What is Kitting? Definition & Fulfillment Services Guide

What is the kitting process and who offers kitting fulfillment services? This is a question that a lot of business owners have, but don't know where to find the answer. That's why we're here! In this blog post, we will discuss what kitting services are and why you may need them for your business. Keep reading to learn more!

Kitting and fulfillment services are a type of service offered by third-party logistics companies (3PL) that helps businesses with the kitting and packaging of their products. This can be a great help for businesses that sell subscription boxes or who sell products that need to be assembled and packaged in a certain way. Kitting services from a fulfillment center can help you save time and money by doing the kitting and packaging for you before sending the order out to your customers.

What is Kitting?

So, what is kitting? By definition, kitting is the process of assembling multiple SKUs into one kit prior to orders being placed by customers. This can be done for a variety of reasons, such as reducing shipping and fulfillment costs, improving customer experience, and making it easier for customers to order everything they need for a project in one place.

When you use an inventory kitting service, your products will be gathered together and packaged according to your specifications by a third-party logistics company (3PL). This can save you a lot of time and hassle, especially if you sell products that need to be assembled or put together in a specific way. And if you have orders that need to be fulfilled and shipped to your customers, a 3PL (AKA fulfillment center), will be able to do that for you too!

Why Do I Need Kitting?

There are many reasons why you might need kitting fulfillment services for your business. If you sell subscription boxes, kitting can help you save on shipping costs by bundling multiple items together into one box. If you sell products that need to be assembled, kitting can help you save time by doing the assembly for you. And if you want to make it easier for your customers to order everything they need for a project in one place, kitting can help you do that too!

Kitting Process vs Bundling Process

Business owners often confuse kits and bundles. There are a few key differences between kitting and bundling SKUs. The kitting process involves assembling multiple SKUs into one pre-packaged kit, while bundling is the process of picking multiple SKUs together at the time the order is placed that were ordered as part of a bundle.

Kitting can be done for a variety of reasons, such as reducing shipping and fulfillment costs or making it easier for customers to order everything they need for a project in one place. Bundling, on the other hand, is typically done for marketing purposes, such as bundling together products that complement each other or bundling together products that are often purchased together.

Which Do I Need?

So, which one is right for your business? If you sell subscription boxes or have multiple pieces that need to be assembled and packaged in a specific way, kitting is the way to go. If you're looking to bundle products together for marketing purposes, bundling is the way to go. Of course, you can always do both!

Benefits of Kitting

There are many benefits of using kitting fulfillment services, but some of the most common ones include:

• Saving time on packaging and kitting products yourself

• Reducing labor costs associated with picking items ad-hoc

• Decreasing the chance of errors in your packing process

• Improving customer satisfaction with a unique unboxing experience
  

How Kitting & Fulfillment Services Work

If you're thinking about using kitting fulfillment services for your business, there are a few things to keep in mind. First, you'll need to determine what products you want to kit and how they should be packaged.

Once you have that figured out, you'll need to find a reputable kitting fulfillment center that can handle your packaging and kitting needs.

Now that you've found a good kitting warehouse, you'll need to send them your product information and packaging specifications. They will then put together a kit for you and ship it out to your customers.

Kitting & Assembly Fees

Fulfillment providers typically charge a fee for their services. This fee is normally based on the number of SKUs that need to be packaged together and the complexity of the assembly process. Kitting fees can range anywhere from $0.50 to a few dollars per SKU, depending on these factors. Occasionally, a 3PL will charge on an hourly basis, but this is not common.

Kits are usually done in bulk in an assembly line fashion, prior to the orders being placed. Usually, you will be charged a separate pick & pack fee once an order with the kit is actually fulfilled in the future.

If you're thinking about using a 3PL for kitting services for your business, be sure to vet your fulfillment partner. Kitting can be a great way to save time and money on your fulfillment process, but only if you choose a reputable provider with competitive pricing.

How to Find a Kitting Fulfillment Center

Using a 3PL for kitting and fulfillment services can help save your business time and money, improve customer satisfaction, and take the stress of fulfillment off your plate. If you're not sure if kitting is right for your business, we suggest talking to our team of kitting experts to learn more. They can help you determine if using a 3PL for kitting is a good fit for your business and what services you need, or if you should start in-house for now (we made a great guide on how to fulfill like a pro from your home).

OTW Shipping: Kitting & Fulfillment Services

Our team at OTW Shipping works with kitting clients from subscription box companies to Kickstarter campaigns to help them automate and optimize their fulfillment. Reach out for a quote for your kitting needs today!

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