E-commerce Glossary · 4 min read
What is Product Bundle?
Understanding Product Bundle in E-commerce
Quick Definition
A product bundle is a set of two or more products sold together as one offer, often for less than buying each item alone. Most people just call it a bundle, and selling this way is called bundling. Think of a gift set, a starter kit or a 3-pack of socks.
Four Ways Stores Put a Bundle Together
There are four common setups. What changes is who picks the items, and whether each one is also sold alone.
- Fixed set. The items only come as a set, like a holiday gift box.
- Mixed bundle. Each item is also sold on its own, and the set costs less than the parts added up.
- Mix and match. Shoppers choose from a group, say any 3 candles for $50.
- Multipack. Several of the same item, like a 3-pack of socks. It's close to a buy more, save more deal.
What makes it a bundle is one price for the whole set. A cross-sell offer just suggests an extra item, and BOGO deals make the next item free or cheap.
Why Shoppers Take a Bundle
With a bundle, the shopper says yes once instead of making three small choices. If the page also shows what each part costs alone, the saving is easy to spot. Hide those prices and there's nothing to compare the set against.
Bundle Math: A Pour-Over Coffee Kit
Say you sell a dripper for $28 (it costs you $10), beans for $18 (cost $7) and filters for $8 (cost $2). Bought one by one, that's $54. The kit is $46, so $8 off (about 15%).
| One order | Shopper pays | Your cost | Gross profit |
|---|---|---|---|
| Dripper only | $28 | $10 | $18 |
| All three, full price | $54 | $19 | $35 |
| The $46 kit | $46 | $19 | $27 |
A shopper came in for the dripper and leaves with the kit. The order goes from $28 to $46, and your profit from $18 to $27.
Another shopper was going to buy all three anyway. They pay $46 instead of $54, and your profit falls from $35 to $27. So a bundle can actually lower your average order value. It pays off when it adds items people wouldn't have bought. This leaves out shipping and card fees.
When Bundling Backfires
- People buy the set anyway. Then you're just discounting sales you already had.
- One item is filler. A slow seller nobody wants can make the set look like a stock clear-out.
- Stock gets out of sync. Make the kit its own product and Shopify counts its stock apart from the parts. The filters can sell out while the kit keeps selling.
- Returns get messy. Someone sends back just the beans. How much of the $8 discount comes off their refund? Decide before it happens.
Where Bundles Live on a Shopify Store
Bundles show up on product pages, on a set's own page, or as a cart deal. Shopify has a free app, Shopify Bundles, that sells a fixed set as one listing. Some other apps keep the items as separate lines and take money off once the full set is in the cart.
A frequently bought together block looks similar, but it's mostly there to suggest items. It doesn't have to price them as one set. Our frequently bought together setup guide walks you through it.
Growth Suite, our app, has a Bundles feature: sell a ready-made set at one price, or let shoppers build their own mix and match bundle and save more with every item they add. Volume Discount puts a buy more, save more deal on the product page, a lot like a multipack. Product Add-Ons lets you choose items to offer with each product. Shoppers pick the ones they want and add them all to the cart in one tap.
Our product bundling and volume discount guide goes into bundle pricing, setup and volume deals. Want an app for bundles and other add-on offers? Compare the best Shopify upsell and cross-sell apps.
Myth: A Bundle Only Sells If It's Cheaper
Some bundles sell because they're easy, not cheap. With a first fish tank kit, a beginner doesn't have to guess which heater fits which tank. A small discount can help show it's a set, but the discount isn't what makes it a bundle.
Related Terms
- Cost of Goods Sold (COGS): what each item in the set costs you.
- GWP (Gift With Purchase): a free extra item, not a priced set.
- Product Recommendations: suggested items, each priced on its own, not as one set.
- Discount Tier: savings that get bigger the more a shopper buys.
- Gross Margin: the percent of each sale left after product cost.
Growth Suite for Shopify
Put Product Bundle into practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective product bundle strategies.
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