lines for companies and brands. Major product bundling advantages include:
