Product Bundle Tracking and Allocation

Product bundles in MerchantFlow let you track gift sets, starter kits, subscription boxes, and other multi-product packages with automatic revenue and cost allocation. By distributing bundle revenue across component products, MerchantFlow gives you accurate profitability metrics for every item in your catalog -- even when products are sold together.

What Are Product Bundles?

A bundle is a product sold as a single item but containing multiple component products. Without bundle tracking, analytics show high revenue for the bundle SKU and zero revenue for the individual components inside it, leading to inaccurate product performance metrics.

Common bundle types include:

• Gift sets -- holiday bundles with multiple items
• Starter kits -- introductory product packages for new customers
• Subscription boxes -- monthly curated collections
• Value packs -- multi-item discount packages
• Product combinations -- complementary products sold together

Why Track Bundles?

How to Access Bundle Management

Navigate to Dashboard > Bundles to create and manage bundles. The Bundle Dashboard shows all configured bundles, their component products, allocation methods, status, total sales, and revenue allocated to components.

How to Create a Bundle

Step 1: Start Bundle Creation

1. Go to Dashboard > Bundles
2. Click "Create Bundle"
3. The bundle creation modal opens

Step 2: Select the Bundle Product

1. Search for the bundle product by name or SKU
2. Click to select it
3. Bundle product details are displayed

The bundle product must already exist in your store (Shopify or WooCommerce) and be synced to MerchantFlow.

Step 3: Add Component Products

1. Click "Add Component"
2. Search for and select component products
3. Enter the quantity included in the bundle (e.g., 2 units of "Organic Face Cream")
4. Repeat for all components

Example bundle configuration:

Holiday Gift Set contains:

• 1x Organic Face Cream ($45)
• 1x Vitamin C Serum ($35)
• 2x Travel Size Moisturizer ($10 each)

Step 4: Choose an Allocation Method

Select how to distribute bundle revenue across components. Three methods are available:

1. Proportional by COGS (recommended)
2. Fixed Percentage
3. Manual Allocation

See the allocation methods section below for detailed explanations.

Step 5: Review and Save

1. Review bundle product, components, quantities, allocation method, and revenue distribution preview
2. Click "Save Bundle"
3. The bundle is now active

Understanding Allocation Methods

Proportional by COGS (Recommended)

Revenue is distributed based on each component's cost of goods sold:

Component Allocation = (Component COGS x Quantity) / Total Bundle COGS

Example: Holiday Gift Set sells for $100:

• Face Cream: COGS $20, Qty 1 = $20 cost -> ($20 / $41) x $100 = $48.78 revenue
• Vitamin C Serum: COGS $15, Qty 1 = $15 cost -> ($15 / $41) x $100 = $36.59 revenue
• Travel Moisturizer: COGS $3, Qty 2 = $6 cost -> ($6 / $41) x $100 = $14.63 revenue

Best for: Bundles where components have different costs and you want fair allocation based on product value. Requires all components to have COGS defined.

Fixed Percentage

Each component gets a fixed percentage of bundle revenue that you define.

Example: Holiday Gift Set sells for $100:

• Face Cream: 50% = $50
• Vitamin C Serum: 30% = $30
• Travel Moisturizer: 20% = $20

Percentages must sum to 100%. Best for: Marketing-driven bundles where you assign value based on product importance rather than cost.

Manual Allocation

You specify an exact dollar amount for each component.

Example: Holiday Gift Set sells for $100:

• Face Cream: $55
• Vitamin C Serum: $30
• Travel Moisturizer: $15

Amounts must sum to the bundle price. Best for: Special bundles with strategic pricing. Note that manual allocations do not scale automatically if the bundle price changes.

How to View Bundle Performance

Bundle Revenue Report

Navigate to Dashboard > Bundles and view the "Bundle Performance" section to see total bundle sales, revenue allocated to components, top-selling bundles, and bundle contribution to overall revenue.

Component Product Impact

Go to Dashboard > Products, find a product included in bundles, and view its "Revenue Sources" breakdown:

• Direct sales -- revenue from the product sold on its own
• Bundle allocation -- revenue from the product sold inside bundles
• Total revenue -- combined figure

Example: Face Cream total revenue $5,000 = Direct sales $3,500 (70%) + Bundle allocation $1,500 (30%).

Bundle Profitability

Track profit margins for bundles by ensuring all component COGS are defined:

Bundle Profit = Bundle Revenue - Sum(Component COGS x Qty) - Ad Spend

How to Edit and Deactivate Bundles

Editing Bundles

• Update component quantities: Changes apply to future sales; past sales remain unchanged
• Change allocation method: Affects historical data -- all past bundle sales are re-allocated
• Add or remove components: Historical sales are recalculated with the new structure

Deactivating Bundles

Toggle the "Active" switch to off when a bundle is discontinued or seasonal. The configuration and historical data are preserved, but new sales are not allocated to components. Toggle back on to reactivate.

Common Bundle Use Cases

Best Practices for Bundle Management

1. Define COGS first -- add COGS for all component products before creating bundles with proportional allocation. See COGS Management.
2. Use clear naming -- name bundles descriptively (e.g., "Holiday Gift Set 2026") rather than generically
3. Match your store -- bundle products should exist in Shopify/WooCommerce with a unique SKU
4. Review allocation quarterly -- verify component costs, bundle prices, and percentage splits remain accurate
5. Monitor performance monthly -- track which bundles sell best and whether margins are healthy
6. Document allocation logic -- add notes explaining why you chose each method
7. Do not over-bundle -- only create bundle tracking for multi-product kits, not multi-packs of identical items

Troubleshooting Bundles

Bundle Revenue Not Allocating

Verify the bundle is Active, the bundle product SKU matches order line items, and a sync has run since the bundle was created. Re-sync data to apply bundle allocation.

Proportional Allocation Not Available

One or more components are missing COGS. Add COGS for all bundle components at P&L > COGS, then return to the bundle editor.

Component Shows Negative Margin

The bundle may be priced too low relative to component COGS, or the allocation method may need adjustment. Consider switching to Fixed Percentage or Manual Allocation for strategic distribution.

Bundle Product Not Found

Verify the product exists in your Shopify or WooCommerce store, then trigger a product sync from Dashboard > Sync and try creating the bundle again.

Frequently Asked Questions

Can I create bundles that contain other bundles?

Multi-level bundles (bundles within bundles) are not currently supported. Use a flat structure that lists all individual component products directly.

What happens when I change a bundle's allocation method?

Changing the allocation method reprocesses all historical sales data. Past bundle orders are re-allocated using the new method.

Do bundle allocations affect my P&L?

Yes. Bundle allocations distribute revenue to individual products, which impacts product-level profitability in your P&L reports. Total revenue remains the same.

How do I track bundle assembly costs like labor and packaging?

Bundle assembly cost tracking is not currently available. As a workaround, add assembly costs to the bundle product's COGS entry. This cost will not be allocated to individual components.

Related Guides

• COGS Management -- define component costs
• Product Details -- view product-level bundle impact
• P&L Overview -- track bundle profitability
• Expenses -- understand how bundle costs flow into operating results
• Bundle FAQ -- common bundle setup and reporting questions

Last updated: March 14, 2026