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Product Bundling & Kitting

Product management11/27/2025Intermediate Level

Product bundling is selling multiple products as a single package for one price, while kitting combines individual components into a new, sellable SKU. Both are strategies to increase average order value.

What is Product Bundling & Kitting? (Definition)

Product bundling involves grouping several distinct products together and selling them as a single unit, often at a discounted price compared to buying each item separately. This strategy aims to increase the average order value and encourage customers to purchase complementary items. Kitting is a related concept where individual components are assembled into a new, unique product SKU before sale. Unlike bundling, kitting typically creates a new product that cannot be easily disassembled by the customer back into its original components. Both strategies require careful management of inventory, pricing, and product information.

Why Product Bundling & Kitting is Important for E-commerce

In e-commerce, product bundling and kitting are powerful tools for driving sales and improving customer experience. Bundles can simplify purchase decisions for customers, offering convenience and perceived value. Kitting allows businesses to offer customized or specialized product configurations, catering to niche markets or specific customer needs. Proper PIM implementation is essential for managing these strategies, as it needs to track the individual components within a bundle or kit, their availability, pricing, and ensure accurate product descriptions for the new combined SKU across all sales channels. This also impacts inventory management and fulfillment processes.

Examples of Product Bundling & Kitting

  • 1An electronics store offers a 'home office bundle' including a laptop, monitor, keyboard, and mouse at a combined price lower than buying each item separately.
  • 2A furniture retailer sells a 'DIY shelf kit' that includes all the pre-cut wooden pieces, screws, and instructions, packaged as one SKU.
  • 3A coffee company creates a 'starter kit' with a coffee machine, a variety pack of pods, and a mug, aimed at new customers.

How WISEPIM Helps

  • Manage bundle components: Define and manage the relationships between individual products and their bundled/kitted counterparts, including inventory tracking and pricing.
  • Automate SKU generation for kits: Automatically generate new SKUs and corresponding product data for kitted products, reducing manual effort and errors.
  • Consistent content for bundles: Ensure accurate and compelling product descriptions, images, and marketing content for bundles across all sales channels, reflecting the combined value.

Common Mistakes with Product Bundling & Kitting

  • Not offering a clear value proposition for the bundle, leading customers to question its benefit.
  • Bundling unrelated products that customers do not naturally buy together, resulting in low conversion rates.
  • Over-complicating bundle options or kitting configurations, causing customer confusion and decision paralysis.
  • Failing to track bundle performance and profitability, preventing data-driven adjustments to offers.
  • Ignoring inventory management for kitted products, leading to stockouts of individual components and inability to fulfill orders.

Tips for Product Bundling & Kitting

  • Analyze customer purchase data to identify frequently bought-together products for effective bundling opportunities.
  • Clearly communicate the value proposition of bundles, highlighting savings, convenience, or unique benefits.
  • Implement robust inventory management to accurately track individual components and kitted SKUs to prevent stockouts.
  • Test different bundle combinations, pricing strategies, and promotional offers to optimize sales and profitability.
  • Use high-quality product imagery and descriptions that effectively showcase the entire bundle or kitted product.

Trends Surrounding Product Bundling & Kitting

  • AI-driven Personalization: Leveraging AI to analyze customer data and suggest highly relevant product bundles tailored to individual preferences and purchase history.
  • Dynamic Bundling: Implementing automated systems that allow customers to create their own bundles from a predefined set of options, with real-time pricing adjustments.
  • Subscription Box Kitting: Growth in curated subscription boxes, requiring sophisticated kitting operations for personalized and rotating product selections.
  • Sustainability-focused Bundles: Creating bundles that group products reducing packaging waste or promoting eco-friendly consumption, appealing to conscious consumers.
  • Headless Commerce Integration: Utilizing headless architectures to offer flexible, real-time bundling and kitting options across multiple sales channels and touchpoints.

Tools for Product Bundling & Kitting

  • WISEPIM: Centralizes product information for individual items and bundles, enabling efficient management of bundle configurations, pricing, and channel syndication.
  • Shopify: E-commerce platform with apps and native features for creating product bundles and managing associated inventory.
  • Magento: Robust e-commerce platform offering advanced bundling and kitting capabilities, especially for complex product catalogs and custom configurations.
  • Akeneo: PIM system for managing complex product data, including attributes for bundle components and kitted products across various sales channels.
  • Salsify: Product Experience Management (PXM) platform that helps manage rich product content for bundles and ensures consistent delivery across sales channels.

Related Terms

sku-stock-keeping-unitproduct-assortmentinventory-managementproduct-merchandisinge-commerce-strategy

Also Known As

product packagekit assemblyproduct sets