How Product Bundling Benefits Your Business

When you buy a McDonald's Happy Meal, purchase the Microsoft Office Suite, or avail of packaged services, you are making the most out of the bundled products that companies offer customers often at discounted prices.

But what is product bundling? Product bundling is the combination of two or more products or services that are designed to be sold as one. There is no single formula in creating bundle items, and it is entirely reliant on your selling strategy.

However, states that it is ideal to create and sell bundled products that make sense together, though bundled products that have a "negative synergy" together can still sell and be profitable. Also, your company should also allow customers to purchase each bundled product individually, to give your customers the choice of either buying the individual item at its regular price or buying it together with other bundled items – at a reduced cost.


Reap the Benefits of Product Bundling

Product bundling is a marketing approach that is used by businesses from many industries, and has been proven to be an effective technique in selling more items to more customers.

  • Reduced Costs - Getting a bundled product across the market is more cost-effective than marketing individual products separately, as you are spending on promotions for one bundled product rather than for each individual item. Bundling different products also reduces the costs of attracting a customer. Customers who purchased your bundled products may want to purchase another item from the bundle, or an accessory or add-on to one of the bundled items, giving you a repeat customer. Combining slow moving items with hot selling items to create bundled products are also a way to clear out inventory and reduce inventory costs.
  • Differentiation - In markets with more players, it is essential to diversify and create a unique selling proposition to separate yourself from the others and drive more customers to your business. According to, product bundling makes it difficult for your competitors to track what you are doing and compare your prices against theirs. This strategy makes for a more competitive market, where customers have more factors to consider in buying a product aside from the price. With product bundling, you differentiate your company and your products from your competitors.
  • Enriched Product Offerings – Your inventory benefits from a diversity that bundled products give your customers. While it is known that customers value grouped items than individual products, customers might not value being given only the option of a bundled item without the ability to buy its individual items. reports a study done on the effects of bundling on product strategy, indicating that there were more sales when a mixed bundling (or bundled products that are also available for sale separately) is offered, rather than a scenario where bundles are not offered.

All in all, your bundled items should complement the whole product line of your company. When done correctly, product bundling can lead to more customers and increased revenues.

Connected Business Inventory supports Bundle Items and all your item types. To learn more, visit or watch the video below.


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