Launching a successful Kickstarter campaign is a ton of fun! But it also requires a lot of planning in order to do it properly. Kickstarter reward fulfillment is notoriously tricky and there are a lot of things that go into it.
In this article, we’re going to share everything we think you need to know about Kickstarter fulfillment. That includes information on:
- Forecasting backer demand
- Finding a manufacturer
- Creating a shipping timetable
- Booking freight
- Lining up order fulfillment
- Handling returns and complaints, and
- A hard-to-categorize tips and tricks that are generally helpful to know
We hope you find these tips helpful for your next campaign!
Part 1: Plan for demand
Accurate demand planning helps avoid shortages and overproduction. That’s easier said than done with Kickstarter, of course, because you don’t know how much you will raise!
But if you can get an at least moderately reliable estimate, you can plan the rest of your campaign accordingly. Here are some tips on how you can do that.
#1: Check other campaigns to see how much funding is reasonable for your product type
Look at data from similar Kickstarter campaigns as well as your own audience size to forecast demand. Consider the product type, target audience, and funding goals.
When you look at enough campaigns, you will understand what the best-case scenario is, as well as what a typical success story looks like. Collecting this information will give you a rough estimate of how many potential backers you could see.
This will help you know what general direction you need to go with production, should you fund. For example, if a typical campaign in your niche has about 1,500 backers, you probably need a manufacturing run of about 2,000 units. But if a typical campaign has more like 5,000 backers, you would need to be ready for a much larger run size.
The same principle applies to freight, order fulfillment, and other parts of the shipping process.
#2: Estimate how much funding you will raise based on your audience size and reward price
Estimate backer numbers based on your mailing list. For example, if you have 5,000 people on your list and expect 4% to back you, that’s 200 backers. Account for a 30-40% Kickstarter boost and adjust your projections to include these potential backers.
You can then take your estimated backer figure and multiply that by the price of your main reward. If the results of the previous calculation suggested you would have about 500 backers at $50 each, as an example, you could then expect to raise around $25,000.
#3: Plan for multiple scenarios
Sometimes Kickstarter campaigns raise way more than expected. And sometimes they raise a lot less!
Even though you need to have an idea of what the average outcome will be for your campaign, it’s a good idea to plan for both low funding and high funding scenarios. That way, you can handle manufacturing, freight, and shipping even if your funding estimate is way off.
#4: Order extras, but not too much
If you have 1,500 backers, you will need more than 1,500 units. Some will be defective and some will be lost in the mail. You may also end up selling more units via late pledges if you use a pledge manager as well.
At a minimum, you should order 20% more stock than you need to fulfill your campaign. If you plan on selling via eCommerce or traditional retail after the fact, you will need even more stock than that.
Naturally, you won’t want to go too overboard. Ordering too much stock is expensive and then you have to store it somewhere. But while having too much stock is bad, running out is much worse!
Part 2: Find a manufacturer
Finding the right manufacturer for your campaign is incredibly important. It requires a lot of research and due diligence.
Here are a few tips on how you can do this properly.
#5: Vet multiple manufacturers and choose the best one
Finding the right manufacturer is not a fast process – you need to vet several before committing. Start by scouring platforms like Alibaba and ThomasNet. These sites will help you get in touch with potential manufacturers.
When you narrow down your list of manufacturers to contact, you need to vet them. Check their references. Request samples to assess product quality. If a sample looks shoddy, the final product might be even worse.
Make sure the manufacturer has experience in your specific product category. Needless to say, a manufacturer specializing in electronics might not be the best for your fashion line. Experience ensures they understand the nuances of your product, leading to higher quality and fewer production issues.
And remember, communication is key. Choose a manufacturer that communicates clearly and promptly. Misunderstandings can lead to costly mistakes and delays.
#6: Identify reliable suppliers for stretch goals, packaging, and other non-core items
If you need stretch goals, custom packaging, or non-core items like custom stickers and T-shirts, make sure you account for that as well. The manufacturer of your core reward, deservedly, will get most of your attention. But don’t forget how important these other pieces are as well – you don’t want to send an amazing product in the mail with cheap extras!
#7: Secure backup options
Have a primary and backup manufacturer to avoid delays. This gives you alternatives if your main manufacturer has problems. That way, even if things go wrong, you can keep your production schedule and campaign momentum on track.
Part 3: Make a timetable
You need to be able to provide a good estimate of how long it will take to ship rewards. Otherwise, what will you tell your backers?
Every step, from payment to shipping, needs a clear schedule with buffer time for unexpected delays. Here is what you need to consider.
#8: Plan for payment processing
Allow two weeks for Kickstarter funds to clear after your campaign ends. Remember, Kickstarter takes a 5% cut, credit card companies take another 3%, and expect a 1-3% failed transaction rate. Remember: you probably can’t start manufacturing until the funds clear.
#9: Make time for manufacturing
Add a 25-30% buffer to your manufacturer’s estimated production time. This covers unexpected delays and keeps you on track. Clear communication with your manufacturer is crucial to manage timelines effectively.
#10: Plan around freight shipping
Work with a reputable logistics provider for timely transportation. Add buffer time for unexpected delays like bad weather or disruptions. Sometimes, freight shipping is delayed for completely unforeseeable reasons, so be sure to pad any estimates you receive to account for that as well.
#11: Don’t forget about clearing customs
Factor in time for customs clearance in destination countries. Customs processes can vary, so research the specific requirements for your product. This helps avoid delays and ensures smooth international shipping.
When in doubt, assume that customs clearance will take at least two weeks. For certain product categories, this can take much longer.
#12: Line up order fulfillment
Make sure you account for time spent receiving, unpacking, and preparing products for shipping. If using a fulfillment center, make sure they are prepared to handle your inventory.
How long this will take will depend heavily on how many orders you need to ship. Ask your fulfillment center(s) for estimates if you are working with them.
If you are shipping on your own, plan on sending out about 100 orders per full workday.
Part 4: Book freight
Booking freight for your Kickstarter project isn’t just about getting products from point A to point B. It’s about timing, cost, and efficiency.
Here’s what you need to consider.
#13: Choose freight options
First, decide between a freight broker or a freight marketplace based on your needs. Then, consider sea, air, and rail shipping options, balancing cost and speed. This choice impacts your shipping efficiency and costs, so choose wisely.
#14: Understand incoterms
Next, familiarize yourself with incoterms. These terms define seller and buyer responsibilities in the shipping process. Choosing the right terms minimizes risks and ensures smooth customs clearance.
Put plainly, incoterms tell you who does what when it comes to freight shipping.
#15: Prepare documentation
Make sure all necessary customs forms and invoices are ready. Accurate documentation helps avoid delays and complications during transit. Work closely with your logistics provider to keep all paperwork in order.
#16: Track shipments
Use your logistics provider’s tracking system to monitor shipments. Stay informed about your shipments’ progress and be prepared to address any unforeseen challenges. You may not be able to do anything with this information, but it will likely settle your nerves while you wait.
Part 5: Find a fulfillment center
Choosing the right fulfillment strategy is really important to shipping a Kickstarter on-time. Self-fulfillment offers control but doesn’t scale well with larger campaigns.
For larger campaigns, hiring a fulfillment center helps with efficient processing and shipping. But if you choose to work with one or more fulfillment centers, you need to make sure they have experience in crowdfunding.
Here are some things to consider when it comes to fulfillment.
#17: Consider self-fulfillment
Self-fulfillment is great for less than 250 orders, giving you direct control over quality control when it comes to shipping. If you choose to do this, purchase supplies in bulk and use a label printer to save on costs.
With low order volume, this is usually the cheapest and easiest solution. But it doesn’t scale well for thousands of orders and it also doesn’t work very well if you need to send a lot of international shipments. Be aware of these issues should you choose to ship your own orders.
#18: Hire a fulfillment center
If you don’t want to ship on your own, you can hire a fulfillment center. With large order volumes, fulfillment centers are much more efficient. They handle the picking, packing, and shipping for you so you can save your time.
If you have a lot of international shipments or you’re shipping at least 500 orders, at least consider reaching out to a fulfillment center to learn more. Just make sure they specialize in crowdfunding fulfillment because it is a niche service!
Part 6: Prep for international shipping
International shipping is tricky and expensive. But Kickstarter campaigns are usually international events, so you need to plan for it all the same.
Here are a few things that you will need to consider.
#19: Ship internationally from your own country
If your order volume is low, shipping directly from your home country is a straightforward option. However, be aware that customers might need to pay VAT and customs fees. This method is simple but may not be cost-effective for larger campaigns.
#20: Use delivery duty paid (DDP)
DDP shipping can enhance the backer experience because you pay duties and taxes on their behalf. This method is a good way to offer “EU-friendly” or “Australia-friendly” shipping even if you’re not working with fulfillment centers in those regions.
This can be a good way to simplify international logistics for your campaign. But you should know – this is really expensive and if you have hundreds of orders to ship to those regions, then you need a better solution!
#21: Partner with international fulfillment centers
For high order volumes, partner with fulfillment centers in target regions. This reduces shipping costs and improves delivery times.
Managing multiple centers requires efficient coordination and logistics planning, it’s true. But if you are shipping thousands of orders and they’re spread out across the globe, this is probably the best way to do it.
Part 7: Prep for returns & complaints
Some of your rewards will get lost or broken in the mail. And some backers will simply be unhappy, despite your best efforts to satisfy them.
You need to have a plan to handle returns and complaints. Here are a few things to consider.
#22: Establish a return policy
Clearly define acceptable reasons and time frames for returns. Communicate this policy on your campaign page and with backers. A well-defined return policy helps manage expectations and handle returns smoothly.
#23: Efficiently process returns
Efficient processing of returns will keep backers happy. Make sure it is easy for them to get in touch with you if something goes wrong. Then make sure you have stock to send out as a replacement, if that is necessary and appropriate.
#24: Address backer complaints
Set up dedicated channels for backers to voice their concerns. Respond promptly and transparently to complaints. Demonstrating empathy and responsiveness builds trust and ensures a positive experience for backers.
Part 8: Collect addresses for your Kickstarter campaign
Choosing the right method to collect addresses is an important part of handling fulfillment. Options include using Kickstarter’s built-in survey tool or a pledge manager, either shortly after the campaign or right before fulfillment.
Here are some things we think you should know about this part of the process.
#25: Choose to use a pledge manager or Kickstarter’s built-in survey tool
There are two ways you can collect addresses. You can either use a pledge manager like BackerKit or you can use Kickstarter’s built-in survey tool.
Kickstarter surveys can only be sent one time. So if you send it too early and collect address information, people may forget to update it when they change addresses. Kickstarters take a long time to manufacture and fulfill, so this problem can cost you a lot of money.
Similarly, if you choose not to use a pledge manager, then you will need to collect shipping fees upfront via Kickstarter pledges. That means you need to be able to accurately estimate shipping costs at the time of the campaign. Plus, you will pay Kickstarter’s 5% fee on any shipping fees collected.
Even with these issues, it might still be worthwhile to use Kickstarter to collect address information. After all, using a pledge manager means you and your backers need to use separate software. Depending on the nature of your campaign, that might not be something you want to do.
#26: Decide when to collect shipping addresses and charge for shipping accordingly
Whether you use Kickstarter’s built-in survey tool or a pledge manager, it’s best practice to collect addresses late. That way, people won’t send in their address, move, and forget to tell you. This cuts down on lost shipments and the costs associated with that.
#27: If using a pledge manager, upsell and cross-sell
If you do happen to use a pledge manager, you should know that you can upsell and cross-sell in the pledge manager. Even if you don’t have other products to ship, you can still ask people if they want to increase the quantity of items they are buying. It’s an easy way to increase your sales revenue.
Part 9: Understand Kickstarter funds release and fees
When you successfully fund, you don’t walk away with 100% of the funds the minute you fund. Here is some of the fine print information you should know about before you launch.
#28: Know when Kickstarter releases funds
Kickstarter releases funds about 14 days after the campaign ends. This delay allows for transaction processing and addressing potential issues, ensuring all funds are finalized before release.
#29: Account for Kickstarter and payment processing fees
Kickstarter takes a 5% fee, plus 3-5% for payment processing. Handle shipping separately, such as through a pledge manager like BackerKit, to save on fees. Understanding how these fees work can help you plan your budget and manage campaign finances effectively.
Final Thoughts
Kickstarter is an amazing way to raise funds for new products. It’s one of the best ways to build up a community and see how far your product ideas can go.
Kickstarter reward fulfillment can be tricky. There’s no denying that. But if you know how the process works, it’s much easier to navigate. We hope this guide has given you all the information you need to confidently launch!
