Kitting (Bundling)
Definition
Combining separate items into a single sellable product or bundle, such as a gift set or multipack, with its own SKU.
Want a deeper explanation?
Bundles raise average order value and help move slower items. The accounting challenge is making sure each component's inventory and cost move when the bundle sells.
3PLs usually charge separately for kitting labor, which belongs in the bundle's cost. Watch for: bundles that sell under their own SKU without relieving components, which leaves inventory overstated and COGS too low.
Example
A "starter kit" SKU combines a $6 cleanser, a $5 toner and a $1 box, so selling one kit should relieve all three components from inventory with a $12 COGS.