Three Ways to Manage Kitting for eCommerce
In our recent post “Five Options to Consider in Your eCommerce Product Kitting Efforts” we discussed how product kitting makes it easy to manage all sorts of eCommerce goods and business models. Then we offered specific examples to consider in your own eCommerce efforts.
In this post we will wrap up this series on kitting by looking at ways to manage kitting for eCommerce.
Product kitting combines a packing process with precise inventory tracking. The logistics of this may look different for every business. Below you’ll find three typical ways a seller will manage product kitting for eCommerce operations.
A. In-house Kitting
With kitting correctly, it all boils down to the right inventory software. You may kit orders on-the-fly, assemble items made-to-order, or pre-pack kits in batches. Organization and execution is key. Falling short here usually ends up in a mess of inventory shortages and backorders.
Examples of inventory software are Ordoro, OrderHive, Finale Inventory, and even QuickBooks support kitting. Some solutions may call it product bundling, but it’s the same concept. Some online stores’ inventory systems support kitting, too.
One way these systems help manage the mess is through parent and child SKUs.
Your kitted item is the parent SKU and the individual items that make up the kit are child SKUs. Stock levels for child SKUs are tracked individually, and these items can be sold individually as well.
A big plus for using inventory software that supports kitting is that if a child SKU is out-of-stock, the kitted item is considered unfillable. If your software integrates with your eCommerce store, the kitted item will also show as out-of-stock on your website. This is a nice feature that prevents unexpected backorders and angry customers.
If you don’t handle fulfillment yourself, here are other ways that you can enable kitting for your online store.
B. Third-Party Fulfillment Center
Some eCommerce sellers use a third-party fulfillment partner to stock and ship orders. When considering a trusted partner, make sure you understand how fulfillment companies work and ensure prospective vendors offer this service.
During the vendor interview process, be sure to cover every detail of what you plan to ship. For example, batch-kitted subscription boxes and packed-per-order sets are handled in different ways and may have different costs. Hopefully your prospects can answer your questions and even make valuable suggestions.
Even when you handle daily order fulfillment in-house, a fulfillment company can become a valuable partner if you have a large batch-kitting project. Maybe you have a major seasonal promotion and limited storage space. A fulfillment company can receive your stock, pre-pack your kits, then store and ship everything as a batch project. This leaves you free to handle your day-to-day fulfillment without interruption.
C. Product Manufacturers & Vendors
If you need to kit a quantity of goods made by the same manufacturer, ask them about kitting services. After all, their job is to produce items and package them for distribution – what you now know as as kitting. Most are willing to pack custom sets or grouped items for you. They might even provide a custom wrap, box, or label at little or no extra charge.
Kitting and Bundling: The Bottom Line
As an eCommerce seller, expanding your offerings will help push your business forward. Product kitting combines detailed inventory tracking with several packing processes to create all sorts of new opportunities for online sellers. Many eCommerce inventory systems support kitting; it’s something every online seller should understand and consider using to increase online sales without adding inventory costs.
You can handle any or all of these kitting programs yourself in-house if you have inventory software that supports kitting. If you don’t handle order fulfillment yourself, or have limited space for large projects, using a third-party fulfillment center with loads of kitting experience can be a great strategy.
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