# What is Bundling?

What is Bundling? Selling multiple products together at a reduced combined price. A bundle becomes a new SKU.

## How it works in practice

A bundle is like a 'complete set menu.' Instead of the customer choosing what to eat, you've defined the menu. It saves decision time, increases perceived value, and lets you clear slower-moving products.

## Related metrics

- AOV — bundling raises it
- Cross-Sell — a bundle is a pre-packaged cross-sell
- Gross Margin — a bundle may lower margin on a specific SKU but raise overall margin
- Inventory — bundles help clear inventory

## Common misconception

'A bundle must be cheaper.' Not necessarily. A bundle can have equal perceived value without being cheap — it's about convenience. A '4-product gift set' priced at $80, when each item costs $70 separately, isn't cheap, but it's convenient and nicely presented.

## How to fix it

Bundle not selling? (1) Check savings clarity — display $100 → $80 (save $20), (2) check the name — 'The Complete Set' beats '3-Product Bundle,' (3) check the image — a bundle needs a dedicated photo, not 3 separate images, (4) check placement — is it featured on the homepage?

## Real-world example

A skincare store sold individual products for $17-26. They created a 'Complete Hydration Set': cream, serum, and lotion for $55 (instead of $69). 40% of sales shifted to the bundle. AOV rose 2.1x, and a slow-selling item included in the bundle sold out.

## Where to start

Create a bundle from your next 3 top sellers plus one slow-moving product. Check margin: the bundle needs at least average margin. Launch as a limited-edition holiday bundle.

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Category: Marketing · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/bundling