Amazon Prime Pantry: A Great Example of KittingAugust 6, 2014
Earlier this year, Amazon launched a new program for its Prime members called “Prime Pantry.” The service is like a custom kitting process. Customers are allowed to order as many grocery items that will fit in a 4-cubic-foot box that holds up to 45 lbs. As customers add items to their cart, they are told what percentage of the box is filled. When the order is complete, the box ships for a flat rate of $5.99 (regardless of how full it is). [more]
This is a great example of an ecommerce business using creative kitting to their advantage. Amazon Prime members don’t pay for shipping, but with the Prime Pantry program, Amazon has a way to drive demand for some products that would have been cost-prohibitive to ship for free.
But, if Prime members are used to never paying shipping fees, what’s the advantage of the program for them? According to Amazon, the Pantry program has items that aren’t normally available through Amazon, such as single boxes of cereal or 12 packs of soda. Users can get almost everything they would get from a normal trip to the grocery store, without having to buy in bulk or leave the comfort of their homes. Also, you don’t need to be a fulfillment expert to know that $5.99 shipping for 45 lbs. is a good deal. Of course, it’s not possible for every ecommerce business to create a similar offering, but it can serve as an inspiration to find new ways to incorporate kitting into your fulfillment process.