What is Kitting and Bundling?
Product kitting simply refers to having multiple products in one listing. It is the process of pairing complementary and compatible items for sale as a single unit.
Kits are generally assigned a unique SKU in order to differentiate the assembled kit from its individual components, and to allow the kit to be inventoried and tracked as a single unit. Bundles (for example, a video game console, two games, two controllers, and a headset) are considered kits.
1. Reduce Competition, Increase Sales
If the channel or marketplace you’re selling on has multiple listings for the same item, it can be difficult to stand out from the competition. Product kitting can help differentiate your content as a bundle. As a new listing, the bundle is unique and most likely without competitors. Kitting and bundling can also give you an edge on MAP policies if you include non MAP products in the bundle as well.
2. Simplify Purchase Decision
Kitting and bundling has the added benefit of eliminating uncertainty for customers that are concerned if certain parts will work well together. Without the hassle of researching components, customers can enjoy a more pleasurable and stress-free shopping experience – getting to Check Out faster. Kitting is highly beneficial for automotive and consumer electronics industry.
3. Reduce Return Rates
Reduce return rates by eliminating the possibility of a customer ordering incompatible parts. Product kitting ensures that the customer is purchasing complementary items, thereby eliminating error and improving buyer confidence.
4. Increase Product Exposure
Kitting allows the retailer to differentiate content by creating more listings. More listings mean more exposure. More exposure means more sales. Kitting and Bundling allows you to give yourself more chances to sell by listing each product on its own, then again as part of a kit.
5. Eliminate Errors
Kitting often results in fewer errors than the pack-to-ship method. Depending upon the nature of the products or materials, packaging kits can be done preemptively during downtime. This will increase efficiency and save time during a peak hours when many orders are coming through. When kitting is done in advance, it is also easier to catch errors before the package is shipped.
6. Reduce Shipping Costs
Kitting helps sellers to save money on shipping by bundling items that will go to the same address. This cost may be further reduced by utilizing customized packaging as opposed to standard packaging when many kits of similar size are being shipped. Customized packaging may weigh less or take up less space, reducing costs. Shipping time can be reduced dramatically with the use of kitting, as sellers can not only package but also weigh and label kits in advance.
7. Improve Customer Satisfaction
Great cost savings can be realized at the consumer level when purchasing a bundle vs. buying the components. If two items are being offered by a company at a discounted rate, kitting will not only help to save time from packing each order individually, it will also help to track the effectiveness of the promotion. Customers have the added advantage of receiving all kitted products at the same time. If sellers pass on cost savings to customers for ordering kits, this can also work to increase satisfaction.