Product Bundling vs Bulk Pricing: Which Strategy Drives More Revenue for Shopify Stores?

Product bundles and volume discounts are proven to be effective pricing strategies. How should you decide which pricing strategy to implement in your Shopify store?

Product bundling and bulk pricing are two of the most popular pricing strategies for ecommerce businesses across various niches. But which is more effective at driving revenue?

At Barn2, a web design turned software company, we’ve seen ecommerce merchants wrestle with this question firsthand — with varying results. Some swear by bundles for boosting AOV, while others prefer to use bulk discounts. The reality? Both approaches work, but not always in the same way, nor for the same type of product or customer.

In this post, I’ll break down how bundling and bulk pricing actually work in practice, why shoppers respond differently to each, and how to implement them in your Shopify store without hurting your profit margins.

Product bundling vs bulk pricing: a brief rundown

Before we unpack which pricing strategy drives the most revenue gain for ecommerce businesses, here’s a quick refresher of what both terms mean:

• Product bundling involves selling multiple products together at a single price. Bundled items can be related, composite, or simply the same product in larger quantities. Think: “starter kits,” “gift sets,” or “complete-the-look” packs.
• Bulk pricing (otherwise called volume discounts or bulk discounts) reduces the per-unit or total cart price when customers buy specific items in larger quantities. Merchants typically offer volume discounts in the form of tiered prices, “buy 1 get 1 free” deals, “buy 3 get 50% off 1” deals, etc.

Why do customers respond differently to product bundles vs volume discounts?

Customers don’t react the same to bundled products and bulk pricing offers because they perceive their benefits differently.

• Product bundles create the perception of additional value. Even if the actual discount is small, customers expect to profit from bundle offers in the form of added variety, convenience, or a more complete solution with a single purchase. For instance, in a store that sells a variety of fashion accessories, offering shoppers preset combos that have everything they need and are cheaper than buying separately reduces decision fatigue.
• Bulk pricing triggers the scarcity mindset. It taps into customers’ desire to stock up and save, as they feel like they’re leaving money on the table if they don’t buy more. This makes it best suited to products that are likely to be quickly shared or replaced. Think: consumables like supplements, skincare, food items, or business-to-business orders.

How to decide between bundling vs volume discounts

Here’s a structured approach to help you work out which pricing strategy is right for your ecommerce store.

Step 1: Outline your business goals

Different business objectives require different pricing approaches. For instance, bundling might be ideal if your goal is to increase average order value by introducing new products and encouraging product discovery. Whereas bulk pricing is best suited for moving larger quantities of your products at once.

Consider these questions:

• Do I want to increase AOV, introduce new products, or move inventory more quickly?
• Am I trying to drive repeat purchases or cross-sell complementary items?
• Which strategy aligns with my business’s long-term revenue goals?

Step 2: Consider your product type

The products you sell and their impacts on your profit margins heavily influence which pricing strategy will yield the best results. Bundling works best when products enhance or naturally complement each other. Bulk pricing is most suited for products that customers buy repeatedly or in higher quantities.

Consider these questions:

• Are my products naturally complementary, or do customers typically buy them individually?
• Which products have high margins that could support bundling?
• Which products are consumable or frequently reordered in bulk?

Step 3: Analyze customers’ behavior on your site

Segment your customers based on sales data to understand how they make buying decisions. For lots of first-time buyers, bundles can increase cross-selling and product adoption. Bulk pricing may drive the best results if most buyers are repeat customers.

Consider these questions:

• Do my customers prioritize convenience and discovery, or are they cost-conscious?
• Do they prefer curated experiences or per-unit savings?
• Which strategy has historically driven more engagement or repeat purchases?

Step 4: Test and iterate your pricing strategy

Continuously test your offers post-launch to see what drives the best combination of AOV, margin retention, and repeat purchases year-round.

At a minimum, you should:

• A/B test bundle vs bulk offers on similar products.
• Track important metrics: AOV, gross margin, conversion rate, repeat purchase frequency, etc.
• Adjust discount thresholds, product combinations, bundle sizes, and other aspects of your offers based on their real-world performance.

Consider these questions:

• Which offer drives the highest AOV without eroding profits?
• Does the offer increase repeat purchases?
• How do customers respond to different discount levels or bundle configurations?

Product bundling and bulk pricing examples

Here’s how brands across various industries can implement product bundling and bulk pricing strategies.

Fashion

Best-fit strategy: Bundling

It’s rare for customers to want three units of the same shirt, but most will happily buy a curated set that feels cohesive. Bundles also allow merchants to highlight slower-moving inventory alongside bestsellers.

Supplements and consumables

Best-fit strategy: Bulk pricing

Customers buy these with repeat consumption in mind. Offering tiered discounts (e.g., “Save 20% when you buy 6 months’ supply”) directly aligns with their goals.

Beauty

Best-fit strategy: Product bundling and bulk pricing (hybrid)

Skincare sets make fantastic bundles because they simplify the decision process (“daily routine kit”), while bulk discounts encourage replenishment (“buy 2 cleansers, save 10%”).

Best practices for implementing bundles & volume discounts

Not all bundle and bulk pricing offers are created equal. These practical tips will help you design offers that fly off your Shopify store’s virtual shelves.

For product bundles

1. Create a handful of “hero” bundles that include high-margin and flagship items customers already love.
2. Group items that naturally go together and enhance customers’ overall buying experience, not random mixes.
3. Limit bundle options to a few curated sets so customers can decide quickly. Too many bundle variations overwhelm buyers, which can result in choice paralysis
4. Spotlight the value of the bundle offer to build trust and drive conversions.

For bulk pricing

1. Use tiered discounts (when apt) instead of flat rates, as they create multiple upsell opportunities.
2. Set clear minimum spend or quantity thresholds before discounts kick in to make sure each order stays profitable.
3. Spotlight per-unit savings, as shoppers respond better when they see the price per unit drop when they buy more.
4. Avoid using bulk pricing for high-margin, low-repeat items.

For both bundling and bulk pricing

1. Highlight bundles and volume discounts on product pages, in cart, in emails, on social, and in ads to drive awareness.
2. Use a Shopify app like Barn2’s Bundles & Bulk Discounts for Shopify
3. To automate combo deals and pricing rules.

Product bundles vs volume discounts: which is better?

As with all critical business decisions, the best approach depends on your business’s goals, operating model, product type, and customers’ behavior. From my 16+ years of experience, I recommend you use:

• Product bundles to increase revenue through improved product discovery, upsells, and cross-sells.
• Bulk pricing to increase revenue by moving large amounts of inventory quickly.

Of course, nothing stops you from combining strategies. If your store sells different types of items, consider using both approaches strategically: product bundles for cross-sells and bulk discounts for high-demand, repeat-purchase items.

Whichever approaches you settle on, using a dedicated Shopify app can help handle most of the heavy lifting that comes with implementing each pricing strategy.

For instance, Barn2’s Bundles & Bulk Discounts for Shopify

 enables you to create product bundles and discounts and apply them to specific products, categories, or across your entire store. Plus, it enables scheduling, auto-applies discounts, allows you to add custom promotional messages for each offer, and much more.