Strategies

Holiday Bundling Strategy: Boosting AOV and Clearing Inventory

Aleena Hassan

29 Oct 2025 — 7 min read

As the holiday season kicks into gear, mid-sized DTC brands on Shopify are searching for that elusive double win: boosting average order value (AOV) while trimming excess inventory before year-end. Enter product bundling—a strategy experiencing a major resurgence as brands seek to offset deeper discounts and extract more value per shopper. Adobe Analytics reported Cyber Monday furniture discounts at 21% off compared to 8% last year, exemplifying the intensifying margin pressure (Modern Retail). When done right, bundling turns bigger baskets into a win-win for both brand and buyer.

Why Bundling Works (When Everyone Else is Discounting)

Bundling isn’t a new trick, but it’s especially potent for DTC brands swimming against rising ad costs and aggressive competitors. The math is simple: when you package products together—often with a slight deal or bonus—you increase perceived value and nudge customers to spend more in one go. The results? Consistently impressive.

AOV, Multiplied: Coconu, an intimacy brand, saw a 20% increase in average order value after introducing bundle packs with a free shipping threshold (Modern Retail). Pet food startup Maev reported a 15% AOV boost and a 20% increase in items per order thanks to curated meal bundles (Modern Retail). HiSmile's multi-flavor bundle strategy led to over 80% of orders containing bundles, quadrupling their average cart size (Shopify).
Better Margins, Faster ROI: Larger baskets mean reduced shipping costs per item and more efficient customer acquisition. Mack Weldon doubled bundled orders per day and saw a 25% increase in new customers using bundles after launching a revised “bundle-and-save” offer (Modern Retail). Maev’s bundles specifically improved contribution margin and accelerated CAC payback (Modern Retail). In a holiday landscape of steep discounts and high ad spend, those extra margin points matter.
Superior Customer Experience: Thoughtfully curated bundles feel like a service, not a sales ploy. Holiday buyers get giftable sets, try new products, and skip decision fatigue. Classic consumer psych: when faced with 24 jam flavors, shoppers freeze; with 6, they buy (Shopify). Your bundle can make purchasing easier and more delightful, driving conversion.

Bundling as Inventory Management: Turn Dead Stock into Holiday Gold

Every operator knows the pain of slow-movers—last season’s colors, over-ordered SKUs, or aging inventory. The holiday window is your chance to clear the decks profitably. Strategic bundling lets you pair these “problem children” with best-sellers, creating compelling value packs that move units and preserve margins.

Shopify’s retail team notes that bundling is a proven way to “squeeze revenue” out of dead stock (Shopify). Apparel brands, for instance, have bundled three lagging accessories with a hero piece, moving old stock under the halo of a holiday hit (Shopify). Food and beverage brands do the same with “holiday variety packs” that discreetly clear soon-to-expire goods.

However, don’t just toss random clearance items into a box. Jordan Nathan, founder of Caraway, advises, “What’s in the bundle is more important”—customers need to see logic and value in the set (SplitBase). Curate around a need, theme, or season (“Winter Adventure Pack”; “Holiday Spa Set”) so every item feels intentional and delivers perceived value.

The Operator’s Guide: Crafting Bundles That Convert and Delight

Execution matters as much as strategy. Here’s how top brands are succeeding with holiday bundles:

1. Bundle Smart—Not Random:
Pair slow-movers with best-sellers that make sense together. The hero product carries the bundle, while the add-ons deliver bonus value. For example, a home goods store can bundle a hot-selling candle with two surplus ornaments—the candle does the selling, the ornaments clear inventory (Shopify).

2. Design Giftable, Themed Bundles:
Shoppers crave pre-curated gifts. Lean into themes (“Cozy Winter Care Package”; “Coffee Sampler”). Bean Box famously sold out a “12 Mornings of Coffee” advent bundle by capitalizing on gift demand (Modern Retail).

3. Tiered ‘Buy More, Save More’ Offers:
Caraway offered escalating discounts (10% off >$85, 15% off >$425, 20% off >$525, plus a free gift over $975) (Modern Retail). True Classic’s bundle builder increases your savings with more tees (up to $40 off 8 shirts; Modern Retail). Gamify the cart, but protect margins: for 50%+ margin goods, 10–20% off is safe; thinner margins, keep it to 5–10% (Shopify).

4. Make the Value Obvious:
Showcase bundle savings everywhere. Ana Luisa uses a “Bundle 3 and Save” mini-cart bar that fills as shoppers add more items, visually nudging bigger carts (DTC Patterns).

5. Use the Right Tools:
Shopify’s native Bundles app (launched 2023) makes it easy to create and manage bundles that sync inventory automatically—no custom SKUs or messy checkouts (Storetasker). Rapidly spin up holiday SKUs without a dev, and keep your site fast and stable.

6. Test, Measure, Iterate:
A/B test bundle compositions, pricing, and themes. Use Shopify analytics or apps like Peel to monitor attach rates and performance. The holiday rush generates real data—use it to refine your bundling playbook for Q1 and beyond.

Pro Tip: Don’t Let Abandoned Carts Kill Your Bundle Momentum

Bundling boosts AOV—but only if the sale closes. That’s where platforms like LiveRecover come into play. LiveRecover is an SMS cart recovery platform powered by real human agents. When a shopper abandons their cart (bundle or otherwise), LiveRecover’s team personally texts the customer, answers objections, and helps close the sale in real time.

Why is this so effective? In a season when every brand automates touchpoints, LiveRecover’s human-to-human approach feels authentic—customers get real answers, not canned replies, and brands recover more revenue while protecting trust and brand experience. For operators, it’s a best-of-both-worlds tool: automating follow-up while preserving the personal touch that drives conversion. Add it to your toolkit, especially if you’re launching high-value holiday bundles.

Founder’s Mindset: Build Value, Not Just Discounts

Bundling is more than a margin play—it’s about creating experiences that delight customers and serve your brand. The best operators obsess over the bundle experience: Does it solve a real need? Is it a “no-brainer” for the customer? Jordan Nathan of Caraway credits their flagship bundle for defining the brand’s launch playbook (SplitBase). Done right, a bundle feels like an upgrade, not a clearance.

Keep a two-way dialogue with your community. Ask, “Which bundle did you love? What would you want to see next?” Customers often surface killer combos you missed. And don’t neglect the operational side: have packaging for multi-item sets, align fulfillment, and train support to handle bundle-specific questions. Behind-the-scenes excellence safeguards both margins and customer happiness.

Bottom line: Holiday bundling is a strategic lever—lift AOV, clear inventory, and deepen customer relationships. Do it with intention and transparency, and you’ll finish Q4 stronger, with a cleaner slate for the new year. In a market where every transaction counts, smart bundling is a founder’s edge.

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