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Jun 13, 2023 | 3 minute read

How to Increase AOV & Support Inventory Management with Nested Bundles

written by Abisola Adeyemo

At Elastic Path, we aim to simplify the lives of merchandisers by giving them the control to unleash their creativity and innovate without reliance on IT for custom work. We also recognize the important role merchandisers play in supporting revenue goals and digital growth for brands. Forrester shows that implementing an effective bundling strategy can help increase revenue by up to 30% and increase AOV by 20%.

That’s why we’ve built upon our bundling capabilities with bundles of bundles or “nested bundles”.  In this blog, I’ll share how nested bundles work and how you can use this strategy to support your business goals.

What are nested bundles?

A nested bundle is a bundle that is contained within another bundle. A nested bundle can either be a fixed bundle where there are pre-selected groups of products for shoppers to purchase or they can be dynamic, where customers can select their desired products within the bundles. 

What is a use case for these bundles?

Let’s say you are a brand selling products for babies and young children. You have a bundle for a silicone feeding set which includes a bib, plate, bowl, cutlery, and a sippy cup for a discounted price.

However, you’re having some challenges getting rid of excess inventory for your baby meal prep bundle which includes a food processor, freezer tray, and glass tupperware jars.  To combat the excess inventory, you can merchandise a nested bundle where you combine the items within each bundle and give your customers the ability to select which items from each bundle they would like to purchase.

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Benefits of Nested Bundles

As mentioned in the example above, creating nested bundles is a great strategy for reducing excess inventory. Consumers are more likely to purchase groups of products that are discounted than if the item was sold at a higher price individually. This also helps to increase average order value, or AOV. Because you’re selling two bundles at the same time, you’re increasing the amount of items purchased at once,  which inherently will boost your AOV.

Moreover, nested bundles are a more efficient way of bundling multiple groups of products. Instead of having to merchandise and rework a new large bundle that includes all of the items you would like to sell together,  with nested bundles, you are able to save time by leveraging the work you’ve already done. Simply add the two existing bundles together.

In addition, nested bundles are also just another creative way to merchandise products. This means you’re bringing fresh, innovative strategies to market which helps to meet the needs of your customers.

If you’re interested in learning more about how Elastic Path is supporting brands like yours, check out our quarterly product update blog.