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5 Reasons Why Kitting Services is a Boon to E-commerce Industry

Kitting services are perceived to be a blessing to the e-commerce industry. Many companies are already leveraging this opportunity, and many more are on their way to benefitting from this remarkable concept.

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5 Reasons Why Kitting Services is a Boon to E-commerce Industry

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  1. 5 Reasons Why Kitting Services is a Boon to E-commerce Industry E-commerce has evolved into an enormous industry over the past few years. It has given rise to many other complementary services which are massive on their own. One of them is Kitting Services. Kitting services are perceived to be a blessing to the e-commerce industry. Many companies are already leveraging this opportunity, and many more are on their way to benefitting from this remarkable concept. However, some newly born e-commerce companies still ask, “what exactly is kitting?” Well, here’s your answer. What are Kitting Services? Kitting services are often confused with bundling or eCommerce fulfilment services. Well, they are not entirely wrong. There are some striking similarities, but each of them is different. Kitting is a part of eCommerce fulfilment services. It is just one segment of the fulfilment services. Ecommerce fulfilment services are the operations that come after receiving an order, such as picking, packaging, shipment, and delivery. And kitting, a popular warehouse and shipment strategy is one of those order fulfilment services. On the other hand, the distinction between kitting and bundling lies in the products. A "kit" is a listing that combines various distinct products. And a "bundle" is when there are multiples of the same product. Kitting is done in several areas of the business; logistics, warehouse, services, or operations. Wherever it is applied, kitting has proven to be quite useful for businesses, logistics, and consumers. Benefits of Kitting Services 1. Improved Warehouse Efficiency

  2. For every eCommerce business, warehousing is the top priority. Any inefficiency may lead to multiple problems like space inadequacies, additional expenses, etc. Kitting services can be a huge help in the warehouse management area. Kitting items together saves money on warehouse space, packing, shipping, and work floor labour. It is one of the most significant advantages of kitting. It also makes it simple for the staff to locate products when needed. It saves them a lot of time and helps streamline warehouse operations. 2. Cost Savings Cost saving is one thing all companies look for, and kitting helps in that area as well. Kitting speeds up the order fulfilment process by enabling faster shipment and reduced costs. Because products are kept together, the choosing, packaging, and shipping processes are sped up. This leads to quicker delivery and happier consumers. Have you ever received different products in one packaging from Amazon or eBay? Yes, that’s what is called kitting, and it’s very beneficial for businesses as well as consumers. In addition, using a 3PL (third party logistics) for kitting operations can save a lot of money by reducing the need for extra warehouse space, specialised equipment and technology, and additional people. 3. Higher Product Sales Every business has products that don’t sell. It’s a common experience, and companies struggle to make away with those slow-selling stocks. One solution to that problem is kitting. As kitting is nothing but bundling different products into a kit, a business can combine slow-selling products with best-sellers and make sales. This strategy helps businesses to save themselves from imminent losses. You save inventory space and money, and your consumers make greater purchases for value-addition to the core items. Also, this practice helps in increasing the AOV (Average order value). Overall, this is an excellent sales strategy for eCommerce businesses. 4. Reduced shipping costs and return rates Shipping several goods together is always better value for money than shipping one product. It reduces shipping costs and the rate of return. People tend to return ‘kits’ rarely because they can’t return only one product from the kit. If they want to return it, they would have to return the whole kit. And they may not be ready to give up the other good products just because of one.

  3. This strategy is an incredibly good thing for a business, especially for new business owners. 5. Enhanced Productivity As discussed, kitting services enable faster and seamless shipping for eCommerce businesses. It not only cuts down on expenses and delivery time but also reduces the chance of human errors. Because fewer SKUs (stock keeping units) will be generated in this process, it becomes easy for the staff to organise the inventory efficiently. All of this ultimately leads to customer satisfaction, which is the number one goal of any business. Final say These were some of the primary benefits an eCommerce business can draw from kitting services. From the moment a business receives an order, Kitting services influence every step of the process in a profitable way. On the whole, kitting services have the potential to play a significant part in driving a business to success. Source Source industry/home industry/home link link : : https://sites.google.com/view/boon https://sites.google.com/view/boon- -to to- -e e- -commerce commerce- -

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