What is Product Bundling?

Product bundling is a merchandising and sales strategy where two or more products are offered together as a single package, typically at a combined price that is lower than the sum of the individual prices. Unlike kitting, which refers to the physical assembly process in the warehouse, bundling is primarily a commercial strategy—it’s about how products are presented and priced to customers. Bundles can be pre-assembled (like kitting) or assembled at the time of order, and they can consist of related products (a camera with a memory card and case) or complementary products designed to increase basket size and introduce customers to additional items in the catalog.

Why It Matters

Bundling drives several key business outcomes. First, it increases average order value (AOV) by encouraging customers to purchase more items per transaction than they would individually. A customer who came to buy a single product may purchase a bundle containing that product plus complementary items, spending more than they originally intended. Second, bundling accelerates the sell-through of slow-moving inventory by pairing it with popular items—customers perceive value in the bundle price while the business moves products that might otherwise become dead stock.

Third, bundling creates competitive differentiation. When every retailer sells the same individual products at similar prices, unique bundles offer a combination that competitors don’t, making direct price comparison more difficult. This reduces margin pressure from price-matching and gives the business a distinctive offer. Fourth, for brands selling direct-to-consumer, bundles provide an opportunity to introduce customers to products they might not have discovered or purchased on their own, driving cross-category exploration and long-term customer lifetime value.

How It Works

Product bundling involves both commercial and operational considerations:

• Bundle Design: Determine which products to bundle based on purchase correlation data (what items are frequently bought together), margin analysis (ensuring the bundle price covers costs and delivers acceptable margin), and strategic goals (moving slow inventory, introducing new products, or building basket size).
• Pricing Strategy: Set the bundle price to create perceived value while protecting margins. Common approaches include percentage discounts off the combined individual prices, fixed bundle prices, and tiered pricing where larger bundles offer deeper discounts. The discount must be meaningful enough to motivate the purchase without unnecessary margin sacrifice.
• Inventory Management: Bundled products require careful inventory tracking. The system must monitor component availability and only offer the bundle when all components are in stock. If one component sells out individually, the bundle must be deactivated or adjusted to prevent overselling. This is especially complex across multiple sales channels where individual and bundled inventory compete for the same stock.
• Listing and Channel Management: Bundles are typically listed as distinct products on sales channels, with their own titles, images, and descriptions. Each channel may have different requirements for how bundles are presented, and bundle availability must sync with component inventory across all platforms.
• Fulfillment: Depending on volume, bundles may be pre-kitted in the warehouse or assembled at the time of order. High-volume bundles benefit from pre-assembly, while low-volume or customizable bundles are more efficiently assembled per order.

How Nventory Helps

Nventory makes product bundling operationally seamless by linking bundle listings to component-level inventory across all sales channels. When a bundle is sold, Nventory decrements the component SKUs and updates availability everywhere—for both the bundle and the individual products—in real time. Automated rules can deactivate bundle listings when any component falls below a minimum threshold, preventing overselling. Whether you pre-kit bundles in the warehouse or assemble them at order time, Nventory ensures your inventory stays accurate and your bundles stay available as long as the components are in stock.