What You Should Know About Inventory Kitting

What You Should Know About Inventory Kitting


      Inventory kitting or product bundling is the process of grouping, packaging, and selling separate items together. When a kitted item is purchased, the inventory system automatically links each item to its sale. 



      That definition sounds simple and very basic. This makes you think inventory kitting is not an important merchandising tool. However, inventory kitting is one tool you should not be ignoring. In this article, you will understand why product building is important, how it can be used, and finally, why every retailer and wholesaler needs it.




     The effect of bundling in sales and consumer preference has been studied for over 40 years. These studies have shown that for a good percentage of outcomes, bundling is an effective and marketing strategy in a variety of circumstances. Bundling is founded on the idea that consumers save 7 to 15 percent more on the grouped package’s value than buying its items separately.



How can businesses package Kitted products?


  • Pre-set packages

      By arranging goods in pre-set colors, quantities, and product mixes, purchasing is a lot easier for the customers. With packaged sets, you’ll often notice that gifts come in this form. That is why picking the perfect gift is so easy as buyers would have to arrange the presents in a creative manner. This gives your customers better shopping experiences as well as a higher-order value for your business.



  • Subscription packages

      These days, you’re bound to come across several subscription boxes. These packages are common with beauty products, clothing, coffee, and food. Just like packed sets, subscription boxes offer retailers or wholesalers the opportunity to sell multiple quantities of different products in a single transaction. This strategy goes a long way in increasing the order value and generating repeat customers. It is also preferred by customers who do not have time to manage their orders of products. 



  • Pre-assembled packages

      Several businesses have developed a bad reputation because they leave all the assembling tasks to their customers. Product assembly is a type of inventory kitting as you sell product items together. Although this isn’t your typical hampers, individual elements of the product have been put together as one when you assemble products for consumers.  kitting has also been used to reorders in wholesale and manufacturing management and track inventory parts. Pre-assembling gives clients more options and enables you to offer better services.



  • Custom-made and personalized goods

       From the standpoint of inventory management, custom ordered items can fall into the kitting category. This occurs when you use separately tracked materials to create a product that’s ready to be shipped off to its buyer. For example, you add a custom pair of Oxfords to a plain shirt. That action can be defined as kitting if both items were different entities in your warehouse, but you made a pair of them while selling them.



Why should consider inventory kitting for your eCommerce and wholesale business?


      Bundling is an attractive offer to consumers who benefit from a single, value-oriented purchase of complementary offering. When you use Inventory kitting, you increase your efficiency. That leads to a reduction in marketing and distribution costs. It allows consumers to look at your brand as a single solution to their needs rather than having multiple sources. 



       Inventory kitting, when done the right, can be hugely advantageous to B2B and B2C businesses for the following reasons: 


  • Kitting increases your average order value. This is beneficial because it positively impacts the bottom line and cash flow.

  • You can include old and unwanted merchandise in the bundle. This reduces chances of having dead stock. 
  • Have better control of your inventory, holding costs, and free up warehouse space. 
  • Track and manage your inventory better. 
  • Create product packages that offer customers convenience and flexibility. 

        The benefits of Inventory kitting can be viewed from two lenses. The first is


  • The business benefits of inventory kitting

       Inventory can be highly profitable to businesses as it tends to increase the profits on individual sales over time. By selling multiple products in one solution, there is a greater return on the initial cost of acquiring a customer. 


       Businesses can use bundling as an effective strategy to help generate a large range of buyers. Kitted products usually come at a discount to customers, and with buyers looking for advice on products that complete each other, you place yourself in the perfect position. kitting can help you create new marketing channel opportunities, exposure to new potential sources, and improve your referral channels. 


  • Customer benefits of inventory kitting

     Customers love having a cluster of satisfactions through one purchase. This sense of satisfaction generally comes with a sense of achievement, knowing that they’ve gotten good value for their money. Since products are required to solve needs, having one package that solves multiple problems makes life easier for customers. The convenience alone is amazing as customers will now have to make only one stop. 


       Additionally, customers often experience economies of scale when they buy kitted products. Even when they require a single item in the bundle, they understand that they get better prices on each item. They are also likely to develop needs for the other products hence the success of this strategy. 


Ways in which Ricemill supports inventory kitting 


          At this point, you should be compiling lists of products that will form several product bundles. At this point, we want to encourage you to keep the spirit but hold your horses until you’ve had all the information you need. Here is how Ricemill can help Aussie retailers kit the perfect packages


  • Users can select a pack size

        If you want your pack to have multiple products, you can quickly set up different packs and pack sizes that complement the products placed in it.


  • Users can select a bundle

        Choose the products that feature in each variety of your bundle. 


  • Users can track batches

        You have the decision of whether or not to assign product variants to batches of tracking.




     When practicing inventory kitting, you should consider all these factors regarding your company revenue opportunity and exposure. Determine if and how bundling fits into your business and develop a marketing plan to improve its value.


      By using Ricemill inventory management software, you can create the right bundle. With the right bundle, everyone wins. Please speak to us today!