E-commerce businesses face several challenges, such as determining their product market, promoting to their customers and fulfilling orders in a timely fashion. Many savvy e-tailers turn to kitting to expedite their fulfilment and shipping processes, thus saving time and money. Another advantage? Kitting allows you to include branding elements in your shipment. Plus, your customers can enjoy the convenience of receiving items in one package, often more quickly than without a kit.
NF Skin’s fulfillment center, RT Fulfillment, offers private label kitting services for companies looking for third-party fulfillment for their products. Here’s how kitting works and how it can benefit your business and your bottom line.
What Is Kitting?
Kitting refers to taking individual products that are often purchased together and creating kits that are sold as new SKUs. Creating these kits helps speed the fulfillment process, as each item no longer has to be picked, packed and shipped on its own.
Most e-tailers fulfill orders with a warehouse management system that uses products’ SKU codes to locate and pack products. When a business uses kits, they pre-bundle products that are often ordered together as single units in their fulfillment centers. This means less time is spent locating and bundling items together, as these steps have already been completed.
Benefits of Kitting
Kitting through RT Fulfillment offers a variety of benefits:
- Improved efficiency. First, kitting can improve the efficiency of your fulfillment process. Most retailers have several bestselling products, many of which tend to be purchased with other items. Kitting these products — such as soaps and lotions — into gift kits and storing them in your fulfillment center makes it simpler to organize inventory, optimize the space in your warehouse and save time. Failing to kit products means you’ll spend more time picking and assembling orders, which can mean longer shipping times for customers. Kitting can also speed the shipping process and shorten fulfillment times, because you can weigh kits ahead of time and know how much it will cost to ship them.
- Increased sales. Adding kitting to your process means you’ve identified products that are often sold together. You can encourage more sales by offering customers the opportunity to purchase a kit, often at a lower price. Plus, you lower your average shipping costs because you’re shipping a larger number of products to a smaller number of customers. Your customers further benefit because they can choose groups of products rather than having to choose each item individually.
- Lower packaging costs. Even small, individual items are often packaged into larger, standard-sized boxes, which can increase packaging costs. Kitted items can be packaged into smaller, custom-sized boxes, which can lessen the amount of packaging material used and decrease the size and weight of the package overall.
- Branding opportunities. Kitting offers retailers an opportunity to customize their products and packaging to create greater brand awareness. Retailers can also package products for special events or promotions that may drive significant sales. Even with custom branding, kits can be labeled ahead of time, so they’re ready for immediate fulfillment and delivery.
- Lower warehousing costs. Because kitted items are packaged together, they take up less storage space — whether in a warehouse or fulfillment center. Less space can result in lower storage fees, which can help increase profits.
Kitting and Fulfillment Services Through NF Skin
NF Skin provides fulfillment services to customers, including those that have created brands with different manufacturers. We can also kit and brand your product to enhance your business among your customers. We offer stocked, made-to-order and custom blends that can all be stored, managed, kitted and drop-shipped to your customers.
NF Skin creates luxury private label cosmetics and supplements, formulating, branding, testing and distributing the highest quality products known for their effectiveness. We are a leading manufacturer, meeting the industry’s highest standards while providing personalized customer service every step of the way. We provide custom formulation; fulfillment; white label products for turnkey branding; drop-shipping; graphic design for branding labels and packaging; and photography. Get in touch today to learn more about what we do.