Bundling Products To Increase Average Order Value

When you sell two or more products together, why sell a single one?

One of the most popular ways merchants often use to sell more products and generate more profits is Product Bundling.

Many savvy eCommerce merchants nurture this practice to increase their eCommerce conversion rates. Product bundling not only helps in increasing the order value but also helps you to sell out the store’s non-selling and slow-moving products.

In this article we’ll be discussing how product bundling can increase your average order. But before jumping to that let’s first explore the fundamentals of product bundling.

So without any further delay, let’s get started.

What is Product Bundling?

Basically product building is a term that is used when individual products or services are combined together and sold as a package at a much lower price. Some of the most common examples of product bundles are beach kits, perfume and body spray sets, value meals, etc.

Some brands prefer to sell best-selling products when selling products in bundle rather than selling them individually in order to encourage customers to purchase more products and increase average order value.

ecommerce 1 - Bundling Products To Increase Average Order Value

The psychology of sales and product bundling

Mixed product bundling is when brands combine popular items sold individually into a bundle and sell them at a discounted price. In this way shoppers can save money, instead of buying items separately, they can purchase bundles and save money.

Let’s look at why this approach is beneficial to your bottom line and how to apply it into your present marketing initiatives.

According to a research conducted by Vineet Kumar of Harvard Business School, when Nintendo employed mixed bundling to advertise video game units, sales increased by 100,000. (and video game sales increased by more than a million, as well).

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On the contrary, when Nintendo changed their bundling strategy and tried pure bundling, customers had to forcefully purchase bundled packages which adversely affected their sales and it declined by 20%.

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Keeping these statistics in mind, it’s pretty clear that implementing mixed bundling is a better product bundling strategy. But in order to find the right product bundles, you need to understand your customers’ mindset and choices.

In general, the idea is to add those products in the bundle that are adored and purchased by customers quite often. The goods in your bundle offer should all have value for the consumer and be cheaper when purchased together rather than separately.

Types of Product Bundling

There are several techniques to bundle products including:

  • Pure bundles
  • Mix-and-match bundles
  • New product bundles
  • Cross-sell bundles
  • Inventory clearance bundles
  • Gifting bundles
  • Buy-one-get-one-free bundles

That was all about the fundamentals of product bundling, now let’s understand why it’s important for a brand to increase it’s AOV.

Importance of increasing Average Order Value (AOV)

As we are familiar with the fact that in this highly competitive eCommerce industry acquiring new customers is not difficult but expensive too. Digital sellers spend a hefty amount on their eCommerce websites to bring in more customers.

Fortunately, increasing AOV is believed to be one of the most inexpensive and effective strategies to increase cash flow and revenue. Increasing your AOV might be as simple as adding a plugin for your shopping cart, as opposed to researching and implementing sophisticated marketing programmes to attract new consumers.

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Optimizing for better AOV might also help you protect your business from unexpected traffic drops. In reality, you may receive less traffic overall but generate better profits as a result of better AOV and more focused marketing strategies.

Regardless of why your site may receive less visitors, your company will be in a better position than if you had not made an effort to increase your AOV.

ecommerce  - Bundling Products To Increase Average Order Value

Increasing AOV through Product Bundling

So, how can you persuade your customers to buy more and spend more money with each purchase? There are plenty of tactics that may be used with little or no additional expense, out of which product bundling is one of the most effective and less costly.

Now we’ll talk about how to increase your average order value through product bundling.

Let’s dig in.

Offering product bundles can help your online store to acquire more customers and keep your existing customers satisfied. It can also help you to clear out your aging products and most importantly increase your average order value.

Here’s a list of product bundling strategies you can use to increase your average order value:

Get rid of aging products

One way to increase AOV is to get rid of all your aging products through product bundling strategy. When you’ll bundle up those products, they will get sold fast and you’ll be able to replace them with brand new rust. This is certainly a great way to sell products instead of letting them get rusted back in the warehouse.

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Promote new products

You can increase your AOV by using this effective strategy to promote your newly launched products.

For instance, if you have launched a new lip scrub, you create a miniature of it and bundle it with your existing products like lip balms, lip gloss, etc. In this way, customers will get the opportunity to try your newly launched products, and when they will start buying the original product it will improve sales conversion and revenue.

Saving money on marketing

Take it in this way, if you’re selling 4 products individually then you need to market them in the market individually as well which will be more costly and doesn’t guarantee that customers will buy it. Plus you’ll be needing plenty of SEO tools to improve your search engine rankings and visibility.

If you’ll bundle up the products and sell them in a combo, you’ll be able to save a lot of resources including time, effort, and of course money.

The BOGO offer

One of the most common product bundling types that massively helps in increasing AOV is Buy X and Get Y offer. This potent product bundling type can help you to sell your slow-moving products and also helps in promoting the newly launched ones.

Few examples to implement BOGO offer strategy:

  • Buy 3 & get 1 free
  • Buy X & get 30% off on Y

Complementary Products Should Be Sold Together

Things that are typically purchased together, such as a conditioner and shampoo. Instead of selling them separately, it’s a smart idea to offer your consumers an offer by putting them together in a combination. This is quite similar to cross-selling!

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Cross-selling is a tactic for increasing your customer’s spending by convincing them to buy a product that is complementary to what he has previously purchased.


Product bundling is a tried-and-tested strategy of selling items in-store and online. Bundling things has grown in prominence as the skill of marketing has improved throughout time. Because of the fierce rivalry among ecommerce retailers and the rise in client acquisition costs, it is now more important than ever.

With the internet arena becoming increasingly congested, entrepreneurs must devise tactics to differentiate their products and make them more appealing to potential customers. Product bundling is a genuine win-win situation since it allows you to sell things for less while making them more valuable than your competitors’ listings.

When done correctly, giving a product bundle is an ideal approach to improve average order value and offer better customer experience effectively.

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