Product Bundling & Kitting

Definition

Product bundling involves grouping several distinct products together and selling them as a single unit, often at a discounted price compared to buying each item separately. This strategy aims to increase the average order value and encourage customers to purchase complementary items. Kitting is a related concept where individual components are assembled into a new, unique product SKU before sale. Unlike bundling, kitting typically creates a new product that cannot be easily disassembled by the customer back into its original components. Both strategies require careful management of inventory, pricing, and product information.

Why It's Important for E-commerce

In e-commerce, product bundling and kitting are powerful tools for driving sales and improving customer experience. Bundles can simplify purchase decisions for customers, offering convenience and perceived value. Kitting allows businesses to offer customized or specialized product configurations, catering to niche markets or specific customer needs. Proper PIM implementation is essential for managing these strategies, as it needs to track the individual components within a bundle or kit, their availability, pricing, and ensure accurate product descriptions for the new combined SKU across all sales channels. This also impacts inventory management and fulfillment processes.

Examples

• An electronics store offers a 'home office bundle' including a laptop, monitor, keyboard, and mouse at a combined price lower than buying each item separately.
• A furniture retailer sells a 'DIY shelf kit' that includes all the pre-cut wooden pieces, screws, and instructions, packaged as one SKU.
• A coffee company creates a 'starter kit' with a coffee machine, a variety pack of pods, and a mug, aimed at new customers.

How WISEPIM Helps

• **Manage bundle components:** Define and manage the relationships between individual products and their bundled/kitted counterparts, including inventory tracking and pricing.
• **Automate SKU generation for kits:** Automatically generate new SKUs and corresponding product data for kitted products, reducing manual effort and errors.
• **Consistent content for bundles:** Ensure accurate and compelling product descriptions, images, and marketing content for bundles across all sales channels, reflecting the combined value.

Related Terms

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