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How to Use Products Bundles to Increase Average Order Value

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Rachel Go on Jul 20, 2022 in Strategy

How to Increase Average Order Value Using Product Bundling


As competition increases in the eCommerce market, finding ways to increase average order value (AOV) is essential. But what’s the best way to do it? More ads, new packaging, or higher prices?

Product bundling is one of the most effective ways to boost AOV while maintaining a good buyer experience.

With product recommendations generating 10 to 30% of eCommerce revenue and 66% of shoppers stating BOGO (buy one get one) offers are their favorite deals, product bundling is the ultimate hack to uplevel each sale’s value.

This post will dive into the AOV meaning and how it can help your eCommerce business thrive. We’ll also share helpful definitions, tips, and inspiration for bundling success.


Table of contents


What is AOV (Average Order Value)?

Amazon average order value (AOV) is the typical amount customers spend in a store per order in a certain period, e.g., per month or quarter.


How to Calculate Average Order Value?

You can calculate your eCommerce brand’s AOV by dividing its total takings by the number of orders. The AOV formula looks something like this:


Revenue / total orders = AOV


For example, if your store’s Q3 revenue stood at $104,000 and you saved 2,893 orders, your AOV calculation would look like this:

$104,000 / 2893 = $35.948


What is Bundling?

Bundling is a strategy that involves grouping individual items for sale as a single unit, increasing the amount a consumer buys in a shopping session. 

Discounting, limited-time promotions and clever packaging are just a few tactics brands use to reel in buyers and increase perceived value when bundling goods. There are different bundle types you can experiment with to increase average order value, such as:       

  • Cross-sell bundles
  • Upsell bundles
  • Mix and match bundles
  • New product launch bundles
  • Gift set bundles
  • Old stock bundles
  • Buy one get one bundle


How Bundling Can Uplevel Your eCommerce Business?

If you’ve seen countless retail and eCommerce brands implementing bundling strategies successfully but aren’t sure how it could help your business, we’ve got you covered. Let’s explore some ways bundling can skyrocket your brand’s results:

  • Increased Return on Ad Spend

The more a new customer spends in your store, the less it’ll cost to acquire them. In addition, if the shopper makes a repeat purchase, it’ll further increase the return on investment in your advertising, boosting your store’s profitability.

  • Accelerate Inventory Turnover Speed

Since bundling helps you move more stock in one go, it can boost your inventory sell-through rates. This benefit is very helpful for liquidating underperforming SKUs and increasing rankings on online marketplaces.

  • Higher Cash Flow Injections

If you need more liquidity in your business, bundling can help you get it. Bigger orders from well-thought-out bundles scale how much cash you can drum up without increasing your time or capital investments.

  • Introduce Shoppers to Other Products

Maybe you’ve got a comprehensive product portfolio or are planning a new launch; bundling will give your items the chance to shine. In addition, an enticing bundle offer can get shoppers interested in more products in your portfolio, increasing the customer’s lifetime value.

  • Get Higher Returns Over Time

In eCommerce, 27% of first-time buyers return to make additional purchases. This figure shoots to 54% after their second or third purchase. So, your store’s takings can increase substantially when you optimize your product bundling strategy to encourage customer loyalty.


5 Ways to Increase Average Order Value with Bundling 

Now you’ve got the inside scoop on what bundling can do for your eCommerce business, it’s time to craft an effective bundling strategy to improve your AOV. Here are the steps to get started:


Research your Target Customers’ Buying Habits and Competitors’ Offers

The first step in creating AOV-boosting bundles is to hit the digital streets searching for data on your target customers’ shopping habits. Look out for needs you can serve and how your competitors are meeting them. Then combine your findings with your sales history to better predict which products could work well in a bundle.

Some areas to focus on are:

  • What your target customers are buying right now
  • What your audience is in the market for
  • Issues and pain points your dream customers need to solve
  • The best offers your competitors have now and have launched in the past


Create Enticing Bundles Based on Your Findings

Once you understand your dream customers’ wants and needs, the next task is to create multiple bundles for testing. For example, say you own a nail care brand, and Q4 is fast approaching. Your sales data and market research revealed customers buy multiple items in your store in the final quarter and prefer darker nail varnish colors in fall. Also, your market research shows your competitor has launched a top-selling nail care serum.

You could:

  • Create multiple dark nail varnish gift set bundles
  • Include a complimentary mini version of your brand’s nail serum
  • Add these nail varnish bundles in a 3 for 2 or 2 for 1 (BOGO) offer 

Top tip: Don’t be afraid to combine different bundling tactics into one offer to meet customer demand and boost perceived value.


A/B Test of Different Bundle Setups

While creating attention-grabbing offers will reel shoppers in, the real money comes from testing. So, experiment with different bundling methods, sizes, and contents. Some key areas to test your bundling strategy include:

1) Website positioning: For example, if you have an eCommerce website, you could trial pushing offers on the checkout page versus on the order confirmation page.

2) Sales channels: Your products may sell well on a particular channel when sold individually, but a bundle offer could take off on another. To find out what platform(s) best suit your bundles, upload them to each sales channel in your eCommerce ecosystem. Provide equal ad budget, high-quality imagery, and top-notch copy, then monitor their performance.

3) Social media platforms: Each social media channel attracts specific buyers. To find out which tribe your product bundles resonate with, work with influencers, social media, and organic posting and evaluate which drives the most sales.


Create Personalized Bundles and Capture Sales with Subscriptions for Higher Conversions

With 75% of US consumers saying they’re loyal to companies that understand their individual needs, personalization is a huge conversion booster you’ll want to include in your bundling strategy. So, make it a priority to serve your site visitors with personalized bundle recommendations. For best results, use an AI-backed eCommerce personalization tool to make tailored bundle suggestions 24-7 without increasing your team’s workload.


Promote the Benefits Your Bundles Provide

Another essential task to complete to boost AOV with bundling is good, old-fashion marketing. Talk about each bundle’s benefits instead of features to help shoppers rationalize a more significant purchase. Combine social media and paid advertising to get the word out about your bundles before they launch. For example, if you own a skincare brand and create an acne treatment bundle, you could discuss how the products will give the shopper increased confidence.


Brands Getting Bundling Right

Few things can get you ready to take on the bundling challenge than seeing brands achieve what you’re aiming to do. So, to get you inspired, let’s look at some brands that have nailed their bundling strategy:

  • Alya Skin

Ways to Increase Average Order Value


Combining its viral products with a stellar 30% discount on a dedicated page titled “Bundle & Save,” Alya Skin knows how to create high-impact and low-cost skincare systems its customers love. In addition, Alya Skin’s bundles breed confidence in its audience as shoppers know they can rely on Alya Skin to help resolve their skin issues.

  • Nespresso

Nespresso - Increase Average Order Value


Tapping into coffee lovers’ desire for brews that look and taste great, Nespresso bundles its machines and accessories into enticing gift sets that its customers can buy to treat themselves and their friends. As a result, Nespresso increases the perceived value of its products, keeps offers fresh, and breeds customer loyalty.

  • Unicorn Superfoods

Unicorn Superfoods - Increase Average Order Value


Unicorn Superfoods takes a goal-oriented approach to bundling, helping its customers achieve specific health goals and cooking tasks. The convenience factor of Unicorn Superfoods’ health-promoting bundles makes buying them a no-brainer, hooking shoppers in for good.


Final Word

Bundling offers a fantastic avenue for you to increase order sizes, build brand loyalty, and scale. But to make your product bundles a success, you’ll need to be strategic. Spotlight top-performing products and put your spin on trending offers.

Also, test often and tweak your bundles according to your findings to boost conversions and AOV. Soon, you’ll pull in cash, delight customers, and rocket your eCommerce business’ growth.


About the Author

Rachel Go is the marketing director of MyFBAPrep, the leading eCommerce warehouse network for Amazon aggregators, enterprise-level brands, and top Amazon sellers. Operating a global network of more than 50 warehouses and six million square feet of operating warehouse space, MyFBAPrep offers a full suite of eCommerce 3PL services, including Amazon wholesale and private label, direct-to-consumer (DTC) fulfillment, and B2B retail.



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