If you are the owner and operator of an eCommerce store, you tend to look for value, and setting up efficient storage and distribution methods, are the key to maximizing that value. By being efficient you save yourself time and money that can be allocated to other parts of your operation such as marketing or sales. For that reason, it’s time to take a look at a concept that is overlooked, yet can help almost any small business save time and money.
Kitting! What is kitting?
Kitting is a term used in the logistics industry process that refers to the combination of two or more individual items into a larger package, and sold or delivered as a single unit. Kits are considered a single unit regardless of the number of individual products inside them. This means that the items within could have different SKUs, UPCs, MPNs or tracking numbers. However when they are combined, the kit tends to have its own unique SKU. Some of the most common categories in which kitting is implement in include books,CDs, DVDs, Video Games (and other Media) or Samples, coupons ( and other promotions) .
Key benefits of Kitting
- Overall increase in productivity flow (Since multiple items are packaged prior to receiving an order)
- Custom packaging makes efficient use of space and saves you money on shipping costs
- Saves time by printing shipping labels without the need to weigh individual items
- Include promotional material such as coupons or samples for similar products
Now that you are familiar with the process of kitting, a few ways of incorporating it into your small business is by contacting the supplier or the manufacturer of your product and discussing any ideas you have and the possibility of implementing them.
If you are already working with a fulfillment company, you can get in contact with them and discuss combining existing products that are frequently purchased together.