The Benefits of Kitting Services for Ecommerce BusinessesOctober 2, 2019
If you outsource your distribution, warehousing or fulfillment services to a third-party logistics (3PL) company, chances are you are familiar with kitting services. Fulfillment Works, for example, provides an array of pick and pack and kitting services. Kitting services can effectively lower your shipping costs, speed up fulfillment and boost sales for your ecommerce business.
What Exactly Is Kitting?
In fulfillment, kitting is the bundling of individual items into ready-to-ship packages.
Let’s say you’re an ecommerce merchant that specializes in men’s grooming products, and your best-seller is your beard wash. You’ve noticed, however, that customers who purchase the beard wash also tend to buy conditioning oil and a comb. You decide to bundle your three items together as one shippable item with a unique SKU. That’s kitting!
While the components of a kit are often produced by different suppliers and require assembly, a 3PL provider can assemble them into prepackaged kits and fulfill them to a distribution list for you.
Why Should I Consider Kitting Services?
Kitting offers plenty of benefits, including:
Lower costs: Outsourcing your kitting means you won’t need to invest in warehouses, equipment, technology and staff. But whether you outsource or kit in-house, there are major cost advantages for sellers.
Kitting saves you money on shipping. Shipping three items individually, for example, is more expensive than bundling and shipping them in one package. And unlike random packages assembled from various SKUs, kits have a predetermined weight. Skipping weighing can save both time and money.
Faster assembly: Adding kitting services to your supply chain strategy means faster assembly of your products and faster order fulfillment for your customers.
Kitting services can include both on-demand and pre-assembled kits. Pre-assembled kits are assembled when the inventory arrives and are then warehoused, awaiting pick and pack order processing. On-demand kits, meanwhile, are created on demand during the pick and pack process.
Increased Sales: Kits are attractive to buyers, especially if you bundle products and accessories that complement each other. Plus, packaging and selling items together exposes your customers to products they may not have considered or known about.
Kits also make great gifts. If you don’t offer them year-round, consider offering holiday gift packs. Include value-added services such as gift wrapping and individual kitting options as added incentives.
To Kit or Not to Kit
Kitting is an easy way to lower costs, speed up order fulfilment and increase sales. Talk with your 3PL to find out how kitting can increase sales and warehouse efficiencies. You’ll also want to know:
- Can pre-assembled kits be broken up into individual components with new SKUs if they don’t sell well?
- If your kits outsell your individual products, can your 3PL create new kits with your in-stock components?
- Does your 3PL perform spot-checks during the kitting process to assure the accuracy and quality of kits?
Fulfillment Works’ kitting services team can make whatever kind of unboxing experience you want to create happen.
Our kitting services include simple kits, where a few items are placed in a package, or complex kits that include several components to be placed in custom die-cut boxes with trays, custom inserts, wafer seals, custom wrapping–and just about anything else. Contact us to find out how we can create customized solutions for your ecommerce business.