Guide on Ecommerce Fulfillment Kitting, Product Assembly, and Shipping Subscription Boxes

Businesses, especially eCommerce and offline retail, always look for innovative ways to promote their products, reduce time-to-market, increase revenues, and so on. Some typical strategic planning ideas to achieve these involve partnering with a third-party logistics company for kitting and assembly, packaging, and pick and shipping services. These 3PL companies offer kitting and fulfillment services, custom kitting and product assembly, and so on. To help achieve the targets of their clients, 3PL companies often use strategies such as kitting, product assembly, and shipping subscription services. This post offers guidelines on these strategies and how they help drive business growth and boost sales.

Do you want to receive a quote for kitting and assembly? If that sounds yes, get in touch with 3PL Business. Our experts will offer you a tailored quote and answer all your queries on achieving eCommerce fulfillment using kitting and assembly.

Exploring Kitting: Key Advantages and Strategic Impacts in Supply Chain Management

Kitting is an important strategy used by businesses to market their products and increase sales. This is a strategy wherein similar yet separate items are clubbed together into a single box or kit and sold to customers. For instance, if a customer orders a product A1, the client company or manufacturer may offer a kit A that comprises product A1 along with A2 and A3, which may also be useful to the end customer. So, along with the requested product, the 3PL company is also marketing their products A2 and A3. Kitting can be customized based on the customer’s product requirements. Here are some relevant pointers about how kitting is done and its benefits.

• There are SKUs or stock keeping units that identify each item.
• Based on customer preferences or patterns, specified items are grouped and packaged in a kit and stored under one SKU.
• This process facilitates quick shipping, as the time needed to find or track the products is reduced. It also helps organize the warehouse space.
• The manufacturer can communicate with their 3PL partner in case there are changes in the contents in the kit owing to customer demand or any other reason.
• Kitting helps end users by allowing them to quickly unpack the product ordered and also shop a range of products in a limited time. Kitting helps increase speed, accuracy, and reduce human error. Shipping subscription boxes, membership kits, and made-to-order tool kits are some types of kitting services. The following section focuses on shipping subscription boxes.

What Are Shipping Subscription Boxes and Their Benefits?

Shipping subscription boxes are a type of kitting service. Often called Subcom in the eCommerce segment, they are used by subscription-based businesses. Subscription boxes make an excellent tool for product distribution and marketing. They are a group of niche products packaged in a single box and delivered monthly, weekly, quarterly, and so on. Nowadays, people subscribe anything from toys, cosmetics, and plants to fresh vegetables and a pack of salads with a dressing. Subscription boxes may be either DTC or B2B and can be customized to suit specific requirements. They have helped businesses achieve huge profit margins. Unit economics and achieving gross margins are highly significant for eCommerce businesses as they help reduce costs and increase sales and in turn revenue. Here are some relevant pointers regarding this strategy as part of fulfillment services and the benefits it offers.

• Subscription-based businesses need to partner with the right kitting and fulfillment services company as they understand a manufacturer’s business requirements and identify solutions for challenges, such as packaging type, quantity, and delivery schedules.
• Partnering with the right 3PL company helps manage pick and pack, customization if required, box assembly, shipping, and delivery.
• Subscription boxes have been shown to help retain customer loyalty and build new customers.
• You can estimate the demand for a particular type of subscription box or from a specific area and arrange your inventory accordingly. This also helps estimate revenue generation for particular brands.
• It is essential to invest in good inventory software to achieve success in this segment.
• After all, enhancing the user experience is crucial. Hence, regular reviews of the boxes, feedback from customers, identifying changing demands, and making the required adjustments to the boxes are essential factors.

What is Product Assembly in Terms of eCommerce Shipping and Fulfillment Services?

Product assembly in terms of kitting and fulfillment services refers to the assembly of individual components of a product before shipping it. 3PL companies also assemble products on the assembly line. Usually, these items are sold in parts and assembled by the end user, such as DIY kits. Kitting and assembly services often go hand-in-hand. Here are some pointers regarding product assembly and its benefits.

• Partnering with a 3PL company in this regard is extremely useful and profitable. The experts at such companies assemble the components of a product carefully before it is kitted on assembly lines.
• They can also handle last- moment customizations if required.
• When choosing a 3PL partner, the manufacturer must ensure these two aspects.
• Product assembly is applicable in various business segments, ranging from computer and their peripherals, games and toys, and DIY kits to ready-to-cook food packets, gardening tools, and furniture.

Choosing kitting and assembly services depends on the type of products you manufacture, the size of orders, and your fulfillment strategy to meet customer expectations. If you want to expand your business and enhance your marketing strategies to boost sales, consider partnering with a 3PL company that understands your requirements and delivers accordingly. 3PL Business is a well-known third-party fulfilment services company which uses advanced software for inventory tracking and storage. They have helped several small- and mid-sized businesses to implement kitting assembly and achieve high revenues, and scale up their operations. Our team of experts facilitate swift transition for all clients as a third-party eCommerce fulfilment services partner. For any questions, feel free to call us at (732) 983-4801 or email at sales@3plbusiness.com to know more about our 3PL ecommerce fulfillment solutions and custom offerings.