Ecommerce merchants looking to boost their customer loyalty and lifetime value should consider product bundling.

Ecommerce merchants looking to boost their customer loyalty and lifetime value (LTV) should consider product bundling. By offering a combination of items together—either chosen by the customer or specially curated by your brand—you can make shopping easier for customers and boost your revenue. 

In this guide, we’ll explore the benefits of product bundling, as well as the various ways that brands can utilize bundling. After all, customers who use Bundles have 2.7x higher LTV than those who don’t, making them a worthwhile investment for your brand.

Key takeaways

  • There are two types of product bundling that brands can take advantage of: curated bundles and build-a-box offerings.
  • Product bundles can help ecommerce merchants boost valuable metrics like AOV and LTV.
  • Bundles offer an easier and simplified shopping experience for customers.

What are product bundles?

Product bundles are combinations of different items packaged together and sold as a single unit. These bundles provide customers with added value, convenience, and often cost savings compared to purchasing the items individually, thanks to bundle discounts.

The concept is simple yet powerful: By bundling related or complementary products, businesses can increase their average order value (AOV) and LTV, and drive higher sales.

The benefits of product bundles

The reason product bundles can be so successful for brands is that they offer benefits for both merchants and their customers. By providing an enhanced, personalized customer experience, product bundles make shopping easier and boost key ecommerce metrics like AOV and LTV. Plus, product bundles can help merchants with inventory management. Below, we’ll dive into each of these benefits.

1. Enhanced customer experience

Product bundles simplify shopping by offering customers a curated selection of items that work well together. This streamlined experience reduces decision fatigue and encourages customers to make quicker purchasing decisions. With build-your-own bundling options, on the other hand, shoppers enjoy a very personalized shopping experience by making their own combinations of products fit together in one bundle. 

2. Increased sales & AOV

By offering bundled products at a slightly reduced price compared to buying each item separately, businesses entice customers to spend more. This results in higher sales revenue and a boosted average order value, ultimately increasing profitability.

3. Inventory management

Bundles can also help manage inventory effectively. If a business has excess stock of certain items, bundling them with popular products can help clear out slow-moving inventory while driving sales of the more desirable items.

The different types of product bundles

Now, let’s explore the two primary types of product bundles: pre-set bundles and build-a-box offerings.

Pre-set bundles: Curated for customer convenience

Pre-set bundles are curated collections of products that are carefully chosen by the business to meet specific customer needs or preferences. These bundles are ready-made and offer customers a hassle-free shopping experience. Below we’ll get into why pre-set bundles can be a game-changer for customers and merchants.

1. Targeted marketing

Businesses can create pre-set bundles that cater to various customer segments. For example, a beauty retailer can offer skincare bundles based on skin type, with their best combinations of products for sensitive skin, breakout-prone skin, etc. Or, offer product bundles that target a certain problem customers might be having, like dry skin or breakouts. This approach allows for highly targeted marketing campaigns that resonate with specific audiences.

Blume acne bundle
Blume does a great job of bundling products together in a way that makes sense for their customers’ needs.

2. Cross-selling opportunities

Pre-set bundles provide an excellent opportunity for cross-selling. By grouping related items together, businesses can introduce customers to products they might not have considered otherwise, increasing their overall spend. This is an intuitive way to up your average order value, while also providing helpful recommendations for shoppers.

3. Time-saving convenience

Customers often appreciate the convenience of pre-set bundles. They can quickly find and purchase a bundle that aligns with their needs, saving them time and effort in product selection. In the fast-paced world of ecommerce, bundles can help you win and keep customers thanks to this ease of convenience factor. 

With Bundles, your brand can simplify the creation and management of pre-set bundles, making it easy to implement this strategy. You can customize bundle offerings, set pricing, and seamlessly integrate them into your online store.

Build-a-box offerings: Empowering customer choice

Build-a-box offerings, also known as customizable bundles, empower customers to create their own unique bundles by selecting the items they desire. This approach offers several advantages, including personalization for customers, higher engagement, and better data collection.

1. Personalization

Build-a-box options allow customers to personalize their shopping experience. They can select products that align with their preferences, ensuring they get exactly what they want. Merchants can make building their bundles easier by creating dedicated bundling pages with simple instructions for customers. 

2. Higher engagement

Customer engagement often increases when shoppers are actively involved in creating their bundles. This leads to a stronger connection between customers and your brand. And having customers that are engaged typically leads to loyal customers—which can help your brand increase LTV and customer retention.

Gardencup build-a-box offerings
Gardencup’s intuitive Build Your Pack feature shows a progress bar so customers know when their box is full.

3. Data collection

Build-a-box offerings provide valuable insights into customer preferences. By tracking which items are frequently chosen, businesses can refine their product offerings and marketing strategies. Your brand can even gain ideas for curated bundles by observing which items customers are choosing to buy together.

Businesses can easily create a customizable subscription box experience for their customers with Bundles, leading to an enhanced customer experience and better revenue.

Implementing Bundles for an enhanced customer experience

Product bundles are a powerful ecommerce strategy that can enhance the customer experience, boost sales, and improve your business’s overall profitability. Whether you choose pre-set bundles or build-a-box offerings, Recharge Bundles provides the tools and capabilities to streamline the entire process.

At Recharge, we value privacy and handle personal information accordingly. Learn more about how we handle personal information by reviewing our Trust Center.