How Can Kitting Services Reduce Cost of Order Fulfillment?
Order fulfillment is one of the vital processes in the eCommerce sector. It is very important to ensure that the order fulfillment process is implemented efficiently so that your customers stay happy and satisfied with your services. But it is also important to reduce the cost of order fulfillment to increase the profit margin.
The e-commerce business owners are always searching for different ways to reduce investment costs and increase the speed of product delivery. Kitting services can reduce the cost of investment, and it can help various online sellers to speed up the product delivery system:
Kitting Services
The kitting is a process in which the various individual products are collected together in one package or kit. The kitting technique is also termed as an assembly in the manufacturing industry.
When the raw material is collected together to form the finished product, then it is known as kitting or assembly. Also, when two or many finished products are collected together in one package, then it is known as kits.
Why Should Ecommerce Business Owners Implement Kitting?
The kitting services should be implemented by all e-commerce business owners to speed up product delivery and increase customer satisfaction. The kitting services not just speed up delivery but also help in keeping everything organized.
Kitting services are helpful if you are running a sale like buy one and get one free. You can pack two finished products together, and when you receive an online order, then directly ship the package to the destination.
This is the perfect example of a kitting technique. It is so because you will quickly deliver two identical items to the customers. If you have an in-house order fulfillment center, then tell your team to make packaged of two items together. If you have outsourced order fulfillment services, then you should tell them to create kits of two products together.
Each package or kit will have different SKU numbers so that it can be differentiated from other single package units. Well, it is not always beneficial to kit out various items. But, when you have to ship two or many products at the same destination, then kitting services can speed up the delivery process.
Advantages of Kitting Services
The kitting services are very beneficial, and there are various advantages of implementing kitting services. Some of the advantages are described below:
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Quick Assembly Technique
If the kitting is done in bulk irrespective of orders received, then the items can be assembled quickly. It will become a linear operation and help to speed up the sale as well. If you have an in-house order fulfillment center, then it will help in reducing investment in order fulfillment.
On the other hand, if you have an outsourced order fulfillment center, the cost of investment will be reduced because picking and packing costs will be less. Each unit will be counted as one SKU, and you have to pay for one SKU. No matter how many items are packed inside one SKU, you will pay for one unit.
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Reduce the Probability of Errors
When items are transported in kit form, it decreases the chance for error with order fulfillment. It also allows you to order fulfillment centers to print shipping labels, reduce the requirement for weighing and labeling of individual items.
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Optimum Packaging Solution
Kitting solutions also help in reducing expenditure during the shipping process. The kitting service is cost-efficient and helps in reducing packaging costs. For instance, instead of packing one single item, kitting will allow the packaging of various items in one single box. The custom boxes are created to pack various items in one box.
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Wide Range of Options
The e-commerce business, when opt kitting services, then they have a wide range of options. Well, it is possible that the product sellers can contact the manufacturers directly for product kitting. When kitting, the parts or components of units are integrated, or it may include various products in one unit.
The manufacturers will assemble items before they are shipped to the fulfillment company.
Sometimes it is not possible to implement kitting services at the manufacturing center. In this case, the kitting services should be implemented after receiving the products at the fulfillment center.
The kitting services are mostly implemented when all the products are received at the fulfillment house from the supplier. You should talk to the manufacturers and fulfillment Company and determine the order history. After doing deep research, you can efficiently implement kitting services and accentuate your online product selling business.
Final Words:
The kitting service can speed up the shipping process and help in delivering the products quickly to the customers. Moreover, the shipping process reduces expenditure and improves the profit margin. The benefits of kitting are described above.