What is Bundling in Ecommerce Fulfillment?

Category:3PL

What is Bundling? 

In ecommerce fulfillment there are many advantages to bundling products together. The classic example is the McDonald’s happy meal—instead of selling burger, fries, and drinks separately, putting together a package deal has many advantages. 

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. Operationally it is quite to bundle units together; it requires a robust system to ensure it can be executed accurately. 

In recent years, technology and automation have made bundling much easier to accomplish operationally. Virtual bundling is now possible for ecommerce brands to create bundles quickly, on the fly. It’s now a competitive advantage—especially for sellers looking to increase their average order value—to offer their customers specialized assortments of their products.

“Being 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!”

Liz Lane Head of Operations at Magic Spoon

The Difference Between Bundling and Kitting

Often incorrectly used interchangeably, bundling and kitting are not always the same thing. 

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. 

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. 

What do they have in common? Both product bundling and kitting take multiple individual SKUs and combine them to create one new SKU.