Product bundling is a common method for eCommerce businesses to sell more of their items and boost their revenues over time. This essay delves into the psychology of bundling, offers a few pointers based on industry experience, and provides examples of successful companies.

Read on to discover more about the best product bundling tactics, how to avoid common mistakes, and which online retailers and direct-to-consumer eCommerce businesses are successfully implementing such selling techniques.

But first, let's get a definition out of the way.

Product Bundling

Product bundling refers to the sale of multiple individual items or services as a single package at a cheaper price than if they were offered separately. Value dinners at restaurants, beach packages, and shampoo and conditioner sets are all examples of product bundles. To encourage consumers to explore complementary goods alongside their best-sellers, some businesses only offer specific best-seller inventory as part of a bundle rather than separately.

Psychology of Product Bundling

According to research conducted by Harvard Business School's Vineet Kumar, when Nintendo utilized mixed bundling to advertise video game units, sales rose by 100,000 units (and video game sales increased by more than a million, as well). Nintendo, on the other hand, witnessed a 20% drop in sales when they tried pure bundling, in which buyers were compelled to buy only the bundled product, as well as lower sales of both video game systems and games.