Jump right in: Kitting and Fulfillment: Unlock Hidden Benefits for Your eCommerce Business.

• Introduction
• Understanding Kitting
• Benefits of Kitting
• The Kitting Process
• What is Fulfillment?
• How Do Kitting and Fulfillment Work Together?
• Outsourcing Kitting and Fulfillment
• Summary

Running an e-commerce business is no small feat. Between managing inventory, processing orders, and ensuring timely deliveries, the logistics can quickly become overwhelming. Enter kitting and fulfillment: two strategies that, when combined, can streamline your operations and enhance customer satisfaction.

Kitting involves assembling individual items into ready-to-ship packages, or kits, under a single SKU. This process not only saves time but also reduces errors in order fulfillment. Imagine a skincare brand offering a “winter essentials” kit, pre-packaged with moisturizer, serum, and lip balm. This kit simplifies the buying process for customers and the packing process for your team.

Fulfillment, on the other hand, covers the entire process of receiving, processing, and delivering online orders. Efficient fulfillment ensures that products are stored properly, picked accurately, packed securely, and shipped promptly.

When these two processes work in tandem, they can transform your e-commerce business. This guide will dive into the complexities of kitting and fulfillment, exploring their benefits, processes, and how they can be seamlessly integrated to boost your operational efficiency and customer satisfaction.

Ready to streamline your e-commerce operations? Let’s dive into the world of kitting and fulfillment.

Understanding Kitting

Kitting is the process of pre-assembling individual items into a package or kit that is sold under a single SKU. By creating kits, businesses can streamline their operations, reduce errors, and improve the customer experience. Kitting is particularly beneficial for e-commerce businesses that sell products often purchased together or those that require a certain assembly before use.

Difference Between Kitting and Bundling

While kitting and bundling are often used interchangeably, they have distinct differences. Kitting involves assembling multiple products into a single package ahead of time, creating a new SKU for the kit. This is typically done to simplify the fulfillment process and reduce handling time. Bundling, on the other hand, refers to the practice of grouping separate SKUs to be sold together. In bundling, the items are picked and packed together only after an order is placed.

Types of Kitting

Benefits of Kitting

Implementing kitting in your e-commerce operations can bring a multitude of benefits that streamline processes, enhance customer satisfaction, and boost sales. Let’s explore these advantages in detail:

Time and Cost Savings

Kitting can significantly reduce the time and labor involved in order fulfillment. By pre-assembling items into kits, you eliminate the need to pick and pack multiple individual products for each order. This streamlined process not only speeds up fulfillment but also reduces labor costs. Imagine how much faster and more efficiently your team can operate when they only need to handle one SKU instead of several.

Inventory Management Optimization

Kitting optimizes your inventory management by reducing the number of individual SKUs you need to track. When products that are frequently bought together are combined into a single kit, it simplifies inventory monitoring and restocking. This consolidation can lead to better inventory accuracy and lower the chances of stockouts or overstocking, ultimately improving your supply chain efficiency.

Improved Packaging and Reduced Shipping Costs

By packaging items together in a kit, you can optimize the size and weight of your shipments. Custom-sized boxes for kits reduce the need for excess packaging materials, such as fillers and tape. This not only lowers your packaging costs but also minimizes shipping expenses, as you can avoid dimensional weight charges often imposed by carriers. The result is a leaner, more cost-effective shipping process.

Enhanced Customer Experience and Satisfaction

Kitting allows you to create well-curated packages that enhance the customer experience. Customers appreciate receiving a complete set of items that meet their needs without having to search for and add each product individually to their cart. This convenience can lead to higher customer satisfaction and loyalty. Additionally, well-designed kits can provide a delightful unboxing experience, further strengthening your brand’s reputation.

Increased Sales and Average Order Value (AOV)

Kitting can be a powerful sales strategy. By offering kits, you encourage customers to purchase multiple items together, often at a discounted rate compared to buying each item separately. This can lead to an increase in average order value (AOV). Moreover, well-crafted kits can serve as attractive gift options, driving impulse buys and boosting sales during peak seasons like holidays.

The Kitting Process

Kitting can streamline your e-commerce operations, reduce errors, and enhance customer satisfaction. Here’s a step-by-step guide to the kitting process:

Step-by-Step Guide to the Kitting Process

Determine Kit Contents

• Identify which products will be included in the kit based on customer buying patterns, promotional strategies, or complementary product relationships.

Create a New SKU

•  Assign a unique SKU to the new kit. This helps in tracking and managing the inventory effectively.

Gather Components

• Collect all the individual items that will make up the kit. Ensure you have enough stock of each component to avoid shortages.

Assemble the Kit

• Pre-assemble the items into the designated packaging. This could involve placing products into a custom box, adding branded labels, or including additional instructions or promotional materials.

Label and Scan

• Label the kit with its unique SKU and scan it into the inventory system to ensure accurate tracking and management.

Store the Kits

• Store the assembled kits in a dedicated area within the warehouse, making them easy to locate and pick for shipping.

Monitor Inventory Counts

• Regularly update inventory counts to reflect the new kits and the decrease in individual components used in assembly.

Examples of Successful Kitting Applications 

Subscription Boxes

Companies like FabFitFun and Birchbox use kitting to curate and assemble a variety of products into themed boxes that are sent to subscribers regularly. These kits create an exciting unboxing experience and boost customer loyalty  .

Seasonal Gift Sets

Kylie Jenner’s Lip Kits are a prime example of kitting in the beauty industry. By packaging multiple shades of lipstick together, the brand not only increased its average order value but also created a desirable product that appeals to gift buyers .

Customizable Kits

Kotis Design allows customers to create their own kits from a selection of products, enhancing personalization and customer engagement. This approach caters to the specific needs and preferences of each customer .

Promotional Bundles

Bobbi Brown’s Palette and Lipstick Sets combine high-selling items with less popular ones, ensuring that all products move out of inventory and increasing overall sales. This strategy is especially effective during festive seasons when gift sets are in high demand .

What is Fulfillment?

E-commerce fulfillment is the process of receiving, processing, and delivering online orders to the end customer. This process typically involves storing products in a warehouse, picking, and packing orders, and shipping them to customers on time. Fulfillment is a critical aspect of running a successful online business, as it directly affects customer satisfaction and loyalty to your brand.

Fulfillment can be managed in-house by the online retailer or outsourced to a third-party fulfillment provider like eFulfillment Service. Having a dependable 3PL partner can enhance the experience for both you and your customers, allowing you to focus on more important things. When selecting a 3PL provider, ensure they have real-time inventory management software that can track from incoming to picked and shipped items. This information should be automatically sent back to your store to prevent stockouts and avoid disappointing your customers.

How Do Kitting and Fulfillment Work Together?

Kitting can be a key part of the fulfillment process, allowing businesses to pre-assemble packages and kits ahead of time, making it easier and faster to fulfill orders. For instance, when a customer orders a gift set of skincare products, the items can be pre-packaged into a kit, making it ready for quick and efficient picking, packing, and shipping with minimal handling once the customer places their order.

By incorporating kitting into the fulfillment process, businesses can improve efficiency, reduce errors, and enhance the overall customer experience. Kitting allows businesses to offer customizable packages and kits, making it easier for customers to find and buy the products they need. 

By implementing kitting into your fulfillment process you can easily:

• Improve Efficiency: Streamline the pick, pack, and shipping process.
• Reduce Errors: Ensure accuracy in orders, leading to fewer returns.
• Enhance Customer Experience: Offer customizable packages and kits that make it easier for customers to find and buy what they need.

Outsourcing Kitting and Fulfillment

Outsourcing kitting and fulfillment to third-party logistics (3PL) providers can bring numerous advantages to your e-commerce business. Here’s a concise overview of the benefits, along with guidance on choosing the right 3PL partner and an example of services provided by companies like eFulfillment Service.

Advantages of Using 3PL Providers for Kitting and Fulfillment

Expertise and Efficiency

3PL providers specialize in logistics, ensuring your kitting and fulfillment processes are handled expertly, reducing errors and improving speed.

Cost Savings

By outsourcing, you can cut operational costs related to labor, storage, and shipping. 3PL providers often negotiate better shipping rates, passing the savings on to you.

Scalability

3PL providers can scale their services to meet your growing demands, allowing you to manage peak seasons and expansion without significant investment.

Focus on Core Business

Outsourcing logistics lets you focus on core activities like marketing and product development, driving growth and innovation.

Advanced Technology

3PL providers use advanced technology for inventory management, order processing, and shipment tracking, enhancing transparency and efficiency in your supply chain.

Overview of Services Provided by 3PL Companies Like eFulfillment Service

Outsourcing to a reliable 3PL provider like eFulfillment Service can optimize your operations, reduce costs, and improve customer satisfaction, allowing you to focus on growing your business.

Returns Management

Efficient handling of returns to maintain customer satisfaction.

Technology Integration

Seamless integration with e-commerce platforms for real-time data exchange..

Customer Support

Dedicated support teams to assist with any issues or queries, ensuring smooth operations.