What is Product Bundling? Types and Examples

What is Product Bundling?

Product bundling is a powerful retail merchandising strategy where multiple products are grouped together and sold as a single package—often at a special price. The idea behind bundling is simple: create added value for the customer while increasing revenue and efficiency for the retailer.

This product bundling strategy is commonly used across retail sectors, including apparel, electronics, cosmetics, food, and home goods. Bundling can take the form of a themed gift set, a discounted mix of complementary items, or a customizable package built by the shopper.

Successful retailer bundling isn’t just about putting random items together. It requires smart planning based on customer behavior, inventory performance, seasonality, and pricing psychology. By strategically combining products, retailers can enhance perceived value, simplify the buying process, and optimize shelf space and sales performance.

Advantages of Product Bundling

1. Increase Average Order Value (AOV)

The primary benefit of product bundling is its ability to boost AOV. When shoppers see value in a curated set of products, they’re more likely to spend more than they initially planned. For example, instead of buying a shampoo, a shopper might buy a shampoo, conditioner, and styling cream bundle—adding more to their cart and increasing your revenue per transaction.

2. Accelerate Inventory Turnover

Bundling provides a smart way to clear slow-moving inventory without heavy markdowns. By pairing older or stagnant products with bestsellers, retailers can generate fresh interest while preventing waste. Seasonal or end-of-line items can find a second life as part of an exclusive bundle.

3. Lower Marketing and Distribution Costs

Bundled products are marketed and shipped as a single unit, reducing overhead. Instead of promoting five individual items, retailers can promote one themed set. Warehousing and packaging costs are also reduced, as bundled SKUs can be stored and picked together.

4. Improve the Customer Experience

Product bundles offer convenience. Rather than forcing shoppers to browse endlessly for matching products, you present them with a complete solution. Whether it’s a gift set or a dinner party bundle, this “ready-to-go” approach simplifies decision-making and builds customer satisfaction.

5. Promote Product Discovery

Retail bundling introduces customers to items they may not have considered purchasing separately. By exposing them to new or underutilized products in a bundle, you expand product awareness and open new sales opportunities.

6. Boost Loyalty and Repeat Purchases

Shoppers who feel they’ve received value in a bundle are more likely to return. Bundles allow them to sample more of your offering, increasing the chances they’ll return to purchase full-sized versions or reorders of items they enjoyed.

Types and Product Bundling Examples

Effective product bundling in retail requires creativity and alignment with customer needs. Here are some of the most impactful types of bundles and how retailers use them.

1. Pure Bundles

In pure bundling, products are available only as part of a set and not sold individually. This tactic increases exclusivity and perceived value.

Example: A luxury skincare brand offers a “Glow Set” with cleanser, toner, and serum only available in the bundle.

2. Mixed Bundles

Mixed bundles include items that can be bought separately but are offered together at a reduced price when purchased as a bundle.

Example: A beauty retailer offers a lip liner and lipstick duo at 20% less than their individual prices.

3. Cross-Sell Bundles

Cross-sell bundling promotes related products that naturally complement each other. These cross-sell bundles are based on purchasing behavior and are typically promoted during checkout or in marketing campaigns.

Example: A home electronics store bundles a smart speaker with a compatible smart bulb, encouraging a full smart home setup.

4. BOGO and Volume Bundles

“Buy One, Get One” (BOGO) or volume discounts entice customers to buy more of the same item or related products.

Example: A retailer offers a deal where customers buy two organic soaps and get the third one free.

5. Inventory Clearance Bundles

These are designed to move out excess or slow-moving stock. By bundling low-performing products with high-demand items, you create a new offer that feels like a win for the customer.

Example: A fashion retailer combines last season’s sandals with a trending summer tote at a discounted price.

6. Gift Bundles

Ideal for holidays and celebrations, gift bundles simplify the shopping process by offering ready-made present ideas.

Example: A florist includes a flower arrangement, chocolate, and candle as a Valentine’s Day bundle.

7. Build-Your-Own Bundles

Giving customers the freedom to create their own bundles can increase engagement and personalization.

Example: A cosmetics brand allows customers to choose any three mini products from a curated selection and receive a custom makeup bag.

8. New Product Launch Bundles

These bundles introduce a new product alongside a bestseller to encourage trial and adoption.

Example: A supplement company offers a free trial-size immunity booster when customers purchase their best-selling protein powder.

Best Practices for Implementing Product Bundles

Creating effective product bundles is more than just grouping items together — it's about creating value, increasing cart size, and enhancing the customer experience. Below are actionable best practices for implementing product bundling strategies in retail, with expanded guidance to help you optimize your approach.

1. Use Data to Identify High-Potential Bundles

Start by analyzing your customer purchase behavior and sales trends to identify complementary products that are frequently bought together. Use data from your POS, inventory management system, or merchandising analytics to:

• Find products with high affinity (e.g., shoes + socks, shampoo + conditioner).
• Detect slow-moving inventory that can be bundled with top-sellers.
• Discover seasonal or regional preferences that may influence bundling opportunities.

Tip: Look at historical data across different sales channels (in-store, ecommerce) to identify high-performing cross-sell bundling opportunities.

2. Align Bundles with Customer Needs and Buying Intent

Product bundling only works if the combination solves a real problem or offers clear value. Use segmentation data to build bundles that appeal to different customer profiles:

• Functional bundles (e.g., “home office starter kit”) solve a task-specific problem.
• Lifestyle bundles cater to customer identity or goals (e.g., “eco-friendly essentials”).
• Occasion-based bundles are perfect for holidays, birthdays, or back-to-school shopping.

Customizing bundles for key customer personas makes them more relevant and improves conversion rates.

3. Leverage Cross-Sell Bundles at Strategic Touchpoints

Cross-sell bundles should be integrated into the shopping experience at moments when customers are open to discovery:

• On product detail pages (online) — for example, “Customers also bought…”. 
• During online checkout (“Complete your set with…”)
• In post-purchase emails suggesting complementary items.
• In-store, via signage or associate recommendations.

This type of retailer bundling strategy increases order value and helps move both high-margin and underperforming items.

4. Clearly Communicate the Value of the Bundle

Shoppers are more likely to buy bundles when the perceived value is high and the savings are obvious. Make sure your bundle listings:

• Show the original price vs. the bundled price.
• Emphasize the total value or savings percentage.
• Use simple, bold copy (e.g., “Save 20% with this kit”).
• Include visual elements like price tags, icons, or badges.

Also, consider naming bundles based on the benefit or use-case (e.g., “Travel Essentials Kit” or “Glow & Go Skincare Set”).

5. Offer Flexible and Customizable Bundling Options

While pre-curated bundles are effective, allowing customers to build their own bundle can enhance satisfaction and engagement. You can:

• Let customers mix and match within a product category.
• Offer multi-buy deals (e.g., “Buy any 3 for $30”).
• Create a “Build Your Own Bundle” feature online or in-store.

This flexibility supports personalized merchandising and encourages customers to explore more products, increasing dwell time and cart size.

6. Incorporate Bundles Into Promotions and Marketing Campaigns

To maximize visibility, promote your product bundles across all marketing channels:

• Include bundles in promotional emails and SMS campaigns.
• Create dedicated landing pages or gift guides for bundles.
• Use paid ads to highlight seasonal or limited-edition bundles.
• Promote bundles in-store with end-cap displays and bundle-specific signage.

Bundle promotions also work well with urgency-based tactics like countdown timers, “only X left” labels, or “limited-time offer” banners.

7. Test and Optimize Bundling Offers

A strong product bundling strategy includes ongoing A/B testing to determine what resonates with your audience. Test different variables such as:

• Product combinations (what’s included in the bundle).
• Bundle pricing and discount levels.
• Bundle naming and description style.
• Visual presentation (product photo vs. lifestyle imagery).

Monitor key performance indicators like conversion rate, average order value (AOV), and bundle attachment rate to fine-tune your approach.

Automating Product Bundling for Merchandising Efficiency

Manually managing product combinations can be error-prone and time-consuming. That’s why modern retailers often automate the bundling process using retail software platforms.

With tools like PlanoHero, retailers can optimize in-store merchandising by unifying product data, streamlining bundle creation, and automating inventory adjustments across multiple locations. This helps reduce human error, ensures only compatible products are bundled, and gives store associates more confidence in upselling bundles at checkout.

Implementing an effective product bundling strategy doesn’t end with combining items—it must also be flawlessly executed in-store. That’s where PlanoHero delivers real value. As a comprehensive retail planogram software, PlanoHero helps retailers ensure that bundles are not only well-conceived but also perfectly placed on the shelf.

With features like store planning, equipment building, and planogram creation, you can visually map where and how bundles appear, ensuring high visibility and consistency across locations. Set clear layout rules, push planograms directly to stores, and use built-in tools to monitor execution quality in real time.

Through assortment optimization and sales analysis, PlanoHero can even help identify which cross-sell bundles make sense spatially and commercially—ensuring bundles aren’t just attractive, but strategically located for maximum performance.

Product bundling isn’t just a sales trick—it’s a strategic retail tool for driving profitability, enhancing the customer experience, and creating operational efficiency. Whether you’re leveraging cross-sell bundles, clearance bundles, or seasonal gift sets, the right product combinations can unlock real business value.

By embracing retailer bundling thoughtfully and creatively, you can not only increase sales and reduce costs, but also help shoppers make easier, more satisfying purchase decisions. If you haven’t yet tapped into the power of product bundles, now is the time to test, optimize, and scale this powerful merchandising tactic in your retail strategy.