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Kitting Services: Overview, Types, & Benefits

AMS Fulfillment Puts It All Together for You

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Inquiries about kitting services have increased from a wide variety of companies. Some businesses see this as a means to boost revenue. Others see it as a way to cut down on shipping costs or save time in storage. But for others, it’s a method of being useful to customers and converting them from one-time buyers into loyal patrons.

What Does Kitting Mean in Logistics?

Kitting is a method used by online retailers and logistics companies to bundle multiple items into one shipment. This may include commonly purchased sets of goods. These parts may serve to complete a whole, or they may simply complement one another. Maybe it’s a subscription service you’re introducing to your customers.

Kitting, in whatever form it takes, can be a fantastic tool for boosting business by simultaneously satisfying customers and generating more sales.

The term “kitting” refers to the practice of grouping multiple items under a single stock-keeping unit (SKU) so that they can be shipped as a single unit. Your business can either physically bundle products into sets and sell them to customers as kits, or customers can virtually bundle products on your eCommerce site and have them picked and packed as kits when they make a purchase.

Kitting can also be used to group products together that are technically separate but functionally related. When items that are meant to be used together can be purchased in one convenient package, it simplifies the shopping experience for the customer.

When it comes to the logistics behind shipping and warehousing, the term “kitting” can refer to two different things that mean essentially the same thing to the end user:

  • Prepackaged items are sent as a kit under one SKU to the warehouse.
  • Multiple items are sent to the warehouse that are kitted after a customer purchases under one SKU on the order slip.

Kitting helps ensure that your customers receive exactly what they ordered on the first try. Whether you do the packaging yourself or have the warehouse do it, having inventory that is already kitted out means higher sales and easier shipping.  

3 Different Types of Kitting

Kitting and assembly services come in many forms and can be utilized by both eCommerce businesses and their customers. Here are three of the most common types of kitting fulfillment services that you can consider when looking into kitting:

Subscription Boxes

These bundled collections of products have become increasingly popular in recent years. The contents of a subscription box might come from more than one store. Nonetheless, there are cases in which only a single vendor offers a given subscription box (for goods like spices, beverages, or home goods like candles).

One-time buyers can be converted into loyal monthly subscribers with this strategy.

Assembled Products

Kitting pre-assembled goods help reduce headaches for customers. These built-to-order product kits can be assembled in a few different configurations to give customers more options and ensure they receive everything they need when they place an order.

Made-to-Order Kits

Sets that are custom-made for each customer by varying factors such as quantity, color, and type of item are becoming increasingly popular in the realm of online retail. Incorporating these custom kitting sets into an online shop boosts sales because they make it more convenient for customers to buy more.

What Is a Kitting Process in 3PL?

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Kitting, a process common in third-party logistics (3PL), entails locating and physically bundling together multiple items for shipping. 3PLs offer kitting and fulfillment services to online retailers who require them for subscription boxes, assembled products, packed-to-order, and similar distribution services.

When it comes to fulfillment, kitting is used to reduce warehouse costs and maximize single-package delivery efficiency for customers. 3PLs typically handle warehouse storage and shipping, in addition to kitting.

So the warehouse management system process might look like:

  1. The 3PL is responsible for the storage and management of the goods.
  2. When a customer places an order for a kit, the 3PL will pull the components from stock and assemble them into kits. Having the components on hand for both individual and kit sales helps to cut down on inventory needs.
  3. The 3PL packs up the finished goods and sends them out to customers.

By following these steps, your customers will receive the correct items they ordered in a timely manner before shipping. When you hire a kitting service expert, you can rest assured that each order is filled with precision, leading to satisfied clients and streamlined stock management.

Benefits of Kitting Services

Kitting has many advantages for your eCommerce business, your 3PL, and your end users. It has the potential to benefit everyone involved. The advantages are the same whether you sell prepackaged kits, assembled products, subscription boxes, or any other kind of kitted inventory.

To streamline the purchasing process for your clients, consider the following kitting advantages:

Reduced time spent on the pick-and-pack process is one of the many benefits of kitting.

When products are packaged together and sold as a set, they are typically moved to a new location in the warehouse where they can be more easily accessed. For warehouse storage purposes, this is a time- and space-saving consolidation. This can speed up the process of getting customers’ orders processed and shipped to them.

Spend less money on warehouse operations by improving efficiency and streamlining processes.

If there are fewer mistakes, you won’t lose money on rework or upset clients.

Sales can be boosted by bundling hot sellers with slow movers.

In this way, you can boost sales and ultimately, your profits. Subscribing to some of your products monthly will bring in new customers consistently. There are many ways that kitting can help to up your sales and revenue.

The period of time between placing an order and its departure with the shipping company is shortened.

Improved efficiency means more products can be picked, packed, and shipped out of your warehouse in less time, which in turn reduces shipping times for all of your customers.

Customer satisfaction will increase as a result of providing more options and meeting more needs.

When you package and ship items using kits, you can lessen the likelihood of making mistakes and thereby provide a better experience for your customers. Happy customers turn into repeat customers, making more money for your company.

AMS Is Your New Home for Kitting Services

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The world of kitting isn’t one you have to enter alone. Kitting services are provided by many fulfillment businesses and warehouses to facilitate easier sales and delivery. Whatever warehouse kitting options you offer – from subscriptions to prepackaged sets to made-to-order kits – kitting services can help your company and its customers save time and money on shipping costs. This is done by reducing the number of packages delivered to each customer while increasing the number of items included in each.

AMS can streamline the assembly process of implementing kits to boost sales. We have fulfillment centers on both coasts of the U.S., so we can be closer to your customers no matter where they live, and that can expedite the kitting and shipping of your products to your customers. You, your customer, and your logistics provider can all benefit from using kits due to their increased efficiency and sales.

To learn more about how kitting services can boost your business, Contact Us today!

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