Want to get organic traffic to your store so you can make some sales? Ecommerce search engine optimization, or SEO, is how you do that.

Optimizing your website for search engines will help increase visibility, attract potential customers, and improve your chances of turning those visitors into buyers.

SEO can be broken down into a bunch of smaller disciplines. There’s technical SEO, which is about your site’s speed, structure, and security. Then there’s on-page SEO which is focused on making individual pages more searchable. Then there is content marketing and link building, which is about making pages people want to read and then getting those pages in front of readers.

It’s a lot to take in, especially if you don’t have a technical background. It’s for that reason that we compiled this guide to give you some actionable tips to help you get started.

So let’s begin with a quick definition of eCommerce SEO.

What is Ecommerce SEO?

Ecommerce SEO is all about optimizing your online store to rank higher in search engine results. Unlike general SEO, eCommerce SEO zeroes in on product and category pages, optimizing for relevant keywords, and enhancing the user experience to turn visitors into customers. It targets specific search terms to attract shoppers actively looking for the products you sell.

Good SEO impacts your store’s visibility, making it easier for customers to find your products. High search rankings lead to increased organic traffic and better conversion rates. Effective SEO strategies also boost your online presence, helping you attract and retain customers, which ultimately drives sales and growth.

In this guide, we’ll provide tips on how exactly you can optimize for SEO.

Technical SEO Tips

Optimizing the technical aspects of your site is crucial for better search engine rankings. But technical SEO can get complex if you research it online.

To help you get started, here are some concrete steps to help you optimize your technical ESO.

#1: Optimize your site structure.

A well-organized site structure is a must for SEO. As Nikola Baldikov, CEO of Inbound Blogging, suggests, “start with defining your categories. They should be logical and intuitive, so both users and search engines can browse the website easily.”

He continues, saying, that “if you don’t know where to start, try checking what your competitors are doing and gathering some ideas. Simply uploading products without considering the organization can cause your visitors to get confused and hurt your sales.”

#2: Make sure your website is mobile-friendly.

Mobile optimization is key since search engines prioritize mobile-friendly sites. After all, 45% of web users shop through their phones.

Brandon Schroth, Founder at Reporter Outreach, emphasizes that “mobile phones are the most popular form of devices used to perform online shopping.” He goes on to say that “if a website is not mobile optimized, user experiences may be imperiled, in addition to search rankings being affected.”

Make sure your site is responsive and adapts to different screen sizes. This is because a mobile-friendly site enhances user experience, reduces bounce rates, and boosts search performance. Or, put in a less technical way, people stay on your site for longer and are more likely to buy.

#3: Improve site speed.

Fast-loading websites rank higher and offer a better user experience. “Speed matters more than you think,” says Nathaniel Miller at The SEO Marketing Dad. “Make sure your site loads fast and looks great on mobile. Customers expect quick, seamless experiences, and Google rewards it too.”

If you want to improve your site’s load time, then optimize images, turn on browser caching, and minimize HTTP requests to improve loading times. Use tools like GTMetrix to find and fix speed issues.

#4: Secure your site with HTTPS.

Security is a ranking factor, and HTTPS ensures that data exchanged between your site and users is encrypted. Make sure you have a valid SSL certificate to secure your site. Additionally, HTTPS improves user trust and can lead to better search engine rankings, as search engines prefer secure sites.

If you have trouble doing this, use Why No Padlock to troubleshoot.

On-Page SEO Strategies

On-page SEO is all about optimizing individual web pages to rank higher and attract more relevant traffic from search engines. Here are some specific tips you can apply today to improve your on-page SEO.

#5: Optimize product pages with targeted keywords.

Make sure to incorporate relevant keywords naturally in your product titles and descriptions. Use keywords that your potential customers are likely to search for. Be sure to also include them in headings, subheadings, and bullet points. This helps search engines understand your content and rank your pages higher for those specific terms.

But that said, avoid the temptation to stuff keywords into product titles and descriptions. You instead want to incorporate relevant keywords naturally. Tom Jauncey of Nautilus Marketing advises that you “optimize product pages with unique, keyword-rich descriptions and high-quality images. Too many eCommerce sites rely on manufacturer descriptions, which can hurt rankings. Make sure each product page offers value in terms of content.”

#6: Use high-quality images and optimize alt text.

“The first SEO tip for an eCommerce site is image optimization,” says SEO consultant, Jase Rodley. “Since eCommerce is all about visuals, make sure all product images are high quality and have descriptive alt text with relevant keywords. This helps with SEO and accessibility.” He also recommends using user-generated content like customer reviews and testimonials, which he says, “adds fresh unique content to your product pages and builds trust with potential buyers.”

#7: Create compelling meta descriptions.

Meta descriptions are short descriptions of your page that can be sent to search engines. Usually, they are 160 characters at most.

You need to write concise and compelling meta descriptions for each page. This will involve summarizing the page content and including targeted keywords.

Now you should know – meta descriptions not always appear in search results. It depends on the search terms used and, frankly, whether or not Google feels like using your meta descriptions.

But all the same, well-written meta descriptions increase the odds that searchers turn into visitors.

#8: Optimize URL structures for clarity and keywords.

Create clear, concise URLs with relevant keywords. Avoid long, complex URLs. Google, and other search engines, tend to dislike long URLs or ones that contain irrelevant information like random numbers.

Additionally, as Ross Kernez from SEO Meetup suggests, building links from trustworthy websites in your industry can further enhance your site’s rankings by signaling credibility and relevance to search engines. “Aim to get links from well-known, trustworthy websites in your industry,” says Kernez. “These good links help boost your site’s ranking in search engines.”

Content Marketing for SEO

Creating valuable content is a good way to improve your search rankings. Sometimes, this means improving the quality of your product pages with reviews or FAQs. Other times, it means creating blog posts, videos, and other forms of content to help answer questions that your customers may have.

No matter how you choose to go about it, content marketing is a proven way to help boost your SEO.

#9: Start a blog related to your niche.

It’s not relevant for every niche, but it works like a charm when it is! Regular blog posts can improve your search rankings and also help you establish your site as an authority in your industry.

Blogging allows you to create keyword-rich content that attracts organic traffic. In order to do this, write about topics relevant to your niche, addressing common questions and sharing useful knowledge.

#10: Use user-generated content.

Encourage customers to leave reviews and testimonials on your site. User-generated content (UGC) adds credibility and naturally incorporates relevant keywords.

“Feedback and reviews from your existing customers offers social proof and helps to convince and convert new customers,” says Michelle Symonds, CEO of Ditto Digital.

It’s not hard to understand why search engines like UGC. Much like human beings, search engine bots like seeing proof that your brand is as good as you say it is!

Positive reviews can also improve your search rankings and attract more visitors by showing that you have satisfied customers.

Building up UGC takes time. But one way you can speed up the process is by remembering to ask customers to leave reviews. Many will if you remember to ask!

#11: Build a keyword-rich FAQ page.

Create an FAQ page that addresses common questions and concerns related to your products. As you answer questions, you will naturally use keywords in the questions and answers.

“I would recommend that sites prioritize their product descriptions,” says Kim Butler from Online Optimism, “being sure to answer any potential questions their customers might ask. You could also include this in frequently asked questions after descriptions to add more value.”

In addition to being good for SEO, adding FAQs improves user experience, on top of simply driving organic traffic to your site.

Link Building Techniques

Search engines tend to favor websites that other sites link to. When other sites link to your website, these are called backlinks. The more high-quality backlinks you have, the better your website will rank.

So here are some tips on how you can build up your backlinks.

#12: Implement a link-building strategy.

“Link building, [such as] building links to the root of your domain via brand mentions, is not only important but is one of the most natural ways to obtain backlinks over time,” says John White from Complete White Label. “I recommend doing this via expert commentary campaigns.”

That’s just one technique you can employ though, as there are a lot of ways you can get backlinks. Many of them boil down to networking.

To acquire quality backlinks, reach out to the owners of larger sites. Offer to create guest blog posts or strike up a partnership. A lot of this will come down to outreach, often cold outreach, done via email or social media.

Another good way to build up your link profile is by getting mentioned in the media. You may also consider using websites like Qwoted or HARO to get in touch with reporters.

#13: Partner with influencers for content outreach.

Collaborate with influencers to create and share content that includes links to your site. Influencers can reach a wider audience and provide high-quality backlinks. This not only improves your link equity but also drives targeted traffic.

“Apart from increasing your credibility,” says Brandon Schroth from Reporter Outreach, “this will also help expand your brand’s reach. Moreover, these collaborations help in producing creative and original content that can be published on social networks and other digital media, thus generating quality backlinks and increasing the visibility of your website.”

Overall, this is a smart way to increase brand awareness. This is especially true in some niche markets such as cosmetics.

It’s also useful to remember that influencers aren’t just people with big Instagram or TikTok followings. Reporters, reviewers, bloggers, and even community organizers are all influencers in the broader sense of the term. Don’t overlook them because of all the people talking into ring lights!

#14: Use internal linking wisely.

“Don’t skip out on the importance of internal linking,” advises Nathaniel Miller from The SEO Marketing Dad. “Internal linking is a powerful way to guide users and spread link equity. Don’t overlook it.”

Internal linking helps distribute page authority throughout your site and improves navigation. Link related products, blog posts, and category pages to enhance user experience and SEO. Be sure your most important pages receive the most internal links.

You will also want to make sure you use descriptive anchor text. That means avoiding turning words like “here” into links. The linked text itself needs to tell you something about the page that is being linked to.

Advanced SEO Tips

SEO advice can become very complex. If you follow all of the previous tips but are still looking for further ways to improve, here are a few more things you can do.

#15: Use schema markup for rich snippets.

Schema markup helps search engines understand your content. When you use schema markup, it can improve search result visibility with rich snippets.

Rich snippets include additional information below the meta description in the search result. That might include a product rating, number of reviews, price, delivery cost, returns policy, and similar information.

Paul DeMott, CTO at Helium SEO, explains that using it for “highlights like stock, ratings, and pricing can boost your presence on search engine result pages by offering rich snippets.”

In order to add rich snippets, you need to implement schema markup. This can get complex, so here is a guide on how you can do this in Shopify.

While complex, it is often worth it. That’s because rich snippets improve click-through rates by making your listings more attractive.

#16: Optimize for voice search.

Voice search is becoming more common. So think about the kinds of keywords people will use when using Siri for search.

Think about how you can get your pages to rank when using natural spoken language. Think about the kind of long-tail keywords that reflect how people speak.

Truthfully, this is very hard to do. But if you answer common questions directly in your content, such as descriptions, you will improve your odds of appearing in the voice search results. This is because of the conversational nature of copywritten text online.

For more information, check out this post by Design Rush on voice search best practices.

#17: Focus on local SEO if applicable.

You might also consider optimizing your eCommerce site for local search if you have a physical store or target a specific region. Include your business address, phone number, and operating hours on your site. Use local keywords.

If nothing else, create a Google My Business listing to improve your visibility in local search results.

#18: Use comparison pages.

“Comparison pages targeting keywords like ‘Product A vs. Product B,’ are perfect for capturing bottom-of-funnel shoppers who are ready to buy but need that final push,” says John Butterworth of Mint SEO.

“They’re searching for specific product comparisons, so give them a clear breakdown of features, benefits, and pricing to help them decide. If your page has a clear winner, it’s likely the customer will purchase that product straight after reading.”

#19: Make gift guides for seasonal SEO.

Another underrated tip, advocated for by Hemapriya Natesan is creating seasonal guides. She says that you can “create blogs centered around popular themes, like holiday gift guides, that incorporate long-tail keywords.”

On those pages, you can “showcase your products with high-quality images, customer experiences, and descriptions that illustrate why they’d make thoughtful gifts.”

It should be noted this can be a solid way to acquire first-time customers since shoppers tend to be more open to new brands during the holidays.

Final Thoughts

When it comes to SEO, there is one animating principle. Make a site that people want to find!

In practice, that means creating a site that is easy to use, secure, and loads quickly. That’s where technical SEO comes in. Every single page needs to be useful, which is where on-page SEO is handy.

The best sites make content that users want to find and distribute it to other websites where it can be found. To accomplish that, you need content marketing and link-building.

Take a few of these tips and think about how you can apply them to your site. There’s a good chance that they’ll help you improve your eCommerce SEO game!

Further Resources

For further learning and implementation of advanced SEO techniques, consider the following tools and resources:

• Google Search Console: Monitor and maintain your site’s presence in Google search results.
• Ahrefs: Comprehensive SEO toolset for keyword research, backlink analysis, and site audits.
• Moz: Offers tools and resources for SEO learning, including keyword explorer and link-building strategies.
• SEMRush: An all-in-one marketing toolkit for SEO, including competitive analysis and site audits.
• Yoast SEO: A popular WordPress plugin to optimize on-page SEO.
• Neil Patel’s Blog: Extensive resources and guides on SEO best practices and strategies.

FAQ

How long does it take to see results from eCommerce SEO?

SEO is a long-term strategy. You might see some improvements in 3-6 months, but significant results typically take 6-12 months or longer. Technical fixes like site speed improvements can show faster results, while content marketing and link building take more time to compound.

Should I hire an SEO agency or do it myself?

It depends on your budget, time, and technical comfort level. If you’re just starting out, focus on the basics yourself—technical SEO, product page optimization, and creating quality content. As your business grows, consider hiring professionals for more advanced strategies like link building and technical audits.

How do I choose the right keywords for my products?

Start with how your customers actually search. Use tools like Google’s Keyword Planner or Answer The Public to find relevant terms. Focus on a mix of high-volume competitive keywords and longer, more specific phrases that your ideal customers might use. Don’t ignore local keywords if you serve specific geographic areas.

Is it worth optimizing for voice search?

Voice search optimization is becoming increasingly important, especially for mobile users. Focus on natural, conversational language in your content and FAQ sections. Answer questions directly and concisely, as voice assistants often read featured snippets aloud.

How many keywords should I target per page?

Focus on one primary keyword per page, with 2-3 related secondary keywords. Avoid keyword stuffing—search engines prefer natural, helpful content over pages crammed with keywords. Your primary keyword should appear in the title, URL, and naturally throughout the content.

Do I need to optimize every single product page?

Yes, every product page should have unique, optimized content. Avoid using manufacturer descriptions across multiple products. Each page should have unique titles, descriptions, and relevant keywords while maintaining helpful, readable content for your customers.

Shoppers are impatient. Every additional tenth of a second it takes a store to load can drop conversion rates by 7%. Can you imagine how much money a Shopify store owner could lose over a 2-second delay?

Slow websites provide bad user experiences. This alone causes people to turn away from stores they would otherwise shop from. But it can also negatively impact search engine rankings too. That’s another huge problem in its own right since so many Shopify store owners count on being listed high in Google Shopping ratings.

Fixing a slow website is tricky and technical. But thankfully, it’s easier to troubleshoot issues on Shopify than it is on most platforms. In this guide, we’re going to talk about what makes Shopify stores load slowly and why it matters (in the words of actual store owners).

We’ll wrap up with clear steps you can follow to troubleshoot your slow store.

Why Your Shopify Store Is Loading Slowly: 3 Common Reasons

Shopify stores can load slowly for a lot of reasons — oversized images, sluggish apps, theme issues, you name it. We’re going to talk about each of these in a little more detail so you can understand why each one of these causes loading issues.

This is not an exhaustive list. Truth is, there are a million reasons why your Shopify store could be loading slowly. You might have a server issue or some kind of obscure coding problem. But 95% of the time, something much simpler is giving you trouble.

Here are three loading time issues that come up all the time and that you are going to have some control over.

1. Your images are too big.

Big images are, by far, the most commonly cited reason why Shopify stores load slowly. Nearly every source we asked for advice on this matter told us this, independently of one another.

Jose Gomez, Partner at Summit Metals, put it best. “Websites generally load slowly because images are not optimized in size. For example, people might upload a JPG that is 3MB.”

On its own, that isn’t a problem, but clarifies, saying that “multiplied by 20 images, your cell phone will take a while to load [the web page].”

There are ways you can troubleshoot this, which we’ll get into more later. Gomez recommends converting images to WEBP format, which cuts size by about 70% without sacrificing quality too much. Meanwhile, Steve Sacona, Founder of Top 10 Lawyers, recommends using tools like Photoshop or free online converters to compress images to smaller sizes. In our experience, we’ve found either technique can work well.

2. One or more of your apps is slowing down your site.

Remember the days when iPhones only had 8 or 16 GB of storage? Take a second and rewind to the days of having to delete apps to make room for your music. Shopify works like that.

If your store has app after app that you are not using, it might be slowing the site down. Consider purging unneeded apps and reap the benefits of faster load times.

“Carefully choose the apps that you add to your store, and remove any that aren’t needed,” suggests Justin Christopher, Manager of Ecommerce and Marketing at Klatch Coffee. “In addition to removing the app, you might need to check to make sure the app automatically removes any code that it installed, because old apps can leave behind code that slows your site. Shopify store owners can run before-and-after tests using Google Lighthouse to ensure that newly-added apps aren’t slowing their store.”

3. You’re using a slow Shopify theme.

When themes don’t work properly, they can slow down your page. Themes are all made by developers, and developers make them by writing code. The way the code is written can have a huge impact on how the website itself is loaded when it runs that code.

Practically speaking, if your theme is the problem, the only option you really have is to switch themes. Granted, there are many other things you can troubleshoot first, which we’ll talk about. But if you keep having stubborn performance issues, your theme might be the problem after all.

Why Shopify Store Loading Time Matters

If you want to really understand why loading time matters so much, it helps to hear what other store owners have to say.

Gomez says that “Google/Bing Search Engine crawlers rate your site based on how fast your site runs. The reason for this is they want to give users best user experience (which means smooth loading times.”

Christopher states that “site speed is critical for usability. We know that visitors quickly abandon slow-loading websites, especially mobile users, which make up about 70% of our audience.” He then expressed the value of using Lighthouse, Core Web Vitals, and Search Console to find and fix issues.

“There is a reason loading time is important for many reasons. Ignoring this essential aspect can scare away prospective buyers, because an average online shopper is quite impatient, and every additional second of waiting increases the bounce rate and decreases the satisfaction rate,” says Ben Schreiber, Head of Ecommerce at Latico Leathers. “Even a [one-second] delay can lead to fewer conversions, according to research. SEO is also adversely affected by slow websites as search engines such as that of Google take loading speed as a factor when indexing web content. Reduced download times mean enhanced popularity and increased chances of converting visitors into regular clients.”

Sacona states that “fast loading times are essential for keeping visitors on your site and can directly impact your business’s bottom line. From a legal standpoint ᅳ seeing to it that your website performs efficiently is not just about user experience ᅳ it’s about seeing to it that your business against potential disputes & maintaining your market position.”

Taken all together, one thing is clear. Making your Shopify store fast is not just an intellectual exercise. It has a direct impact on your profitability.

How To Speed Up Your Shopify Store: 7 Steps

With all of the above in mind, we would like to provide some tips on how you can speed up your Shopify store. Try each of these steps one at a time, and in the order they are listed below. Use free tools like GTMetrix, Pingdom, and PageSpeed Insights to measure changes in performance as you go along.

Why follow these specific steps?

This is a technical point, but it’s helpful to understand, so bear with us. You are trying to optimize three different factors:

• Largest Contentful Paint (LCP): The amount of time it takes to load the largest object on the page. Less time is better.
• Interaction with Next Paint (INP): The amount of time it takes for a website to respond after a user interacts, such as by clicking on something. Less time is better.
• Cumulative Layout Shift (CLS): The amount that objects appear to “jump around” as the website loads. Less shifting is better.

The tips that we’re going to share require relatively little technical expertise but should make a large impact on these three figures. Don’t get too hung up on the figures themselves, though, they are ultimately just ways to quantify how it feels to use your website. And you want it to feel good, so use your human judgment.

1. Optimize your images.

If your website is loading slow, you should check your images first. That’s because overly large image files are both the most likely reason for your website to be loading slowly and one of the easiest to fix.

There are two ways main ways to optimize images, and either will work. You can either convert them to WEBP or use a tool – paid or free – to compress the images to a smaller file size. It doesn’t matter which one you use, it only matters that the file size is relatively small.

Of the two, we personally find WEBP preferable since it’s a little less technical than compressing images and certain speed measurement tools tend to like it better than optimized PNG and JPG files.

When you compress images, look at them closely and make sure the quality is still good before you use them on your website. You want the smallest file that still looks good.

Windy Pierre, Ecommerce Growth Marketer at Ecommerce Manager Dot Com has some additional recommendations for image optimization. He says it’s best to “[avoid making] the main picture load lazily. Only make pictures that you can’t see right away [should] load lazily. For more control, it’s better to use Shopify’s automatic lazy loading or the section index.”

He also advises against using special effects for main pictures.  “While making pictures fade in might seem cool, it can make the website slower. It’s better to remove them for a faster website.”

2. Remove apps you don’t use.

Having too many apps is a sure way to slow down your Shopify store. The easiest thing you can do is start removing ones you don’t use.

Sacona is a fan of this approach, saying that a “quick fix is cutting back on unnecessary plugins and streamlining your site’s design to reduce the number of elements that need to load.” Removing extra apps is a great way to do this and requires relatively little explanation.

 

3. Eliminate pop-ups and lightboxes.

You likely want to avoid removing apps that you use on a regular basis. But if you’ve optimized your images and removed unnecessary apps, and you’re still running into load time issues, you might need to consider removing some marketing-related apps. Of those, the easiest thing to check for are slow-loading pop-ups and lightboxes.

“Don’t use big pop-ups. Pop-ups for cookie consent and signing up for newsletters can take a long time to load and be the most significant thing on the page,” says Pierre. If you use them, he advises that you “make sure the text or pictures in these pop-ups are small.”

4. Disable apps one by one.

If you are still having problems with loading time after optimizing images, removing old apps, and turning off pop-ups and lightboxes, you need to go a bit further. At this point, we recommend that you start disabling apps one by one and seeing how each removal affects performance. Odds are, you’ll find at least one app is tanking your load time and it’s only by disabling them one by one that you’ll be sure which one it is.

5. Toggle your lazy loader settings.

Lazy loaders cause images to load only when they are needed. For the most part, lazy loading helps a lot with site performance and Shopify’s Dawn theme enables it by default.

But sometimes, lazy loading has problems and you need to turn it off or on. This can get a bit technical, so here is a video that can walk you through the process of enabling and disabling lazy loading. It’s best to try both ways and see which one gets a better performance.

6. Make sure your CDN is working properly.

CDN is short for content delivery network. CDNs basically save a copy of your website’s files in various servers all over the world. When people load your website, the files come to them from servers that are located physically closer to them. That means the actual electronic information that moves in physical form through fiber optic cables doesn’t have to go as far.

This is nice, since Shopify’s development team has not figured out how to move data faster than the speed of light. Give them a couple of years, though, and we’re sure they’ll figure it out!

If you use Shopify to host your store, you are automatically using their CDN. For the most part, Shopify’s CDN is excellent and probably won’t give you any trouble. But if you can’t quite get the performance you need, here is a tutorial that will walk you through replacing the default CDN with one of your choosing.

7. Use a fast Shopify theme.

If you have followed the above steps and you are still running into issues, it’s possible that your theme is slowing down your website. We saved this tip for last because switching Shopify themes requires a lot of extra work and it’s not something you want to do lightly.

But if you do get to this point, Justin Christopher recommends that you “choose a theme for your Shopify store that makes fast loading a priority, and comes from a reputable developer. Quality themes include regular updates that include bug fixes and new features, as well as performance improvements.”

Bonus Tip: Don’t Forget About User Experience

This article has focused on technical fixes, and those are important. But don’t forget about things like ease of navigation and checkout. This dramatically affects perceived speed of the website, whether or not it loads in 300 milliseconds or not.

“One of the easiest wins to improve your conversion to check out process is to simplify the checkout experience for the user,” says Dan Korte of Riseabove Apparel. “I can not think of any more effective way to remove friction from your checkout experience, than offering a guest check-out setting with a streamlined check-out, and talented graphic presentation.”

That is to say, don’t forget to test how your site feels to use while you’re testing how long it takes to load.

Final Thoughts

A slow Shopify store doesn’t just frustrate customers—it costs you money. Every second of delay means fewer conversions and lower sales. If your store isn’t loading fast enough, you’re essentially turning away shoppers who are ready to buy.

Speed matters. It affects user experience, search engine rankings, and ultimately, your bottom line. With so many factors influencing loading times, you can’t afford to ignore the problem. Start with the basics: optimize images, remove unused apps, and choose a theme designed for performance.

Fixing a slow store takes effort, but it’s worth it. Follow these steps, track your progress, and watch your store’s performance improve. A faster site leads to happier customers and a more profitable business.

Scaling your eCommerce store is no small feat—and who better to guide the way than those who’ve done it themselves? We reached out to a variety of experienced eCommerce experts to find the strategies that work in the real world.

In this article, we share their insights, drawn from real-world experience. Then we turn their thoughts into clear steps you can follow so you can scale efficiently and sustainably.

This guide covers everything from streamlining operations to fostering long-term customer loyalty. Along the way, we’ll also talk about important metrics you can watch so you can make smarter decisions.

Whether you’re trying to optimize a successful business or grow your brand into something much bigger, this advice can help you as you grow.

How do I make eCommerce scalable?

Scaling an eCommerce store means you have to think like a civil engineer. Let’s say you’re building a skyscraper. You know that if the foundation isn’t rock-solid, everything is going to end up being unstable under the weight of every extra pound of girders and beams.

That means your goal is to create systems that grow with your business. That means streamlined operations, efficient logistics, and scalable technology.

Try to scale without these, and you’ll find that scaling just means multiplying problems. Efficiency is the name of the game.

Below are specific steps to make eCommerce scalable, broken down into actionable tips.

1. Tighten your backend systems.

Matthew Engelage, founder of Chin Mounts, emphasizes that “scaling a broken system just increases frustration.” Your inventory management, shipping processes, and customer support need to operate seamlessly. Without these foundations, every new order risks becoming a headache. He also warns to “keep an eye on your margins. Growing quickly doesn’t mean much if you’re not profitable.”

Tip: Either use software or make better use of existing software to manage your inventory and order fulfillment. The less manual work involved, the more room you have to grow.

2. Find your bottlenecks.

“Scaling effectively is all about efficiency,” says David Taylor, founder of Academized.com. Take time to analyze where your business slows down. Is your team underperforming? Is your customer acquisition cost (CAC) unsustainable?

Put another way, you need to focus on “solving the right problem in the right way,” to borrow words from Olivia Tapper, Co-founder & COO of PetPortraits.com.

Or if you prefer this put even more starkly, Michael Alexander, Managing Director of Tangible Digital says that “I have noticed that the largest mistake made by companies when scaling is to get lost between momentum and a real progress. Growth is very exciting initially, but when the processes involved in it might not be able to maintain the pace, the situation collapses. Not scaled is not growth, but merely a weakness preparing to manifest itself. Authentic success must be anchored on the ground that will be in a position to handle the existing wins, not to mention the battles of tomorrow.”

“Excessive growth and scaling on a thin margin regularly ruins the cash flow,” warns Paul Ferrara, Senior Wealth Counselor at Avenue Investment. “The increase in stock of 1,000 to 10,000 units a month may hold $250,000 in stock yet the revenue will be stuck in receivables. These liquidity crunches are prevented through the linking of inventory growth to the available working capital and credit terms of suppliers.”

Tip: Review your figures, not just your feelings. Taking a hard look at your key business data will help you find the actual underlying issues that are holding you back the most, whether they’re in your marketing, pricing strategy, or operations.

3. Build the right team.

At the heart of operations is people. “If they’re not performing, their role and contribution might be unclear,” says Tapper.

Keeping underperformers for too long can drag down growth. Instead, invest in talent aligned with your values and goals.

Tip: With any new hires you make, follow a checklist that you develop before interviewing begins. That way you have a better chance of making sure every role contributes directly to scalability.

4. Automate and optimize.

“Focus on automating like a pro,” advises Kumar Vaibhav Tanwar, Founder of Clickworthy Digital Marketing. Automation is your best friend when scaling. Tools for inventory, customer relationship management, and order processing will help you cut down on manual errors and free up time.

Muhammad Imran Khan of Brand Ignite highlights platforms like Shopify Plus for their scalability, stating that “improving website performance and user experience ensures that increased traffic can be managed without hiccups.”

Tip: Use platforms that grow with you. Automate repetitive tasks to handle higher volumes without sacrificing quality.

5. Strengthen supplier relationships.

Strong supplier relationships are critical, says Brandon Hartman of BeyWarehouse. “Ensuring that you have a great working and professional relationship with the suppliers you work with means that you can expect consistent high-quality items and timely delivery.”

The opposite is also true: a rocky supply chain can derail growth.

Tip: Treat suppliers like partners. Clear communication and reliability build the trust needed for scaling.

6. Master financial planning.

Andy Gartland of Fitstraps UK stresses the importance of managing overhead costs during growth. “Think new employees, expanded warehousing, and fulfillment costs. Always make double sure that these costs are factored into your scaling plan to avoid unsustainable growth.”

Tip: Track media spend efficiency holistically, not just through platform metrics. Make sure every dollar works toward sustainable revenue growth.

7. Scale marketing effectively.

Before you spend a lot of time and money building systems to scale, you need to have compelling reasons to believe your marketing systems can help you bring in leads. Otherwise, you risk ballooning operating costs and not having the revenues to make up for it.

Tapper highlights the importance of understanding your customer acquisition costs and lifetime value (LTV). “What’s your ratio between LTV and CAC? Understand if you can scale the current ads or need to improve the marketing.”

Tip: Benchmark your CAC against industry standards. Test higher price points or adjust marketing strategies to maximize ROI.

8. Optimize customer experience.

Brian Lim of iHeartRaves points out that “maintaining proper coordination between inventory, order service, and online customer service” is key to managing larger volumes without sacrificing satisfaction.

His logic makes perfect intuitive sense, too. If you win a bunch of new business and you find yourself unable to fill orders, process returns, or answer questions in a timely manner, that new business is not likely to stick around for long.

Tip: Streamline logistics and focus on a seamless customer journey. Use scalable tech to ensure consistency across every touchpoint.

What’s the formula for eCommerce business success?

The formula for success in eCommerce isn’t a one-size-fits-all recipe. Rather, it’s more useful to think of it like a balance of strategies tailored to your brand, customers, and goals.

At its core, success hinges on attracting the right audience, converting them into customers, and nurturing those relationships for the long term.

Combining sustainable channels like SEO and content marketing with high-intent strategies like paid ads and email campaigns will help you create a growth engine that’s both effective in the short run and adaptable in the long run.

Here’s how to build your formula for success.

1. Prioritize high-intent traffic.

“Focus on what brings in real customers, not just traffic,” says Matthew Engelage of Chin Mounts. He highlights the value of search ads, organic SEO, and email marketing. Social media might generate awareness, but higher intent platforms drive conversions. “Retargeting is also a must—remind people why they clicked in the first place.”

Tip: Focus ad spend on platforms where users actively search for products, like Google Ads, and combine it with retargeting campaigns to recapture interest.

2. Leverage the long-term power of SEO.

SEO is often overlooked by eCommerce businesses, but Olivia Tapper calls it the “[backbone traffic]” for sustainable growth. “When your potential customers are searching for your product or service, they find you]” SEO’s ROI grows over time as consistent investments lead to compounding results.

Tip: Conduct keyword research to target what customers are actively searching for. Optimize your site to rank higher, and let SEO reduce reliance on paid traffic.

3. Use content marketing to engage and educate.

“Creating engaging and educational content is a great way to bring in organic traffic,” says Brandon Hartman of BeyWarehouse. “Organic traffic is high-value traffic since these people [are likely searching] with intent to buy.”

Tip: Publish blog posts, tutorials, and product guides that answer customer questions and establish your brand as an authority in your niche.

4. Blend digital channels for sustainable growth.

David Taylor stresses the importance of combining “content your readers will like, SEO to boost your visibility, personalized targeted ads, and automated email campaigns.”

Muhammad Imran Khan echoes this sentiment, suggesting a mix of SEO, content, and paid campaigns, complemented by “retargeting ads and personalized product recommendations.”

Tip: Use SEO for organic visibility, email campaigns for retention, and paid ads for instant results. Layer retargeting ads and product recommendations to boost ROI.

5. Build trust with user-generated content and influencers.

For brands in beauty and personal care, Khan has seen “influencer partnerships and UGC” build trust and engagement. “It’s been a game-changer for the brands I’ve worked with.”

Tip: Encourage customers to share reviews and photos of your products on social media. Partner with influencers who resonate with your target audience for added credibility.

6. Diversify your acquisition strategies.

Andy Gartland recommends a “balanced mix between many channels” to scale effectively. “Google Ads provides high-intent traffic, SEO reduces reliance on paid channels, and email marketing helps retain customers longer.” Social media ads on Meta and TikTok drive retargeting and keep the brand top-of-mind.

Tip: Avoid over-reliance on any single channel. Use a combination of Google Ads, SEO, email, and social media for a more resilient growth strategy.

7. Balance acquisition and retention.

Brian Lim reminds us to “balance acquisition efforts with nurturing existing customers for steady growth.” Retaining loyal customers is often more cost-effective than constantly finding new ones.

Tip: Use automated email flows to keep customers engaged post-purchase. Personalized campaigns can upsell, cross-sell, or simply remind them of their next purchase.

8. Test, measure, and refine.

No formula is perfect out of the gate. “Think holistically,” says Gartland, “[because] in-platform metrics tend to be inflated.” Reviewing data from all campaigns will help you make sure your approach stays efficient.

Tip: Regularly audit your marketing efforts to identify what works best. Adjust ad spend, refine content strategies, and experiment with new tools to improve results.

What’s a good eCommerce conversion rate? And what other KPIs should I be tracking?

Scaling your eCommerce store is not just about growth—it’s about sustainable growth. To make smart decisions, you need to rely on certain specific key metrics that provide meaningful information about the health of your business.

Metrics like customer acquisition cost (CAC), lifetime value (LTV), and conversion rates reveal whether you’re attracting the right customers and converting them profitably. These metrics, paired with insights like cart abandonment rates and average order value (AOV), form the foundation of a data-driven approach to scaling.

1. Lifetime value (LTV) vs. customer acquisition cost (CAC).

The relationship between LTV and CAC is a cornerstone of scaling decisions. “If LTV is at least 3x your CAC, you’re on the right path to sustainable scaling,” says Oun Art, Founder & Chief Link Strategist at LinkEmpire.io.

“If CAC is creeping up and LTV isn’t keeping pace, you’ve got a problem,” warns Matthew Engelage. Increasing LTV ensures long-term profitability, even as you grow.

Tip: To increase LTV, focus on upselling, cross-selling, and building loyalty programs. Reduce CAC by targeting high-intent customers through optimized marketing strategies like retargeting and SEO.

2. Conversion rate optimization.

Your conversion rate indicates how effectively you’re turning visitors into customers. “Conversion rates ensure decisions are backed by actionable insights,” explains Muhammad Imran Khan. A low conversion rate can highlight issues in your product pages, checkout process, or pricing.

Tip: Use A/B testing to refine page designs and calls to action. Review your checkout process to make sure it’s easy to use, has minimal steps, and no surprise fees.

3. Cart abandonment.

A high cart abandonment rate signals potential friction in your checkout process. “Cart abandonment signals that something’s off with your checkout process or pricing,” says Engelage. Customers abandoning carts means you’re losing sales at the final step.

Tip: Simplify the checkout experience, offer incentives like free shipping, and send automated cart recovery emails to recapture lost sales.

4. Average order value (AOV).

A higher AOV allows you to generate more revenue without acquiring more customers. “I prioritize AOV and [LTV]” says Brandon Hartman. By encouraging customers to spend more per purchase, you boost profitability without increasing CAC.

Tip: Offer product bundles, volume discounts, or recommendations for complementary items at checkout to increase AOV.

5. Return on ad spend (ROAS) and marketing efficiency ratio (MER).

ROAS and MER help you measure the effectiveness of your ad spend. Return on ad spend can be calculated by sales made through ad by spending on ads. Marketing efficiency ratio, on the other hand, is calculated by dividing total revenue by spending on ads.

“MER gives a much clearer, more objective view of your growth potential,” explains Andy Gartland, especially when platform-reported metrics inflate results.

Tip: Evaluate MER to assess your total ad efficiency relative to revenue, and use ROAS to fine-tune individual campaigns.

6. SEO metrics, various.

Search Engine Optimization (SEO) metrics guide decisions on organic growth potential. “[Keyword volume, competitiveness, clickthrough rates, and conversion rates] show whether SEO is a good investment,” says Olivia Tapper.

Tip: Analyze keyword data to understand market demand and prioritize ranking for terms with high intent. A well-optimized site will help reduce your reliance on paid ads.

What is the key to customer retention?

Customer loyalty is earned, not given. It’s built on a foundation of trust, consistency, and meaningful engagement.

To foster loyalty, you need to prioritize delivering value—through high-quality products, exceptional customer service, and personalized experiences.

Loyalty programs, thoughtful gestures, and consistent follow-ups go a long way in keeping your customers happy and engaged.

Ultimately, the secret to loyalty is making your customers feel valued at every touchpoint. Here is how you do that.

1. Prioritize product quality.

“All you really have to do is consistently provide great, high-quality products]” says Brandon Hartman. Customers are discerning and won’t hesitate to seek alternatives. “If you’re able to consistently release and sell high-quality products, it builds trust.”

Tip: Invest in product development to guarantee quality. Regularly survey your customers for feedback and act on it to meet their expectations.

2. Deliver exceptional customer service.

Matthew Engelage advises making returns “hassle-free” and answering questions quickly. Olivia Tapper highlights the importance of “a customer support team that really cares.” She further clarifies, saying that “our own brands have an amazing person who constantly gets praise in feedback from customers.”

Tip: Train support teams to handle issues empathetically and efficiently. Offer multiple channels for support, like live chat, email, and phone, and ensure quick response times.

3. Create personalized experiences.

“Treat customers like VIPs,” suggests Kumar Vaibhav Tanwar. “Remember their names (and their cart items), and send discounts before they wander to competitors.” Personalized interactions show customers that you see them as individuals, not just transactions.

Tip: Use CRM tools to track customer behavior and preferences. Send tailored product recommendations and exclusive offers based on their purchase history.

4. Leverage loyalty programs.

Loyalty thrives on appreciation. “[Loyalty programs, personalized email campaigns, and exclusive offers for repeat customers] work well,” says Muhammad Imran Khan. “Gamified points systems and unannounced rewards” can add a fun, engaging layer to loyalty-building, suggests Brian Lim.

Tip: Implement tiered rewards programs with benefits like discounts, early access to products, and special gifts. Use gamification elements like point challenges or badges to encourage engagement.

5. Use small gestures to build trust.

Oun Art stresses the power of “small surprises—like a thank-you note or bonus gift.” These gestures may seem minor, but they create positive emotional connections with your brand.

Dan Korte of Riseabove Apparel suggests “using as many value channels as possible [because] as customers engage with your brand after the purchase, (personalized experiences, points, and rewards, and brand loyalty via follow up engagements) will be your highest return channels.”

Tip: Include personalized thank-you notes in orders. Occasionally surprise loyal customers with bonus gifts or exclusive perks.

6. Engage through social media.

“We build loyalty through active social engagement,” says Andy Gartland. Staying visible and interactive on platforms like TikTok, Meta, and YouTube nurtures a sense of community and keeps your brand top of mind.

Tip: Respond to comments and messages promptly. Share user-generated content and highlight loyal customers in your posts to foster a stronger bond.

7. Optimize email marketing.

Targeted email campaigns are another powerful tool. “Segment your emails based on customer click rates and tailor them to each subscriber’s engagement level,” suggests Gartland. “Automated follow-ups and exclusive offers keep customers engaged.”

Tip: Use email automation tools to send personalized messages at key moments—welcome emails, post-purchase follow-ups, and re-engagement campaigns.

8. Deliver consistently.

“Consistency is key—both in product quality and communication,” emphasizes Khan. Customers stay loyal to brands that meet their expectations time and again.

Tip: Maintain reliable shipping times, and ensure your messaging aligns across channels. Consistency builds trust and reinforces your brand’s credibility.

9. Build a community.

Brian Lim highlights how “social sharing tools and gamified engagement foster stronger emotional ties to the brand.” Communities provide customers with a sense of belonging, making them more likely to return.

Tip: Create forums, Facebook groups, or branded hashtags where customers can interact with each other and your team. Foster an inclusive and supportive environment.

Final Thoughts

Success in eCommerce isn’t about doing one thing perfectly—it’s about combining the right strategies consistently. You need to try certain strategies and observe how they work, ideally with empirical metrics like CAC, LTV, and conversion rates. This test-and-observe approach will help guide you toward smart and battle-tested decisions.

You need a strong foundation of your business and a plan for fostering long-term relationships with your customers. You must focus your attention on the essentials like streamlined systems, high-quality products, and personalized customer experiences. That is how you set yourself on the path to create a business built for growth.

Manufacturing is at the heart of many businesses. Whether you’re making kitschy Etsy crafts or Silicon Valley high tech devices, the manufacturing process will be a huge part of your success. It is, after all, where your products are turned into physical reality. This is true whether you’re making something with massive machinery or with your own two hands.

Even as early as the manufacturing stage, you need to be thinking about logistics. You can optimize and tweak the supply chain after a product is created, it’s true. Yet there are few opportunities where simple smart decisions can make such a massive impact quite like what we’re about to talk about.

#1: Don’t start manufacturing until you know your numbers.

Once you start manufacturing, you cross a threshold where you can’t easily turn back. That’s because manufacturing necessarily implies tying up a bunch of cash flow and waiting until the run is complete before you have inventory ready to sell.

This is why eCommerce operators like Dan Korte of Riseabove Apparel insist that “before abandoning the prototype stage and heading off for manufacturing, entrepreneurs should know the minimum order quantities, lead time, and quality control considerations, so that they do not make irreversible mistakes, have excess costs, or miss customer expectations.”

Paul Ferrara, Senior Wealth Counselor at Avenue Investment, has similar thoughts. He says that “cost modeling based on volume is usually omitted by entrepreneurs who go through from prototype to manufacturing.” To illustrate his point, he uses the example of “a product that costs $25 each in small batches could reduce to $10 at 10,000 units but would need $90,000 to equip the tools. The capital cost cannot be covered by firm orders or prepayments and this has the effect of straining cash and delayed breakeven.”

In short, don’t commit to manufacturing before you completely understand what you’re getting into.

#2: Reduce item weight to reduce postage cost.

Nothing tips the scales on price like weight. At least, this is true for the supply chain process. Whether you transport cargo by air, sea, rail, or road, you will be billed by weight. Not all means of transportation are equal when it comes to price, time, or quality of service, but this rule remains the same.

Once your inventory arrives at a warehouse, you’re not out of the woods. Not by a long shot! Indeed, whether you store goods in your own warehouse or use a third-party service like Fulfillrite, order fulfillment costs are driven by weight as well. When you send goods through a carrier like UPS, USPS, FedEx, or DHL, they will always ask you the same question. “How much does it weigh?” Weight will drive cost there, too.

At the manufacturing level, you have the ability to dramatically cut costs. The difference between a 4.5-pound product and a 5-pound product is huge. For bulk shipments in freight, you can pay a lot less because your 5,000-unit shipment of products weighs 10% less than it otherwise would have. Once it’s time to fill orders, you’ll save once more on postage costs.

In short, even at the manufacturing stage, you need to ask yourself: “how do I make this shipment as light as possible?”

#3. Reduce item size as another way to reduce postage cost.

Packing cargo for transportation is a giant game of Jenga. Individual items are packaged after manufacturing, usually in boxes. Those boxes are then put into master containers. The master containers are then loaded into standard-sized shipping containers. We’re referring to the big 20-foot metal containers, as well as containers better suited for different modes of transport. The larger your product is in terms of volume, the more containers you will use, and the higher your bill will be.

Again, it doesn’t stop there. Carriers like UPS, USPS, FedEx, and DHL are also playing cargo Jenga. The more room you take up on their trucks and planes, the higher the postage costs will be. This is unavoidable no matter how you choose to fulfill orders.

Once again, subtle differences made at the manufacturing level can go a long way. A product whose longest dimension is 7 inches will cost more to ship than a product whose longest dimension is 5 inches. Some people even design products around the size of USPS flat rate mailer boxes. That’s how big of a factor physical size is when shipping.

#4. Book cost-efficient transportation.

One of the biggest trade-offs in supply chain management is time vs. cost. You can air ship goods from anywhere in the world far faster than sea shipping, but it costs a lot more. Likewise, sea shipping can take two months or more, but the cost is very low compared to everything else.

Why does this matter when manufacturing goods? It’s simple: where you manufacture goods determines transportation cost. Many businesses like to use landed cost to evaluate different manufacturing and shipment solutions. The landed cost includes the original price of the product, transportation fees (both inland and ocean), customs, duties, taxes, new 2025 tariffs, insurance, currency conversion, crating, handling, and payment fees.

Tariffs, especially those recently expanded in 2025 on key imports from China, can drastically raise landed costs. Be sure to research whether your product category—such as electronics, EV-related parts, or metal components—is affected. If it is, consider sourcing from alternative countries or reshoring production when feasible.

Or, put more plainly, it may be cheaper to have goods manufactured near you. The labor costs may be higher, but you avoid excessive transportation fees and customs.

The ways to transport goods are as follows, from cheapest and slowest to the most expensive and fastest:

• Sea shipping
• Rail shipping
• Truck shipping (less-than-truckload or full truckload)
• Air shipping

Which transportation method or methods you choose for your business depends on how long you can wait, how far your goods have to go, and what you’re willing to spend. Imagining the entire process of shipping from start to finish may decide where manufacturing takes place.

#5. Comply with all regulations.

Nothing can break an otherwise efficient supply chain quite like exports and imports. Let’s be completely clear about this: if you are not following all laws and regulations for your industry, your shipments will be delayed. At the manufacturing stage, the single best thing you can do from a logistics standpoint is to obey the law.

It sounds unbelievably obvious when stated like that, but the implications are more complicated. If you’re not sure where to start, find out the tariff code for your product. Then figure out applicable regulations from there.

Another piece of the puzzle that can derail an otherwise cost-efficient supply chain would be customs fees. Based on your tariff code, customs fees or taxes may be levied upon your inventory. You have to pay those fees one way or another. Sometimes your supplier will pick up the tab and then bill you for it later. Other times, you have to pay a freight forwarder or a customs broker. It depends on the specifics of your situation.

In 2025, tariff rates on goods from some countries—especially China—have increased significantly in certain categories. Reviewing updated Harmonized System (HS) codes and cross-checking against current tariff schedules is critical before choosing a supplier.

The point is that customs fees need to be baked into your cost estimates. It may even make it more sensible to commence manufacturing within the borders of your own country. As tariff structures shift, manufacturers in countries like Vietnam, Mexico, and India have become more attractive for U.S. importers. Consider whether diversifying suppliers could reduce your customs burden.

#6. Label your products for warehouse use.

Scannable bar codes are the backbone of order fulfillment. There’s a reason why nearly every product you purchase has one of these labels on them. Items must be uniquely identified, and bar codes – which are nothing more than a series of numbers represented by bars and spaces – help all sorts of companies do this. These companies range from distributors to retailers to order fulfillment services like Fulfillrite.

Each individual item must have a scannable bar code. That means you need to buy a bar code from either the GS1 or a reputable bar code reseller. Your packaging or, in some cases, the item itself needs to include the bar code. The bar code must also be large enough to be useable, which is at least 1.175 inches wide and 0.816 inches tall (for the commonly used UPC-A codes).

Why is this relevant during manufacturing? The reason is simple: it’s far easier to get this right early than to pay a company to apply labels later. At Fulfillrite, for example, we charge $0.39 per item to affix labels. This can be a lifesaver if you’ve made a critical mistake, but it can add up quickly. It’s an expense most business owners would rather avoid.

#7. Outsource fulfillment to a third party.

Fulfillrite is an order fulfillment company. We warehouse your inventory, fill orders, and generally make your day better. In fact, we had a whole post recently that explains how we and our peers can make running your business a lot easier.

If you decide to take the plunge and use Fulfillrite or a similar company’s fulfillment services, you naturally want to get the best bang for your buck. How can you do that? Turns out there are a lot of ways, many of which happen at the manufacturing level.

As we had mentioned above, you want to make your items as small and lightweight as possible. Naturally, you’ll also want to apply bar codes correctly. Avoid using hazardous materials, if at all possible.

This last point is especially valuable: if items are sold as a set, manufacture them as a set in a single box. It is possible for a fulfillment company to bundle common items into a single package to send to a customer. This is called kitting and the process is labor-intensive. If you manufacture sets of items to be stored in a single box, you’re basically kitting items without having a fulfillment company do the kitting for you. It’s not always feasible, but when it is, it’s a big money saver.

Final Thoughts on Manufacturing & Logistics

Even at the earliest stages of making a product, you need to be thinking about logistics. All products which are created must be stored, transported, and sent to customers. A little bit of forethought can make this process smooth and cost-effective.

This won’t just save you money on the margins. An effective supply chain, especially one backed up by companies like Fulfillrite, can become a major competitive advantage for your business. Keep your items light, compact, legal, labeled, and ready to ship. You’ll be glad you did!

Shipping your own orders gets old fast. But finding the right eCommerce fulfillment partner to take care of it is a tough decision and one you want to make properly.

Picking the right eCommerce order fulfillment partner (3PL) can save you time, money, and energy. That way, you can focus on growing your business because you’re not the one putting every box in the mail.

But if you pick the wrong one, shipments might get lost and customers might get angry. You might end up paying bills and not entirely understanding why.

It’s complicated. So to help you pick the right eCommerce fulfillment partner – and tell when it’s the right time to be thinking about this in the first place – we’ve put together this guide.

Step 1: Make sure you need eCommerce order fulfillment.

Before hunting for an eCommerce fulfillment partner, make sure your business genuinely needs one. Hiring help with fulfillment can streamline your operations by cutting down on the time spent shipping orders. But it’s also one of the most important business decisions you will make, and it’s not something you want to do lightly or at the wrong time.

Here are six surefire signs you need help. Even a single yes means it’s time to consider hiring an order fulfillment center.

#1: Your customer base is growing faster than you can keep up.

A rapidly growing customer base is a fantastic problem, but it’s still a problem! Having too many customers can overwhelm your ability to fulfill orders.

To scale your business effectively, you must manage increased demand without sacrificing quality. Third-party logistics (3PL) companies can help by taking over the fulfillment process. This will allow you to focus on other growth areas.

According to Chris Matthews from Zatu Fulfilment in the UK, “as your orders start to increase, you may find more and more of the time that should be spent on growing your business is taken up with shipping out orders. You may be finding that your inbox is swamped with shipping queries and return requests. These are signs it is time to speak with a 3PL.”

#2: Order fulfillment is becoming slow or inaccurate.

When order volumes spike unexpectedly, delays and mistakes often follow. Slow or inaccurate fulfillment frustrates customers and tarnishes your reputation.

Partnering with a 3PL can ensure orders go out on-time, intact, and to the right addresses. That helps cut down on customer complaints and boosts repeat business.

#3: Your employees are working too much.

Overworking employees to meet order fulfillment demands is unsustainable, increasing labor costs and leading to burnout, which negatively affects productivity and morale. Outsourcing to a 3PL can relieve this pressure, providing additional resources to handle peak times without overburdening your team.

#4: Your business is becoming really complex.

As your business grows, so does its complexity. Managing multiple sales channels, inventory locations, and shipping options can become overwhelming. A 3PL partner can streamline these operations, offering integrated solutions to keep everything running smoothly.

#5: Shipping is chipping away at your profits.

High shipping costs can eat into your profits and deter customers. A 3PL can leverage its network and negotiating power to secure better shipping rates, reducing costs and improving your bottom line.

Be mindful that tariffs and customs duties can drive up landed costs. Fulfillment partners who can assist with customs paperwork or who are located near major ports of entry may help reduce these costs.

#6: You have run out of space.

Running out of storage space can limit your growth potential. Partnering with a 3PL provides access to their warehousing facilities, allowing you to scale without investing in additional infrastructure.

That means you don’t have to spend money paying for a storage unit!

Step 2: Decide how many warehouses you need.

Deciding you need a 3PL in the first place is an important step. The next important step before even making calls is to decide how much help you need.

If your store barely exceeds 100 orders per month, one warehouse might suffice for a lean, straightforward operation. No need to overcomplicate things by building a much larger network.

Centralizing inventory in one location simplifies bulk shipping and reduces costs. When issues come up with order fulfillment, that also means you have a single point of contact.

However, if you’re handling a high volume of orders, you might need multiple warehouses. That could mean having several within a country or even warehouses spread across the globe. The key is to make sure you have enough order volume at each location to justify the cost.

Having too few warehouses can slow shipping and hike costs, especially for long-distance or international deliveries. But the opposite is true as well. Too many warehouses can lead to soaring freight, storage, and overhead expenses.

You need to do a meticulous cost-benefit analysis before you sign any papers. If multiple warehouses are necessary, you have two options: either find a fulfillment partner with multiple suitable locations or partner with several fulfillment centers. In the latter case, managing all warehouses and inventory efficiently requires robust inventory management software like NetSuite, ChannelApe, Skubana, or QuickBooks Commerce.

“Look at where your target audience is and cater to their needs,” says Chris Matthews with Zatu Fulfillment. “If you are finding you have a high cart abandonment rate for one region compared to another, chances are they are looking for region friendly shipping options. In an age of next day shipping, customers don’t want to have to wait for orders to be processed and sent across the Atlantic.”

Step 3: Review service offerings.

Before reaching out to warehouses, you need to figure out what services you need. Sure, there are plenty of fulfillment partners for small, lightweight, eCommerce items.

However, if your inventory includes hazardous materials, fragile goods, perishables, or items needing refrigeration, you’ll need to dig deeper. For stores with a high SKU-to-order ratio, such as apparel companies with diverse sizes and colors, a specialized partner can make a world of difference.

Look for fulfillment partners adept in handling your particular type of products.

Also, think about value-added services. Many fulfillment partners offer extras like kitting and assembly, customization and personalization, and even refurbishment services. If these are crucial to your business model, be sure your chosen partner can meet these needs.

Some fulfillment partners even specialize in simplifying international returns, which can help reduce costs and friction if you sell heavily into the EU, UK, or Australia.

Step 4: Carefully narrow down your choices.

Please Note: The information in this section comes directly from Will Schneider at Warehousing & Fulfillment. He runs a company that specializes in matching fulfillment centers, like ours, with sellers who need help shipping.

What you read in this section was previously part of a guest post, which we’ve bundled into this post for your convenience.

Make no mistake about it – your choice of order fulfillment provider is a make-or-break decision.

Unfortunately, most companies make a huge mistake when vetting fulfillment providers: they put the emphasis on product and service specialization, technology integrations, and location rather than some of the more important selection criteria.

This is an understandable first instinct, as it’s certainly important to make sure a fulfillment company will be able to perform the required tasks in a suitable location.

However, not only do most fulfillment companies in the current landscape perform a comprehensive set of services and integrate with numerous technology platforms, but there are also some more critical things that need to be investigated to make the right choice. Simply put, these more common selection criteria are not always reliable indicators of the order fulfillment provider that best fits your business needs.

Of course, investigating compatibility in terms of product and service specialization, technology capabilities, and location are not without value. But more pertinent factors foretell whether a fulfillment company is worth the cost. Here is a comprehensive list of things to look for in a 3PL provider.

Key Factor #1: The Right Quality of Service

A high-performing fulfillment provider is easy to identify if you know a few things to look for. The following key concepts will point you in the right direction and help you eliminate the wrong companies from your shortlist.

Guaranteed Performance with Accountability

A 3PL company must be able to operate at a high level, and when they do make mistakes, they must take accountability for errors. Unfortunately, many companies will tell you anything you want to hear – assuring you that they will perform high-quality work and rarely ever drop the ball.

But how do you know if their promises will be kept?

The easiest way to gauge whether a fulfillment provider is trustworthy is to go straight to their contract or agreement. Reliable companies have SLAs (service level agreements) and are willing to include performance guarantees in their contractual agreements with customers. Unreliable companies who don’t take ownership of mistakes will have agreements that “pass the buck” and avoid any penalties for lack of performance.

3PLs that provide performance guarantees will include the following in their contracts:

• Specific performance guarantees that they will meet, including the timeframe to receive goods into their warehouse, inventory accuracy, order accuracy, and sometimes even shipping accuracy.
• Remedies for lack of performance, such as reimbursement for mis-shipments and lost inventory over an acceptable level, will be noted as well.

Performance is the foundation of a healthy 3PL relationship, and the right 3PL will have a pathway to measuring and being accountable for performance. Any service you consider should guarantee performance rates through a contractual agreement.

Key Factor #2: Regular and Consistent KPI Measurement

The fulfillment provider should measure Key Performance Indicators (KPIs) – and this is non-negotiable. KPIs track progress against specific targets set by your contract. KPIs often concern quality, costs, speed, efficiency, resource utilization, or personnel compliance.

It’s one thing to list KPIs in the agreement, but it’s altogether different to have codified processes and technologies that enable the measurement of them. A reliable fulfillment company will have documented processes and procedures for every task performed in the warehouse, and online reports will be available to view results on a daily, weekly, monthly, and yearly basis.

Take inventory management, for example. Operating with a low percentage of inventory loss (lost or damaged product) requires:

• Having a thorough receiving process to ensure products are counted correctly, entered in the system correctly, and placed in the proper area within the warehouse
• Performing routine inventory counts, whether cycle counts or yearly counts, to ensure no mistakes are uncovered
• Executing a near flawless order picking strategy, so that incorrect items or quantities aren’t picked
• Providing a robust set of reports for staff, management, and customers to view in real-time

All these things combined will result in a low level of errors. It won’t guarantee perfection, as no fulfillment company is perfect, but it will ensure proper levels of performance.

So how do you know if a provider meets the mark in this area? Simple…ask for the processes and procedures manual and/or ask for a demo of their technology system and reporting. If a company doesn’t have these key components, you may want to drop them from your short list of options.

One other important note about KPIs – the best order fulfillment providers hold regular meetings with your business about KPIs. A reliable line of communication ensures that fulfillment companies are accountable for results and that they are being proactive instead of reactive. High-performing fulfillment providers will have monthly meetings or at least quarterly meetings to discuss performance.

Key Factor #3: Positive and Truthful Customer Reviews

The hallmark of quality service is positive feedback. Search for reviews and ratings of the fulfillment provider on the internet – this will give you a glimpse into their performance.

The overall quality of the reviews is more telling than the number. Pay attention to what clients say about the order fulfillment company. Then pretend you’re the client. Would you be satisfied with its performance? Do its practices encourage customers to shop for your product again? Or do its practices deter customers?

Key Factor #4: A Culture of Honesty and Integrity

A quality 3PL provider emphasizes its honest business practices. You can gain tremendous insights into an operation by the types of deals they strike and the transparency of their overall operations and relationships.

Be Wary of Back-Door Deals and Middlemen

The fulfillment provider should dissuade back-door deals that negatively impact your pricing – and they should champion your best interest. Without these measures, the relationship is built on a foundation of secrecy and lack of transparency, and you may pay more for your fulfillment services than needed.

Sometimes, providers strike deals with brokers or middlemen to increase their earnings. It’s not to say that every brokered deal is inherently bad, but they are extremely challenging and oftentimes harmful to you, the client. Unfortunately, by inserting another party, these providers most likely add an additional layer of costs to your business.

There are a few matchmaking services that are legit, matching you to the best fulfillment companies and only charging a small fee for the connection that does not in any way impact your pricing. But unfortunately, most lead generation companies, ‘top list’ websites, brokers, or fulfillment marketplaces take a cut of the deal anytime they refer your business to the fulfillment company. When commissions are involved, it’s far too easy to “play favorites” and pass deals to the companies that pay the highest dollar for referrals. This leads to extremely biased matches and should be avoided.

At the end of the day – be careful who you trust. Your fulfillment provider should be completely open with you about the structure of your deal. After all, if they can’t be honest with you about this important component, can you trust them fully with your inventory?

Key Factor #5: Best Match for Size of Operations

Another relevant factor is the size of the order fulfillment service. In many cases: small 3PL providers best match with smaller businesses, and larger 3PL providers best align with larger companies. A single provider usually cannot serve all business sizes equally.

The search engines make this type of analysis extremely difficult, because most of the top results are filled with larger 3PL providers. If you find yourself in the boat of startup operations and/or lower order volumes, keep searching past the first few pages of results and keep an open mind for single-location and smaller fulfillment providers, as they will likely offer the best overall pricing and terms.

Other Factors That are Important to You

Based on personal preferences, other factors may rank high to you. These factors are not the same for every business.

Perhaps it’s important to you that the fulfillment provider is close in physical proximity to your business. In that case, make it a priority to evaluate fulfillment companies on their locations. It might make economic sense to choose the fulfillment provider nearest to you.

In another example, you could prioritize the “personal fit” of the staff at the fulfillment facility. If you want to feel at ease around the personnel, choose the facility with that in mind.

Other businesses prefer a facility that matches their company style. Perhaps an eco-friendly business seeks facilities that reduce their carbon footprint or use recycled material.

Therefore, prioritize any important “other” factors that are most important to you before conducting your search.

Step 5: Request quotes.

Once you’ve shortlisted a few promising fulfillment partners, it’s time to request quotes. This part is simple.

But how these companies handle pricing? Not so much.

There are four main fee types:

1. Pick-and-pack
2. Postage
3. Account and storage
4. Value-added services

Pick-and-pack covers warehouse labor, while postage depends on package weight, destination, and speed. Both are applied on a per-order basis.

Then there’s account fees and storage fees. Account fees vary widely by company but are usually low. Storage fees depend on your inventory volume.

Value-added services like kitting, assembly, and refurbishment are typically priced on a per-project basis. This is because there is a lot of manual labor involved.

When reviewing quotes, forecast your sales volume and potential need for value-added services.

Use the quotes to estimate your total cost. The cheapest option isn’t always best, but the overall cost should be competitive.

Final Thoughts

Choosing an eCommerce fulfillment partner is a strategic move. If you pick the right one, you can more efficiently fill orders and keep customers happy. You’ll save a ton of time and possibly some money too.

It’s not an easy decision to make and it’s one you need to be careful about. You need to consider service quality, reviews, communication, transparency, and a number of other factors. But if you do your due diligence, you can find the right partner.

Having a good relationship with a 3PL makes it much easier to run an order-based business. That’s why so many companies call their 3PLs an “eCommerce fulfillment partner.” Because that’s what they are – key partners in keeping the business running!

FAQ

How much does 3PL fulfillment typically cost?

Costs vary widely based on order volume, product size, and services needed. Expect to pay $2-3 per order for pick-and-pack, plus actual shipping costs and monthly storage fees (typically $0.50-2.00 per cubic foot). Account setup fees range from $0-500. Always request detailed quotes from multiple providers to compare total costs.

How long does it take to switch to a 3PL?

Implementation typically takes 4-8 weeks. This includes contract negotiations, system integrations, inventory transfers, and testing. Complex businesses with multiple sales channels or special requirements may take longer. Plan ahead and avoid switching during peak seasons.

What happens if my 3PL makes mistakes?

Reputable 3PLs include performance guarantees in their contracts, covering mis-shipments, inventory losses, and accuracy rates. They should provide service level agreements (SLAs) with specific remedies for errors, such as reimbursement for lost items or expedited replacement shipments.

Can I use multiple 3PLs simultaneously?

Yes, many businesses use different 3PLs for different regions or product types. However, this requires robust inventory management software and adds complexity to operations. Start with one provider and expand strategically as your business grows.

How do I handle returns with a 3PL?

Most 3PLs offer returns processing services, including inspection, restocking, and refurbishment. Discuss return policies upfront and ensure your 3PL can handle your specific return requirements. Some specialize in international returns processing, which can be valuable for global businesses.

What if I outgrow my 3PL?

Choose 3PLs that can scale with your business. Ask about their capacity limits, expansion capabilities, and what happens if you exceed their capacity. Many 3PLs have multiple facilities or partnerships that allow for growth without switching providers.

Launching a successful Kickstarter campaign requires a ton of different skills.

Strategic planning. Marketing and promotion. Supply chain management. People skills. The list goes on!

In this guide, we’ve compiled a list of every single tip we can think of to help you increase your odds of Kickstarter success.

We’ll cover everything from setting realistic funding goals, to building a strong social media presence, to creating compelling campaign pages, and much more.

Pre-Launch Preparation

Most of your Kickstarter success is baked in long before you hit the launch button. It’s because of this that you need to focus on research, setting realistic goals, and building up an initial support base.

Below, you will find some specific tips on how you can do that.

#1: Choose the right platform (it might not be Kickstarter!)

Kickstarter is the biggest crowdfunding platform. But it’s not the only one.

Kickstarter is ideal for film, music, and games. So it’s great for those needing all-or-nothing funding to avoid insufficient capital.

Indiegogo performs well in the tech, fitness, and home products niches, plus it offers flexible funding. That is, you don’t have to reach 100% of your goal in order to raise capital.

Then there’s Gamefound, which is a growing alternative to Kickstarter for board game creators.

Make sure you choose the platform that best fits your project’s needs. That might very well be Kickstarter – but don’t just pick it because it’s the first name that comes to mind!

#2: Set a realistic funding goal

Set a goal too low and you won’t be able to fulfill your promises. Set a goal too high and you lower your chances of funding.

Calculate the minimum amount needed to create your product, considering all costs, including production, shipping, and marketing. Setting a realistic goal helps you attract more backers and also helps you deliver on your promises.

Once you figure out the minimum amount you need – don’t go too far beyond that. Stay in the Goldilocks zone.

#3: Research campaigns – both successful and unsuccessful

You need to understand what makes other campaigns successful. Go to Kickstarter and look at campaigns. Find successful and unsuccessful ones and learn as much as you can about why they have or haven’t succeeded.

There’s no reason to create plans completely from scratch. There’s also no reason to duplicate others’ mistakes!

Pay extra close attention to the campaigns that line up most with your niche.

#4: Line up your earliest backers

Build initial support by reaching out to friends, family, and contacts before launching. Early backers can help create momentum, attracting more support as a result.

Personal connections are often the first to pledge, so their support can be critical in the initial stages of your campaign.

Few people want to be Backer #1. But if Mom wants to put $100 in, you don’t have to deal with that problem.

#5: Create a pre-launch landing page

Collecting email addresses is one of the best ways to stay in touch with potential backers so you can start marketing early. Gathering emails means that you can tell a huge group of people when the campaign is live.

One way you can convince people to provide their email is to build a landing page. On the page, you can tease your project and encourage visitors to sign up for updates.

This is one of the most effective ways to build stream for projects before they launch.

#6: Build a strong social media presence

Social media helps you connect with potential backers, creating a community around your project before you launch. Share behind-the-scenes content, updates, and teasers to build excitement.

Think about the platforms where you are going to be most likely to find potential backers. Prioritize using platforms first instead of spreading yourself thin over too much channels.

#7: Set up email marketing

We touched on this in #5, but it’s so important that it bears repeating. Build an email list so you can notify potential backers about your launch and provide updates.

Regularly communicate with your subscribers, providing exclusive insights and early access to your campaign. This is traditional wisdom because, when combined with other smart marketing tactics, it can be very effective!

#8: Prepare press releases for media outreach

Get your project featured in relevant media and blogs. Draft compelling press releases and pitch them to bloggers, journalists, and influencers in your industry. Early media coverage can help build credibility and then attract more backers to your campaign, increasing your chances of success.

#9: Engage with the Kickstarter community

Join forums and groups to network and gather support. Participate in discussions, share your project updates, and seek feedback from experienced creators. When in doubt, look for Facebook groups, LinkedIn groups, and certain subreddits.

#10: Plan your logistics

Before you announce a launch date, make sure you have a plan for production, shipping, and fulfillment to avoid delays. You also need to do some detailed logistics planning to make sure you can deliver rewards on time, maintaining backer trust.

Consider partnering with reliable suppliers and shipping companies to streamline the process. Don’t forget to make a budget too!

Campaign Page Setup

Your campaign page needs to give people great reasons to back your project. That means have high-quality visuals, clear copywriting, and all the information backers need to feel like they can trust you.

Here are some tips on how you can make a campaign page for the ages.

#11: Create a captivating campaign video

Your campaign video is going to be one of the first things that people notice when they see your campaign. Make sure you use high-quality visuals and audio. Your video needs to have a strong narrative as well as a clear call to action.

You want to introduce your product, show people why they should back it, and tell them what to do next. It’s an easy way to increase the number of pledges you see. The vast majority of successful campaigns, after all, have videos!

“The most effective crowdfunding campaigns are typically built on storytelling, building a community, and transparency,” says Dan Korte of Riseabove Apparel. “The elements of good story-telling, the ongoing connection with potential customers, and the transparency of information carry much more value than the product, or even ideas, itself.”

#12: Design a visually appealing campaign page

Your campaign page needs to look beautiful. That means using lots of high-images and breaking up the sections of your page with easy-to-read headers for maximum skimmability.

Every bit of text you use needs to serve some function. You need to provide a lot of information, but not at the expense of good looks. Appealing pages lead to increased pledges!

When in doubt, look at what the most financially successful campaigns in your niche are doing.

#13: Write an excellent campaign page

Clearly explain your project, its benefits, and how backers’ funds will be used. People need to know exactly what they’re buying, why it’s great, and what makes it different from all the other products.

Every line of text you use needs to help potential backers understand your vision and the value of their support. Use straightforward language, because that’s the best way to keep your copy clear and avoid confusion.

#14: Make your unique selling proposition (USP) immediate and clear

Use an eye-catching headline and concise summary to grab attention. Clearly state what makes your project unique and why backers should support it. A strong USP can differentiate your campaign from others.

This is extremely important because Kickstarter is a noisy marketplace, and unless your USP is super clear, you’ll blend into the crowd.

#15: Add a detailed FAQ section

Address common questions and concerns to build trust. Cover topics like reward fulfillment, project timeline, and risks involved.

Pro tip: write your FAQ in advance so you can copy and paste it into your campaign page right after you go live.

#16: Take and use great product photos

Use images that show your product in use and resonate with your audience. High-quality photos can make your product more relatable and appealing, helping potential backers envision it in their own lives. Visual storytelling is a powerful tool to enhance your campaign.

Even if you’re on a shoestring budget – buy a few lamps and get some bright LED bulbs. This will dramatically improve your picture quality, even on an older model iPhone.

#17: Provide detailed product specifications

If your product is technical, make sure you provide all the information you can. The more specific you can be, the better.

When in doubt, make sure customers know how big the product is, how much it weighs, and what materials go into making it. This will help backers feel like they are making an informed purchase as a result.

#18: Share your journey and story

Personalize your campaign by sharing your background and the creation process. Let backers know who you are, why you created this project, and the challenges you’ve faced. This connection builds trust and makes your campaign more relatable and engaging.

People buy products. But they back creators.

Marketing and Promotion

If you launch your Kickstarter, but don’t tell anyone about it, you probably won’t fund. You need to have a killer marketing and promotion plan if you want to succeed on Kickstarter.

Because marketing is so important to success, we’ve compiled a list of marketing tactics that might work for you.

#19: Use Facebook and Instagram ads

Meta, which includes Facebook and Instagram, remains one of the best advertising systems in the world. It’s also one of the most approachable.

With Facebook and Instagram ads, you can target your audience and make sales while your campaign is live. Facebook’s robust targeting options allow you to reach specific demographics, increasing the likelihood of attracting backers who are interested in your project.

#20: Collaborate with influencers

Partner with relevant influencers to promote your campaign. Because the right influencers can reach a large audience and lend credibility to your project.

Choose influencers who align with your project’s niche and values. That way, you can be sure their followers are likely to be interested in your campaign, enhancing its visibility and appeal.

Influencers don’t necessarily have to be social media stars, mind you. They can also be TV and radio professionals, reviews with well-read blogs, or even local community organizers. The point is that you want to find people who know people.

#21: Use multiple marketing channels

Don’t rely on one marketing channel for success. Use social media, email marketing, and online ads to reach your target audience in as many places as possible.

Every marketing platform has unique benefits that can enhance your campaign’s visibility. A multi-channel approach will help you make sure you catch potential backers wherever they are online.

#22: Run pre-launch ads

You can use Facebook, Instagram, Google, and other ad platforms before you launch your campaign. As long as you have a landing page and a way to collect emails, it’s actually best practice to generate as many leads as you can before launching. That way, you can dramatically increase the odds of day 1 success.

#23: Engage in online communities

This is similar to the advice on engaging with the Kickstarter community.

Join forums and groups to network and gather support. Participate in discussions, share your project updates, and also seek feedback from experienced creators. When in doubt, look for Facebook groups, LinkedIn groups, and certain subreddits.

Reward Strategy

Your campaign is only as good as your rewards. That’s because rewards are what get people to take action in the first place!

With that in mind, here’s how you make sure your rewards are doing their fair share of the heavy lifting.

#24: Offer great rewards

This is a simple tip, but it’s so important. Make sure backers like your rewards before you launch your campaign. If you don’t get an enthusiastic response to your rewards, then you should probably delay your launch date until you do.

#25: Set strategic reward tiers

On Kickstarter, the structure of your reward tiers can make or break your campaign. Create tiers that not only offer tangible value but also enhance the Kickstarter experience.

Start with a low-entry “Thank You” tier that allows backers to show support without a significant financial commitment.

Then your mid-level tiers should offer the core product plus unique add-ons that aren’t available post-campaign.

For high-level tiers, consider offering limited edition items or experiences that tap into the exclusivity that Kickstarter backers often seek, like signed prototypes or an invitation to an exclusive launch event.

#26: Include early bird specials

Create a sense of urgency with limited-time offers. For example, you could provide early bird specials which incentivize backers to pledge early, helping build momentum for your campaign. This can help push you over the funding goal early on in the campaign.

#27: Provide exclusive rewards

Offer unique items or experiences that aren’t available outside of Kickstarter. Exclusive rewards add value and entice backers to support your campaign at higher levels. These can be limited edition products or special experiences related to your project. Exclusivity makes your campaign more attractive and can drive higher pledge amounts.

#28: Use bulk packages

Encourage larger pledges with discounted multi-unit rewards. Bulk packages provide better value and can increase the average pledge amount. As an added bonus, offering bulk options helps reach your funding goal faster by encouraging bigger pledges.

#29: Offer behind-the-scenes content

Engage backers with exclusive insights and updates. Share behind-the-scenes content that showcases your project’s development, challenges, and successes. Part of the appeal of Kickstarter and similar platforms is the chance to feel like you’re “in on something” early in its development – so take advantage of this!

Campaign Management

You can’t just launch your campaign at 9 in the evening. Nor can you launch it, forget about it, and check back in 30 days later. You need to be hands-on about how you manage your Kickstarter campaign.

Here are some tips on how you can do that effectively.

#30: Launch at the right time

Time your launch for maximum impact. Pick the right launch month, day of the week, and time of day. It needs to line up with your audience’s availability and interest.

When in doubt, Tuesday or Wednesday is a good day to launch. Choose a reasonable launch hour like 9, 10, or 11 in the morning eastern time. Don’t launch between mid-November and mid-January. And lastly, avoid major holidays.

#31: Engage with backers

Respond promptly to comments and messages to build a strong community. Answer questions, acknowledge feedback, and keep the conversations going. Remember: this is part of what makes Kickstarter appealing. Backers have a direct line to the people making the things they want!

#32: Provide regular updates

Keep backers informed about progress, challenges, and successes. Regular updates build trust and maintain interest. Share milestones, production updates, and any hurdles you’re overcoming.

In general, you should be sending a Kickstarter update at least once per week during the campaign. Then after the campaign, it’s a good idea to send an update at least once per month. More is often advisable, depending on your situation.

#33: Thank your backers

Show appreciation and acknowledge support throughout the campaign. Regularly thank your backers through updates, comments, and personal messages.

This advice may seem basic. But when gratitude is absent, it’s noticeable, not to mention off-putting.

#34: Address challenges transparently

Be honest about any issues and how you plan to resolve them. In fact, backers expect Kickstarter campaigns to be a little chaotic.

It’s for that reason that being open about unexpected challenges and even mistakes can go a long way toward keeping trust.

#35: Monitor and adjust your strategy

Stay flexible and make necessary changes to your campaign based on feedback and performance. Part of what makes Kickstarter such a good launch platform is that backers will be vocal about what they like and don’t like. That makes it easier to know when to pivot.

#36: Stay flexible with sourcing and fulfillment.

Recent U.S. tariff changes have made supply chains more volatile. As Mark Ainsworth, Digital PR and Marketing Director at Max Web Solutions, put it, “several of our clients who trade in the U.S. have been hit with higher landed costs due to the new tariffs.”

It’s smart to start thinking about sourcing flexibility, pricing cushions, and fulfillment partnerships early in the process — not after you fund.

Post-Campaign

Launching a campaign is fun. Funding successfully is even more fun.

But what do you do after the funds clear?

At that point, you’re on the hook to keep your promises. But there’s a lot that goes into that. Here is what you need to do next.

#37: Fulfill your promises

Yes, it’s obvious, but it’s necessary. Ship rewards on time and keep your promises.

This is harder to do than you think. Most Kickstarters ship late, so if you manage to ship yours out on time, you’ll make a good impression.

Do this well and it will help build your credibility, keep your backers happy, and lay the groundwork for future success.

#38: Continue engaging with your community

Keep backers updated even after the campaign ends. Regular communication helps maintain the community you built during the campaign.

Share updates on product development, future plans, and any new projects. That way, you can keep in touch with the people you worked so hard to find in the first place!

#39: Launch a dedicated website

Use the momentum to continue promoting your product and attract new customers. A dedicated website allows you to showcase your product, provide updates, and also sell directly to new customers.

Kickstarter campaigns draw a lot of attention. You can use the visibility and community from your campaign to kickstart your eCommerce operations too.

#40: Create a newsletter

If you’re spending money collecting email addresses, you shouldn’t just email them once and then let the leads slip through your fingers. Keep backers and potential customers informed about your journey and future projects with regular updates.

Newsletters are a classic form of ongoing communication that can help you build a loyal community over time. Plus, it keeps your audience invested in your success.

#41: Seek feedback

Use your Kickstarter surveys – as well as any direct message conversations you have going – as a chance to understand what worked and what can be improved.

Gathering feedback from backers will help you understand your campaign’s strengths and areas for improvement. Then you can use this information to help you launch even better campaigns in the future!

Additional Tips

Kickstarter, both as software and as a cultural entity, is pretty complex. Some of the tips and tricks on how to use it don’t fall into a neat category. But you still need to know them!

Here is all the advice we can think of that doesn’t neatly fit into one of the previous categories.

#42: Use Kicktraq

Kicktraq is a cool website that’s been around for almost as long as Kickstarter. You can type in any Kickstarter URL and check out its funding data and a bunch of other stats. When you research other campaigns, this can help you get a feel for how their funding process went. For example, did they fund quickly or steadily over the course of weeks?

#43: Set stretch goals

Stretch goals motivate backers to continue pledging even after the main goal is met. While not required, they’re considered a tradition on Kickstarter.

If you decide to set stretch goals, clearly communicate what additional funds will be used for, such as enhanced features or extra rewards, to maintain excitement and support. And, of course, make sure you can actually ship your stretch goals!

#44: Create a sense of urgency

To some extent, the time-limited nature of Kickstarter campaigns already creates a sense of urgency. If you want to dial it up a little more, consider offering limited-time offers like early birds or rewards with limited quantities. This can encourage backers to pledge earlier and help boost campaign momentum.

#45: Proofread meticulously

Typos are bad. Check your spelling and grammar. Make sure there are no mistakes.

Yes, this is an obvious tip, but it’s so important. Putting effort into quality control shows people you care.

#46: Use a professional editor

If you can swing it, consider hiring an editor to polish your campaign materials. A professional editor can enhance the clarity, coherence, and overall quality of your content. They’re also more likely to catch typos that you miss.

#47: Optimize for mobile

Kickstarter is a bit unusual in that it’s common for creators to put most of their content inside of images rather than plain text. This advice flies in the face of traditional advice when it comes to mobile usability.

However, what you can do is make sure you check your campaign page on your phone. All the text needs to be clear and legible. Ideally, it shouldn’t take forever to load as well, although your ability to influence that is somewhat limited by Kickstarter’s page editing software.

#48: Include testimonials

If you have endorsements from early supporters or industry experts, share them on your page. Like with any other kind of product launch, testimonials can build credibility and trust with potential backers.

Highlight positive feedback and quotes that emphasize the value and quality of your project, because that will make it more appealing to prospective backers.

#49: Highlight previous successes

If applicable, mention past successful projects to build credibility. Showing your track record of successful projects can reassure backers that you can and will deliver on time. Also highlight key achievements and positive outcomes from previous campaigns to instill confidence in your current project.

#50: Be authentic and personal

Let your personality shine through in your campaign materials. Authenticity helps build a connection with backers.

Share your passion, vision, and the story behind your project in a genuine way. Personal touches can make your campaign more relatable and engaging.

#51: Invest in basic equipment

Use tripods, microphones, and proper lighting for a professional video. High-quality videos enhance your campaign’s appeal. Basic equipment like a stable tripod, clear audio from a microphone, and good lighting can significantly improve the production value of your campaign video, making it more persuasive.

You would be surprised how inexpensive quality equipment is on Amazon and other online stores can be. A $50 microphone and $40 tripod and ring light can go a long way. And if that doesn’t work – check with your local library, as many now have on-site recording rooms.

Because of how easy it is to create quality videos these days, you don’t have an excuse not to!

#52: Follow up with surveys

Gather backer feedback to improve future campaigns. Surveys are an effective way to understand backers’ experiences and gather insights for improvement.

Use this feedback to refine your approach, address any issues, and enhance future projects. Engaging backers in this way also shows that you value their input.

#53: Maintain momentum post-campaign

Keep the excitement alive with continuous marketing and engagement. After your campaign ends, continue to promote your product and engage with your backers.

Use social media, email updates, and your website to keep your audience informed and involved. Sustained engagement helps build a loyal community and drives ongoing interest in your project.

Crowdfunding is not just a way to get one high-profile success. If you use it properly, you can set up a business for the long run.

Final Thoughts

It takes a lot of different skills to succeed on Kickstarter. This long list is evidence of that fact!

But don’t let the overwhelming size of this article scare you off the platform. Kickstarter is a proven way for upstart entrepreneurs to get noticed for a simple reason: because it’s a great place to try new ideas. Modern-day Kickstarter is a great place to build an audience, and lay the foundation for a lasting business.

Kickstarter success is not just about your launch day. It’s about everything you do leading up to it and everything you do after it. You don’t have to do everything perfectly – just focus on making something people want and being thoughtful in the way you get it to them!

If you followed the news in the post-pandemic season, you probably noticed that a lot of goods were in short supply. Everything from semiconductors to sausage, rental cars to lumber had been hard to come by. You could blame the pandemic for many of these shortages, sure, but the underlying issues were more complex. And one of those issues? Inventory management practices.

The 2010s were defined by lean supply chains. Everything was shipped just-in-time with little buffer for disruptions. This was really good for efficiency and profits, but really bad for handling unexpected events.

So with that in mind, we’re going to talk about what inventory management is and how you can do it well. By following these tips, you can reduce your risk of running out of stock when you need it. That means more money in your pocket, more happy customers, and a generally less stressful life as a business owner.

What is inventory management and why does it matter?

When you boil it down to the basics, inventory management is the process of tracking where products are, where they’re going, and when to order more. That’s really it!

Simple as the concept may seem, though, the practice is hard. You have to monitor a lot of moving parts while simultaneously predicting the future a la demand estimation. It looks easy until you have to do it.

But it’s worth building your skill set, because mastering inventory management best practices has many benefits for your business. We can think of four right here:

1. You’ll be less likely to run out of stock. That means your customers can keep shopping anytime they please.
2. You’ll be less likely to have too much stock. Holding onto excess inventory costs money in storage, not to mention the sunk cost of ordering too much in the first place. Good inventory management will keep you from over-ordering in the first place.
3. You’ll have higher profits. Good inventory management helps you know what to sell, which increases revenue, while also helping you keep costs in check.
4. You’ll benefit from better cash flow. If you get a sense of how much to spend and when to spend it, you won’t find yourself overcommitting large sums of money to buying more products when the timing is not good.

In short, inventory management helps you find a balance between two extremes. You don’t want to run out of items and you don’t want to hoard them, and this is the process by which you find the happy medium.

What are common inventory challenges that sellers run into?

To answer this question, I reached out to John Heberling, Senior Partnerships Manager at Kickfurther, an inventory financing firm. In response, he first mentioned the risk of ordering too much at once, stating that “direct-to-consumer (DTC) brands often struggle to balance stock when entering retail. A big purchase order sounds exciting, but without the capital to produce inventory for both retail and DTC channels, businesses risk losing revenue and growth opportunities.”

Heberling followed up by saying that “ordering too much of the wrong SKU leads to dead stock, tying up cash and adding storage costs.” To state another way, you simply don’t want to buy items – or variants of items – that won’t sell.

Other common and devastating issues mentioned by Heberling include “waiting too long to place an inventory order. [This] can destroy your bottom line—forcing you to pay for costly air freight or, even worse, leading to stockouts that cause missed sales.” He stresses that it’s particularly important to place timely orders in advance of busy seasons like the holidays.

There’s another new pressure too: unpredictable tariff costs. Chris Grippo, owner at The Shop Tinkerers, adds: “Costs are up across the board, especially for anything coming out of China. It’s forcing our clients to reevaluate sourcing, pricing, and margin strategy faster than we’d like.”

Paul Ferrara, Senior Wealth Counselor at Avenue Investment, points out another common issue. “Intuitive inventory systems tend to oscillate between excess inventory and stock outages.”

He advises using instead “a 90 day rolling average of sales, with the safety stock as [20% of monthly sales].” He says this will “provide a smoother reorder point that allows margins to be preserved and minimizes losses in clearance.”

Between the negative impacts of bad inventory processes, the ease of making common mistakes, and difficulty making inventory intuitive, it’s clear that smart inventory management has never been more critical to success.

8 main types of inventory

The whole idea of inventory management is to keep track of where products and other materials are so that you have visibility into the day-to-day operations of your business. Yet not all inventory is the same, and in order to have meaningful conversations about it, you must categorize inventory into different types.

1. Raw materials. These are the materials that you use to create your products. Even if you are not the manufacturer of your products, it’s important to pay attention to the availability of raw materials.
2. Unfinished products. These are the products that you or your manufacturer are currently working on making, but that are not ready to sell.
3. Finished products. These are products that are ready to sell right now. They are often stored in a warehouse or fulfillment center such as our own.
4. In-transit goods. These are goods that are being transported somewhere else, such as finished goods en route to the warehouse or to the customer.
5. Cycle inventory. This is inventory which is bought from a manufacturer or other supplier and shipped directly to your customer. (This is the only kind of inventory present in dropshipping businesses.)
6. Buffer inventory. Also known as safety stock, this is the inventory that you keep around in case something bad happens that prevents you from getting the inventory you need.
7. Packing inventory. This is the inventory you keep for your packing supplies, such as finished packaging or even bubble wrap and mailers.
8. MRO inventory. This is inventory needed for maintenance, repair, and operations. This supports the production process, and is not what goes out to your customers.

9 tips for inventory management

1. Find good inventory management software

You can manage inventory by hand or in a spreadsheet, and that’s fine for a little while. It doesn’t scale well, though.

If you want to keep track of inventory while minimizing upkeep, look into inventory management software. Some good options include Orderhive, Zoho, and even Quickbooks.

2. Categorize your inventory by priority

Not all inventory is the same. It helps to categorize your inventory so that you can understand which inventory is moving and which inventory is making you money.

Experts typically suggest segregating your inventory into A, B and C groups. Items in the A group are higher-ticket items that you need fewer of. Items in the C category are lower-cost items that turn over quickly. The B group is what’s in between: items that are moderately priced and move out the door more slowly than C items but more quickly than A items. – 10 Essential Tips for Effective Inventory Management, Business News Daily

By prioritizing inventory using an A, B, C system, you’ll come to find that most of your profits will come from a relatively small amount of your stock. This is the Pareto principle (or 80/20 rule) at work. If you need to narrow down your focus in order to effectively manage your inventory, consider focusing on just the 20% of your inventory that brings the most money.

3. Keep track of all relevant data

Inventory management requires keeping track of a lot of different types of data. That includes SKUs, bar codes, countries of origin, product values, lot numbers, HS codes, and a lot more. Using your inventory software of choice, make sure that you are rigorous about tracking all the relevant data for each kind of item you carry.

It may also be a good idea to track information like the cost of the item, its seasonal sales patterns, and whether or not there are hard-to-come-by supplies that go into its manufacturing. Having data organized like this will help you find answers to unpredictable questions that may arise as your day-to-day business operations take place.

4. Monitor sales

Ultimately, every company wants and needs to make money. The best way to keep doing this is to observe which items are bringing in the most revenue.

But what do you look for when you monitor sales? A few things come to mind:

• How much is each type of item making?
• Are there seasonal patterns to sales?
• Do the sales for one item increase the sales for other items?
• Do you tend to sell more on specific days of the week or times of the day?

5. Get a feel for sales cycles

After enough sales monitoring, you will start to see how sales cycles work. You can then use this information to sell to customers when they are most likely to be buying. You can also use this information to make sure you have new stock ready to go for whenever the next round of sales is going to come in.

6. Be proactive about quality control

Customers expect your products to be good ones. If someone’s first experience with your brand involves a dud product, then they probably aren’t going to come back. If a regular customer has a bad experience, they might be a little too lenient, but only if it doesn’t happen again.

For every new batch of inventory you receive, it’s worth your time to test the merchandise. This is doubly true if something has changed recently that may affect the quality of the product. Better safe than sorry!

7. Make sure you have a good returns process

Returns are a part of life in retail. This is especially true in eCommerce where return rates can be 30% or higher. You need to make sure you have a good returns process.

Part of that returns process will involve figuring out what to do with the inventory when it is received once more. Some returns can be put back into inventory and resold, others need to be thrown away, and still others may need repair or refurbishment. No matter what the case is, make sure you have well-defined processes for inventory management when the returns inevitably come in.

8. Order your own restocks (at least at first)

Once you have a feel for your inventory cycles, you will also have a feel for when to restock. At first, order restocks on your own. Even the best software or account managers cannot always see all the variables that are necessary to know when to order more inventory. Once you determine the pattern in your decision to restock, then it’s time to delegate to someone else!

9. Conduct regular audits

No matter how good you are at tracking inventory, you will occasionally make mistakes. Sometimes, an item isn’t scanned on the way out. Other times, it’s stolen from your store or your warehouse. These things happen.

Every once in a while, be it annually or weekly, it’s worthwhile to audit your inventory and find out how much you truly have. Nothing is quite as uncomfortable as thinking you have 100 items in stock when you actually have none!

Final Thoughts

Good inventory management can keep your customers happy and your profits healthy. The basic idea is simple, to be sure, but when you apply these simple principles around forecasting, flexibility, and quality control, you can gain a major competitive advantage.

And in a world where tariff hikes and supply chain disruptions are more common, keeping tight control over your inventory isn’t just smart. It’s required.

Manufacturing products — that’s just the beginning. You also need to fulfill orders, and that’s a whole other challenge. And in between, you probably need to book freight.

But how do you do that?

Believe it or not, freight today is more accessible than ever thanks to digital marketplaces. But it has also become more unpredictable since the COVID-19 pandemic. Geopolitical tensions, labor disputes, climate-related disruptions like droughts at the Panama Canal, and changes in U.S. tariff policies can and have all quickly impacted freight routes, rates, and timelines.

But even with all that said, the main reason why many business owners find freight shipping particularly scary is because it’s so unfamiliar. Thankfully, once you get past the headlines and complicated terms, booking freight is more straightforward than you would think.

Ultimately, booking freight for your eCommerce store or Kickstarter campaign comes down to four key decisions.

Here’s what you need to know.

1. Choose a freight broker or freight marketplace

There are two main ways to book freight: through a broker or a marketplace.

A freight brokerage firm will ask you a few questions and handle the rest, similar to how travel agents used to book vacations before online booking became common.

Similarly, freight marketplaces help you book shipments just like Expedia helps you book hotels. We recommend checking out Freightos.

No matter which marketplace you choose, the process is similar. You will need to provide details about your shipment, pickup and delivery locations, and customs information. Then, you’ll select a shipping option based on the quotes provided.

Note: When in doubt, we recommend using freight marketplaces to see freight quotes and working with freight brokers for the actual booking of freight. This is especially true considering the current pace of change around tariffs that is relevant as of the date on this post.

2. Determine the right shipping terms

When dealing with freight shipments, you’ll encounter incoterms. These are rules that define the responsibilities of the buyer and seller in freight shipping.

The four most common incoterms are EXW, FOB, DDU, and DDP. Here’s what they mean for you:

• EXW (Ex Works): The seller (your manufacturer) hands over responsibility for the goods once they’re manufactured. You need to arrange for someone to pick them up.
• FOB (Free On Board): The seller is responsible for getting goods onto a shipping vessel. You take over responsibility from there, including handling the import process and arranging local transportation once the goods leave the vessel.
• DDU (Delivery Duty Unpaid): The seller handles the entire freight process, except for customs, which you will pay.
• DDP (Delivery Duty Paid): The seller handles the entire process, so you have nothing to worry about.

If your manufacturer insists on EXW or FOB terms, it will affect when you need to book freight. Both brokers and marketplaces can handle any incoterms. Just confirm with your manufacturer which ones apply to you.

It’s also worth noting that more manufacturers now prefer DDP (Delivery Duty Paid) these days. This is because it serves to simplify logistics for their buyers, but often does so at a premium. Always ask for a full landed cost quote before agreeing to DDP terms.

3. Calculate customs costs

When importing goods from another country, you’ll likely need to pay customs fees, which fall into two main categories:

• Duties and tariffs.
• Safety exams.

For duties and tariffs, you’ll be charged a percentage based on the HS Code of the goods, the country of origin, and the destination country.

As the events of 2025 have shown, though, duties and tariffs can change quickly. Section 301 tariffs on Chinese goods, retaliatory tariffs, and shifts in free trade agreements can all impact costs. It’s critical to check updated tariff schedules before you book freight.

To estimate your costs, look up your HS Code using the GlobalPost HS Classification Tool. Then, use that code along with other relevant information to calculate your import duties and taxes.

Additionally, your goods might be randomly selected for customs inspection. This can involve X-rays, container openings, or direct inspections of the goods. If this happens, you’ll need to cover the exam costs, which vary based on the inspection method. (For example, I had a shipment of board games X-rayed in 2020, which cost around $600 USD.)

It’s worth thinking about how this is going to affect your cash flows too. “Businesses venturing overseas tend to overestimate the time of cash flow and tax rate,” says Paul Ferrara, Senior Wealth Counselor at Avenue Investment. “Entering markets with custom duties of 20 percent on imports and 15 days in transit transport costs can strand capital as it is being shipped and reduce margins.”

Where possible, he advises “conducting small test production runs of 500 to 1000 products and establishing local payment processing facilities. [Doing this] can help reveal the bottlenecks before a large quantity of stock is shipped abroad.”

4. Choose transportation mode

Freight shipping can be done via four transportation modes: air, sea, rail, and road. Your shipment will likely use a combination of these, but the main leg will typically be by air or sea.

Sea shipping is much cheaper but significantly slower, often taking weeks or even months, especially from China to the US. Recent supply chain disruptions — such as those seen during the COVID-19 pandemic — have occasionally further extended these times.

Air shipping is much faster, with deliveries often made within a few days or weeks, but it is considerably more expensive.

If your items are perishable, air shipping is the only viable option. On the flip side, if environmental sustainability is your priority, sea shipping is likely the best choice.

Consult with your freight broker or compare multiple quotes on a freight marketplace to determine if the faster delivery is worth the extra cost.

Bearing all this in mind, freight booking is still very complex. Below, we’ve included some tips from a freight shipping expert to help you all the latest best practices.

5 Tips for Better International Freight Shipping

Please Note: The information in this section comes directly from Corinne Berzon at Freightos. Freightos is a freight marketplace, meaning it helps businesses book their own freight shipping.

What you read in this section was previously part of a guest post, which we’ve bundled into this post for your convenience.

Unpredictable freight rates, port congestion, and fluctuating demand have made freight rates less reliable.

This means that for any shipper, the flexibility to compare quotes and choose the right rate for each shipment can be a huge advantage. Here are 5 tips for getting better freight rates for your international shipments – even when the market is unpredictable:

1. Get multiple quotes

Getting rates from multiple freight forwarders lets you compare price, routing, and estimated transit time so that you can find the best quote for every shipment.

But make sure when you compare quotes that you are getting a detailed breakdown of what’s included in the price. Look out for these details when checking freight quotes from various freight forwarders to avoid surprises:

• Correct origin and destination details
• Main freight charges
• Custom clearance charges
• Warehouse and ground transportation charges
• Port charges and equipment fees
• Additional service fees

2. Try different shipping modes and lanes

Closures and congestion on the shipping lane you usually use can be costly and frustrating. One way to overcome volatility is to look at alternate routes and modes. Here are some examples of how flexibility can help you ship smoother:

• If you typically ship air, consider whether shipping a higher volume of goods by ocean might be more cost efficient.
• If you are shipping FCL but are struggling with long transit times, consider splitting shipments up. Switching to LCL or air cargo could help keep your inventory moving.
• If your regular shipping lane is bogged down by delays, consider shipping to alternate ports and use inland transport for delivery.

3. Double check your shipping details

International freight involves a lot of documentation and forms. Making sure these are accurate can prevent shipment delays and extra charges.

• Accurate measurements and labeling can make or break your profitability – about 20% of charges added after booking result from incorrect measurements.
• Proper licensing can prevent your shipments from being held up at customs, which costs both time and money in avoidable penalties.
• Communicate about requirements like special product handling, extra packaging, additional equipment support, or any non-standard service before shipping to avoid service disruptions, expensive accessorials, or extra charges.

4. Keep seasonality in mind

When you are getting freight quotes for your international shipments, keep in mind that freight costs fluctuate by season.

• Peak season for ocean shipping is usually August-October when businesses stock up on back-to-school and holiday inventory. During this time, prices can climb as capacity decreases.
• Lunar New Year in late January or early February shuts down most east Asian factories and manufacturers which can lead to a short period of congestion and elevated prices.

5. Use a freight marketplace

Getting multiple quotes from different forwarders can be time-consuming – and until fairly recently could only be done by reaching out to providers one by one. But freight is going digital, and now shippers can get quotes instantly from dozens of freight forwarders.

The power to compare multiple quotes can help save you time and money, plus by using an online freight marketplace, you also gain the flexibility to switch modes, lanes, or providers depending on specific shipping needs.

Marketplaces provide a number of additional benefits:

Market visibility

Marketplaces collect pricing and transit time data from lots of service providers so you can compare delivery times, prices, and service standards – and choose the best option for every shipment.

Transparency

By using a freight marketplace, you’ll get full transparency into what each quote includes. Since quotes are standardized, you won’t have to guess what services are included.

User reviews

Picking the right freight forwarder can be confusing, but hearing from other importers and exporters can make the decision easier. Marketplaces let you assess the performance of different logistics providers before committing.

Final Thoughts

Booking freight for your eCommerce store or Kickstarter campaign might seem overwhelming at first. But once you understand it, it’s a lot more manageable.

Freight is no longer just about moving products. It’s about managing uncertainty and the risks that come alongside it. Smart freight management gives your business the ability to adapt to delays, rising costs, and unexpected global events without missing a beat.

Remember, the goal is to ensure your products reach your customers efficiently and cost-effectively. Smart freight management is one more lever of power you have to make that happen.

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. Keep in mind that 2025 tariff increases may impact your estimates.

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. This goes hand in hand with tariffs, where costs are expected to rise.

As Jonathan Solis, Owner of Whisker Bark, explains, “Small businesses like mine will probably adjust prices once we have to import under the new tariffs… at least 15% increases are expected. It’s critical to plan for these shifts when estimating shipping and fulfillment costs.” This is true in both crowdfunding and traditional eCommerce.

To that end, 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!

Choose your partners with care. A poor fulfillment experience can cause a lot of issues. To quote Paul Ferrara, Senior Wealth Counselor at Avenue Investment, “most companies choose fulfillment services on a low price offered without considering the impact of the service quality on profit. A partner that wrongly handles 3 percent of orders can wipe out profit when each mistake costs a $40 refund on a $15 margin product.”

In short, do your due diligence before you trust a company with your inventory.

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 crowdfunding 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!

Is the economy in a recession right now? It depends on who you ask and has proven to be a surprisingly contentious question.

And, of course, recent tariff changes and shifts in U.S. trade policy have started up a whole new wave of speculation. It’s really tough to know what they economic impacts will be. Recession? Inflation? Both at the same time? It’s anyone’s guess.

But no matter what, you can prepare for the maybe-happening, maybe-not-happening recession by focusing on recession-proof products. Weirdly, some items just seem to sell more when the economy is bad. It’s a good idea to keep some of them stocked in your eCommerce store.

This might sound too good to be true, but it’s not.  Some products just happen to sell well, or even better, when the economy is bad. And we can prove that statement with real data from the recessions of 2001, 2008, and 2020.

We all know the economy swings up and down wildly. No one knows why the market does what it does. What we do know is that recessions will happen from time to time. It’s inevitable.

Trying to guess when a recession is going to happen is a fool’s errand. A much better idea? Always have room in your inventory for products that sell well in a recession. That way, when one comes, you’re ready!

So with that in mind, we’re going to talk about 16 recession-proof products that will keep money rolling in even when the economy isn’t doing so hot.

What makes a product recession-proof according to economists?

Scroll down a bit more if you are in a hurry to get to the list.

Otherwise, pay attention, because when you understand why certain products do better when the economy sours, you’ll be able to improvise. And that’s much more useful than following a list!

Think about the kind of companies that perform well in recessions. Utility companies do well. Tobacco, alcohol, fast food, and soft drinks do well. Consumer staple companies like Kimberly-Clark, Colgate-Palmolive, Procter & Gamble, and Johnson & Johnson do well.

In short, necessities and vices don’t suffer when recessions come. This may sound like bad news since many consumer products sold online are luxuries purchased with discretionary income. But it’s not: and there’s a simple principle at work behind the changes in consumer behavior during a recession.

Cheaper products perform better in a recession.

I know. I know. But it’s worth saying because it helps us understand some important second-order effects.

Think about it: if you sell something inexpensive, such as Hershey’s Kiss chocolates, you might benefit from the economic downturn. A Big Mac is a lot cheaper than dinner night at a fancy sit-down restaurant. Camping is cheaper than a lavish vacation. Repairing a car is cheaper than buying a new one.

And I think it’s important that note that this is even more critical now. Recent tariffs will probably raise the price floor on many imported goods, making inexpensive domestic or substitute products more attractive.

In a Harvard Business Review article from 2023, M. Berk Talay, professor at University of Massachusetts Lowell, made the following statement. “A recession might be the ideal time to launch your product no matter what it is.”

Keep that in mind if you feel overwhelmed by the risks of running a business with the DOW is down.

What makes a product recession-proof according to business owners?

Of course, what we described above is a bit academic. It may also help to consider the anecdotes of founders who have been previously impacted by recessions as well.

“Essentially, recession-proof products can be any item that people need to survive in its most literal sense,” says Nate Banks, Founder of Crazy Compression, which sells compression socks. “No, this does not include streaming services or food delivery apps. Recession-proof products are consumer staples like food, hygiene, household, and personal care products. Pet necessities like pet food and cat litter are also considered recession-proof. These are things that people quite literally can’t live without. They are not luxury or entertainment items that people can easily forego during economic downturns.”

Brandon Hartman, Founder of Beyblades enthusiast website, BeyWarehouse, has a different take. “I classify recession-proof products into two broad categories. The first one is more obvious; it’s composed of non-negotiables that will always find a market no matter the state of the economy.” The examples he goes on to cite are strikingly similar to Banks’ prior statement.

Hartman goes on to state that “the second category is composed of highly-niched products whose success depends on dedicated fanbases and curated communities. These consumers tend to continue patronizing these products regardless of the state of the economy.”

As you read this article, you’ll also notice that many of the recommended items are the sort you buy more than once. This is because, according to Paul Ferrara, Senior Wealth Counselor at Avenue Investment, “the best way to increase lifetime value is to base acquisition expenditure on retention models.”

These professionals’ statements seem to also suggest again that recessions open up new opportunities. You just have to know where to look.

16 Recession-Proof Products You Can Sell Online

We’d now like to share some ideas for recession-proof products that you might consider investing in during, or before, a recession. Here are sixteen ideas to get your wheels turning.

1. Consumer staples

There are some items that you need no matter what the stock market is doing. Your customers will always need detergent, toothpaste, napkins, tissues, bottled water, and canned goods no matter what.

That’s why these items are called consumer staples and they come in six categories: beverages, food and staples retailing, food products, household products, personal products, and tobacco.

Because consumers’ need for these products doesn’t fluctuate, businesses that sell them will continue to see stable revenue, and perhaps even some steady growth.

2. Camping gear

Lavish vacations to distant lands are not as attractive during recessions. Yet the need to “get away from it all” doesn’t go away when the economy is bad. If anything, that escapist urge grows!

The data backs me up here too. In an article written by US News in 2009, Coleman posted higher sales of tents, coolers, stoves, sleeping bags, and fishing gear. The same article notes that fishing and camping permits went up by 10% between 2008 and 2009 and that canning jars and Rawlings sporting goods posted 12% higher revenue in 2009 than 2007.

In the 2020 recession, we saw something similar happening as well. People Googled “camping” more in 2020 than at any point in the last five years. Makes sense, too, with all the travel restrictions put in place for the COVID-19 pandemic!

3. Automotive parts

No matter what the S&P 500 says, people still need to go to work, the store, and the doctor. And for many people in the US, that requires a working vehicle. When times are good, people are more likely to buy new cars. But what about when times are bad?

People keep their used cars for longer. When your 401(k) gets clobbered and your pay gets cut, the idea of buying a brand new Lexus is off the table. But repairing your 2006 Honda Civic becomes much more attractive!

During recessions, people are a lot less likely to treat their beloved cars and trucks as disposable, which is good news for mechanics and part manufacturers. And if imported cars become more expensive with the new tariff policies implemented by the U.S., this will likely prove even more true.

And sure, it may not be realistic for you to sell alternators, batteries, and transmissions. But you can always sell the little air freshening trees that hang on rearview mirrors, or in-car trash bags to hold crushed soda cans and discarded snack bags.

4. Coffee and tea

I probably consumed a quart of coffee writing this post and another while editing the video up at the top. I am, after all, one of the 64% of American adults who currently consume coffee every day.

People love caffeine, and that’s why, much like tobacco and alcohol, caffeinated beverages do not suffer as much from the economic pressures of a recession!

Fortunately, with coffee and tea, there is a lot of room to differentiate your product from others. Just take a look at Amazon or Etsy and appreciate for a moment all the different coffee and tea flavors that creative people have been able to come up with over the years!

5. Tupperware

People don’t eat out as much during recessions. They prefer to make food at home instead. But you still need a way to store leftovers! That’s where tupperware comes in.

Tupperware was one of the big winners during the global financial crisis in 2008 and 2009. And of course, during the pandemic recession when eating out was considered to be dangerous for your health, tupperware sold like hotcakes.

6. Candy

When the economy tanks, it’s really stressful. Job prospects are grim and hours are long. Many workers in high-stress situations find themselves reaching for the candy bowl, filled to the brim with sugary sweets and cheap chocolates.

It’s for this reason that candy is a juggernaut of recession survival. Cadbury’s profits went up by 30% in 2008 and Nestle’s went up by 11% at the same time. This is not just some freak incident either. Chocolate sales grew by 12% in 2020 as well as people turned to comfort foods.

7. Cosmetics

The desire to look good doesn’t go away when the economy takes a dive. However, instead of extreme makeovers, expensive haircuts, and new wardrobes, women look to cheaper options. For that reason, cosmetics companies have a surprisingly easy time surviving recessions. Even nail salons did pretty well in 2009 (though not 2020 for obvious reasons).

It may seem paradoxical that people still buy luxury goods such as cosmetics in a crisis, but the tendency has been studied over the course of several recessions. There’s even a name for it: lipstick effect. “Instead of buying expensive fur coats, people will buy expensive lipstick.”

8. Pet care products

People love their pets! And when the S&P 500 decides to aim for the zero mark, people spend more time at home with them. So naturally, to relieve some of their stress, people want to pamper their pets!

The demand for pet products continued to grow through both the 2001 and 2008-2009 recessions according to MarketWatch. Then according to another article by Supermarket News, the pet industry broke $100 billion in 2020, posting a 6.7% increase over 2019.

So what can you sell? Shopify recommends you sell pet bowls, toys, and beds, pet treats, grooming supplies, and even adorable pet apparel! Even rising costs due to trade policy changes aren’t likely to dent this trend. Pet owners continue to prioritize spending on their companions.

9. Movies, TV, and video games

A night on the town is expensive. A night indoors is not! People still need entertainment when the economy is bad, perhaps even more so than when the economy is good.  During recessions, cheap entertainment – movies, TV, video games, and other similar products – see a jump in demand.

This was the case during the 2001 and 2008-2009 recessions. It was especially the case during the 2020 recession since stay-at-home orders naturally pushed people to movies, TV, and video games.

10. Clothing

People still wear clothes during recessions. Shirts will be undone by stray fabrics and all shoes eventually have their soles ground down to dust if used enough. If you sell clothing during an economic downturn, you are likely to be insulated from the worst impacts.

On the cheap end, clothes function like a consumer staple. People need them, so they’ll buy them. On the more expensive end, nicer clothes are one of the more affordable luxuries. As such, nice clothes benefit from the lipstick effect, just like candy and cosmetics.

11. Baby products

When you’re a parent, you have to take care of your child no matter what. For that reason, baby products – clothing, diapers, formula, and so on – continue to outperform the market as a whole. This is also true for daycare/childcare services, whose work increases when the economy turns sour and parents return to the workplace. (With the exception of the pandemic-driven 2020 recession, of course!)

If I could sum up the economic outlook of kid products in one statistic, it would be this: spending on children’s nonfiction books grew 66% in 2020.

12. Food and drink

Food and drink continue to be essentials during economic downturns. You may think that consumers turn to rice, potatoes, and tap water when money is tight, but this isn’t always this case! Many times, luxury food and drink products perform well for a few reasons:

• People need comfort (like with candy).
• Luxury goods still have some demand (like cosmetics).
• Fancy food and drink products are still cheaper than dining out.

That’s surprisingly good news for business owners who specialize in trendy products like organic flaxseed, hemp, and chia kombucha.

13. Kitchenware

You know how people don’t eat out as much during recessions. Well, even cooking from home isn’t a free activity. You have to buy the food, of course, but you will need supplies too. That’s why kitchenware tends to perform pretty well during recessions.

In particular, mason jars, silicone molds and spatulas, spiralizers, skillets, flatware, and oven mitts all sell well online and do well in recessions.

14. Sports and fitness products

Gym memberships are expensive. That’s why it’s hard to justify maintaining one during a recession like 2001 or 2008-2009, let alone a pandemic-driven one like 2020.

But people still want to stay fit, so they end up keeping their routines going at home. When recessions strike, that opens up lots of market opportunities in the fitness sector. You can sell resistance bands, exercise balls, yoga mats, sports apparel, and more online. That way people can maintain their active lifestyle while still pinching pennies!

15. Home renovation and repair supplies

During the 2008 financial meltdown, a lot of people did not want to buy houses for obvious reasons. But people still wanted to improve their surroundings, which led many people to remodel their homes even during 2008 according to industry experts.

And, of course, during the 2020 recession, many people started renovating their homes since they were stuck there all the time!

Today, rising material costs from tariffs and supply chain issues also encourage smaller, DIY-friendly projects over major renovations. This is to say nothing of upper middle class homeowners who may prefer to invest in their own home rather than a volatile market.

Now bear in mind that not every renovation involves adding a new roof, breaking down walls, or adding granite countertops to the kitchen. A lot of home renovation is cheap and involves products that can be easily sold online.

To name a few: artwork, pillows, lamps, small furniture, bedding, curtains, and general home decor. This is a fairly easy sector to break into, and you can even dropship some of these items.

16. Highly niche products

It’s enormously difficult to get a hardcore fan of something to leave their money in their wallet, even if their wallet is a bit lighter than usual.

Brandon Hartman, Founder of BeyWarehouse, says that “our main offering [of Beyblade toys] is one such example. During the pandemic, we experienced slight but nonetheless unexpected growth in sales even as the economy ground to a halt and eCommerce reeled from the supply chain crisis.”

This is consistent with his overall belief that highly-niched products tend to do well even during recessions because of their large fanbases and communities.

Final Thoughts

Even if the economy is terrible, you can still launch products and succeed. If the economy tanks tomorrow and you’re selling a lot of different items, you might even find some doing better than you’d expect.

It’s important to understand the dynamic behind all this. Necessities are still necessities even if the unemployment rate is high. “Little luxuries” will still be in demand when “big luxuries” are not affordable. And hardcore fans will keep buying niche products, even when they have less cash to spare.

We hope this list inspires you to make your business a little more resilient against recessions!

 

How do you know when you need help with order fulfillment? It’s not an easy call. But deciding when to outsource order fulfillment is absolutely critical if you want to grow your business and keep it running efficiently.

As your business scales, shipping physical products becomes increasingly difficult. So does handling the logistics in-house. This can quickly become overwhelming and expensive.

Order fulfillment partners can help streamline operations, reduce costs, and improve customer satisfaction. Knowing the signs that indicate the need for outsourced order fulfillment will help you make an informed decision when the time comes.

6 Signs Your Business Needs to Outsource Fulfillment

Outsourcing fulfillment can significantly benefit your business. But knowing when it’s time to do this isn’t easy.

Below, you will find a list of signs that your business needs to outsource fulfillment. If you say “yes” to any of these, it’s probably time.

#1: Your customer base is growing faster than you can keep up.

As your order volume increases, it becomes harder and harder to keep up with demand. But once you are set up with an order fulfillment partner, a surge in the size of your customer base doesn’t have to mean hours spent packing boxes in your home office.

Order fulfillment companies can easily handle large volumes of orders. That way, they all go out in the mail on time and to the right address, keeping your customers happy and loyal.

#2: You are unable to quickly and accurately ship orders to customers.

If you can’t ship orders out on-time or to the right address, then you need help. If you even suspect that your order fulfillment process is becoming slow or inaccurate, it’s time to consider outsourcing.

Delays and mistakes can frustrate customers and damage your reputation. Fulfillment companies specialize in quick and precise order processing, helping you maintain high service standards and customer satisfaction.

#3: Your staff are overworked.

When your employees are overwhelmed with fulfillment tasks, their productivity in other areas can suffer. This overload can lead to burnout and decreased morale.

Outsourcing fulfillment can free up your team to focus on core business activities, improving overall efficiency and job satisfaction.

#4: Your business feels overly complicated.

As your business grows, it becomes more complex. This increased complexity can weigh heavily on your mind and you may feel like you can never reach the end of your to-do list!

There are a lot of aspects of in-house fulfillment that can be hard to manage. If you have a lot of SKUs, ship internationally, or have special packaging requirements, this can all add to the complexity.

A dedicated fulfillment partner can handle these complexities for you. That way, you can concentrate once again on strategic growth and business development.

#5: Shipping costs are adding up.

Postage and supplies are expensive. Shipping costs can eat into your profits, especially in eCommerce.

Fulfillment companies almost always get bulk shipping discounts because of the sheer order volume they handle. The same is true of supplies like boxes and other packing materials.

But fulfillment companies are also very competitive, and cannot simply pocket the savings for themselves. They often split the difference with their clients.

By outsourcing, you can take advantage of these cost savings, improving your bottom line and offering competitive shipping rates to your customers.

#6: You are running out of storage space.

If you run out of space to store your own items, you need help. Storing products in-house can clutter your workspace and limit your operational capacity. When you outsource to an order fulfillment center, they handle the inventory management for you and that can free up a lot of space.

How Order Fulfillment Services Are Priced

Order fulfillment pricing can seem complicated. That’s because order fulfillment services are priced based on several factors.

These factors include account or storage fees, the number of packages shipped, postage, supplies, and pick and pack fees. Understanding how fulfillment pricing works will help you estimate fulfillment costs and decide whether or not outsourcing fulfillment is financially sensible.

Order fulfillment pricing can generally be understood by using the following formula:

Fulfillment Cost = Account/Storage Fees + (Packages Shipped * (Postage + Supplies + Pick and Pack Fee))

In the following sections, we break this down further.

#1: Account/Storage Fees

Account and storage fees are the baseline costs for holding your inventory. These fees cover the space your products occupy in the fulfillment center. They vary based primarily on the amount of space required. However, for some special cases like hazardous or refrigerated materials, there may be additional upcharges.

#2: Packages Shipped

When it comes to calculating order fulfillment costs, the number of packages shipped is the most important factor. The more you ship, the more postage and supplies you need. Plus, fulfillment centers charge a fee for each package they handle. So as they handle more packages, you pay more of these fees as well.

In short, the more you ship, the more you pay.

#3: Postage

Postage costs are the fees associated with shipping your items to customers. Fulfillment centers often negotiate bulk postage rates, which can be significantly lower than standard retail rates.

Like with retail postage, the most important factors here are the size and weight of the package to be shipped, as well as the destination.

Heavy and large items shipped long distances cost more. Smaller, lighter items shipped short distances cost less.

#4: Supplies

Supplies costs cover the materials needed for packing and shipping, such as boxes, bubble wrap, and tape. Basic materials are typically included in the pick and pack fee (discussed below), but special packaging requirements may incur additional charges.

#5: Pick and Pack Fee

The pick and pack fee is the cost of retrieving items from storage, packing them, and preparing them for shipment. This fee covers labor and basic materials for each order processed. Think of this as the cost to have a human being put your items into a box and get them in the mail on your behalf.

How Outsourcing Fulfillment Can Save You Money

Saving time and running your business more efficiently are good enough reasons to outsource fulfillment on their own. However, outsourcing fulfillment can – in some scenarios – save your business a lot of money.

These cost savings come from bulk postage rates, reduced supply costs, and better labor allocation. Understanding where these cost savings come from is worth it, since they can help you see whether or not outsourcing fulfillment will be financially beneficial rather than merely an operational necessity.

#1: Fulfillment centers get bulk discounts on postage and supplies.

Fulfillment centers usually have lower postage rates because they ship so many packages. Carriers are more willing to cut them a price break. The same principle applies to supplies, which are purchased in massive bulk quantities.

Because the fulfillment industry is competitive, these savings are passed on to you, which can reduce your shipping and material expenses. Over time, these savings can really add up!

#2: Order fulfillment companies have staff that dedicate 100% of their time to shipping.

Outsourcing fulfillment allows you to reallocate labor to more valuable tasks. Employees can focus on revenue-generating activities instead of packing and shipping orders. This improved labor efficiency can lead to higher productivity and profitability.

#3: You can cut down on training and overtime costs related to shipping.

Fulfillment centers handle all aspects of order processing, reducing the need for overtime and extensive training. That means if you or your staff are doing overtime shipping packages, you can stop!

Cutting down on overtime, or even time spent training employees on how to ship, can save a lot of money. This isn’t just because it helps keep wages in check, but it also helps smooth out your workflows.

#4: You no longer have to purchase your own supplies.

Outsourcing eliminates the need for purchasing packing supplies like bubble wrap, boxes, and tape. These costs are largely covered by the fulfillment center and included in the pick and pack fee. This reduces your overall expenses and simplifies budgeting.

#5: You may be able to reduce storage costs.

Storing inventory in a fulfillment center can be more cost-effective than renting additional space. You avoid the expense of storage units and the hassle of managing inventory on-site. This can free up valuable workspace and reduce overall costs.

#6: Order fulfillment partners are generally more efficient.

Outsourcing streamlines your operations, making them more efficient. With professionals handling fulfillment, you reduce errors and improve workflow. This allows you to focus on core business activities instead of shipping.

#7: More consistent shipping experiences can reduce customer turnover.

According to eCommerce delivery platform, FarEye, 85% of customers will not shop again with retailers after negative shipping experiences. This is really bad, since acquiring new customers is far more expensive than retaining them.

Fulfillment centers ensure faster, more reliable shipping, improving customer satisfaction and retention. This reduces refund requests and increases repeat business.

#8: More consistent shipping experiences can improve customer retention.

Reliable fulfillment improves customer satisfaction, leading to higher retention rates. Happy customers are more likely to make repeat purchases and recommend your store to others, boosting your revenue and growing your customer base.

How to Choose an Order Fulfillment Company

Deciding to outsource fulfillment is one thing. Choosing the right company is another.

In order to pick the right one, you will need to consider a number of factors. Among them, include your average item weight and size, shipping volume, number of SKUs, and the location of your customer base. You will also need to make sure that any fulfillment company you choose to work with provides good quality service.

Note: if you import goods internationally, rising tariffs in 2025 could also impact your landed costs before goods even reach the warehouse. It’s smart to factor in total landed costs when budgeting for fulfillment.

Here is a quick guide to help you make the right choice.

#1: Consider the weight and size of your items.

The weight and size of your products significantly impact shipping costs and handling requirements. Select a fulfillment company with experience in your industry.

For example, if you sell small, lightweight items, choose a provider experienced in handling such products. Likewise, if your items are large and heavy, find a partner experienced in managing big and bulky shipments. That way, you can choose a fulfillment partner that provides cost-effective shipping tailored to your needs.

#2: Estimate shipping volume.

Understanding your shipping volume helps in selecting a fulfillment partner that can scale with your business. If you have a low order volume, choose a company with no minimum requirements, allowing you to pay only for the services you need.

For businesses with high order volumes, select a provider capable of managing huge quantities of orders. That way, you can rest easy knowing they can handle your peak times and have capacity for future growth.

#3: Count the number of SKUs you plan to ship.

The number of SKUs you have affects the complexity of inventory management. Choose a fulfillment company capable of handling your SKU count efficiently. If you have a high number of SKUs, find a provider with a flexible system that can manage diverse inventory without additional costs.

This ensures accurate order fulfillment and streamlined operations, preventing issues such as stockouts or mispicks.

#4: Consider where your customers are located.

Customer location is very important when choosing a fulfillment company. Make sure you choose a fulfillment company that has a location which can cost-efficiently ship to most of your customers within a short period of time. This will have a dramatic impact on postage costs, which is almost certainly going to make up the largest percentage of overall shipping costs.

#5: Carefully vet fulfillment centers for service quality and fit.

Vetting fulfillment centers ensures you choose the right partner. Start by researching online reviews on platforms like Google and Trustpilot to make sure their client base is happy.

Request quotes to understand their pricing structure. Make sure they are good communicators and that you feel like you can trust them. Check for hidden fees or long-term contracts that may not suit your business.

But be careful not to just default to the lowest priced option. William Forshaw, CEO of Maxwell Scott Bags says, “I chose a partner based on their warehouse tour and the cheap fees without testing the peak season capacity. Last Christmas, they fell apart and my leather goods clients were getting the damaged packages 3 weeks late because the partner was jamming 10,000 daily orders into a facility that was built for 3,000.”

That’s not a situation you want to find yourself in, so go into the quote process with a “value-for-money” mindset rather than a “bargain hunter” mindset. Cheaper upfront is not always cheaper in the long run!

Finally, test their software for ease of use and functionality. Software is going to be the primary way you interact with the company, so make sure you like what you see.

Final Thoughts

Deciding to work with an order fulfillment partner for the first time can be scary. But once you start shipping a lot of orders on a regular basis, it’s something you will want to think about.

The right order fulfillment company can really help you streamline operations and save money. That can put your company on the path to long-term growth for years to come.

Frequently Asked Questions

Why is order fulfillment important?

Well-managed order fulfillment means that customers will receive their products on time and in good condition. This directly impacts customer satisfaction and brand reputation, not to mention customer retention. Efficient order fulfillment can reduce operational costs, minimize errors, and improve inventory management, leading to better overall business performance and profitability.

Should I use a fulfillment company?

Using a fulfillment company can streamline operations, reduce shipping costs, and improve delivery times. Outsourcing fulfillment allows businesses to focus on core activities like marketing and product development.

Few things are as exciting as shipping your first eCommerce order. Turning your ideas into a physical product and sending it out to customers all over the world feels incredible!

But, shipping eCommerce orders can be tough. Many businesses hire fulfillment centers to help with this. Choosing the right fulfillment center can be overwhelming. Costs vary so much and it’s tough to understand why.

In this article, we’ll demystify the costs of using a fulfillment center for eCommerce. We’ll explain how fulfillment centers price their services and break down the various costs. Then we’ll show you how to estimate the total cost of order fulfillment using quotes and a simple spreadsheet.

How Fulfillment Centers Price Their Services

If you want to compare fulfillment center quotes, you have to understand the general fulfillment pricing model. No two fulfillment centers have identical pricing. In fact, it’s really hard to make an apples to apples comparison.

And even if you could do that, it would still take time to figure out the cost for your particular eCommerce business. There are lots of variables.

There is no one-size-fits-all estimate. Even online fulfillment center price calculators can only give ballpark figures. To understand how order fulfillment costs will look for your business, you have to request personalized quotes from each fulfillment center you are thinking about working with.

Each quote will be structured differently. So you’ll need to compare costs in a spreadsheet in order to understand who is actually offering the best deal.

But even with all the variables and differences between fulfillment centers, they all follow similar logic. Once you understand the logic, then you can understand the quotes.

How To Estimate The Cost of U.S. Tariffs for Ecommerce Fulfillment

Most of this blog post was written before the changes to U.S. trade policy, known as Reciprocal Tariffs. This guide is still up-to-date, but this section was added April 28, 2025.

To make a long story short, once your items are in the warehouse, you can use the information in this guide to figure out what it will cost to ship them out. But these days, getting your items into the warehouse is almost certainly going to be more expensive if you are manufacturing outside of the country.

If that is the case for you, we would like to suggest two tools.

First, use Freightos to figure out what it will cost to arrange the shipment of your items from your manufacturer to your fulfillment center of choice. Then, use SimplyDuty. It’s an excellent online calculator that can be used to calculate customs, duties, and tariffs.

With these tools combined, you’ll be able to back into how much it costs to import your items in bulk. Then, once your items are in the warehouse, you can use the rest of the information in this guide to forecast costs.

Basic Formula for Calculating Order Fulfillment Costs

Order fulfillment pricing can be understood with this formula:

Fulfillment Cost = Account & Storage Fees + ((Postage + Supplies + Pick and Pack Fee) * Packages Shipped) + Value-Added Services

Yes, that’s still pretty complex. Don’t worry, we’ll break this down in the next section!

Breaking Down the Costs

Understanding the individual parts of fulfillment costs will help you make better choices. So we’re going to break down the formula from the previous section part by part.

Account & Storage Fees

Account and storage fees are ongoing costs for keeping your inventory at a fulfillment center. Think of it like rent for your products’ storage space. These fees are usually billed monthly. They will change based on how much inventory you have, the amount of storage you need, and the fulfillment center’s policies.

Account fees depend on the fulfillment center. Some charge a minimum amount per month for account maintenance, which might be waived if your order volume is high enough.

Storage costs are often based on cubic footage or the number of pallets stored. Bigger, bulky items cost more than smaller ones. Some fulfillment centers also charge extra for climate-controlled or special handling storage.

Pick & Pack Fees

Pick and pack fees cover the cost of workers getting each item from your inventory, packing them for shipment, and printing and attaching postage labels. In short, these are labor costs. This fee is applied to each order that gets processed.

If you ship many orders, these costs can add up fast. Many fulfillment centers have a pick and pack fee structure like this:

• Pick and pack fee: $2.50
• Per additional item: +$0.15

High-volume businesses might be able to negotiate a lower pick and pack rate.

Postage

Postage costs vary widely based on the size and weight of your items, where they are being shipped, and the speed of shipping. Fulfillment centers often get lower rates with major carriers like USPS, UPS, and FedEx.

Each fulfillment center has different deals. To know what it will cost to ship items, request rate sheets from your fulfillment centers of choice.

The location of your fulfillment center affects postage rates. Shipping to Europe from the US costs more than shipping within the European Union. Following the same logic, shipping from the US west coast to the east coast will cost more than shipping from, say, New York to New Jersey.

Supplies

Basic packaging supplies are usually included in the pick and pack fee. However, specific packaging needs like branded boxes or environmentally-friendly materials might cost extra. Ask for detailed information if you need specialized packaging.

Value-Added Services

Fulfillment centers offer more than just storage and shipping. They can do custom packaging, kitting, product inspections, and return processing. Prices for these services vary a lot, depending on what you need. Still, it’s important to be proactive and gather this information.

Estimating The Total Cost of Order Fulfillment

To figure out the total cost of order fulfillment, gather quotes from fulfillment centers and use a spreadsheet to compare costs. This method helps you decide which fulfillment center fits your needs and budget best.

Creating a spreadsheet for comparison

Start by listing the rows as Account & Storage, Pick & Pack, Postage, Supplies, and Value-Added Services. The columns should list your fulfillment centers of choice.

Begin by writing down your estimated order volume. This helps in making accurate calculations. For Account & Storage fees, plug in your best estimate based on the quotes received. Do the same for Value-Added Services. These might include special packaging, custom labeling, or return processing.

Next, enter the average pick & pack costs and supply costs per order. These are usually straightforward to calculate based on the quotes. If the fulfillment center charges $2.50 for the first item and $0.15 for each additional item, you can estimate these costs based on your average order size.

Postage is more complex because it varies by destination. To estimate this, calculate the weighted average of postage rates for different destinations. For example, if 60% of your orders ship domestically and 40% internationally, use these proportions to weight the respective postage costs. You might need to create a separate tab to organize these postage rates and their corresponding percentages.

By entering these values into your spreadsheet, you can see the total estimated cost for each fulfillment center. This side-by-side comparison will highlight which provider offers the best value for your specific needs.

Comparing costs

Once your spreadsheet is set up, use it to compare costs side by side for each provider. Pay close attention to any significant differences in fees, especially for services that are crucial to your business.

Remember that actual costs may vary based on factors like shipping destination, package weight, or size. Therefore, it’s wise to build in a buffer for unexpected costs. For instance, you might notice that one provider has lower pick & pack fees but higher storage costs.

Additionally, consider the reliability and reputation of the fulfillment centers. Sometimes paying a bit more for better service can save you headaches in the long run. Look at reviews and possibly even reach out to other businesses that use these services for their feedback.

The goal is not to pick the cheapest option. The goal is to pick a company with competitive prices and good service.

Ultimately, you will want to choose a fulfillment center that offers a reasonable cost and reliable service. This balance will hep you keep your operational costs low. But at the same time, you’ll still keep customers happy.

Hidden Costs to Watch Out For

Even after you compare fulfillment center quotes, unexpected costs can creep up. Many eCommerce businesses don’t realize these fees exist until they show up on their invoice.

But you do have power here. If you know about common hidden costs, you can ask the right questions upfront. This can help you avoid unexpected expenses and make a more accurate fulfillment budget. Always request a detailed breakdown of fees before choosing a fulfillment partner.

With that in mind, here are common costs that tend to fly under the radar during the initial quoting process.

1. Long-Term Storage Fees

If your products sit in a fulfillment center for too long, you may get hit with extra storage charges. Many providers charge higher rates for inventory that remains unsold beyond a certain period—usually 30 to 90 days. Be sure to ask about long-term storage policies before signing up.

2. Peak Season Surcharges

During busy shopping seasons like Q4, fulfillment centers often increase their rates. These peak season surcharges apply to pick and pack fees, storage, and even shipping costs. If your business relies on holiday sales, make sure to factor in these extra costs.

3. Special Handling Fees

Does your product require fragile handling, climate-controlled storage, or unique packaging? Many fulfillment centers charge extra for these services. If you sell breakable or perishable goods, make sure you understand the full cost of storage and handling.

4. Return Processing Fees

Handling returns is rarely free. Some fulfillment centers charge per returned package, while others charge a flat monthly fee for reverse logistics. If your return rate is high, these fees can add up quickly.

5. Labeling and Barcoding Costs

Some fulfillment centers require barcodes on all inventory, and if your products don’t arrive pre-labeled, they may charge you a labeling fee. These costs vary, so check if your provider includes barcode labeling in their pick and pack fees.

6. Kitting and Assembly Fees

If your orders require bundling multiple items together or special packaging before shipping, fulfillment centers may charge a kitting or assembly fee. This is common for subscription boxes or multi-piece product sets.

When to Expand Internationally

Once you understand the basics of order fulfillment pricing, you may be curious to see if you expand to other countries as well. Assuming you’re in the U.S., it might be tempting to also have a warehouse in Europe, Canada, Australia, and other places around the world to provide faster shipping to customers in those countries or regions.

But you need to be careful, because expanding your network too far too fast can become really expensive. According to William Forshaw, CEO of Maxwell Scott Bags, “most companies should hit Australia and Canada before messing with Europe because you do not need to deal with complicated shipping rules.”

In short, it’s OK to concentrate your fulfillment operations in fewer countries and expand later. In fact, that’s often the smartest play.

Final Thoughts

Estimating order fulfillment costs for your eCommerce business can be tricky. But understanding how fulfillment centers set prices and using a simple spreadsheet model can help you make a smart decision.

Customers expect smooth, hassle-free delivery. Provide it, and you set yourself up for long-term success. It’s worth investing the time and effort to get it right!

Frequently Asked Questions

What are fulfillment costs in eCommerce?

Fulfillment costs in eCommerce include all expenses related to storing, packing, and shipping products to customers. This usually covers account and storage fees, pick and pack fees, postage, supplies, and any extra services the fulfillment center offers.

How do you calculate fulfillment costs?

To calculate fulfillment costs, use the formula: Fulfillment Cost = Account & Storage Fees + ((Postage + Supplies + Pick and Pack Fee) * Packages Shipped) + Value-Added Services. Get quotes from fulfillment centers and use a spreadsheet to compare costs side by side.

What is a fulfillment fee?

A fulfillment fee is the charge incurred for processing an order. This includes picking items from storage, packing them securely, and attaching shipping labels. Fulfillment fees vary depending on the number of items per order and the complexity of the packaging required.