Bundling is a marketing strategy where companies package several products or services together as a single combined unit, often at a discounted price. The purpose of bundling is to increase the number of goods sold while reducing the cost of advertising and distribution of the goods. Bundling can offer several benefits for businesses, including increased sales, enhanced customer loyalty, reduced marketing costs, improved profitability, competitive advantage, and reduced inventory costs. There are different types of bundling, including pure, mixed, captive, cross-product, cross-sell, and premium bundling.

Bundling is not limited to products or services from the same store or provider. In some cases, cross-industry bundles are assembled and sold, such as vacation tour bundles that may include air tickets, rail tickets, a rental car, hotels, restaurants, museum and sightseeing attraction tickets, and live music event tickets. Bundling can also be used as a way to promote new products or brands that a customer may not know or as a way to liquidate merchandise that is not selling well.

It is important to note that bundling is not limited to marketing. Bundling can also refer to the practice of clustering together several complementary goods and services into a single package price that is lower than the sum of their individual prices. This is usually considered to be a longer-term arrangement and can increase the sales volume of a business while keeping sales away from competitors.

In summary, bundling is a marketing strategy where companies package several products or services together as a single combined unit, often at a discounted price, to increase sales and reduce costs. There are different types of bundling, and it can be used to promote new products or liquidate merchandise that is not selling well. Bundling can also refer to the practice of clustering together several complementary goods and services into a single package price that is lower than the sum of their individual prices.