Launching a Kickstarter campaign takes a lot of planning, especially with shipping. Many creators get excited about their product and forget about the tricky and pricey shipping process. This can cause big problems.

Estimating and managing shipping costs is mission critical for your project’s success. This guide breaks down the four main factors affecting your Kickstarter shipping costs. We also share strategies to keep these costs low. That way, you can keep your campaign successful from start to finish.

The 4 Main Factors In Kickstarter Shipping Costs

You can’t ship a Kickstarter if you don’t understand the costs that go into fulfilling one. There are four primary costs every creator needs to consider: freight, customs, postage, and fulfillment.

  1. Freight Costs: These are the costs of moving your product from the manufacturing facility to your location or a fulfillment center. Factors like size, weight, and location affect these costs.
  2. Customs Costs: These costs come from importing goods from overseas. They depend on your product’s HS code, its value, and the import regulations of the destination country.
  3. Postage Costs: This is the cost of mailing rewards to your backers. These costs vary based on the size, weight, and destination of the product.
  4. Fulfillment Costs: These include expenses for packaging, handling, and managing logistics. The complexity of your rewards, the number of backers, and your fulfillment process all impact these costs.

Once you understand these four factors, you can better estimate your total shipping costs and plan accordingly to avoid surprises.

Calculating Kickstarter Shipping Costs in 4 Steps

#1: Calculating freight costs.

Calculating freight costs means figuring out how much it will cost to ship your items. This depends on how much your shipment weighs, its size, how far it has to go, and the type of transport you choose.

Bigger and heavier shipments cost more. So does shipping longer distances or using air freight. To get an accurate estimate, contact different freight companies with details about your shipment’s weight, size, and destination.

Collecting multiple quotes helps you find the best deal. Online tools like Freightos let you enter shipment details to compare costs quickly.

Accurate info and careful planning are key to getting reliable freight cost estimates. This helps you manage your budget and avoid surprise expenses.

#2: Calculating customs costs.

Calculating customs costs involves a few steps. First, find your product’s harmonized system (HS) code, which is an international standard that categorizes goods for customs. This code helps you find the duty rates for the countries you’re shipping to.

Next, research the duty rates based on your HS code and the destination country. To estimate customs costs, multiply the shipment’s value (including manufacturing and freight costs) by the duty rate.

Customs costs can also include extra fees like taxes and handling charges. Decide if your backers will pay these fees directly or if you’ll cover them, which might be more customer-friendly but more expensive for you.

Accurate calculations help you avoid unexpected costs and ensure smoother shipping.

#3: Calculating postage costs.

Postage costs depend on your product’s weight, dimensions, packaging, and destination. Start by weighing and measuring your product, including its packaging.

Shipping zones are important since postal services use them to set postage rates. Use online postage calculators like EasyShip by entering your product’s weight, dimensions, and destinations to get cost estimates.

Since backers may be from different regions, create a weighted average based on estimated locations for a more accurate overall postage cost.

Regularly update these estimates as you get more backer info. This helps you manage your campaign’s budget better.

#4: Calculating fulfillment costs.

Calculating fulfillment costs depends on whether you handle it yourself or use a fulfillment center. If you self-ship, make sure you order enough packaging materials like boxes, labels, and supplies. It’s also smart to buy in bulk from suppliers like ULINE to save money.

If you use a fulfillment center, ask for detailed quotes that include setup fees, storage fees, pick-and-pack fees, and postage rates. Provide detailed info to get accurate quotes and compare multiple centers to find the best rates and services.

When you understand how these costs work, it’s a lot easier to set a budget and avoid surprises. Then once you can make sensible calculations around fulfillment costs, your odds of smoothly shipping your Kickstarter campaign go way up.

Keeping Kickstarter Shipping Costs Low

#1: Lowering freight costs.

Keeping freight costs low requires smart decisions and strategic planning. Start with product design—make your product as lightweight and compact as possible.

Every gram and inch matters! Reducing the size and weight of your product can drastically lower freight costs. For instance, using lightweight materials or rethinking the packaging design can save on shipping expenses.

Next, consider bulk shipping. Sending larger quantities at once often lowers the per-unit cost because of economies of scale. Ordering and shipping in bulk can reduce the cost per item, as shipping companies often offer discounts for larger shipments.

Also, explore different shipping options. Sea, road, and rail are generally cheaper than air freight, though slower. If speed isn’t crucial, go for these options to save money. Sea freight, in particular, can be significantly less expensive than air, though it takes longer.

For bigger shipments, think about hiring a freight broker. They can negotiate the best rates for you. Brokers have the expertise and industry connections to get better deals than you might find on your own.

For smaller campaigns, use a freight marketplace like Freightos to book shipments directly and avoid broker fees. Freightos allows you to compare quotes from different carriers and choose the best option for your needs.

Quick Tips:

  • Design Smart: Make products lightweight and compact. For example, use materials like aluminum instead of steel, or design your packaging to be collapsible.
  • Ship in Bulk: Send larger quantities at once to reduce costs. Consider ordering larger quantities from your manufacturer to save on per-unit costs.
  • Use Cheaper Transport: Ship by sea, road, or rail instead of air. If time is not a critical factor, these options can save you a lot of money.
  • Hire a Freight Broker: They can get you the best rates. Brokers can often find discounts and special rates that aren’t available to the general public.

#2: Lowering customs costs.

Reducing customs costs starts with understanding the customs regulations for each destination country.

Proper documentation is key. Make sure all customs forms are correctly filled out and comply with the regulations. Incorrect or incomplete paperwork can lead to delays and extra charges.

Hiring a customs broker can be very helpful, especially for larger shipments. Brokers are experts at navigating customs regulations and can help minimize costs by ensuring compliance and avoiding unnecessary fees.

Researching and choosing the correct HS code for your product can sometimes result in lower duty rates. The HS code classifies your goods and determines the duty rate.

Compliance with safety and other regulatory standards in the destination country is also essential to avoid fines and legal issues. Make sure your product meets all necessary standards to prevent costly delays and fines.

Quick Tips:

  • Know the Rules: Understand customs regulations for each destination. Research the specific requirements for each country you’re shipping to, as they can vary widely.
  • Fill Out Forms Correctly: Proper documentation prevents delays and extra charges. Double-check all forms for accuracy before submitting them.
  • Hire a Customs Broker: They can help minimize costs. Brokers can provide valuable guidance on navigating complex customs requirements.
  • Choose the Right HS Code: This can lower duty rates. Use online tools or consult with a broker to ensure you’re using the correct code.
  • Meet Standards: Comply with all safety and regulatory standards to avoid fines. Research the standards for your product in each destination country. Don’t assume your product is good to go – you need to absolutely sure it’s safe and legal where you plan to ship.

#3: Lowering postage costs.

To keep postage costs low, start by thinking about your packaging. You will want to reduce the weight and size of your packages as much as you can without compromising product safety. As with freight, every gram and inch matters for postage costs. Consider using lightweight materials for your packaging and designing it to be as compact as possible.

Compare rates from different carriers like USPS, UPS, and FedEx. Rates can vary for different package sizes and weights, so shop around for the best deal. Many carriers offer online tools to help you compare rates and choose the most cost-effective option.

Hiring a fulfillment center can also reduce costs since they often have access to deeply discounted postage rates. Fulfillment centers handle large volumes of shipments, allowing them to negotiate better rates with carriers.

For international campaigns, consider using overseas fulfillment centers closer to your backers. This can lower postage costs but be sure to balance these savings against higher freight rates for bulk shipping to multiple centers.

Quick Tips:

  • Optimize Packaging: Make packages lighter and smaller. Use bubble wrap or air pillows instead of heavier packing materials.
  • Compare Carrier Rates: Shop around for the best deal. Use online rate calculators to compare costs from different carriers.
  • Use Fulfillment Centers: They can access discounted postage rates. Fulfillment centers can also streamline your shipping process and handle logistics for you.
  • Consider Overseas Fulfillment: This can lower postage costs for international backers. Research fulfillment centers in regions where you have many backers to see if this option makes sense for your campaign.

#4: Lowering fulfillment costs.

To lower fulfillment costs, follow a few key strategies. If you’re self-fulfilling, buy packing materials in bulk to take advantage of discounts. This includes boxes, labels, and packing supplies.

Efficient packaging processes can also reduce labor costs and improve efficiency. Try packing a few boxes and make sure you get your process right before you pack all of them. Once you get into a rhythm, then you can train your team, if you have one. This is a great way to save time and money!

If you’re using a fulfillment center, compare quotes from several providers. Each has its pricing structure and services. You need to read every line item of each quote. Make sure you look for fulfillment centers that specialize in crowdfunding – it’s a less common service than you might think!

Quick Tips:

  • Buy in Bulk: Get packing materials in large quantities to save money. This includes everything from boxes to tape to packing peanuts.
  • Streamline Packing: Make your packing process efficient. Practice first, then train your team on the best practices to save time and reduce labor costs.
  • Compare Fulfillment Centers: Get quotes from multiple providers. Look for centers with corwdfunding experience.

Final Thoughts

Keeping your shipping costs low is incredibly important for the success of your Kickstarter campaign. From freight and customs to postage and fulfillment, each part of the process needs to be accounted for in your overall budget.

Good planning can help you avoid unexpected expenses and provide a smooth delivery process. Follow the tips outlined in this article, you and keep your Kickstarter shipping costs in check and keep your backers happy!