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The Secret to Increasing Product Sales by Outsourcing Kitting Services
Savvy online sellers make more money by working smarter, not harder. You’ll have to get creative if you want to increase online sales. Bundling products together is a great way to do that. Not only does it help you sell more products online, but it also makes customers happy by making shopping more convenient. Lower shipping and packaging costs only sweeten the deal for online sellers who want to maximize profits.
Bundling products together is a pretty ingenious way to increase online sales. You can take this clever idea one step further by automating kitting assembly, all without lifting a finger. Sound impossible? It’s not. Outsourcing kitting services makes life easier for online retailers with hands-off order fulfillment, and the best part is they can bundle products for you to save time and improve order accuracy.
If you sell subscription boxes, orders with variations (such as different flavors or colors), or add freebies to specific orders, this is the service for you.
Let’s talk more about product kitting and how to grow online sales the easy way with the help of eCommerce fulfillment centers.
What is Product Bundling?
Product bundling refers to the process of grouping complementary products together into kit bundles or package deals. This allows retailers to increase average order value, boost profits, and provide added convenience to shoppers.
Benefits of Product Bundling
There are several key reasons retailers bundle products together:
- Higher profit margins - Selling products together allows you to charge more than you would for individual items.
- Increased order values - Customers tend to spend more when items are bundled.
- Reduced shipping costs - You can ship multiple items together for a single fee.
- Added convenience - Bundles make the shopping experience quicker and easier.
Types of Product Bundles
Some popular product bundling strategies include:
- Subscription boxes - Monthly packages with different theme-based products.
- Variety packs - Several flavors or varieties sold together.
- Gifts with purchase - Free bonus item included as an incentive.
Leveraging 3PLs for Kit Assembly
Third-party logistics (3PL) providers offer product kitting and bundling services that can save ecommerce retailers time and money. Benefits include:
- Lower fulfillment costs by bundling orders
- Increased efficiency by outsourcing kit assembly
- Fewer errors through 3PL quality control
By leveraging an experienced 3PL for kitting and fulfillment, online retailers can focus more time on sales and marketing while optimizing operations.
Next article: Eco-Friendly Packaging Tips for Ecommerce in 2020
Commonly Asked Questions
What are the main benefits of product bundling?
The main benefits of product bundling include increased profit margins, higher order values, reduced shipping costs, and added convenience for customers. Bundling complementary products makes the shopping experience quicker and easier.
What are some popular product bundling strategies?
Some of the most popular product bundle types are subscription boxes, variety packs with multiple flavors/colors, and gifts with purchase that provide free bonus items. These creative strategies entice customers to spend more per order.
How can a 3PL help with kitting and bundle assembly?
A third-party logistics provider can efficiently handle high volumes of bundle assembly and kitting. This saves ecommerce companies time and money while also reducing fulfillment errors through quality control oversight.
Does product bundling increase average order value?
Yes, selling complementary products together in bundles has been shown to increase average order value substantially. Customers tend to spend 15-30% more when items are thoughtfully bundled together.
Can product bundles reduce fulfillment costs?
Bundling products can lower fulfillment costs in several ways - you save on packaging by using fewer boxes/mailers and you pay lower overall shipping rates when sending multiple items together in one package.
What steps are involved in bundle assembly?
Main steps for kitting product bundles include: selecting complementary items to bundle, creating unique SKUs, setting appropriate profit margins, efficiently assembling bundles, quality checking orders, and fulfillment/shipping.
Is outsourced kitting right for any ecommerce business?
Virtually any ecommerce merchant selling multiple product lines can benefit from outsourced kitting and bundle assembly. It optimizes order fulfillment operations so you can focus more on sales and marketing.
