This case study explores how Magnus Luxury Watches solved complex bundling and inventory challenges with the MBC Bundles App, achieving substantial increases in average order value, improving inventory management, and driving exceptional ROI.

Overview

Launched in June 2020, Magnus Luxury Watches is a Netherlands-based brand specializing in luxury-inspired, high-quality watches at affordable prices. What sets Magnus apart is their commitment to exceptional design and product quality, helping them carve out a distinctive market position.

Problem

Magnus faced significant operational and sales challenges due to limitations in previous bundling solutions:

• Existing bundle apps couldn’t manage bundles with multiple distinct products.

• These apps lacked the capability to correctly track individual product SKUs within bundles.

• Inventory inaccuracies caused by incorrect SKU management created fulfillment issues and led to missed sales.

• Magnus was missing opportunities to boost revenue through attractive bundling offers.

Essentially, Magnus needed a smarter bundling app that could handle complex SKU-driven warehouse demands and seamlessly integrate with their operational processes.

Approach

After carefully reviewing Magnus’ specific warehouse and bundling requirements, we introduced the MBC Bundles App, tailored to their unique business needs. Our approach involved:

• Conducting an in-depth assessment of Magnus' operational challenges around SKU and inventory management.

• Implementing the MBC Bundles App with the capability to:
  *Combine different products (not just product variants) into bundles.
  * Accurately track individual SKUs within every bundled product.

• Launching straightforward, customer-friendly bundle campaigns such as:
  - Combo Bundles – offering customers freedom to mix multiple watches while maintaining accurate SKU tracking.
  - Tiered & Customizable Bundles – designed to incentivize larger volume purchases and to enhance perceived product value.

Solution

We implemented strategic product bundling tailored precisely to Magnus Watches' inventory management needs, primarily focusing on two strategies:

• Combo Bundles: Customers could combine different Magnus watches freely into a bundle, with each product's SKU captured accurately. This simplified warehouse operations, removing confusion and bottlenecks.

• Tired & Customizable Bundles: We created discounts and offers based on volume or special selections. This incentivized bigger shopping carts, driving engagement and increasing average spend.

Results

With MBC Bundles, Magnus Luxury Watches saw immediate gains:

• Average Order Value grew by 17%, showcasing increased customer spend across more orders.

• The MBC Bundles app directly generated 235 orders totaling $2,824.41 USD in revenue.

• Magnus invested only $50 USD total for bundling services, achieving an exceptional ROI of 5,648.82%.

• Ad spend per order increased just slightly (5%)—but overall profitability rose, proving strategic bundling delivered positive financial benefits.

In short, the MBC Bundles App successfully helped Magnus drive significantly higher customer spend, streamlining their warehouse operations and demonstrating strong financial returns.