Stubbing Wharf Blog Product Bundling Systems

Product Bundling Systems


Creating product bundles enables you to increase your average order value (AOV) while decreasing your marketing and distribution costs. It’s a simple strategy that groups complementary products together and markets them as one item. Bundling also reduces warehouse storage space, packaging and shipping costs.Check this out

The most popular form of product bundling is offering free or discounted items with a purchase. This tactic is often used as a way to clear out inventory or to introduce customers to other products that can enhance the original item they’ve chosen. Bundle offerings like this are most successful when presented as messaging during the checkout process.

Installation Guide: Setting Up Your Bundling System

In the case of subscription services, a bundle of products and features will often increase customer satisfaction and retention. However, it’s important to balance the benefits of bundling with what your ideal customer actually wants and needs. Too many options can paralyze your audience, leading them to avoid making a decision altogether or settling on the least expensive option.

A service bundling strategy may also have anti-competitive effects if done by a dominant player. For example, when Microsoft saw Slack disrupting its productivity market it quickly bundled the products it offered in an attempt to lock consumers into their entire set of tools and capture market share (think Microsoft Windows). This type of bundling can be an effective competitive strategy but only when it is done with a purpose and leverages the power of distribution and brand loyalty.

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