Due to increased consumer demands and preferences, eCommerce businesses want additional ways to differentiate themselves to improve their brand and enhance customer experience, which frequently comes down to the finer details in product delivery and order fulfillment. Many packaging companies and fulfillment providers offer more customisable services known as value-added services (or VAS) to assist merchants in meeting these expectations.
Value-added services can take many forms, including specialised distribution, tailored messaging, virtual bundling, and kitting projects. Here, we’ll explain rework, kitting and gifting capabilities and how they can benefit your company, including outsourcing the process to a contract packing company.
Product Bundling, Kitting and Gift Box Services Grow eCommerce Revenue
Kitting and Gift Box Services
Kitting is a method wherein a collection of items is pre-assembled before picking and packing. This means a picker can retrieve the entire kit from the storage shelf as a single unit. By conducting the kitting process in advance, your packing company streamlines the order-handling procedure, increasing operational efficiency. Typically, kitting includes combining complementary products to create a cohesive set.
It’s important to note that not all 3PLs offer kitting services. However, at I-Fulfilment, kitting is a fundamental service we provide together with the expert contract packing company “Product Pack”. We have considered the advantageous outcomes that kitting brings to our customers. From an inventory management perspective, we often allocate distinct SKUs to the assembled kits. Nevertheless, if needed, we can disassemble kits to restore individual items to your inventory.
Examples of products that are commonly kitted include:
- Gift Sets: Combining items such as scented candles, luxury soaps, and bath salts into a themed gift set.
- Electronic Device Kits: Bundling items like chargers, headphones, and protective cases with electronic devices.
- Cosmetic Sets: Grouping makeup products like lipsticks, eyeshadows, and brushes in a decorative kit.
- Subscription Boxes: Assembling various samples or products according to a subscription theme, like a beauty or accessories box.
Product Bundling services
Bundling involves combining related products into a single package or bundle. This creates value for customers and encourages them to purchase multiple items together. Bundles may come with special pricing, exclusive packaging, or themed assortments, enticing customers with convenience and savings.
Bundles often come with a volume discount. On the other hand, kitted items may occasionally be priced lower than the combined retail value of the individual products, though this is only sometimes the case.
Let’s take an example:
An online sports retailer offers a fitness package to cater to customers looking to enhance their workout routines. In this scenario, the retailer can provide both bundled and kitted options:
Bundled Option:
They create a “Home Gym Starter Bundle,” which includes a set of dumbbells, a yoga mat, resistance bands, and a skipping rope. This bundle is priced at £100, offering a 15% discount compared to purchasing each item individually.
Kitted Option:
Alongside the bundled package, they offer a “Custom Workout Kit.” Customers can select three out of the four items mentioned above based on their preferences. This kit is priced at £80, which is less than the combined retail value of the three chosen items sold separately (£90).
By providing both bundled and kitted options, the retailer caters to different customer preferences. Some customers prefer the convenience of a pre-assembled bundle, while others may value the flexibility of creating their own kit based on their specific needs.
How does kitting impact revenue and handling fees?
Kitting can positively impact revenue and handling fees in several ways:
Kitting Encourages Customer Exploration and Addresses Slow-selling Items
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Encourages Customer Exploration:
- Kitting introduces customers to new products they might not have considered individually. By bundling complementary items, customers can explore and purchase items they may not have tried otherwise, resulting in increased sales and revenue.
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Solves Slow-selling Items:
- When certain items experience lethargic sales, kitting provides a strategic solution. By incorporating such items into kits alongside popular products, you create a value proposition that boosts their appeal, leading to better inventory turnover and reduced holding costs.
Labour and Space-saving Benefits
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Efficient Order Fulfillment:
- Kitting simplifies the picking and packing process, reducing the time needed to gather multiple individual items. This translates to cost savings in labour and increased operational efficiency.
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Optimised Storage:
- Kitting allows for strategic inventory management by grouping items together. This minimises storage space requirements and lowers warehousing costs.
Additional Cost Savings by Working with a Partner
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Economies of Scale:
- Partnering with a dedicated kitting service provider often brings economies of scale. They possess the expertise, equipment, and resources to optimise kitting operations, reducing costs compared to handling kitting in-house.
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Expertise and Efficiency:
- Kitting service providers specialise in efficiently assembling kits, ensuring precision and reducing wastage. This translates into lower costs and improved margins.
Additional Value and Savings
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Packaging Efficiency:
- Kitting involves using optimised packaging, reducing material costs and waste. Additionally, attractive packaging adds perceived value to the kits, enticing customers and justifying premium pricing.
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Bundled Discounts:
- Offering discounts on kitted items can encourage customers to purchase larger quantities, further increasing the average transaction value and overall revenue.
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Marketing Opportunities:
- Well-executed kits can be marketed as curated experiences, offering convenience and value to customers. This enhances the brand perception and can drive more sales.
. Benefits of Having One Partner for Reworking, Kitting, and Gifting Services
Less Stock Movements
Bringing reworking, kitting, and gifting services under a single partner minimises unnecessary stock transfers between different facilities. This reduction in stock movements streamlines operations, lowers the risk of inventory discrepancies, and enhances overall efficiency.
Logistics Saving
Consolidating these services with one partner leads to significant logistics savings. Shipping items between multiple locations for different processes can incur high costs. With a single partner, transportation expenses are reduced, positively impacting the bottom line.
Increased Stock Accuracy
Working with a single provider enhances stock accuracy by mitigating potential errors during facility transfers. This promotes better inventory control, reduces the likelihood of stockouts, and improves order fulfillment reliability.
Real-time Product Changes
Having one partner for reworking, kitting, and gifting services facilitates real-time product adjustments. Whether it’s updating packaging, incorporating promotional materials, or modifying bundle configurations, changes can be swiftly executed, ensuring products remain current and aligned with market demands.
Gift Box Fulfillment, Customisation and Delivery
Do you find yourself in the position of needing to send out gift boxes to a diverse set of individuals across various locations but lack the expertise to assemble and despatch them? I-Fulfilment – your solution for bespoke gift box fulfillment and efficient delivery services.
How Do Gift Box Fulfillment Services Work?
Step 1: Send us your items
As the first step, you provide us with the products you want to include in the gift boxes. Depending on your customers’ preferences, these items could range from curated products to personalised selections.
Step 2: We hand-assemble your gift boxes
Our fulfillment expert team takes care of the intricate process of assembling gift boxes. With attention to detail, we arrange and position each item in an appropriate-sized box and create an aesthetically pleasing and well-presented gift box.
Step 3: We seal and ship each gift box
Once the gift boxes are expertly assembled, we seal them securely to ensure the contents remain intact and pristine during transit. Our efficient shipping process ensures timely and reliable delivery to your recipients.
Send Your Package and Gifts Through I-Fulfilment’s Contract Packing Services
At I-Fulfilment, we are specialists in delivering cost-effective contract packing services designed to simplify your operations. Our comprehensive range of stress-free solutions allows you to outsource some or your entire packing needs. As a seamless extension of your business, we are here to provide efficient and reliable support together with Product Pack, our specialist in product packing.
Integral to our comprehensive contract packing services is our reworking service. Whether it’s peak season, a special occasion, or all year round, we work with you to agree on a brief and ensure it meets the highest standards before reaching your customers’ hands. Our expert team is dedicated to meticulously refining and enhancing your items, guaranteeing they align perfectly with your brand’s image.
Contact us today to deliver a seamless and efficient experience that streamlines your operations and elevates the quality of your packed goods. With our cost-effective contract packing services, including our expert reworking service, you can focus on your core business while we take care of the rest.
