The Basics of Kitting
Kitting is, in its basic form, a way of grouping your products together.
It allows for easier management in a fulfillment center. If you’re putting together three products in a single package and sell the products separately there will be both a parent SKU and a child SKU.
You can also use it to sell smaller quantities of an item. If you have a 100lb quantity of a supplement and you’re selling it in quantities ranging from 1-4 ounces then the child SKU for these smaller amounts is used.
It can also be used to put together the various components of a more complicated product like a bicycle.
All of these uses will help you put together a much easier way to keep a handle on more complicated sales.
Without kitting, for instance, you’d have to create a separate SKU for each individual quantity and sell all of the kits, components, or quantities in separate amounts.
Kitting allows you to pre-arrange the combinations of items you’re selling. It’s a serious component of any eCommerce fulfillment service.
Getting Into Advanced Applications
There are more advanced applications of kitting that are available as well.
You may want to sell multiple kits as a single kit for instance. These can all be organized under a higher level SKU which takes each of the kits and puts them all together to create a higher level kit.
Or you may want to sell multiple small quantities of individual quantities as a sampler. Continuing the supplement example from above you may want to sell several 1/2 ounce quantities of a half dozen supplements as a single purchase.
Multiple levels can keep inventory organized over a longer period of time.
Creating multiple levels of kits may not be in the stars for every business. But as your business and inventory grow you may find that higher-level organization is an enormous benefit to your business.
Advanced logistics are a serious part of most eCommerce businesses, and kitting is one of the main benefits offered.
Benefits to Your Inventory Management
Your inventory management can be made much easier through the proper use of kitting. It’s up to you to create the kits. A good management system will enable you to keep things organized despite the differences in end sales.
Since everything can be tracked individually as well as in the kits themselves you’ll quickly find that it makes life a lot easier on your end.
Being able to stay ahead of when you need to restock certain items in whichever fulfillment center you’re using will enable you to avoid running out of stock while only having to place orders for individual components of the kit.
Turnover is also increased, especially when you’re looking at products that have multiple components. Not having a vital piece of the chain, while maintaining the rest of the product’s stock can hit your bottom line as people look elsewhere when the component is out of stock.
By pre-assembling these kits, you’ll also be able to avoid some of the fees associated with the fulfillment of multiple items and lower shipping costs overall. Sending your bundles as one item is much easier than having to ship multiple items every time someone orders a bundle from your website.
Wise assembly of kits is something that can help you save money, on top of making your entire inventory management process much easier.
Do I Need a Kitting Service?
Many eCommerce stores thrive on their ability to sell flexible kits and various quantities of bulk items. There’s also cross-product promotions to take into account, which can be easily performed with a good kitting service at your back.
In a sense, it also provides a “larger” inventory with the same amount of total end products. This saves on storage fees in the warehouse that’s handling things.
One of the most common applications is in the growing field of subscription boxes. Supplement sellers and suppliers of complex mechanical items like bicycles will also benefit from kitting their items to make fulfillment and management easier.
Those who only sell one-shot items might not receive many benefits, but nearly anyone who sells products that repeat on a regular basis will find that proper kitting can seriously help their bottom line.
Pretty much every moderate-to-high volume eCommerce site needs a warehouse and people to fill orders. After a certain point, it just becomes unfeasible to do it all yourself.
Of course, with kitting services available through a professional fulfillment service, you may just find yourself changing the way things operate on a fundamental level.
It’s really up to you to take advantage of it.
Ready to Dive In
If you think that kitting sounds like a good idea for your business. You just need to find the right fulfillment services for your business.
If you’re still looking then we may have a solution for you.
Contact us and let’s see if we’re able to help.