What are product bundles and how do they help increase the average order value?

What are product bundles?

Product bundles (product sets, kits, bundles) is a marketing strategy in which several products are combined into one package and sold at a price lower than the sum of the individual items.

Key idea: The customer benefits from purchasing the bundle, and the seller increases the average order value (AOV) and revenue.

The Psychology of Bundling

Why do kits work so effectively?

• Perceived value — the client sees a bigger discount and feels like they're getting more for less
• Simplifying the choice — a ready-made solution eliminates the need to search for additional products
• Anchoring effect — the high initial price makes the final cost of the set attractive
• Fear of missing out (FOMO) — "If I don't buy the whole set now, it will be more expensive later."
• Lowering the purchase barrier — it’s easier to decide to buy one set than four individual items

Types of product sets

1. Fixed sets (Pure Bundles)

The products are sold only as a set; purchasing them separately is either impossible or unprofitable.

Examples:

• Microsoft Office suite (Word, Excel, PowerPoint together)
• Gift sets of cosmetics
• Room furniture sets
• Lunch sets in restaurants

When to use:

• Products are logically related and are rarely purchased separately.
• You want to sell slow positions along with popular ones
• We need to simplify the choice for the buyer.

Risks: If a customer only needs one item from a set, he may go to competitors.

2. Flexible Bundles (Mixed Bundles)

Products are available both individually and as part of a set at a discount.

Examples:

• Smartphone + accessories (can be purchased separately, but the set is cheaper)
• Camera + lens + memory card + bag
• Laptop + mouse + backpack
• Buy 3 items and get a 20% discount.

When to use:

• Most cases in e-commerce
• Items are often purchased together, but not always
• You want to give the customer a choice, but encourage them to buy a set.

Advantage: Minimal risk of losing a client, maximum flexibility.

3. Customizable Bundles (Mix-and-Match Bundles)

The buyer chooses the items for the set from the proposed selection.

Examples:

• "Choose any 3 T-shirts for €59 instead of €75"
• "Build Your Own Cosmetics Set: 5 Items for €99"
• PC builder (processor + motherboard + memory of your choice)
• Pizza with a choice of toppings

When to use:

• You have a wide range of similar products.
• Customers value personalization
• Need to encourage the purchase of multiple units

4. Occasion-Based Bundles

Sets related to a specific event or need.

Examples:

• First-grader's kit (backpack + notebooks + stationery)
• Summer Beach Set (Sunscreen + Towel + Sunglasses)
• Home Office Set (Desk + Chair + Lamp + Organizer)
• "Mother's Day Gift"

When to use:

• Seasonal offers
• Holiday periods
• Solving a specific client problem

5. Cross-sell bundles (Additional products)

Main product + related products that improve or complement its use.

Examples:

• Printer + cartridges + paper
• Coffee machine + capsules + cleaning agent
• Electric razor + cleaning fluid + replacement heads
• Guitar + strings + tuner + picks

Peculiarity: Amazon uses this model masterfully in its "Frequently bought together" section.

Benefits for business

How to create profitable bundles

Step 1: Analyze Purchase Data

Explore which products customers often buy together:

• Market Basket Analysis - shopping cart analysis to identify relationships between products
• Viewing data — what products do customers view in one session?
• Order history - what goods does one customer buy at different times
• Feedback and questions — What customers ask about additional products

Tools:

• Google Analytics 4 - Funnel Reports
• E-commerce analytics systems (Elbuz, Shopify Analytics)
• SQL queries to the order database

Step 2: Determine the types of product links

Complementary products

Products that complement each other and are used together:

• Camera + lens + memory card
• Toothpaste + toothbrush
• Coffee + filters for coffee makers

Substitutes with upselling

A more expensive version of a product or an improved configuration:

• Base smartphone model → Top model + accessories
• Standard Subscription → Premium Subscription

Turnkey solutions

Everything you need to solve a specific problem:

• Newborn set (stroller + crib + changing table)
• Home theater (projector + screen + sound system)

Step 3: Rules for creating effective kits

1. Logical connection — products must make sense together and solve a common problem
2. Popularity balance — 1-2 hits + 1-2 less popular products
3. Perceived value — the discount must be noticeable (at least 10-15%)
4. Reasonable size — optimally 2-4 products, maximum 5-6
5. Affordability — the final price shouldn't be a deterrent
6. Visual appeal - beautiful design, clear benefit

Step 4: Testing and Optimization

• A/B testing - compare conversion with and without kits
• Different composition options - test different combinations of products
• Vary the discount — find the optimal balance between attractiveness and profitability
• Analyze failures If the set isn't sold, change the composition or the price.

Metrics to track:

• Conversion Rate of Bundles vs. Regular Products
• AOV with kits vs. without
• Take Rate — the percentage of buyers who selected the package
• Profitability of sets (taking into account the discount)

Pricing of sets

Pricing strategies

1. Bundle Discount

The classic approach is that the price of the set is lower than the sum of the individual items.

Calculation formula:

Set price = Sum of product prices × (1 - % discount)

Example:

• Product A: €100
• Item B: €50
• Item C: €30
• Amount: €180
• Set discount: 15%
• Set price: €153

Recommended discount:

• 10-15% is the minimum noticeable discount
• 15-20% is a standard attractive discount
• 20-30% - aggressive discount for liquidation or promotions
• >30% - risky, may be perceived as low quality

2. Loss Leader Bundle

One product is sold at a minimal margin or at a loss in order to sell the rest at a good markup.

Example:

• Game console: €399 (5% margin)
• 2 games: 2×€69 = €138 (40% margin)
• Additional controller: €69 (50% margin)

Profits on consoles are minimal, but accessory sales more than make up for it.

3. Price Anchoring

Show the original price with a strikethrough next to the bundle price - this enhances the perception of value.

4. Psychological pricing

• €99 instead of €100 — a classic trick with "9"
• €149.99 instead of €150 - seems significantly cheaper
• Even numbers for premium — €500 sounds more substantial than €499

How to avoid losing profits on kits

Calculate the marginality

Make sure the bundle remains profitable after the discount:

In this example, the margin decreased from 30% to 18%, but the average bill increased from €399 to €447 (+12%).

Optimal balance

• Target: Increase revenue and profit, not necessarily margin
• Formula for success: (Set Revenue - Cost) > (Hit Revenue - Hit Cost)
• Additional benefits: Savings on marketing, logistics, and maintenance

Technical aspects of implementation

E-commerce platform requirements

Basic functionality:

• Creating kits — the ability to combine multiple SKUs into one bundle
• Price management — setting a special price for a set
• Synchronization of balances - automatic control of the availability of all items in the set
• Product card - display of the kit contents, benefits, and the option to purchase separately
• Basket — correct processing of sets when placing an order

Advanced features:

• Dynamic kits - automatic generation based on algorithms
• Personalization — displaying relevant sets based on purchase history
• A/B testing - comparison of the effectiveness of different options
• Analytics — reports on sales, conversion, AOV of kits

Popular platforms that support bundling

Integration with management systems

When working with kits, synchronization with inventory management and inventory control systems is important:

• ERP systems - correct accounting of cost and profit by sets
• Inventory management systems - automatic reservation of goods from the set
• Analytical platforms — tracking the effectiveness of kits

For example, Elbuz system for automatic price list processing Allows you to upload data from suppliers and create packages based on marginality and balance analysis, automating the process of creating profitable offers.

Website Display: Best Practices

On the product page:

• "Frequently bought together" block with checkboxes for adding to cart
• Visual display of savings ("Save €50")
• The "Buy as a set" button is in a contrasting color.

In the catalog:

• Special badge "Set" or "Bundle"
• Separate category "Kits and kits"
• Filter to display only sets

In the basket:

• Recommended bundles based on items in your cart
• Possibility of "upgrading" - replacing individual items with a set

Examples of successful kits by industry

Electronics and gadgets

The New MacBook - Ready to Work Bundle

• MacBook Pro 14: €2,199
• 7-in-1 USB-C hub: €59
• Laptop case: €39
• Wireless mouse: €69
• Office 365 subscription (year): €69

Regular price: €2,435 → Set: €2,199 (MacBook for the same price + free accessories worth €236)

Effect: The buyer feels like the accessories are free, even though they cost ~€80.

Sports and fitness

"Start Running" Kit

• Running shoes: €119
• Sports socks (3 pairs): €24
• Sports bottle: €15
• Fitness tracker: €49

Regular price: €207 → Set: €169 (18% discount)

Beauty and health

Skin Care: Morning Ritual Kit

• Cleansing gel: €18
• Tonic: €22
• Moisturizer with SPF: €35
• Vitamin C Serum: €45

Regular price: €120 → Set: €95 (21% discount)

Additionally: Instructions for use are an added value.

Home and Garden

Smart Home: Basic Kit

• Google Nest Smart Speaker: €99
• 2 Philips Hue smart bulbs: 2 x €25 = €50
• Smart plug: €29
• Temperature sensor: €35

Regular price: €213 → Set: €179 (16% discount)

Children's goods

"Everything for a Newborn" Set

• 3-in-1 stroller: €599
• Car seat 0+: €189
• Crib: €249
• Mattress: €89
• Bed linen: €45

Regular price: €1,171 → Set: €999 (15% discount)

Advantage: Young parents are relieved from the need to select each product separately.

Fashion and clothing

"Capsule Wardrobe: Casual" Set

• Jeans: €79
• 2 T-shirts (basic): 2×€25 = €50
• Shirt: €69
• Sweater: €59

Regular price: €257 → Set: €199 (23% discount)

Errors when creating kits

1. Lack of logical connection

Error: Combining unrelated goods for the sake of the fact of a set.

Example: Blender + Desk Lamp + Mouse Pad

Solution: Combine products that actually work together or solve a common problem.

2. Too small a discount

Error: A 3-5% discount does not motivate you to buy a set.

Solution: At least 10-15% discount to make the offer attractive.

3. Overloaded kits

Error: The set includes 7-10 items, the final price is frightening.

Example: Photographer's kit for €3,500 (camera + 5 lenses + tripod + bag + flash +...)

Solution: Limit yourself to 2-4 key products. Create several bundles of different levels (basic, standard, premium).

4. Ignoring the leftovers

Error: The set is for sale, but one of the items is out of stock.

Consequences: Negative reviews, cancelled orders, loss of trust.

Solution: Automatic check of availability of all items in a set before sale.

5. Poor benefit visualization

Error: The price of the set is displayed without comparison with the sum of the individual items.

Solution: Always show the original price crossed out and the savings in euros and percentage.

6. Lack of flexibility

Error: The customer wants to buy only 2 items from the set, but this is not possible.

Solution: Use flexible sets (Mixed Bundles) - you can buy them individually, but a set is more cost-effective.

7. Bundling only low-margin products

Error: All products in a set have a margin of 5-10%; after the discount, the sale is unprofitable.

Solution: Include at least 1-2 high-margin items (30-50%) in the kit to offset the discount.

Conclusion

Product bundles are a proven strategy for increasing average order value and revenue without additional marketing costs. When implemented correctly, bundling increases AOV by 30-45%, accelerates the sale of slow-selling products, and increases customer loyalty.

Key findings:

1. Analyze data — create sets based on real buying patterns, not intuition
2. Logical connection is important — the products in the set must complement each other and solve a common problem
3. Balance of price and benefit — the discount should be noticeable (10-20%), but the set should remain profitable
4. Different types for different purposes — Use fixed kits for ready-made solutions, flexible for maximum coverage, and customizable for personalization
5. Visualizing the benefits — always show the customer's savings clearly and visually
6. Technical capabilities - Make sure your platform supports kit management and inventory synchronization
7. Test and optimize - Not all kits work equally well, constantly analyze the effectiveness
8. Consider the industry — electronics, cosmetics, and baby products are especially well suited for bundling

Where to start

If you don't use the kits yet:

1. Analyze shopping carts for the last 3-6 months
2. Identify 5-10 pairs/triples of products that are often purchased together
3. Create 2-3 test kits with a 15% discount
4. Place them on the main page and in the main product cards
5. Track conversion, AOV, and revenue throughout the month
6. Scale successful kits and optimize unsuccessful ones

Automated product inventory management, including the creation of effective kits, is possible with modern systems. Learn more about assortment and inventory management and about how Automatic processing of Elbuz price lists helps to create profitable packages based on marginality and balance data.

Product bundling is a win-win strategy: customers benefit from value and convenience, while businesses see an increase in average order value and profits. Start implementing bundling today and see results within the first month.

Useful materials

• Product Range and Inventory Management in E-Commerce
• How to conduct an ABC analysis of products and understand what brings you the most profit?
• Out of Stock: How to Stop Losing Customers Due to Out-of-Stock?
• What is dynamic pricing and how can it help increase profits?
• How to correctly calculate the markup on a product