#178) Offer mixed bundling, not pure bundling
Give your shoppers the option to mix & match.
- Mixed bundling: products in the bundle can be purchased individually also.
- Pure bundling: products are only available together and cannot be bought separately.
Timothy Derdenger and Vineet Kumar from Harvard Business School discovered that when Nintendo offered mixed bundling (the option to purchase products as a bundle), their sales of video game units went up by 100,000, and video game sales went up by more than a million. When they tried pure bundling, their sales went down by 20%. The result was fewer sales of video game consoles, and even video games themselves. (source)
Product bundling performs best when customers can choose, especially if it saves them some money.
There are several types of bundling: (source)
Small discount bundling
- Add-on bundles (products from the same category)
- Cross-selling bundles (products from different categories)
- Multi-buy bundles (multiples of the same product)
Heavy discount bundling
- Inventory reduction (good-selling product + bad-selling product)
- Wholesale (large quantities)
- New items (introducing new product lines)
Zero discount bundling
- Convenience bundle (products that go together)
- Exclusive access bundles (before they’re available to buy individually)
- Price friction bundles
Free shipping bundling
- (offer free shipping above a minimum amount)