Summer has just begun, and businesses are eager to captivate customers and boost sales through attractive holiday deals.
One powerful strategy to enhance the shopping experience is kitting or bundling related products to create compelling offers. This article will explore how kitting can be a structural framework for creating attractive e-commerce summer holiday offers. Additionally, we will introduce Shipedge WMS, a Warehouse Management Software System that seamlessly integrates kitting into your business operations. Get ready to elevate your business by harnessing the power of kitting and leveraging the capabilities of Shipedge WMS. This summer, let’s dive in and discover the path to successful e-commerce sales. Let’s start this article by understanding the meaning of kitting.
What is kitting?
Kitting involves consolidating multiple separate items into a single package or product to be shipped. This process serves various purposes, such as creating customized product bundles, simplifying inventory management, and reducing shipping costs.
While kitting has long been utilized in manufacturing and retail, its application in e-commerce is relatively recent.
Kittng creates enticing product bundles, curated gift sets, subscription boxes, or pre-assembled products.
These ready-made solutions add convenience and customization to the online shopping experience, catering to customers’ needs and preferences.
Now that we’ve presented the concept of kitting, it’s essential to understand how this tool can help companies improve their sales during the summer holidays. To help, let’s find how with the following example:
Example of Kitting in E-commerce Summer Holiday
The summer season has begun, and a sunscreen company is seeking new ways to enhance its sales engagement. After several meetings to determine the best strategy, the marketing team launched a new campaign, promising customers a comprehensive sunscreen solution. To fulfill this promise, they have prepared various kits, including:
- 1 – Broad Spectrum Sunscreens: The kit includes a range of broad-spectrum sunscreens that protect against UVA and UVB rays.
- 2 – Face Sunscreen: Alongside regular body sunscreens, the kit features a dedicated face sunscreen formulated for facial skin.
- 3 – Lip Balm with Sun Protection: Recognizing the importance of shielding lips from the sun’s rays, the kit includes a lip balm with sun protection to prevent chapping and sun damage.
- 4 – After-Sun Moisturizer: To offer relief and hydration after sun exposure, the kit provides an after-sun moisturizer.
- 5 – Travel-sized Sunscreen: To ensure protection on the go, the kit includes a travel-sized sunscreen that is convenient and easy to apply throughout the day.
To present the kit attractively, the sunscreen company packages all the items in a vibrant, waterproof beach bag. This bag serves as a convenient storage solution and complements the summer theme.
By offering this summer kit, the sunscreen company aims to provide customers with a comprehensive sun protection solution that covers various aspects of skincare during the summer months. This kitting strategy helps customers be well-prepared and ensures they have all the necessary products to enjoy the sun. Furthermore, it fosters trust among clients and can lower costs for suppliers by reducing packing and freight transport expenses.
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What are the main advantages of kitting?
Kitting is bundling related products that offer numerous advantages for e-commerce businesses.
It allows them to provide customers with unique combinations of products while streamlining their order fulfillment process.
From simple combinations to complex assemblies, kitting offers convenient and value-packed solutions. Let’s explore some of the key advantages of implementing kitting strategies:
1 – Enhanced Customer Experience
By offering pre-packaged kits, businesses can provide customers with convenient and tailored solutions. Customers can easily find and purchase products that meet their needs, improving their shopping experience.
2- Increased Sales and Cross-Selling Opportunities
Kitting enables businesses to bundle products that complement each other strategically, increasing sales and cross-selling opportunities. By suggesting related items as part of a kit, businesses can encourage customers to explore additional products they might have yet to consider.
3 – Cost Savings
Kitting often offers cost savings for both businesses and customers. By packaging related items together, businesses can negotiate better supplier bulk pricing. Customers also benefit from cost savings compared to purchasing each item separately, making kits an attractive option.
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4 – Efficient Order Fulfillment
Implementing kitting strategies streamlines the order fulfillment process. Rather than picking and packing individual items, fulfillment teams can assemble kits in advance, reducing handling time and increasing operational efficiency. This helps businesses meet customer demands more quickly and accurately.
5 – Inventory Management
Kitting simplifies inventory management for businesses. Instead of tracking individual SKUs, businesses can focus on managing a smaller number of kit SKUs. This consolidation simplifies stock control, reduces the risk of inventory errors, and optimizes warehouse space.
6 – Branding and Marketing Opportunities
Well-designed kits can be powerful branding and marketing tools. Customized packaging and branding on kits create a cohesive and visually appealing customer experience. Additionally, businesses can promote kits as exclusive offerings, generating excitement and attracting new customers. The example given at the beginning of this article suits healthy marketing opportunities.
7 – Flexibility and Adaptability
Kitting offers businesses flexibility and adaptability in responding to market demands. They can introduce new kits based on customer preferences, seasonal trends, or market dynamics. This agility helps businesses stay competitive and cater to evolving customer needs.
By leveraging the advantages of kitting, e-commerce businesses can optimize their operations, improve customer satisfaction, and drive sales growth. Whether it’s creating convenience, generating cost savings, or enhancing branding, kitting is a strategy in the ever-evolving world of online commerce.
How Should Companies Use Kitting to Adapt Their Strategies to the Summer Holidays?
By incorporating summer essentials and creating value-packed offerings, companies can enhance their customers’ experience, drive sales, and stand out in the competitive summer market. Let’s explore how companies can effectively use kitting to adapt their strategies for the summer holiday season:
1 – Understand Customer Preferences
To create appealing summer holiday offers, it is crucial to understand your target audience’s preferences. Conduct market research to gain insights into what products customers are most likely to purchase during the summer season.
Consider popular vacation destinations, trending fashion styles, and outdoor activities that resonate with your customer base.
This knowledge will help you curate relevant kits that align with their interests.
2 – Identify Complementary Products
Once you clearly understand your customers’ preferences, identify complementary products that can be bundled together to form attractive kits, like in the example of the sunscreen store we presented at the beginning of this article.
3 – Offer Exclusive Discounts
To make your summer holiday offers even more enticing, provide exclusive discounts for kitted products. Offering a discounted price for a bundle of items can create a sense of value and encourage customers to purchase. Highlight the savings they can enjoy by purchasing the kit instead of individual items separately.
4 – Promote on Multiple Channels
Social media platforms offer a powerful way to promote summer holiday kits. Companies can create engaging content on platforms like Facebook, and Linkedin, showcasing the kits’ content and emphasizing their value and relevance to summer activities. Influencer partnerships or collaborations can also be utilized to amplify the reach and exposure of the kits.
By leveraging kitting as a structural framework, e-commerce businesses can create attractive summer holiday offers that captivate customers and boost sales. To do that, Shipedge’s Warehouse Software Management System (WMS) can help you.
How kitting works in Shipedge?
Shipedge handles e-commerce kitting in three different methods, depending on how products are listed on selling channels and stored in the warehouse.
- 1 – Sold in Eaches: Orders sold as eaches, which refer to individual units of a single product, can be received by Shipedge through this method.
- 2 – Sold as Kits on Selling Channels: If two SKUs (SKU 1 and 2) are listed as a single product (SKU 3) on the selling channel, Shipedge recognizes this relationship through SynSets. SynSets are translators from the selling channel to the WMS. The two SKUs are stored separately in the warehouse and must be picked and packed in the same parcel.
- 3 – Using Bill of Materials: When SKU 3 is ordered on the selling platform and is stored in the warehouse as SKU 3, Shipedge creates a bill of materials to guide pickers on what should be included in that product. This ensures proper packaging and shipping.
Irrespective of how the kits or bundles are listed and stored, Shipedge can determine the packaging and shipping requirements by utilizing synSets or bills of materials.
READ MORE: How Kitting Works in Shipedge
In conclusion, Shipedge WMS presents itself as the ideal solution for businesses looking to implement kitting effectively in their e-commerce operations. With its seamless integration and robust capabilities, Shipedge simplifies the process of bundling related products, streamlining order fulfillment, and enhancing the overall customer experience.
By leveraging Shipedge’s synSets and bill of materials functionalities, businesses can easily manage kits listed on different selling channels and stored in warehouses. This ensures accurate picking, packing, and shipping of products, ultimately leading to efficient operations and satisfied customers.
Moreover, Shipedge’s comprehensive inventory management features allow businesses to consolidate their focus on a smaller number of kit SKUs, reducing inventory complexity and optimizing warehouse space. The platform also provides branding and marketing opportunities, enabling businesses to create visually appealing kits and promote them as exclusive offerings.
With Shipedge WMS, businesses gain the flexibility and adaptability required to respond to market demands, introduce new kits, and cater to evolving customer needs. By harnessing the power of kitting through Shipedge, businesses can optimize their operations, drive sales growth, and create compelling summer holiday offers that captivate customers and stand out in the competitive e-commerce landscape.
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