How To Choose An Ecommerce Fulfillment Partner
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:
- Pick-and-pack
- Postage
- Account and storage
- 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:
- You’ll be less likely to run out of stock. That means your customers can keep shopping anytime they please.
- 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.
- 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.
- 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.
- 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.
- Unfinished products. These are the products that you or your manufacturer are currently working on making, but that are not ready to sell.
- 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.
- 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.
- 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.)
- 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.
- Packing inventory. This is the inventory you keep for your packing supplies, such as finished packaging or even bubble wrap and mailers.
- 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.
- 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.
- 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.
- 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.
- 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.
Order fulfillment is incredibly important in eCommerce. It affects customer happiness directly. Problems here can cause bad reviews, lost sales, and less brand loyalty.
If you want to avoid these issues, you need to make your order fulfillment process smooth, clear, and reliable. Fixing common problems and giving great service will help you keep up your reputation. And that will help you keep your customers happy and loyal, and your store profitable.
1. Eliminate surprise costs.
The top reason people abandon their online shopping carts is high shipping costs. No one wants to buy a $25 item with a $15 shipping fee.
Many businesses still make this mistake. At the very least, clearly list your shipping prices on your store. This way, people won’t add items to their cart only to back out when they see the total price is too high.
This is the best way to reduce your cart abandonment rate. Use it wisely to increase your revenue with little effort.
2. Offer free shipping.
Free shipping isn’t actually free. When you buy something with free shipping, the seller pays for the postage. No free lunch, right?
But not offering free shipping isn’t free either. About 75% of customers expect free shipping even on orders under $50 according to the National Retail Federation, and this number is rising. This goes back to eliminating surprise costs. Free shipping is the best way to remove unexpected fees for customers.
This tip might not always make financial sense, but if it does, use it. It can reduce your cart abandonment rate, bringing in enough revenue to cover shipping costs. Plus, free shipping makes customers happier with their experience!
3. Use address verification.
Shipping can go wrong if the package goes to the wrong address. You might think this is out of your control, but it’s not.
Address verification helps make sure customers enter the right address. This reduces the chance of sending a package to the wrong place, a mistake that can make customers angry and be expensive to fix.
Shopify users can use the app Streetify, which costs $0.03 per address lookup. WooCommerce users can use Postcode/Address Validation by SkyVerge, costing $49 per year.
These are just a couple of examples, though. There are many apps for Shopify, WooCommerce, and other eCommerce software you might use!
4. Provide expedited shipping options.
Many consumers are willing to pay for fast delivery. About 41% will pay for same-day delivery, and 24% will pay more for delivery within 1-2 hours (source: Conveyco). Also, 70% of US consumers buy from one online store over another because of more delivery options.
So, one of the easiest ways to improve shipping is to offer more options. Next-day delivery through USPS, UPS, and FedEx at a premium is a simple way to let customers choose what suits them.
5. Ship as soon as possible.
One big reason for shipping delays isn’t the postal carriers. FedEx, UPS, USPS, and DHL are pros at delivery. Once you hand over the package, they handle the rest.
But what if you take too long to get a package ready? Miss the cutoff time by a few minutes, and you delay delivery by a whole day! Customers expect two-day delivery now, and anything slower feels like forever.
The solution? Ship orders as soon as they come in or use an order fulfillment service. If you don’t want to drop everything to ship an order, outsource it.
Order fulfillment companies ship packages all day, every day. Postal carriers visit their warehouses multiple times a day, getting your packages in the mail faster and shaving a day off delivery time.
6. Make two-day shipping your default.
Remember how I mentioned that two-day delivery is the expectation now? The data backs me up on this.
Two-day delivery is the new standard. A whopping 79.3% of online shoppers expect it. If you can, make free two-day shipping the default for your business.
7. Provide shipping notifications.
Online shopping is weird because you pay right away but wait days for your package. Customers like to track their orders to feel at ease.
Send tracking numbers and status updates by default. Let customers know when their orders ship and give an estimated delivery date. If something goes wrong, tell the customer immediately. An astounding 98.3% of customers want to be notified if a package is delayed per supply chain firm, Project44!
Keeping customers informed shows you care about their experience, increasing the chances they’ll shop with you again.
8. Don’t be stingy with returns and refunds.
Every year, three billion packages are lost or damaged. This problem comes with handling so many packages daily.
Customers don’t care if UPS damaged the package; it’s your job to fix it. Forty-eight percent of customers returned an item last year, and 80.2% did so because it arrived damaged.
Returns and refunds are tied directly to the shipping experience. Happy with the returns process? Ninety-five percent of shoppers will buy from you again. Unhappy? They’re three times more likely to never shop with you again.
Make returns easy. Allow free returns with refunds for up to 90 days. Let customers print return labels at your expense. Sure, you cover shipping and inventory costs, but you save the customer relationship, which is worth much more in the long run.
9. Pack items properly.
Shipping damage happens, but you can cut the risk with a few tricks:
- Fill empty spaces with bubble wrap, corrugated rolls, or air cushions.
- Use sturdy outer packaging like corrugated boxes.
- Keep liquids away from other items.
- Label fragile packages clearly.
- Separate fragile items within boxes.
These steps reduce the chance of items breaking and needing returns. That means more money stays in your pocket!
10. Provide great customer service.
Even with fast, free shipping, great packing, and a solid return policy, things can still go wrong. When they do, excellent customer service is key to keeping customers happy and coming back.
Offer friendly, accessible support. Have an email, phone number, and maybe even live chat. Make it easy for customers to reach you and solve their problems quickly. It pays off in the long run!
If you plan to hire an order fulfillment center to help with the logistics, this is even more important. William Forshaw, CEO of Maxwell Scott Bags, says that “picking [an order fulfillment company based] on cost per shipment instead of damage rates and peak capacity is pretty bad because one bad fulfillment experience can destroy years that you have spent building your brand. International expansion nearly cost Maxwell-Scott £25,000 in 2020 because Brexit changed everything and EU customers get slammed with customs fees that double product cost.”
The point is: if you hire help, make sure they don’t undermine your efforts to maintain good customer service (such as through poor packaging or shipping practices). Otherwise, your decision to hire cheaper help could end up being more expensive.
11. Brand your packaging.
People form opinions about products in just 3 seconds. Good packaging can make a great first impression. Over 50% of consumers say they’d buy more from a brand with branded packaging, and 68% say it makes a brand seem more high-end.
Represent your store brand right when customers open the box. Use custom packaging like boxes, bags, or bottles.
12. Ask for feedback.
Simple but often forgotten: ask your customers what they think! You can look at statistics all day long but never get a truly good feel for what your specific customers truly want.
The easiest way to find out is to simply ask them! Send out automated surveys so you can learn more about what you’re doing well and what you’re not. Then you can lean into your strengths and resolve your weaknesses.
If you follow tips like these, you’re likely to start converting more traffic and retaining more customers. But things will still go wrong from time to time, so here are some tips to help you handle occasional customer service issues as they arise.
7 Tips For Handling Customer Service Issues
Even if you prepare everything correctly, items will still break in the mail and get lost. Not often, but sometimes!
Because of that, you need a plan to handle issues when they come up. Here’s how you can do that.
1. Respond promptly to customer inquiries.
Quick responses can stop small issues from turning into big headaches. Imagine a customer with a simple question about their order. If they get an answer fast, they’re happy. If not, they might get frustrated.
Make sure your customer service team is always ready. They should be available and alert, ready to jump in and solve problems as soon as they arise.
2. Offer clear and proactive communication.
Keep your customers in the loop. Regular updates about their order status are crucial. Did something go wrong? Is there a delay? Tell them right away! Explain what happened and what you’re doing to fix it.
This kind of transparency builds trust. Customers feel reassured when they know you’re on top of things, and their frustration levels drop.
3. Provide multiple contact options.
Make it super easy for customers to reach you. Some people prefer email, others like to call, and many love live chat. Offer all these options and more if possible.
Accessibility is key. When customers can contact you easily, issues get resolved faster, and everyone’s happier.
4. Empower your customer service team.
Give your customer service reps the power to make decisions. They should be able to solve problems on the spot without always having to ask a manager.
Empowered employees are more confident and can provide quicker, more satisfying resolutions. When your team feels trusted, they work more effectively and customers benefit from faster service.
5. Offer compensation for significant issues.
Sometimes, things go really wrong. In these cases, consider offering compensation like refunds, discounts, or free products. This can turn a bad situation into a positive experience.
Imagine a customer receiving a damaged product. A quick refund or a discount on their next purchase can make them feel valued and understood, keeping them loyal to your brand.
6. Track and analyze customer complaints.
Keep a close eye on customer complaints. Record them, analyze them, and look for patterns. Is there a common issue popping up? Understanding these problems helps you fix them at the source.
Addressing recurring issues will prevent future complaints, making your overall service better and more reliable.
7. Follow up with customers.
After you’ve resolved an issue, don’t just leave it there. Follow up with the customer to ensure they’re happy with the resolution. This extra step shows that you care about their experience.
It’s a small gesture that can make a big difference. Customers appreciate knowing that their satisfaction matters to you.
Final Thoughts
Fast, competent order fulfillment and responsive customer service are both essential for keeping customers happy. Doing both of these things well can play a huge role in whether customers come back to shop more in the future.
Preventing shipping issues and addressing them quickly when they arise will allow you to build a strong reputation and increase customer loyalty. When in doubt – act like the kind of company that you want to shop from!
Words sell. But only if you use them well. Ecommerce copywriting is a tricky skill to master, but the basics are easy to understand.
Well-crafted copy can be the difference between a sale and a lost opportunity. A successful product line and a dud. A thriving business and a dead one.
In this article, we’ll teach you how to make your copy more persuasive so you can win customers and keep them loyal.
Understanding the Basics of Ecommerce Copywriting
Ecommerce copywriting is basically just writing, but used for the purpose of promoting and selling products online. It includes product descriptions, landing pages, and other written content aimed at convincing customers to make a purchase.
Effective copywriting attracts attention, builds trust, and encourages conversions. Ineffective copywriting makes people zone out, doubt your value, and makes them click the X button on the tab.
And it’s here that I’m reminded of when Michael Alexander, Managing Director of Tangible Digital, told me that “the extra procedure, the extra click, the extra distraction, is a silent slayer of the deals. The clear and simple companies are the ones that are found to be the most profitable.”
That axiom is as true in copywriting as it is in user experience design.
Bearing that in mind, here are some practical ways you can improve the copywriting on your eCommerce store.
Crafting Compelling Product Descriptions
People read product descriptions before they buy. As a result, these descriptions play a big role in convincing customers to make a purchase…or not. So product descriptions needs to be engaging, informative, and focused on the benefits of the product.
Below, we’ll share a few quick examples on how that works in practice.
#1: Focus on benefits, not just features.
Highlighting benefits that speak to customers’ real needs is key. Instead of simply listing features, explain how the product solves problems or improves the customer’s life.
For example, instead of saying “This jacket is waterproof,” say “Stay dry and comfortable even in the heaviest rain with our waterproof jacket.”
The goal here is to paint a vivid picture. You want the customer to imagine themselves staying dry and cozy in a downpour. When you do this, you help your customer think about how the product will function in their day-to-day life.
#2: Use persuasive and descriptive language.
“This sweater is soft.”
“Experience the luxurious softness of our cashmere sweater, perfect for cozy winter evenings”
That second quote felt more persuasive, didn’t it? And it’s not just because the second option is more benefits-focused, although that definitely helps.
When you look at the second version of the copy, it makes you feel something. It puts an image in your mind and stirs up emotions. That makes the product a lot more appealing.
“This sweater is soft” is something you think when you’re feeling shirts at the thrift store. But “perfect for cozy winter evenings” is what you think about when it’s December, it’s snowing, and you’re snuggling on the couch with your loved ones.
This is how you turn a description into an invitation.
#3: Be concise yet informative.
So far, you might be tempted to think that flowery language outsells plain descriptions. But that’s not the case.
You need to balance between providing enough information and keeping it succinct. The trick here is to avoid overwhelming the reader with too much detail, but still make sure they have all the necessary information to make an informed decision.
Consider using bullet points and short paragraphs to make the content easy to read and digest. For example, instead of a long-winded paragraph about a phone’s features, use a list:
- Battery Life: Lasts up to 48 hours on a single charge.
- Camera: Capture stunning photos with a 12MP dual-lens camera.
- Storage: Available with 64GB, 128GB, or 256GB of storage.
This format is easier to scan and helps customers quickly find the information they need.
Enhancing Usability and Readability
Good copy is easy to read. But it’s also easy to use, which means it is practical.
That means your copy needs to give your customers what they need to find and understand the information they want before they make a purchase.
The principle here is simple – if customers that can easily find and understand the information they need, then they will naturally be more likely to make a purchase.
#4: Use bullet points for clarity.
We mentioned this in the previous tip, but it bears repeating.
Structure information in a digestible format by using bullet points. This helps highlight key features and benefits, making it easier for customers to scan and absorb the content quickly.
For example, list product specifications or unique selling points as bullet points to enhance clarity and readability. Instead of a dense block of text, you could write:
- Material: 100% organic cotton.
- Fit: Slim fit, tailored for a modern look.
- Care: Machine washable, easy to maintain.
This way, the information is clear and immediately accessible.
#5: Maintain a consistent voice.
Having a consistent brand voice across all content reinforces your brand identity and builds trust with customers. Whether your brand voice is casual, professional, or playful, ensure it remains uniform in product descriptions, emails, and social media posts.
Consistency helps create a recognizable and reliable brand image. For example, if your brand voice is friendly and approachable, your product description might say, “Our jeans are perfect for every adventure, from casual Fridays to weekend getaways,” and your social media might follow with, “Ready for the weekend? Our jeans sure are!”
#6: Optimize for readability.
Make your text easy on the eyes by using short paragraphs, varying sentence lengths, and plenty of white space. Use subheadings to break up long blocks of text and improve the flow.
Choose a readable font size and style, and avoid cluttering the page with too much information at once. Instead of a long, unbroken paragraph, break it up:
Comfortable and Stylish Our sneakers are designed with both comfort and style in mind. Whether you’re hitting the gym or going for a casual walk, you’ll love how they feel.
Durable and Long-Lasting Made from high-quality materials, these sneakers are built to last. You can trust them to keep up with your active lifestyle.
This structure makes the content much more inviting and easier to read.
Using Psychological Triggers
Good copy is compelling. But to know what’s compelling, you need to use psychology. There are certain triggers you can use in your copy that will motivate customers to take action and make a purchase. Here are a few that come to mind.
#7: Use urgency and scarcity.
Procrastination kills sales. You need to create a sense of urgency and scarcity to encourage immediate purchases.
Phrases like “Limited time offer,” “Only a few left in stock,” or “Sale ends soon” can prompt customers to act quickly to avoid missing out. Highlight time-sensitive deals and limited availability to drive sales.
For example, if you’re selling a popular toy during the holiday season, you could say, “Only 5 left! Order now before it’s too late!”
This makes customers feel the pressure to buy right away, fearing they might miss out if they wait too long.
#8: Use social proof.
Use testimonials, reviews, and ratings to build trust and credibility. Sharing positive feedback from other customers can reassure potential buyers of the product’s quality and your brand’s reliability. Use quotes from satisfied customers and display ratings prominently on product pages.
For instance, include a customer review saying, “These shoes changed my life! Super comfortable and stylish,” along with a 5-star rating. Seeing others’ positive experiences makes new customers more confident in their purchase.
#9: Appeal to emotions.
Connect emotionally with readers by addressing their desires, fears, and aspirations. Use storytelling techniques to make your products more relatable and appealing.
Let’s say you’re marketing a new pair of noise-canceling headphones. You could describe them as, “Your personal escape into a world of clarity and peace. Perfect for drowning out the bustling noise of daily life, these headphones let you immerse yourself in your favorite melodies or podcasts.”
If you’ve made it this far, then you probably noticed that this combines the vividness and benefits-focused language of tips #1 and #2. But there’s more going on than that. This picks a specific feeling – a desire for peace – and completely focuses on it. That’s how you can make an effective appeal to emotion.
SEO Best Practices for Copywriting
You’re not just writing for people on the internet. You also need to write for robots.
Ecommerce copy needs to work well in search engines. Do this right and you can drive more organic traffic and boost sales.
Here’s how you can do that without making it feel overly-optimized or robotic.
#10: Include targeted keywords naturally.
Work keywords seamlessly into your copy without compromising readability. Use keywords in product titles, descriptions, and headers. Be sure they flow naturally within the context.
For example, instead of keyword stuffing, write: “Our organic cotton T-shirts are perfect for eco-conscious consumers looking for stylish comfort.” This not only includes the keyword “organic cotton T-shirts” but also adds context that appeals to the target audience.
When in doubt, read your copy out loud. If it feels like you’re repeating yourself too much, then you are probably overdoing it on keywords.
#11: Use SEO-friendly headings and titles.
Write headings that improve SEO and attract readers. Use relevant keywords and make headings clear and informative. For instance, “Top 10 Summer Shoes for Women” is better than “Summer Shoes” because it is specific and keyword-rich, making it more likely to rank well in search results.
Being specific helps search engines understand what your content is about and can improve your page’s ranking.
#12: Optimize meta descriptions and titles for search engines.
Create compelling meta descriptions and titles that include targeted keywords. These should accurately reflect the page content and entice users to click.
For example, a meta description like “Shop our wide range of eco-friendly T-shirts made from organic cotton. Perfect for a sustainable lifestyle!” can boost click-through rates. People can see what the page is about before they click.
This description tells potential customers exactly what they can expect while incorporating relevant keywords, making it attractive to both search engines and users.
Continuous Improvement and Testing
Even if you write the perfect copy today, it won’t be perfect tomorrow. You have to change things up regularly. That’s how you keep copy effective and relevant.;
Here is how you can tweak your copy while making sure you don’t break what’s working.
#13: A/B test different copy versions.
Use A/B testing to compare different versions of your copy. Change one element at a time, such as headlines or call-to-action phrases, and see which version performs better.
This method helps you understand what resonates with your audience and continually improve your copywriting efforts. For example, test two headlines: “Grab Your Discount Now!” versus “Limited Time Offer – Shop Today!”
When you see which one gets more clicks, you learn what drives your customers to act.
#14: Gather and act on customer feedback.
Collect feedback from customers to identify areas for improvement in your product descriptions and other copy. Use surveys, reviews, and direct feedback to understand customer preferences and pain points.
Make changes based on this feedback to enhance the effectiveness of your copy. For instance, if multiple customers mention that they love the softness of your T-shirts, highlight the softness in your product descriptions.
Naturally, not every change can be fixed with a copywriting update. But collecting the feedback will help all the same. After all, if your customers want more color options, collecting feedback will give you a sign that it’s time to expand your color palette.
Advanced Copywriting Techniques
The following tips require a greater understanding of the basics of copywriting. But if you can work these techniques in naturally, you can enhance your eCommerce copywriting even more, which will help drive sales.
#15: Tell a story with your copy.
Use storytelling to create a memorable brand experience. Share stories that highlight the benefits of your products or your brand’s mission. For example, describe how your product was developed to solve a common problem, connecting with customers on an emotional level and making your brand more relatable.
Imagine saying, “Our founder created this eco-friendly backpack after struggling to find a durable, stylish, and sustainable option. Now, you can carry your essentials guilt-free!”
#16: Integrate multimedia elements.
You can sell even more by pairing written content with images, videos, and audio. Visuals can make your copy pop and help explain product features better.
Use high-quality images and demo videos to provide a richer, more interactive experience for your customers. This can increase time spent on your site and improve conversion rates.
As an example, you could use a video showing how to use a multi-functional kitchen gadget can be far more persuasive than a written description alone.
Final Thoughts
When in doubt, keep your copy clear, concise, and compelling. You want to give people reasons to trust you enough to give you their hard earned money.
Ecommerce copywriting is not an easy skill to master. But it’s easy to start and mastering it is worth the time.
If you can master eCommerce copywriting, you’ll increase sales, engage your customers, and you may very well build a successful business as a result. Naturally, this is a skill you will need to practice again and again to truly master. But starting from scratch is intimidating, so hopefully the tips in this guide will help ease that learning curve for you!
Additional Resources
To further improve your copywriting skills, consider these resources:
- Copyblogger for in-depth articles and tips on copywriting.
- HubSpot’s Content Marketing Course for comprehensive training.
- Yoast SEO Blog for SEO best practices and tips.
- Grammarly for writing assistance and grammar checks.
- Ahrefs Blog for advanced SEO and marketing strategies.
Building an eCommerce empire requires a lot of steps. You need to sell amazing products, create a great website, and set up shop with all the right marketplaces like Amazon and Walmart Marketplace.
But even if you do all of these things well, you won’t get far without an eCommerce marketing plan. There are a million ways you can market an eCommerce store, so sometimes it helps to look at your options and pick ones that feel like the right fit.
To help you do that, we’ve compiled this list of eCommerce marketing tips. These tips will help you avoid common mistakes, build a brand, retain customers, and grow your customer base.
20 tips to avoid common eCommerce mistakes
Sometimes, the easiest way to make a great marketing plan is to consider all the ways that marketing typically goes wrong. Seemingly small mistakes can derail otherwise great marketing plans. That’s why we’ve started with these first 20 tips to help you avoid the kinds of problems that tank your sales from day 1.
#1: Sell products that meet an existing market need
You can’t sell products unless there’s a real market need. Make sure every single product you sell has real product-market fit. If you can’t tell who a given product is supposed to be targeting, don’t sell it!
#2: Develop a clear marketing funnel
Your eCommerce operation needs to be optimized from the start to turn visitors into buyers. According to the classic AIDA model, there are four steps in the marketing funnel: attention, interest, desire, and action. You need to know how your store will draw attention, create interest, build desire, and encourage action.
#3: Keep customer acquisition cost (CAC) in check
Your average customer will spend a certain amount of money on your store. That’s your average order volume (AOV). The amount of money you spend to win new customers needs to be much cheaper than that. Otherwise, high customer acquisition costs (CAC) will destroy your profits.
But important as this is, you should know that customer acquisition cost will ultimately bottom out. And at that point, you’ll need to shift your focus to retention.
“Acquisition is expensive, so real growth comes from retention. The goal isn’t just to get a customer: it’s to keep them,” says Danyon Togia, Founder of Expert SEO. “That means building a genuine connection through follow-up personal emails, loyalty programs, referral incentives, and expanding into products or services that serve them over time.”
He goes on to clarify that, “from a marketing perspective, the most powerful long-term play is content marketing. High-quality content (whether it’s blogs, videos, or social) creates trust at scale. When paired with SEO, those assets keep working for you 24/7, building relationships and generating sales long after they’re published.”
#4: Define your target market clearly
Who are you selling to? You need to be able to answer that question at length and in a great amount of detail. Everything you sell needs to be something that someone in your target market would plausibly want to buy.
If you’re not sure how to do this, consider creating a buyer persona. This can help you imagine your target audience as individuals and not abstractions.
#5: Use content and social media marketing
Content and social media help increase your visibility in search engines and on social media platforms. This can be a good way for people to discover your brand and start a relationship.
The trick: create valuable content on a regular basis. That way, everything you do is useful and that will help you attract and retain your audience.
If you’re looking for content ideas, SEO Consultant, Jase Rodley, suggests that “BuzzSumo is [an] underutilized tool that allows you to see what content performs well in your niche and create more engaging marketing materials.”
“Create a mix of evergreen and seasonal content to maintain steady traffic year-round while capitalizing on holiday trends,” says Paul Jozsef of Digital Practice. “This dual approach ensures you’re prepared for peak and quiet seasons.”
#6: Write effective and engaging product descriptions
Clear, specific product descriptions improve sales. Longer descriptions are generally better, since details can help handle customers’ potential objections and convince them to buy.
Highlight key features and benefits. That can help potential buyers make their decision. For apparel and similar products, provide clear sizing charts to help smooth out the buying process.
Over time, make a habit of testing different descriptions to find what works best with your audience.
This is a big topic, so check out our guide on eCommerce copywriting for even more specific tips.
#7: Organize product categories clearly
Your store needs to be easy to navigate. Clear product categories help tremendously with this. Use simple, intuitive labels to help shoppers find what they need quickly. This will increase their odds of making a purchase.
#8: Use high-quality product photos
Buying online is an act of trust. High-quality photos will boost buyer confidence, making it more likely that they click the buy button. Good photos can also help reduce returns since customers know what they’re buying.
In general, use photos that are clear, honest, and effectively show off the product. You want your customers making informed decisions.
#9: Simplify website navigation
This is a simple tip, but it’s important. Make your navigation menu simple. Every word needs to be crystal clear and you should avoid using too many submenus.
#10: Avoid a crowded website design
A clean, uncluttered website will help sales. Shoppers will be more easily able to find what they need. It will be more visually appealing. Plus, it will likely load faster as well.
When in doubt, simplify the layout to make it easy for customers to find and purchase products.
#11: Make sure your website works on phones
Responsive websites work well on all devices. This is key for setting a good user experience. More people shop on mobile devices than desktops and laptops, so you can’t skip this step.
#12: Optimize your website for search engines
SEO improves your site’s visibility in search engine results. Make sure you optimize your content, use relevant keywords, and improve site speed. This helps attract more organic traffic and increases your chances of converting visitors into customers. One free tool you can use to help with this is SEO Site Checkup.
“SEO is a constant task to be practiced 12 months a year,” says Michelle Symonds, Founder & CEO at Ditto Digital. This is the case “even if you are working on ranking keywords that will be used in holiday seasons. Outcomes are not quick or easy, so you can’t just ‘turn on’ Black Friday SEO in early October. That’s all. Your email, paid ads, and other channels should increase during peak seasons.”
#13: Simplify the shopping cart process
It needs to be easy to check out. Make sure your shopping cart allows checkout in the fewest amount of steps.
Above all, make sure users do not have to create an account in order to make a purchase. (No one wants to make an account.)
#14: Avoid surprising customers with hidden fees
Hidden fees can scare off customers and lead to cart abandonment. Be transparent about all costs upfront. If additional charges – particularly shipping charges – are necessary, clearly display them early in the checkout process to maintain trust and reduce drop-offs.
#15: Provide clear return policies and details
Clear return policies build customer trust. According to Ecommerce Fastlane, over 60% of individuals will examine the return policy before purchasing.
Make sure your return policy is clear, easy to find, and in line with customer expectations. This can help increase the amount of purchases completed.
#16: Invest in a professional logo
A professional logo enhances your brand’s credibility and memorability. Invest in a well-designed logo that reflects your brand’s identity.
A strong logo can make your site look more professional and help customers remember your store.
If nothing else, follow this tip because it’s weird when companies don’t have logos.
#17: Prioritize customer privacy and security
With data breaches becoming more common, customers are starting to worry more about their data. Preempt their concerns by keeping your store secure and personal information private.
Make sure your privacy policy is easy to find as well. This may not increase sales in the short run, but it can help reduce the risk of catastrophic problems in the long run.
#18: Offer excellent customer service
Good customer service is absolutely essential for customer retention. Be responsive to inquiries and resolve issues promptly. Remember: 89% of consumers are more likely to make another purchase after a positive customer service experience according to Salesforce Research.
This extends to the experience provided by your website as well. “User experience is at the core of eCommerce sites’ operations,” says Brandon Schroth at Reporter Outreach, “therefore, it should be a priority among eCommerce businesses, especially during peak seasons.”
#19: Showcase reviews and testimonials
When asked about SEO best practices, Paul DeMott at Helium SEO said that “I’d also recommend leveraging social proof, like reviews or user-generated content, to enhance trust [especially during the holidays].”
Reviews and testimonials provide social proof, helping potential customers trust your products. When you get a positive review, put it on your product pages to help increase the odds of customers making a purchase!
It’s also a good idea to encourage satisfied customers to leave reviews. That way, you can increase the material you have available to act as social proof.
If you want to put this into practice, set up an automated email to ask for reviews a few weeks after a purchase. It won’t be long before you have plenty of reviews to choose from.
#20: Ensure a smooth shipping and fulfillment experience
Fast and reliable shipping is key. Customers expect quick delivery times and intact products. According to Ipsos, “85% of online shoppers say that a poor delivery experience would prevent them from ordering from that online retailer again.”
Work with reliable fulfillment partners to ensure a seamless shipping process. If you can provide two-day shipping to most of your customers, even better!
6 tips to build your ecommerce brand
If you sell online, it’s easy for your brand to be overlooked. Customers might say “I bought this on Amazon” or “I bought this on eBay.”
However, if you’re proactive, you can increase the odds that people remember your brand name. A strong brand helps you stand out among your competitors. Once you do that, your commitment to consistency, quality, and real relationships will help carry customer retention.
Below are some tips on how you can build a memorable brand.
#21: Pick a consistent style and stick to it
Consistency in branding helps build recognition. Choose a style for your logo, colors, and typography, and use it across all marketing channels.
Yes, this is a simple tip. But consistency is the bedrock foundation that makes brands memorable and trustworthy. You can’t skip this part!
#22: Build real relationships with customers
Real relationships go a long way online. When possible, personalize your communication and provide great service. Show your customers that you value their business, and they will be more likely to shop with you again.
#23: Focus on product quality
It’s hard to build a brand if your products are not high quality. Make sure your regularly review and improve your products to meet or exceed customer expectations. That way, you can keep customers happy and count on their repeat business.
#24: Test and refine your brand messages
You need to regularly test your brand messages to make sure they still work with your audience. Use A/B testing, surveys, and focus groups to see what works best.
If you’re not sure how to do this, PickFu is a good tool to start with.
#25: Customize your packaging
Even if you sell on Amazon where your brand is not readily visible, you can always use packaging to your advantage. Customizing your packaging is an easy way to get customers to see your brand name and make a good impression.
Plus, if you customize your packaging, you have a chance to control the unboxing experience. That can help increase your visibility online as well.
#26: Use shipping as a branding opportunity
Fast and reliable shipping boosts your brand’s reputation. Make sure packages arrive quickly and in good condition.
If possible, you may even want to add personalized touches during the shipping process. For example, a handwritten note slipped into the box before mailing can go a long way!
13 tips to retain ecommerce customers
According to Harvard Business School, a 5% increase in customer retention can increase profits by anywhere from 25 to 95%. Customer loyalty is that important!
For this reason, much of your eCommerce marketing needs to be based on maximizing customer retention. Below are some tips on how you can do that.
#27: Develop a strong brand presence
A strong brand presence dramatically increases your odds of high customer loyalty. Reread the branding section if you haven’t already and make sure that you routinely carve out time to improve your brand messaging.
If nothing else, be consistent across all channels. You need your brand to be something people easily remember. If you do this correctly, people will remember to shop with you even without prompting.
#28: Understand the entire customer lifecycle
A customer who just found your store has different needs than a customer whose first purchase was four years ago. Think about what customers need at each stage: first contact, first purchase, one year after first purchase and so on.
This is very unique to your business and is worth thinking about so you can build a long-term strategy. To help explain this concept further, we’ve included a longer video below.
#29: Track and analyze customer behavior
Tracking customer behavior will tell you a lot about their preferences and buying habits. At a minimum, set up Google Analytics so you can gather data and understand your users’ shopping habits.
#30: Personalize the customer experience
The more personal you can make your eCommerce store, the better. You can use data to tailor recommendations and offers, as well as what kind of communication you send and when.
Personalizing eCommerce makes customers feel like you are reaching out for good reason and with their best interests in mind. And who wouldn’t want to shop with a store like that?
#31: Allow guest checkout
Guest checkout reduces friction in the purchasing process. According to Pymnts, three quarters of eCommerce shoppers pay via guest checkout. It’s better not to go against the grain on this.
#32: Roll out a loyalty program
Offer points, discounts, or exclusive deals to loyal customers. This can help reward repeat purchases and encourage customers to return. When done well, this is a neat way to increase customer retention and overall lifetime value.
#33: Offer freebies and coupons
Freebies and coupons often lead to purchases and repeat business. If you offer limited-time discounts or free gifts with purchases, you’ll find that you can motivate customers to buy more often. After all, it’s harder to procrastinate when you have a coupon that is about to expire!
#34: Cross-sell related products
Suggest related products during the shopping process. For example, recommend accessories or complementary items to enhance the customer’s main purchase. This is an easy way to increase sales.
Plus, you don’t need fancy technology to do this. You can manually set recommendations so that Product B always shows up when customers buy Product A.
#35: Use email marketing
Email marketing is an effective way to engage with customers. Send personalized emails with special offers, updates, and product recommendations. Regular communication keeps your brand top-of-mind and encourages repeat purchases.
Done properly, email marketing can have an ROI of 40 or greater. The reason is very simple. If you can send the right people the right offer at the right time, it’s very easy to make a sale. Email lets you do that and the underlying tech is not expensive to use.
If you have a large mailing list ready to go, the immediacy of email marketing, compared to longer-term efforts like SEO can be highly compelling. To that effect, Tom Jauncey of Nautilus Marketing recommends eCommerce sites balance “their long-term SEO efforts with more immediate marketing tactics like paid ads, email marketing, and social media campaigns.”
He clarifies that “SEO is crucial for organic traffic, but paid and social can give you the immediate results you need when time-sensitive promotions are running.”
#36: Implement a referral program
Referral programs encourage customers to recommend your store to others. You can offer incentives like discounts or rewards for successful referrals. This can expand your customer base and increase sales through trusted recommendations.
There’s nothing better than word of mouth. That’s because marketers can’t force word of mouth to happen. But that doesn’t mean you can’t ask politely!
#37: Consider a subscription-based model
It’s not right for every business, but it might be worth it depending on what you sell. Subscription models provide steady revenue and increase customer retention.
Consider offering products or services on a subscription basis. This will, by definition, keep customers on your books for longer.
#38: Implement a repurchase/replenish model
For consumable products, offer automatic repurchase or replenishment options. This convenience ensures customers always have what they need and encourages repeat orders, boosting sales and customer satisfaction.
#39: Exceed customer expectations consistently
It’s a simple rule, but it works – underpromise, over-deliver. If you exceed expectations on a regular basis, it will make customers more loyal.
Deliver outstanding products and exceptional service. Go the extra mile to surprise and delight your customers. That way, you can encourage positive reviews and repeat business.
9 tips to grow your eCommerce business
If you want to grow your eCommerce store, you need to be strategic. Customer retention is extremely important, so many of the following tips focus on how you can increase customer lifetime value. Other tips focus on making it easier to acquire new customers by getting rid of common obstacles.
#40: Implement a generous return policy
Most customers read return policies before they make a purchase. For that reason, you need to make sure that returns are easy and hassle-free. It’s also likely a good idea to have a long returns window. While 30 days is generally considered standard, one easy way to go above and beyond is to extend the window to 90 days.
#41: Ensure fast shipping
Fast shipping meets customer expectations and enhances satisfaction. According to Forbes, 90% expect 2- or 3-day shipping to be the standard.
Work with reliable carriers and streamline your fulfillment process to ensure quick delivery. Fast shipping can set your store apart and increase repeat purchases.
#42: Reduce the number of choices for customers
Decision fatigue is a real problem. Too many choices can lead to customers not making any choice at all!
Simplify their decision-making process by curating a selection of top products. This reduces decision fatigue and helps customers make quicker, more confident purchases.
#43: Identify and fix sources of cart abandonment
Cart abandonment is a major issue. One of the most important things you can do from a strategy standpoint is figure out why customers add items to their cart and don’t purchase.
You can use analytics to identify where customers drop off and address these pain points. When in doubt, simplify checkout, offer multiple payment options, and make sure you’re not adding surprise shipping fees late in the process.
#44: Increase payment options
Some customers want to pay by credit card, others by PayPal or Venmo. They more payment options you provide, the better. It’s a small detail but it’s so important because it improves the checkout process.
#45: Use lookalike audiences on Facebook
Lookalike audiences on Facebook help target potential customers who are similar to your existing ones. You use existing customer data to create these audiences. That will help you improve the effectiveness of your ad campaigns and increase conversions.
#46: Address customer questions and objections in your copy
The best copywriting answers questions before customers pose them. Make note of the kinds of things your customers often ask about, and see if you can proactively provide information in your copy.
Clear, informative copy helps customers feel good about their purchase. That helps ward off doubts and increase the odds of making a sale.
#47: Have real conversations on social media
This is a simple suggestion, but worth implementing. Have real conversations with your customers and your prospects on social media. Respond to comments and direct messages.
Be genuine in your interactions, and it will help build trust and true relationships.
#48: Separate your SEO and PPC focuses
“Don’t expect one approach to be able to do everything,” says John White of Complete White Label. “Make sure you’re planning in advance to see where one strategy ends and another begins. For example, plugging gaps in your SEO campaign and how that can assist your PPC landing pages, but also putting a line in the sand of where SEO is going to cover what PPC may not.”
He continues, saying “this could be your SEO strategy covering buyers’ guides and informational content, whereas PPC could be more focused on commercial keywords only (e.g. products and categories).”
7 tips to use AI in eCommerce marketing
There was a massive increase in available AI tools around late 2022 and early 2023. While much of the hype has receded, AI is still incredibly useful for cutting down on unnecessary work.
Below, you can find some tips on how to use the recent advances in AI to eliminate the grunt work associated with running an online store.
#49: Implement chatbots for customer service
Chatbots provide instant customer support, answering common queries and guiding users through the buying process. Setting up chatbots can be a simple way to improve response times and reduce workload on your team.
#50: Use AI for inventory optimization
AI can analyze past sales patterns and help predict demand and manage inventory levels effectively. Used correctly, AI-driven inventory management systems can cut down on stockouts and overstock situations, meaning you have the right products available when needed.
One example of this is Intellify’s AI-Powered Inventory Management AWS Solutions.
#51: Implement AI for fraud detection
AI can identify and prevent fraudulent activities. You can use AI tools to monitor transactions and detect suspicious behavior. Fraud detection existed prior to the explosion in available AI tools, but recent advances in AI have shown potential to further improve.
One example is NoFraud Fraud Protection for Shopify.
#52: Analyze customer feedback with AI
AI tools such as ChatGPT are good at analyzing large volumes of text and summarizing them. If you have a lot of customer feedback and want to get a feel for the general “vibe” quickly, you can copy and paste it into an AI tool of your choice and ask it for a sentiment analysis.
#53: Optimize SEO with AI tools
SEO tools such as SEMRush are starting to implement more AI. You can use these AI tools to help identify relevant keywords and analyze traffic patterns. This can help you boost your store’s search engine ranking and attract more organic traffic.
#54: Use AI for copywriting assistance
AI tools like ChatGPT are good at creating first draft copy for many types of writing. If you describe your product and provide photos, AI can create rough copy for your product descriptions. You can then take that, fact check it and change some words for tone and style. The end result will be better descriptions made in less time!
#55: Leverage AI for predictive sales and demand forecasting
Estimating your own sales can be tricky. But AI tools are getting better at this every day. AI forecasting can help you make smarter decisions about inventory, marketing strategy, cash flow, and overall profitability. For example, Salesforce has been piloting this type of AI within their CRM software.
Final Thoughts
Ecommerce success requires you to juggle a lot of different responsibilities. While that can be stressful, the positive side of this is that there are a ton of things you can do in order to improve your odds of success.
You don’t need to follow every tip in this guide. Pick a few that work for you and do your best to implement them. In doing so, you can build up your brand, improve your store’s performance, keep customers loyal, and ultimately, increase sales.
One of the most common bits of advice in eCommerce is to make landing pages.
But what do you put on those landing pages? And how do landing pages impact other marketing tasks you take on, such as running ads?
These are complex questions, but important ones to answer. That’s why we reached out Ro Patel from Starbound, a company that specializes in improving eCommerce conversion rates.
We sent him a bunch of questions by email, and he was kind enough to send responses back. We will now share those responses with you with only minimal editing for clarity and flow.
Why do store owners need landing pages?
This is a great question, and a pretty common one we hear from store owners.
As you likely know, most e-com businesses spend a ton of money on paid advertising, as it’s a critical part of most growing brands’ marketing strategy.
But most of that traffic is sent directly to templated, generic product pages or collections pages.
And that’s a real problem, because sending visitors to a simple product page is like handing them a catalog.
Sure, it lists the features, prices, and technical details to give you a general idea of what the product does.
But that’s not why visitors came to your site.
They came to your site because they want to know if your product is the solution to their problem.
And your job is to guide the visitor towards understanding that what you’re selling is for them.
And that’s where landing pages come in.
Landing pages are standalone web pages designed specifically to convert visitors towards some targeted and specific goal (like purchases or signups).
It’s like having a personal salesperson that deeply understands your visitors.
It doesn’t just show them the product, it tells them why they need it, addresses their concerns, and guides them to make a confident purchase without any distractions or confusion.
So that’s why landing pages are critical, especially for stores that are spending money on paid ads:
- Provide Clear Direction – Landing pages remove all distractions and make it extremely obvious what next step the visitor should take, making it much more likely they’ll continue down the customer journey.
- Address Objections – A landing page anticipates questions like, “Is this worth the price?” or “Will this really work for me?” and answers them right there, removing barriers that would otherwise keep the visitor from purchasing.
- They Tell the Story – Product pages list features, but landing pages frame those features as benefits that solve your customers’ problems, and give your offers context to drive more sales (i.e. landing page for a limited time holiday bundle)
- Seamless Customer Journey – A landing page aligns perfectly with the ad or email that brought them there, creating trust and consistency to leads to higher likelihood of conversion.
- They Boost Conversions – By guiding your visitors with hyper-targeted copy, engaging visuals, and a structured user experience, landing pages turn more visitors into customers.
When you’re running traffic to a product page, you’re relying on your visitors to sell themselves. A landing page gives you the ability to overcome all your visitors’ objections and get (way) more of them to actually buy.
How do conversion rates matter in the larger picture of marketing and sales?
Your conversion rates are one of the biggest levers you can influence that have an outsized impact to your:
- ROI
- Customer Acquisition Costs
- Scalability
- Long-term Growth
Here’s a quick example of a business that gets 50,000 visitors to their site every month, with a product they sell for $50:

Notice that the only thing changing is the conversion rate, and only by a few tenths of a percentage. But it results in huge growth in revenue.
Having higher conversion rates mean you get more value out of every dollar spent on ads, emails, or any other traffic source.
And the best part? These are permanent gains, not one-time quick wins. When all this comes together, you end up with:
- lower customer acquisition costs
- higher profit margins
- revenue growth
Bottom line: improving your conversion rates is amongst the highest-ROI things you can do to dramatically grow your business in a relatively short time period.
How do the key elements of a landing page (e.g., design, copy, and CTAs) influence ad conversion rates?
Ads will drive traffic to your website all day long, all you need to do is throw money at it.
But whether or not that traffic actually turns into paying customers is the main job for your landing pages.
There are quite a few different components that make up a conversion-optimized landing page, and each one impacts visitor behavior directly.
Site Speed
There’s been multiple studies done that show a direct correlation between page load time and conversion rate impact.
And it should come as no surprise that the faster your page loads, the higher your conversion rate will be.
According to a recent Portent study, an e-commerce site that loads in 1 second will have conversion rates 2.5x higher than a site that loads in 5 seconds.
We’re not talking about small differences, we’re talking about double and triple revenue, just due to site speed.
Page Structure
All landing pages don’t follow the same formula, and how they’re structured depends on the purpose of the page.
Some take the form of advertorials that blend informative, editorial-style content with promotional elements to subtly promote products.
Others take the form of hero pages that are designed to immediately capture visitors’ attention and convey the core message or value proposition, without requiring the visitor to read too far down a page.
There are many other ways to structure a landing page, and sending visitors to the right ones based on where they are in their customer journey has a direct impact to conversion rates.
Headlines & Copywriting
Without a doubt, your headlines are one of the only things that you can be reasonably sure that most page visitors will read.
We’ve seen over and over again, through using heatmaps to identify on-page behavior, that almost everything else is likely to be skimmed, or even skipped entirely.
That’s why writing engaging headlines that immediately hook visitors to continue reading down the page is the most influential component of any landing page, when it comes to conversion rate impact.
Design
Design is not just about making things look pretty.
It’s about trust.
When your landing pages are organized and designed to engage the visitor, they’re way more likely to continue consuming the content on the page.
And the more they consume, the more “bought-in” they become to your story, your products, and their benefits. And that ultimately leads to more conversions.
Social Proof
Social proof is one of the most important elements of any landing page, and again, comes down to trust.
To quote Danyon Togia, Founder of Expert SEO, “one of the simplest ways to boost eCommerce conversions is by putting social proof front and center.”
He further clarifies that “as soon as someone lands on your site, they should see reviews, star ratings, trust badges, or even media mentions. Anything that instantly communicates ‘other people have bought this and loved it’ builds trust and lowers hesitation. The key is to have it above the fold; don’t make people scroll to be convinced.”
And he’s right: people seldom buy anything without first reading and watching reviews. According to Capital One Shopping, 84% of consumers trust online reviews as much as personal recommendations, with nearly 70% of online shoppers reading between 1-6 reviews before deciding to buy (Statista).
That means your landing pages must include real proof of what your customers are saying about your products.
Offer
Most businesses think their “offer” is simply the product(s) they sell.
But the reality is, it’s actually how they package what they sell. And this matters a ton for landing pages.
Let’s use planners as an example.
The product might be a quarterly habit tracking planner.
An offer, however, would be an discounted annual subscription for the planner (where the buyer gets 4 to cover them for the year).
Notice the difference?
How you position what you sell is your offer. And the more compelling your offer is on your landing page, the better your conversion rates will be.
What common mistakes do you see on landing pages that harm conversion rates, especially for eCommerce businesses?
While there are quite a few, I’ll limit it to the top 6 that I generally see:
- Templated product pages as landing pages – Particularly for e-commerce businesses, so many rely on their site’s default product to do all the selling for them, which leaves a lot of money on the table
- Slow load times – As we discussed earlier, even a 1-second delay can have huge negative impacts to conversion rates (one study shows every second results in a ~6% drop in conversion rates)
- No social proof – Nowadays, people don’t buy without getting the opinions of others first (even from strangers on the internet). If you don’t share what your customers love about your products, you’ll have a hard time converting new customers, since they won’t trust that you can actually provide what you say you will.
- Overwhelming information – So many landing pages try to cram as much text as possible into page section, thinking that getting as much information out as possible will help the visitor make a decision. It doesn’t, it only confuses people.
- Lack of mobile optimization – Even in 2024, you’d be surprised to see how many businesses still have barely useable mobile landing pages, where core elements end up being covered by popups and text becomes illegible. Nowadays, the majority of many business’ traffic is mobile, so this is critical.
- Generic copywriting – So much page copy simply describes features and technical specs, without targeting the reasons people actually buy: benefits.
And beyond just those common mistakes, the largest strategic error that eCommerce businesses tend to make on their landing pages can be summed up as “making things hard for no reason.”
Michael Alexander, Managing Director of Tangible Digital, said it best. “The extra procedure, the extra click, the extra distraction, is a silent slayer of the deals. The clear and simple companies are the ones that are found to be the most profitable.”
How can landing pages be optimized specifically for eCommerce clients to align better with ad campaigns?
Iteratively testing and improving any/all of the components can immediately improve conversion rates for most landing pages.
But if you want to get even more granular, you can do things like:
- Make sure your headline and visuals on your landing page mirror the ad’s promise, so visitors know they’re in the right place
- Promote ONLY the product(s) that you promote in your ads, and nothing else, to keep the landing page distraction-free
- Ensure your mobile pages are optimized, since the majority of e-commerce traffic is mobile now
- Incorporate urgency (”this offer ends in 12 hours!”) and scarcity (”Only 8 left in stock!”) into your landing pages, to drive people towards a purchase decision faster
- Build landing pages that target the specific demographics that your ad campaigns are targeting
- Write your landing page copy such that the headline references back to the copy used in the ad campaigns they are tied to
- Incorporate as many trust elements as you can, including social proof (reviews, testimonials, user generated content), certifications, security badges, and clear return policies
What metrics should eCommerce businesses track to evaluate the success of their landing pages in ad campaigns?
While the importance of each metric listed here may differ depending on the intent of the landing page, at a high level, these are the 7 core metrics that are most important to track:
- Conversion Rate – The percentage of visitors who complete the desired action, whether it’s a purchase, sign-up, or other goal. This is your north star.
- Bounce Rate – The percentage of visitors who leave without interacting with anything on your page. A high bounce rate usually means that the page isn’t meeting expectations, and there’s a disconnect between your ad traffic and your landing page content.
- Average Order Value (AOV) – Measures how much customers are spending on average per transaction, indicating whether upsells and bundles are working. While improving conversion rates alone has huge impacts, when you combine that with increasing AOV through better offers, you can truly explode your business.
- Revenue Per Visitor (RPV) – Tracks the average revenue generated by each visitor to your landing page. This metric helps us more easily determine profitability, as we can compare this number against how much it costs to bring a visitor to the page.
- Click-Through Rate (CTR) – CTR shows how many visitors move to the next step, which is mainly an important metric to track ad performance, but also important for landing pages if there’s multiple steps in your sales process.
- Return on Ad Spend (ROAS) – Calculates the revenue generated from your ads relative to their cost, tying ad performance to landing page effectiveness.
- Page Load Time – A slow page can drive visitors away, so keep an eye on this metric to avoid losing sales to technical issues.
How can A/B testing improve the performance of landing pages for eCommerce ads?
A/B testing is an amazing way to guarantee revenue (and profit) growth.
Buying habits change over time, and the interests and behaviors of your audience will also change.
What that means is, there’s always going to be ways to increase the number of site visitors that actually become your customers.
And the only way to find those ways is by running experiments (or A/B tests) on your landing pages.
After all, you can never really be 100% sure what changes to your pages are going to result in measurable improvements to conversions.
Sure, we can make educated guesses and rely on best practices based on experience. But that still doesn’t guarantee that the changes you make will perform better than what you already have.
With A/B testing, e-commerce brands can easily split their traffic between multiple versions of a landing page, allowing you to find “winners” quickly and with less risk.
E-commerce brands with experimentation programs essentially run multiple A/B tests constantly, across their entire user experience. This allows them to consistently increase conversions, without increasing ad spend.
How do landing pages differ in their impact on paid search versus paid social ad performance?
In general, the impact is the same to any type of traffic source. The better the conversion rates on the landing pages, the lower the cost of conversion, which ultimately means better performing ad campaigns.
There is a difference, however, in the audiences that come from search traffic vs paid social ads. And that influences how the landing page needs to be built.
You can get very specific with targeting your audience on landing pages that are tied to paid ad campaigns, because modern paid ad platforms tend to have very detailed targeting options. This makes it much easier to know exactly who will be coming to your landing pages, and tailor your copy and design to be super detailed and targeted.
For search ads, you have less knowledge about the exact characteristics of the people that are clicking through to your landing pages. They came to your page due to searching for topics that your ads show up for, so these landing pages would need to be designed to target a topic/search phrase.
Can you share any examples or case studies of how a landing page overhaul improved ad ROI for an eCommerce client?
I can give an example from my own e-commerce brand called Code&Quill, where we sold premium planners, notebooks, and writing tools for creative professionals.
We had launched a new productivity planner on a crowdfunding platform called Kickstarter, where we taking pre-orders of the product. It ended up doing well, so we knew we wanted to start selling it directly from our own store once we got inventory.
We put up a standard product page on our Shopify store, so we could take direct orders for the new product, and filled out the information that the template asked for. We figured that the a few paragraphs describing what the product did were good enough, and that the pictures would tell the rest of the story.
So, we started running Facebook and Instagram paid ads to the product page. After a couple weeks of testing tons of ads, we ended up with a ~1.8% conversion rate.
The planners were barely profitable at that rate, so we decided to test a dedicated landing page that included:
- a big hero section with a benefit-driven headline
- social proof throughout the page
- a visual representation of end benefits
- diagrams for how the planner worked, and how it should be used
- calls-to-action to buy either 1 at full price, or a discounted annual subscription (4 planners, 30% off)
- a couple videos of user generated content walking through their planners
The results from this were crazy. Not only did conversion rates increase, but we also increased our average order value:
Conversion rate went from 1.8% → 3.3%
83% increase
Average order value went from $35 → $46
31% increase
This allowed us to have significantly more profitable ads, which meant we could spend more to get more customers, fast.
We ended up selling 4500+ of those planners within the first 9 months of their launch.
Final Thoughts
Landing pages are a huge part of eCommerce. They don’t just convert visitors—they tell a story, answer doubts, and build trust.
Yet, their power is often overlooked. Too many brands rely on default product pages, missing out on what landing pages can do for their marketing campaigns.
Landing pages guide, persuade, and drive action with purpose. If you’re investing in ads, you can stretch your budget further by pairing them with pages designed to win.
Take the time to refine them, test them, and let data shape your approach. You’ll be glad you did!