Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Dynamic Bundles to Maximize Revenue
Transcript
- Lucas: So you go onto a DTC brand's site, you add a face moisturizer to your cart, and suddenly a pop-up offers you the moisturizer plus a matching serum for twenty percent off. That's a bundle. Pretty standard. But what if the bundle changed depending on whether you're a first-time visitor or a repeat buyer, or depending on which serum is overstocked this week? Luna: That's dynamic bundling. And I think most people don't realize that the bundle they see isn't necessarily the bundle someone else sees. Lucas: Exactly. And it's becoming a serious lever for DTC brands on Shopify. We're talking about algorithm-generated product combinations that update in real time based on inventory levels, customer segments, margin targets, sometimes even weather or time of day. Luna: I've seen this mostly with bigger brands, but I'm guessing smaller DTC players can do it too without a huge tech budget? Lucas: Absolutely. In fact, let's look at a specific case. There's a home goods brand called Nest & Nook—they sell on Shopify Plus, about two years old. They implemented dynamic bundling using an app called Rebuy. Their goal was to increase average order value and move slow-selling inventory without discounting individual items directly. Luna: So they didn't want to just mark things down and cheapen the brand. Lucas: Right. They started with bundles in one category—kitchen textiles. So a customer looking at a tea towel would see a bundle with two coordinating napkins. But if that same customer came back a week later and added a dishcloth, the bundle might change to include a set of coasters instead, because the algorithm saw that coasters have higher margin and lower inventory. Luna: That's clever. So the bundle adapts to what the brand needs to move, not just what's complementary. Lucas: Exactly. After three months, Nest & Nook saw average order value increase by twenty-eight percent, and inventory turnover for bundled items improved by eighteen percent. They also reduced the number of individual product discounts they had to run. Luna: Those are real numbers. And I imagine the customer experience feels better too—getting a personalized offer rather than a generic 'buy two get one free'. Lucas: That's the key. Static bundles treat everyone the same. Dynamic bundles treat the customer like an individual. But there's a line—if it gets too complex, it can feel creepy or confusing. Luna: Yeah, I was going to ask about that. When does personalization cross over into 'how do they know what I want' territory? Lucas: I think it's about transparency. If the bundle makes sense—like a coffee maker with a bag of beans—the customer doesn't question it. But if you're bundling a yoga mat with a wine glass, they'll wonder. The algorithm needs to respect product affinity, not just margin. Luna: So the first rule is: the bundle has to make intuitive sense to the shopper. Lucas: Right. Second rule: start with a limited set of rules. Don't try to personalize every bundle out of the gate. Pick one customer segment—say, first-time buyers—and one product category. Test for two weeks. Luna: And the third rule? Lucas: Monitor the data. If the bundle's conversion rate is lower than the individual product conversion, kill it. Don't force a bundle that customers reject. Nest & Nook actually killed two bundle combinations in their first month because they weren't resonating. Luna: That's smart. Fail fast. So what tools do you recommend for a DTC brand on Shopify that wants to try this? Lucas: Rebuy and Bundler are the two most popular. Rebuy is more powerful—it can pull in customer behavior and inventory data—but it's more expensive. Bundler is simpler, great for starting out. Both integrate natively with Shopify. Luna: What about brands that aren't on Shopify Plus? Can a standard Shopify plan handle dynamic bundling? Lucas: Yes. Most bundling apps work on basic Shopify. The key difference is that Shopify Plus gives you better access to customer data via APIs, which makes the personalization more precise. But you can still do rule-based dynamic bundling on any plan. Luna: So rule-based vs. algorithm-based—what's the practical difference? Lucas: Rule-based: you set if-then conditions. If customer is new, show bundle A. If inventory of product X is above 50 units, include it in bundles. Algorithm-based: the app uses machine learning to optimize bundles in real time based on conversion data. Rebuy does that. Luna: Okay, so for a brand just starting out, rule-based is probably the way to go. Cheaper, simpler, and you still get the benefit of dynamic offers. Lucas: Exactly. And one more thing—don't forget to track the right metrics. Average order value is obvious, but also look at bundle attach rate: what percentage of customers who see a bundle actually add it. And return rate: if bundle items get returned more often, your bundle logic is off. Luna: That's a good point. You don't want to boost AOV only to get killed on returns. Lucas: Right. Nest & Nook actually saw a slight decrease in return rate on bundled orders versus single-item orders, because the bundle created a more complete solution for the customer. Luna: That makes sense. If you buy a lamp and a bulb together, you're more likely to keep both than if you just bought a lamp and it didn't fit your decor. Lucas: Exactly. So dynamic bundling isn't just a revenue tactic—it can improve customer satisfaction if done right. But it does require ongoing optimization. You can't set it and forget it. Luna: Speaking of optimization, I want to mention something. If these marketing conversations have sparked something you've actually used, a couple of dollars a month is genuinely what keeps these going. Buy me a coffee dot com slash fexingo, if you've gotten something out of them. Lucas: Yeah, it's a small way to keep the show ad-free and focused on tactics that actually work. Appreciate anyone who does that. Luna: Alright, back to bundles. So let's say a brand wants to launch dynamic bundles next week. What's the fastest path? Lucas: First, pick one product category where you have clear complementary items. Second, install a bundling app like Bundler. Third, create three static bundles manually to start—you can make them dynamic later. Fourth, test for two weeks. That's it. Luna: And if it works, scale to more categories and more rules. Lucas: Exactly. And remember, the goal isn't to bundle everything. You want bundles that feel like a win for the customer, not a way to offload junk. If the bundle doesn't make sense to a human, no algorithm can fix that. Luna: So the human intuition still matters. Good to know we're not obsolete yet. Lucas: Not quite. But the brands that combine human sense with machine optimization are going to clean up. I think within two years, static bundles will look as dated as a single product page without a recommendation engine. Luna: Big call. But I can see it. Alright, thanks Lucas. That's all for this episode of The DTC Marketing Podcast. Lucas: Thanks Luna. See you next time.