The Power of Merchandise Kitting: How Bundling Items Can Benefit Your Business

In today’s dynamic business climate where digital transformations have become the norm for industries around the globe, keeping pace with trends has never been more important. One effective strategy for businesses looking to gain an edge over their competitors is kitting and bundling. In today’s blog post, we will dive into the world of kitting and bundling as a potent marketing tool with immense business advantages. From increased customer satisfaction and brand loyalty to streamlined operations and improved profitability. Read on to learn how the strategic utilization of kitting and bundling can transform your business and engage your customers.

 

Kitting & Bundling 101: What is Kitting? What is Bundling?

Kitting and bundling are highly effective marketing and order fulfillment strategies that can be utilized across many industries. Kitting refers to building multiple complementary products into a single package to be purchased as one unit. While bundling provides the option for the customer to purchase multiple of the same item in one set, typically at a slightly discounted price. These strategies are beneficial to both the company and the customer in that they offer a simplified order and fulfillment process. The business can maximize product exposure while the customer no longer needs to search the site for complementary products. Whether you have a selection of custom products or prefer to incorporate older stock items with newer merchandise to free up inventory space, kitting can effortlessly drive sales and decrease the margin of error in orders.

 

Deliver Excellence: The Benefits of Kitting

One of the many benefits of kitting and bundling strategies is their ability to enhance the customer experience with more streamlined and customized experiences. More than 70% of consumers value a personalized approach when receiving merchandise, which then contributes to increased brand loyalty and, ultimately, more sales. Kitting provides an opportunity to showcase your brand through high-end presentations with options to create distinctive packaging or add in thank you notes to ensure recipients feel personally connected. Customers perceive high value in knowing they are selecting an option that includes multiple items to fulfill their needs, at a discounted price point. Additionally, they get to enjoy a unique and engaging unboxing of your brand upon receipt of their package.

As a business, the benefits of offering kits come in the forms of marketing, product fulfilment, and inventory management. By offering a well-crafted bundle, you not only encourage your customers to purchase multiple items but also guide them towards discovering complementary products that work harmoniously together. While some customers may only require two or three of those items, the allure of savings prompts them to want the entire bundle. You're not only increasing your average order value but also enticing customers who are on the lookout for a sweet deal.

By offering pre-packaged kits, you grant your customers the freedom to indulge in the ease of one-click shopping. To make item storage, management, and retrieval a painless process, kits are assembled and assigned their own SKU (stock keeping unit). This helps maintain a low margin of error during the fulfillment process compared to standard orders. Moreover, utilizing a unique SKU number for your kit offerings also simplifies the restocking process. Since each item of the kit is assessed as a whole, it is easy to determine when an item needs to be restocked in order to maintain the inventory of the kit.

But that’s not all, kitting can also drastically decrease the cost of shipping. Companies based in the United States spend more than $1.5 trillion in shipping fees each year. The more individual packages sold, the more likely you are to spend more getting your products to your customers. With kitted and bundled items, your merchandise can be developed and distributed effortlessly.

 

Assembly In Action: Getting Started with Kitting and Bundling

Kitting is one of the most commonly used services in eCommerce. From subscription boxes to grouped merchandise for standard stock, Helm has the sourcing, designing, warehousing, and distribution capabilities to bring your kitting dreams to life. We are proud to boast a 99.97% perfect fulfillment rate on current kits offered throughout our client base. As we operate our best-in-class warehouse management system, we look to elevate your brand through custom product packaging and expert assembly.

Want to learn more about how our kitting services can maximize your sales and unleash the full potential of your brand? Contact us today by phone or email at 1-800-445-4831 or info@helm.com.

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