How to Clear Post-Holiday Inventory with Product Bundles

The holiday season is over. Your Shopify store has seen record traffic, impressive sales numbers, and happy shoppers. But now you're facing a common problem that many ecommerce merchants overlook: excess inventory sitting on your shelves.

According to industry data, brands typically experience a 20-30% inventory surplus after the holiday rush. This leftover stock ties up capital, consumes warehouse space, and represents lost profit potential.

For Shopify merchants, this challenge becomes even more pressing when cash flow is critical for funding new product launches and marketing campaigns.

But you got out back! You don't need to resort to deep discounts that erode your margins.

Instead, strategic use of product bundles offers a smarter solution. By combining slow-moving items with bestsellers through a mix and match bundle builder, you can move inventory faster while actually increasing your Average Order Value (AOV) and maintaining healthy profit margins.

In this guide, we'll explore strategies you can implement today!

Why Product Bundles Clear Inventory Faster

Consider the math: if you have 500 units of a slow-moving product that cost you $20 to acquire, and you're tempted to discount it by 40%, you'd lose $8 per unit, totaling $4,000 in lost revenue.

But if you bundle that product with a bestseller and increase your AOV by 25%, you can move the same inventory while actually increasing total revenue.

Beyond the financial benefits, product bundles serve another critical function: they reduce decision fatigue for shoppers.

Learn how to clear inventory faster using bundles in our detailed blog.

The Modern Mix & Match Bundle Builder

Traditional static bundles, where shoppers buy a fixed set of products at a set price, work, but they have limitations. Modern Shopify merchants are moving toward mix and match bundle builders, which give shoppers flexibility while still guiding them toward higher-value purchases.

A mix and match bundle builder allows shoppers to select items from predefined categories. For example, a beauty brand might offer a bundle where shoppers choose 3 items from a selection of 12 products at a fixed bundle price. This approach has several advantages for inventory clearance:

• Flexibility for Shoppers: Shoppers feel empowered when they can customize their purchase. This sense of control increases conversion rates and reduces cart abandonment.
• Strategic Inventory Movement: By including your slowest-moving items in the available selection, you ensure they get picked up without feeling forced on shoppers.
• Data Collection: You learn which products shoppers actually want, providing valuable insights for future purchasing decisions.
• Increased AOV: When shoppers build their own bundles, they typically select more items than they would have purchased individually, naturally increasing order value.

Practical Strategy 1: The "Clearance Plus" Bundle Model

The "Clearance Plus" model combines your excess inventory with your best-sellers in a strategic ratio. Here's how to implement it:

Step One: Audit Your Inventory

Identify products that have been slow-moving for the past 30-60 days. These are your clearance candidates. Separately, identify your top 10 best-selling products from the holiday season.

Step Two: Create Bundle Tiers

Design three bundle options at different price points:

• Entry Bundle: 2 slow-moving items + 1 bestseller at 15% discount
• Mid-Tier Bundle: 3 slow-moving items + 2 bestsellers at 20% discount
• Premium Bundle: 4 slow-moving items + 3 bestsellers + 1 premium item at 25% discount

Step Three: Use a Mix and Match Bundle Builder

Create a mix and match bundle experience. Let shoppers choose 2-3 items from your slow-moving inventory and 1-2 from your bestsellers. This gives them choice while ensuring your clearance goals are met.

Practical Strategy 2: The "Seasonal Transition" Bundle

This strategy is particularly effective in January when shoppers are thinking about new routines and fresh starts. Instead of positioning bundles as "clearance," frame them as solutions for New Year goals.

A fitness apparel brand, for example, might bundle excess holiday inventory (gift sets, holiday-themed items) with core products positioned as "New Year Essentials." The narrative shifts from "we need to clear stock" to "we're helping you start fresh."

This approach has worked exceptionally well for Shopify brands in the wellness, fitness, and lifestyle categories.

By connecting your inventory clearance to shopper aspirations, you create emotional resonance that pure discounting cannot achieve.

What Is the AOV Impact of Bundles in Numbers?

Let's talk about the real financial impact. When you use product bundles strategically, your AOV typically increases by 20-35% compared to standard sales. Here's why this matters for post-holiday inventory clearance:

If your average order value before bundles is $75, and you increase it to $95 through bundling (a 27% increase), you're generating an additional $20 per transaction.

If you process 500 bundle transactions in January, that's an extra $10,000 in revenue, while simultaneously clearing inventory that would have otherwise sat in your warehouse.

Moreover, higher AOV orders typically have better unit economics. The cost of processing a $95 order is only marginally higher than processing a $75 order, meaning your profit margin per transaction actually improves.

What Are the Key Metrics to Measure Success?

As you implement bundle strategies, monitor these key metrics:

• Inventory Turnover Rate: How quickly are you moving excess stock? Track this weekly to ensure your bundles are achieving their primary goal.
• Average Order Value (AOV): Compare AOV for bundle purchases versus non-bundle purchases. You should see a measurable increase.
• Conversion Rate: What percentage of visitors who see your bundle offer actually purchase? Aim for a 2-5% conversion rate on bundle promotions.
• Profit Margin: While AOV increases, ensure your profit margin per transaction remains healthy. Calculate this as (Revenue - COGS - Marketing Cost) / Revenue.
• Customer Satisfaction: Monitor reviews and feedback on bundled products. Bundles should increase satisfaction, not create confusion or disappointment.

Common Mistakes to Avoid

Mistake 1: Bundling Too Much Excess Inventory

Don't try to move 80% excess inventory in a single bundle. Shoppers can sense desperation. Aim for a 40/60 ratio of clearance items to bestsellers.

Mistake 2: Unclear Bundle Value Proposition

If shoppers don't immediately understand why a bundle is valuable, they won't buy it. Be explicit about the savings and benefits.

Mistake 3: Ignoring Complementarity

Bundle products that actually work together. A fitness brand bundling yoga mats with protein powder makes sense. Bundling yoga mats with evening skincare products doesn't.

Mistake 4: Setting Bundles and Forgetting Them

Bundles require promotion. Create urgency by setting end dates, featuring them prominently, and updating them regularly based on performance data.

Conclusion: Turn Inventory Challenge Into Revenue Opportunity

Post-holiday inventory clearance doesn't have to mean sacrificing margins or brand positioning. By leveraging product bundles you can move excess stock while actually increasing your AOV and maintaining customer satisfaction.

If you're ready to implement bundles on your Shopify store, use FoxSell Bundles and make it simple. With objectives like AOV growth, you can have bundles live on your store within minutes, not days.

Your excess inventory doesn't have to become a problem. It can become an opportunity, to increase revenue, delight shoppers, and set your store up for success in the months ahead.