Kitting in ecommerce is a strategy used by fulfillment companies to meet consumer demand, save time and optimize inventory management.
If you are new to ecommerce, you may not understand what kitting involves and why it’s an important component of third-party logistics companies.
In this article, we will define kitting to help you understand what it entails and explain how it can help your ecommerce business.
So What It Is Kitting?
Kitting involves combining multiple products into a single “kit” for direct delivery to the customer. In other words, it is the act of compiling various single items into one unit that is then sold to consumers.
Combining individual items into a single kit, rather than picking and packing them individually allows ecommerce fulfillment companies to save time.
Third-party logistics companies use kitting to cut distribution costs, improve warehousing efficiency, lower labor costs, and achieve many other benefits.
What Is the Difference Between Kitting and Bundling?
Although these two terms are commonly used interchangeably, they mean different things.
Bundling refers to combining multiple SKUs into a single package and then sent to the customer. On the other hand, kitting is used when two or more items require a sequential order of packing before shipping.
What Are the Benefits of Kitting?
- Simplify Your Shipping Process
Combining multiple products into a single kit makes your shipping process much more efficient. Shipping products as part of a kit reduces chances of errors in the fulfillment process and lowers the average fulfillment time. If your ecommerce business is growing and you’re struggling to keep up with the shipping process, it can be a good idea to embrace kitting fulfillment strategy.
- Reduce warehousing cost
Kitted items take up less storage space as compared to items stored separately. By reducing the storage space your items take up in a warehouse you can save on storage fees. Besides, kitting streamlines the picking and packing process, which leads to improved warehousing efficiency and lower labor costs.
- Save on packaging
Kitting products means you’ll use fewer packaging items, so you save money. Furthermore, adding kitted items to bulky shipments lowers your shipping costs.
- Faster shipping
Picking, packing and shipping individual items requires more time as compared to kitting products. Kitting is much quicker and limits the risk of human error, which translates to faster shipping. This, in turn, improves customer satisfaction.
Kitting is an effective order fulfillment strategy that comes with a range of benefits for ecommerce business owners. As your business expands and consumer demand increases, you may consider adding kitting fulfillment services to your fulfillment strategy to save time and money and optimize your supply chain.
Need Help with Kitting? Get in Touch with Global Logistics Solutions
Kitting is a complicated and time-consuming process that should be left to a competent kitting fulfillment service like Global Logistics Solutions.
Global Logistics Solutions is a trusted 3PL fulfillment, kitting and warehousing company that ecommerce businesses can rely on for streamlined fulfillment, warehousing, kitting and shipping solutions.