{"id":12203,"date":"2021-05-25T09:57:30","date_gmt":"2021-05-25T16:57:30","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=12203"},"modified":"2021-05-25T09:57:30","modified_gmt":"2021-05-25T16:57:30","slug":"bundling-ecommerce-fulfillment","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/3pl\/bundling-ecommerce-fulfillment\/","title":{"rendered":"What is Bundling in Ecommerce Fulfillment?"},"content":{"rendered":"

What is Bundling?<\/b>\u00a0<\/span><\/p>\n

In fulfillment there are times that certain products need to be sent together. Bundling means putting two or more SKUs together into one package. Sometimes it means those items will, as a bundle, have a new unique SKU. It\u2019s quite a complex operation to bundle units together; it requires a robust system to ensure it can be executed accurately.\u00a0<\/span><\/p>\n

\u201cBeing able to bundle products virtually was the biggest lifesaver! Before we could create virtual bundles we had to pre-kit all of our variety pack box options. Between the transit time to get new products to the warehouse and then building the kits, we were struggling to keep up with orders. Creating bundles in eFactory gives our customers the freedom to create any variety option, while giving us much better visibility of our inventory!\u201d\u00a0 \u2014Liz Lane, Head of Operations at Magic Spoon\u00a0<\/span><\/p>\n

The Difference Between Bundling and Kitting<\/b><\/p>\n

Often incorrectly used interchangeably, bundling and kitting are not always the same thing.\u00a0<\/span><\/p>\n

Bundling items together is a more generic term used when multiple SKUs (or ASINs when selling on Amazon) are included to be sent together within a single package. Bundling is often used for special projects for the holiday season, or a short-run promotional deal. For example, a retailer might incentivize their consumers to buy up to three of one item and get flat rate shipping.\u00a0<\/span><\/p>\n

Kitting is slightly more specific. Used in tandem with assembly, kitting happens when a group of products requires a sequential order of packing or preparation before shipment. Kitting is often done with products like subscription boxes, assembled products, or built-to-order items.\u00a0<\/span><\/p>\n

What do they have in common? Both product bundling and kitting take multiple individual SKUs and combine them to create one new SKU.\u00a0<\/span><\/p>\n

When Should You Bundle Products?<\/b>\u00a0<\/span><\/p>\n

Ultimately bundling products should correlate to trends in consumer behavior. If you notice that items are often purchased together you might test out bundling those items. Alternatively if you have products that go together but they aren\u2019t often purchased together, try bundling them for a discount. See if more of your consumers buy both. It\u2019s basic human psychology, most people want to feel like they\u2019re getting a good deal, even if they\u2019re actually buying more than they\u2019d planned on in the first place. This is a tactic called <\/span>cross-selling<\/span><\/a> that has been shown to lead to\u00a0 more revenue and an increase in your average order value. If you can offer a few products together for a flat shipping rate, you might catch more sales volume than if you didn\u2019t offer bundles.\u00a0<\/span><\/p>\n

Here are a few great times to create product bundles for your customers:<\/span><\/p>\n