Product Bundling

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Product bundling refers to when a seller combines two or more products or services together into one bundled package. Amazon product bundling and eBay bundle listings are popular sales strategies employed by many sellers present in those marketplaces. This is a great tactic to move products and provide an incentive for customers to purchase more products.

Example:

Product Bundling

Product Bundling Advantages:

1. Increase in Efficiency: Your warehouse workers only have to search for the bundled item rather than having to gather the individual products. You lower your distribution costs because you don’t have to send out as many individual products. Amazon product bundling strategy can increase sales and is an attractive marketing move.

2. Increases Speed: You can send out your bundled items rather than preparing a separate bunch of single items. Bundling products on eBay can save you time in the packing and shipping process as well.

3. Increase in Sales: Customers order and purchase items they may not have bought otherwise, thereby increasing your profits.

4. New or Lesser Product Bundle: When you pair a popular product with a less popular product, you can find the customer base of the less liked product with the help of the stronger product.

5. Competitive: When you product bundle, it makes it more difficult for your competitors to track what you are selling and compare prices.

Product Bundling Main Disadvantage: Risk

Product bundling may reduce your profit margins to the extent you don’t bundle the right items together. To the extent the bundles don’t sell, you end up with deadstock and lose a great deal of money.

Types of Bundling:

1. Pure Bundling: Customers have the choice to purchase the entire bundle of products or nothing at all.

2. Mixed Bundling: Customers are given the choice to either buy the entire pack of products or individual products from the pack.

3. Leader Bundling: Customers can get a discount if they buy a leader item with a non-leader item.

4. Joint Bundling: Two bundled products are offered to customers for the price of one.

5. Mixed Leader Bundling: This is when customers get the option to buy the leader product without having to buy the non-leader products in the bundle.