Product bundling occurs when brands or retailers group related products together and sell them as a single unit to capture interested consumers.
It’s great when a customer purchases a product. It’s even better when they purchase multiple. Product bundling helps enable the latter by grouping related products together to spark consumer interest in similar items to the one they’re purchasing.
Product bundling can involve either an upsell or a cross-sell. To encourage an upsell, a brand might bundle a more expensive version of a product with another item to show the consumer the overall value they would get by buying both.
A cross-sell occurs when the brand bundles related products within a certain category. They might sell charcoal bundled with grilling equipment, for example, or notebooks bundled with pens.
In either case, both the brand and the consumer benefit. The brand gets a higher average cost per order, potentially more revenue, and boosted customer loyalty, while the consumer gets a mix of related items that better suits their needs.