The Product Bundling in Ecommerce is a marketing concept in the company, where the idea is to offer several related products or services and sell them as a package solution, at a usually lower price. That is, these are bundles of products or services that are sold to buyers as a combo package.
What is the Product Bundling?
It is also often referred to as "Package Deals" and they are made up of complementary pieces or, less frequently, of similar articles. An example of a bundling product would be a beach kit that includes sunscreen, sand toys, sandals, and towels, as a salable ensemble item.
It is worth mentioning that some merchants only sell certain inventory items as part of a bundle of products rather than offering them either as individual or bundled items. For retailers who sell the same items individually and as part of a product package, the package tends to cost less than if a customer had to purchase all of these items separately.
What benefit does it have for Ecommerce?
Product Bundling in e-commerce can be especially attractive to customers who appreciate package discounts. It also appeals to customers who value simplicity over speed or the ability to tailor their product options.
For online retailers the Product bundling is attractive since the grouping of products can effectively increase the average value of the orders by selling more without having higher transaction costs.
Not only that, bundled products make it harder for customers to price comparison, so they end up coming back to the site due to the lower price. The Product Bundling can also encourage cross-selling if the product bundle includes items from new categories.