Definition of Bundle
Bundling is known as a promotional strategy in which retailers will combine some of the associated products or services and sell them together. These product packages are usually sold at discounted prices in order to stimulate demand and gain revenue.
Types of product bundles
There is an array of product bundling strategies. These following are the 9 most common:
- Pure bundles
This strategy only allows customers to buy products in available bundles and those products could not be purchased individually. Since this type of bundling limits the number of available choices to the consumer, it tends to create more chances of faster conversions.
- Mix and match bundles
This type of bundling is most commonly used in brick and mortar stores such as a dozen eggs, a milk batch, or a carton of soda. Customers are able to choose many similar products in multiples. Also, retailers can sell more products by providing them in bulk.
- New product bundles
With this strategy, retailers can use the popularity of certain products to gain customer attention and raise public awareness of new released items.
- Upsell bundles
Retailers will offer similar products to those on customers’ shopping carts. However, they may be the upgraded or more pricey versions.
- Cross-sell bundles
Businesses will offer complementary or supplementary with those on customers’ shopping carts along with ad-on promotions.
- Necessity bundles
This type refers to putting separate items into collections based on common necessities, special events or seasons.
- Excess inventory bundles
This strategy is a possible method that supports businesses releasing slow-moving inventory or clearing old stock of their inventory.
- Buy one – Get one (BOGO)
This type of bundle offers customers with some discounted or on-free item when they have purchased a certain amount of money. Retailers usually adopt BOGO for out-of-season or one-time-use products.