.svg){kind=icon}
Introduction
Dropshipping has become one of the most accessible business models in ecommerce, letting retailers sell products without managing inventory. But with so many dropshippers competing for attention, how do you stand out and maximize your profits? Bundle pricing might be your answer.
This guide explores how creating strategic product bundles can increase your average order value, boost customer satisfaction, and streamline your marketing efforts.
We'll break down the benefits, walk through implementation steps, and show you how Flxpoint makes bundling simple for growing dropshipping businesses.
The Data Behind Bundle Pricing Success
The numbers make a compelling case for bundle pricing in ecommerce. As shown in the first chart, average order values have climbed steadily since 2020, reaching £114.25 in 2024 - an increase of over 30% from the pandemic lows. This upward trend presents an opportunity for dropshippers to capitalize on consumers' growing comfort with larger purchases.
Most impressively, the graph demonstrates the win-win nature of bundle pricing: retailer profits (black line) grow significantly higher with bundling compared to selling items separately, while customer surplus (value perception) also increases. This data confirms that bundling isn't just about increasing your margins - it genuinely creates better value for your customers too.
What Is Bundling?
Bundling is a pricing strategy where you combine multiple products and sell them together as a single unit, typically at a lower price than if customers bought each item separately. It's not just throwing random products together; effective bundling requires thoughtful curation of complementary items that solve specific customer problems.
The second image illustrates how simple product bundling can work in practice. By allowing customers to select complementary items (like shirts and pants) as a single purchase, you create natural upsell opportunities without aggressive sales tactics.
What's the Difference Between Kitting and Bundling?
While often used interchangeably, kitting and bundling serve different purposes in the dropshipping world:
Bundling combines multiple different products into a single offering. These are usually complementary items that enhance each other, like a smartphone with a case and screen protector. Each component maintains its identity but is sold together.
Kitting typically involves assembling components into a new product. The individual parts lose their separate identity and become a new SKU. For example, ingredients packaged together as a meal kit represent kitting.
The key distinction is that bundles present multiple products together while kitting creates what appears to be a single, unified product from multiple components.
What Are the Perks of Bundling Products for Dropshipping?
Higher Average Order Value
Bundle pricing naturally increases your average order value. When customers see the value proposition of getting multiple items at a discount, they're more likely to spend more than they initially planned. Instead of selling a $20 item, you might sell a $45 bundle with a perceived value of $60.
Reduced Marketing Costs
Marketing one bundle is more cost-effective than promoting multiple individual products. Your ad spend, copy creation, and campaign management are focused on a single offering rather than spread across many products. This results in more efficient use of your marketing budget while potentially driving higher conversion rates.
Improved Inventory Movement
Struggling to move certain products? Bundling them with your best-sellers can help clear inventory that might otherwise sit untouched. This strategy works especially well for seasonal items or products that aren't performing as expected.
Competitive Differentiation
In dropshipping, where many sellers offer identical products, bundles help you stand out. Your unique combinations create value propositions competitors don't have, building a distinct brand identity and reducing direct price comparisons.
Enhanced Customer Experience
Well-designed bundles solve customer problems more comprehensively than single products. When you bundle a main product with accessories or complementary items, customers get everything they need in one purchase, eliminating the frustration of realizing they need additional items later.
Flexible Profit Margin Management
Strategic bundling lets you balance your profit margins across products. You can include high-margin items with lower-margin products to maintain healthy overall profitability while still offering customers perceived value.
How Flxpoint Can Help You Do Product Bundling
Implementing bundle pricing in your dropshipping business becomes significantly easier with Flxpoint's purpose-built toolset. Here's how Flxpoint simplifies the bundling process:
Simple Bundle Creation
Flxpoint's platform lets you create bundles without technical headaches. From your catalog page, you can select "Create New Bundle," assign a unique SKU, and start building your bundle with existing products. The interface guides you through defining options and components, making it accessible even if you're new to bundling.
Multi-Supplier Bundle Management
One of the biggest challenges in dropshipping bundles is coordinating products from different suppliers. Flxpoint handles this complexity by managing component SKUs from various suppliers within a single bundle. The system automatically routes orders to the appropriate suppliers based on your order routing setup.
Inventory Synchronization
Flxpoint solves one of the most common bundling headaches by automatically calculating bundle availability based on component inventory. The system ensures you never sell bundles you can't fulfill by using the lowest quantity from related components as your available quantity.
Bulk Import Capabilities
For dropshippers with large catalogs, Flxpoint offers bulk bundle import functionality. Using mapping templates, you can create multiple bundles simultaneously, saving hours of manual work and reducing the risk of data entry errors.
Variant Management
Creating bundles with multiple options becomes manageable with Flxpoint's variant handling. You can offer customers choices within your bundles (like different colors or sizes) while maintaining a streamlined ordering experience.
Multi-Pack Creation
Beyond traditional complementary product bundles, Flxpoint simplifies creating multi-packs of the same item. This lets you offer quantity discounts even when suppliers only sell items individually, expanding your pricing strategy options.
Seamless Order Processing
When a bundle is ordered, Flxpoint maintains the relationship between the bundle SKU and component SKUs throughout the order lifecycle. This ensures accurate order routing, shipping, and inventory updates across your supplier network.
Ready to Boost Your Profits with Smart Product Bundling?
Request a demo today to see how Flxpoint makes bundle pricing simple for your dropshipping business.
Frequently Asked Questions
What is an example of a bundled product?
A bundled product combines multiple items sold together at a single price. Examples include tech bundles like a laptop with case and mouse, clothing sets with matching tops and bottoms, meal kits with all ingredients for a recipe, beauty collections with complementary skincare products, and gaming consoles packaged with controllers and games.
What are examples of product bundle pricing?
Product bundle pricing strategies include pure bundling (items only available in bundles), mixed bundling (available separately or bundled), complementary bundling (related items that work together), cross-category bundling (items from different product categories), and tiered bundling (offering different bundle sizes or levels).
What is another word for product bundling?
Other terms for product bundling include package deals, combo offers, product kits, value packs, multi-packs, sets, collections, and package pricing.
What are the disadvantages of product bundling?
Disadvantages of product bundling include reduced profit margins on individual items, customer perception issues if bundle components are mismatched in quality or relevance, inventory management challenges when components stock levels vary, higher initial costs for customers, reduced flexibility for shoppers who want specific items, potential cannibalization of higher-margin single product sales, and difficulty in tracking performance metrics for individual products within bundles.