Is Product Kitting Right for Your Business?
Product kitting can be a very effective strategy to grow your business when properly used. In this article, we’ll show you what product kitting means and how to use it with your merchandise.
What Is Product Kitting?
Product kitting, also referred to as product bundling, is an inventory management term that defines when you add multiple products or a quantity of a product to sell as a single unit.
Now, if you plan on kitting products, make sure you have the right software that will update kitted products as single items sold.
Merchandise sold both by single pieces and sets, such as subscription boxes, are examples of kitting in action.
Product Kitting Examples
Let’s use a quick example of product bundling for context.
Let’s say we have a subscription box business and it’s a beauty subscription box.
Inside this product bundle, we have 3 unique products.
- Eye Liner – $9.97
- Moisturizer – $12.99
- Face Serum – $11.29
Individually sold, each of our 3 items has a different price point. Together, the retail price of our kitted product is $34.25.
Now, there’s a lot of options we have now by kitting these products. We could sell this set for $39.99 a month as a subscription box.
Similarly, we could also turn this new product into a special, dropping the price to $29.99 a month. The options are endless.
Ecommerce Product Kitting
As shown above, for an ecommerce business, kitting can open up the marketing playbook for you like you’ve never known before.
Ecommerce sellers using their current stock create a wide variety of new products to sell. In essence, the sky is the limit.
Product kitting offers you a big sales boost by creating new products for your customers. Bundling a number of products together and selling them as a new product or by using them for marketing promotions.
Ecommerce Product Kitting Strategies
As we said before, there’s many things that you can do to grow your sales using kitting.
For one, using your best selling products and combining them as a packaged deal.
Conversely, if you have products that are not selling, try kitting them together in a bundle. This may be the strategy that gets customers to buy these particular products.
How Does Kitting Fulfillment Work
As it relates to your fulfillment process for kitted products, it can be handled in a few different ways.
For starters, your kitted products can be pre-made, meaning they’re ready to be shipped when a customer places an order. This is also known as batch kitting.
Also, you can do your kitting fulfillment “on the go,” meaning they’re picked, packed and shipped when orders come in.
No matter which route you choose, inventory management is the key to a successful kitting fulfillment process. When done right, each individual product would have an unique SKU. item name and inventory count.
Remember kitted products can be sold individually or they can be stocked as a product bundle. This is vital for counting and managing inventory, as well as, re-ordering as you want to make your numbers are accurate.
Ecommerce Kitting Management
As you’re learning, product kitting uses a fulfillment process, packing process and accurate inventory tracking to be successful. If you’re not careful, you can end up with an inventory mess, you don’t want that.
Understanding how to manage kitting in your ecommerce business is critical to making it a success.
When handling your kitting in-house, having the right order management software is vital. You don’t want the task of tracking kitted products manually, trust us. The right software helps you keep a tight ship on your inventory.
When making the decision on product kitting, you may also want to consider using a third-party fulfillment partner to stock and ship your orders. Fortunately for you, product kitting is a service that the majority of fulfillment centers offer.
So before choosing a 3PL company, make sure you take the time to do your due diligence. Talk to their fulfillment experts and tell them about what you plan on shipping. Make sure they have a proven track record and don’t be afraid to ask questions.
Conclusion
There’s no question that product kitting creates a number of different merchandise opportunities for your online and offline customers.
Kitting is also a key business model for some business, just like we discussed earlier with subscription box businesses.
While you can handle your kitting in-house, partnering with a 3PL company can be a great strategic play for your business. Not to mention, it’s also a good move if you don’t have the space or want the overhead.
Know your product manufacturers can also be a great source for kitting products, don’t forget to ask them if they have a kitting service.
