What is a Bundling Package: Meaning, Products, Strategies and Benefits

Have you ever been offered several products that are packaged into one package at a lower price when you want to buy something? Well, several products that are packaged into one package are called bundle.

Bundle is one of the marketing strategies carried out by a company to increase sales of its products. bundling usually also referred to as a "frugal package" or "package deals".

So, what exactly is meant by bundling and what are the advantages of using bundling as a marketing strategy? Check out the explanation in this article.

Definition bundling

In English, bundling means combine. In the world of marketing, bundling is a grouping of two or more products in one Stock keeping unit (SKU). With bundling, consumers can buy two or more types of goods by only paying for 1 item.

bundling is a marketing strategy that is quite widely used in business E-commerce because it is considered effective in increasing sales. Based on Mc's statement. Kinsey from CXL, as much as 35% of all Amazon website purchases come from bundling product recommendations.

This marketing strategy is also commonly found during certain holidays, such as holidays or the holiday season which is a once a year moment. With this strategy, consumers will be interested in buying more products from the same brand because they are considered more economical.

Types bundling

bundling can be divided into several types. Here are five types bundling commonly used in marketing strategies.

1. Mixed Bundling

Mixed bundling is a type bundling the most commonly found. Mixed bundling is a combination of several products sold together based on historical order data. These products can be purchased separately, but there is a special discount if you buy them together.

2. Pure bundling

Pure bundling is a type of combination of two or more products that cannot be purchased separately. Pure bundling rarely used because it is considered to limit the choice of buyers, so that the company's goal to increase sales is not achieved.

3. Same-Product Bundling

Same-product bundling is a discount or discount given when consumers order several of the same product at once. bundling This type is usually often used by brands direct-to-consumer (DTC), which sells essential or personal care products.

4. Excess Inventory

Type bundling the latter is most effectively used in marketing strategy. Because, kind bundling it usually uses products that don't sell quickly by packaging them with new items to sell them faster.

Bundling Benefits

Basically, bundling done to increase the number of sales. Besides that, bundling Also usually done as a form of promotion of new products.

There are five benefits bundling what you need to know is:

1. Increase Sales Volume

Main benefits bundling is to increase sales volume in a certain period. To improve this, you need to know in advance which products have high product sales numbers and which products have low sales numbers.

After that, you can combine the two products as a product bundling. With this, you can get benefits in the form of increased sales.

2. Increase Average Order Value

bundling can also increase the average order value, especially if the products you sell are wholesale bundling are complementary products. For example, you can sell a set of sheets along with bed covers as a product bundling.

3. Reducing Stock Goods

With bundling, you can also reduce the stock of goods in the warehouse. The trick, you can combine products that have a high level of sales with products that have more capacity in the warehouse.

4. Save on Promotional and Distribution Budgets

bundling can also save on promotion and distribution budgets. With bundling, you don't need to pay extra for promotion and distribution, because you can promote and distribute two products at once.

5. Personalizing the Customer Experience

bundling also beneficial in increasing customer retention and loyalty. The trick, you need to find out the products that have the highest sales first, then combine these products with other products that suit their needs.

This is a complete explanation of bundling in marketing strategy. With various benefits obtained through bundling, do not be surprised if this type of marketing strategy is carried out by many companies.