How To Start Selling On Amazon In 2025

Selling on Amazon in 2025 isn’t just about listing a product and hoping for the best. The competition is intense, and success depends on making strategic choices from day one.

What products should you sell? How do you price them? What’s the best way to get reviews and keep inventory in check?

This guide breaks down key factors every new seller needs to know, from choosing a fulfillment method to optimizing listings for Amazon’s algorithm.

In this post, we’re going to share advice from experts and discuss proven strategies. That will help you see how you can set yourself up for long-term profitability—without making costly beginner mistakes.

We’ll go over this topic in the form of questions and answers, starting with strategy and research. Then we’ll move into sales optimization, logistics, advertising, and performance tracking.

How can sellers find the most profitable categories on Amazon?

If you want to succeed on Amazon, the #1 thing you can do is sell the right products. Getting this one part of the process right has an outsized impact on everything else you do.

Of course, market research is easier said than done and it helps to know where to begin. A great place to start is the Amazon Best Sellers list. On it, you will see top-performing products in real-time.

Spend enough time browsing the Best Sellers list and you’ll probably see trends emerge. For example, categories like Beauty & Personal Care, Home & Kitchen, and Clothing & Accessories tend to have consistent demand, but naturally, competition varies.

If you want to go deeper with your research (and we recommend you do), consider looking at Amazon’s Product Opportunity Explorer. Through it, you’ll see all kinds of data on search trends, niche saturation, and units sold. Sellers like you can analyze customer interest, competition levels, and historical performance and, in doing so, spot fresh opportunities.

Beyond Amazon’s built-in tools, monitoring Movers & Shakers and Hot New Releases can reveal fast-rising products. External sources like Google Trends and social media trends also help validate demand. A low-review, high-search-volume niche is often a strong entry point.

When you look at multiple different sources of Amazon data, you can often find areas where you can strategically enter high-demand, low-competition categories. These are the ones known for having strong profit potential.

What tools or resources are most effective for product research and competitor analysis?

Successful Amazon sellers rely on real data to make decisions. Certain widely available software tools can help you to identify profitable products and outmaneuver competitors.

Two of the most widely used platforms are Helium 10 and Jungle Scout. Both have a suite of features for product and keyword research.

  • Helium 10’s Black Box tool filters products based on revenue, competition, and pricing trends. This helps sellers uncover overlooked niches. Its Cerebro tool reverse-engineers competitor listings to extract the most effective keywords for optimization.
  • Jungle Scout provides in-depth sales estimates, keyword tracking, and competitor monitoring. The Opportunity Finder highlights markets with favorable demand-to-competition ratios, ensuring sellers avoid oversaturated spaces.

Beyond these, tools like AMZScout and Keepa help track price trends and historical sales data, giving sellers insights into seasonality and market shifts.

Using these resources allows sellers to make strategic decisions and stay ahead of market trends. But remember, you need to pair this with other research like described in the previous section. Number-heavy data like that provided by these tools can be misleading if you don’t seat it within a larger context.

What are common mistakes beginners make when choosing products to sell?

Many new sellers make emotion-driven decisions. After all, it’s tempting to pick products you like rather than those with proven demand. Without market validation, you risk launching items that don’t attract enough buyers.

Another common mistake is entering oversaturated markets. If a product has thousands of reviews and deep-pocketed competitors, a new seller will struggle to gain visibility. Instead of selling generic water bottles, niching down to “insulated stainless steel bottles for hikers” gives you a better chance to stand out.

Pricing issues also hurt beginners. Amazon FBA fees, referral fees, and shipping costs quickly eat into margins. A product that looks profitable at first glance may barely break even after fees. Using profit calculators and competitor analysis tools ensures better decision-making.

Successful sellers research trends, review costs, and validate demand before committing to inventory. They focus on low-competition, high-margin products with steady demand instead of chasing fads.

Which pricing strategies help new sellers attract buyers while still maintaining profit?

Pricing on Amazon is a balancing act. Go too high, and you lose customers. Go too low, and you lose profit. The most effective strategy is competitive pricing, where you price your product slightly below or in line with top competitors.

However, rather than simply undercutting, sellers can add value by bundling complementary products or offering limited-time discounts.

Dynamic pricing tools like RepricerExpress and Aura help sellers adjust prices based on market demand, competitor activity, and inventory levels. This ensures products remain competitively priced without unnecessary margin cuts.

Psychological pricing also plays a role—pricing at $19.99 instead of $20.00 increases conversions. Additionally, using Amazon’s coupon and deal features can attract budget-conscious shoppers while maintaining perceived value.

Ultimately, successful pricing requires constant monitoring of costs, fees, and competitors. Sellers who experiment and refine their approach find the sweet spot between affordability and profitability.

How do successful sellers optimize their product listings for Amazon SEO?

Amazon’s search algorithm favors relevance, engagement, and conversions. That means your listing must be optimized for both customers and search ranking.

Successful sellers start with thorough keyword research using tools like Helium 10 and Jungle Scout to identify high-traffic, low-competition terms. These keywords should be placed naturally in the product title, bullet points, and description to maximize visibility.

High-quality images and videos improve click-through and conversion rates. Amazon prioritizes listings that keep shoppers engaged, so having infographics, lifestyle images, and explainer videos can increase performance.

Encouraging customer reviews also helps rankings. Products with more positive reviews tend to rank higher, as they signal trust and reliability. Lastly, optimizing backend search terms helps Amazon understand your product even when shoppers use different phrasing.

When in doubt, remember the whole point of Amazon is to sell products. So your North Star should be to make a product listing that compels people to buy. If you can manage that, then you’ve accomplished the most important part of Amazon SEO.

How can sellers gather more (and better) product reviews in a compliant way?

Product reviews are one of the most powerful tools for boosting sales on Amazon.

“Positive online reviews can significantly impact sales, as consumers often place a high level of trust in them,” says Kristin Hutcherson, Partnership Manager at eComEngine. “Quality reviews help boost product search rankings, which allows more buyers to discover your product, increasing your sales potential.”

The best way to get more reviews? Ask your customers.

“Sending automated review requests is a smart way to streamline the process and ensure you’re regularly requesting reviews,” Hutcherson explains.

Amazon allows sellers to request reviews, but they must follow strict guidelines—you can’t pay for or influence a review, and requests must be sent within 30 days of order completion.

If you want to automate this process some, you might look into tools like FeedbackFive by eComEngine. This can help you automate review requests and stay within Amazon’s policies.

What factors should new sellers consider when choosing between FBA and FBM fulfillment?

When you start selling on Amazon, you will need to decide between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). It’s a big choice and one that will directly affect your operations, costs, and customer satisfaction.

With FBA, you send products to Amazon’s fulfillment centers. Amazon then handles storage, packaging, shipping, customer service, and returns.

https://www.youtube.com/watch?v=qSnfGUKNDUQ

There’s a certain appeal to doing this. You can manage your sales and inventory under one roof and in one system. Plus, this method automatically makes your products eligible for Amazon Prime’s free two-day shipping, which increases your visibility among Prime members.

Of course, this is not a perfect option since FBA comes with storage and fulfillment fees. These can add up, especially for slow-moving or bulky items. Additionally, you have less control over inventory management and packaging.

Some people prefer FBM instead, which means you manage storage, packaging, shipping, customer service, and returns yourself or through third-party logistics providers.

Doing this gives you a greater degree of control over fulfillment, and you can do things like personalize packaging and interact more directly with customers. This can be more cost-effective for sellers with existing logistics infrastructure or for products that are heavy, oversized, or have lower sales volumes.

But there are downsides, as you might expect. For one, FBM products are not automatically Prime-eligible. You can get around this by qualifying for Seller Fulfilled Prime (SFP). But that means you will have to meet Amazon’s stringent performance requirements, which includes having a high on-time shipment rate and offering premium shipping options. That’s not easy to do.

When choosing between FBA and FBM, consider your product type and volume, desire for control over fulfillment, cost analysis, scalability, and the level of customer service you wish to provide. FBA is generally better when simplicity is a priority and FBM is generally better when flexibility is a priority.

How can inventory management tools help prevent stockouts or overstocking for beginners?

Many beginner sellers rely on spreadsheets to track inventory, but as sales grow, managing stock manually becomes overwhelming.

“As sales grow and SKUs increase, manual tracking gets more complex,” says Kristin Hutcherson, Partnership Manager at eComEngine. “This is where inventory management tools become important to consider.”

These tools provide real-time insights, helping sellers avoid stockouts and overstocking by streamlining supply chain decisions. “It may be beneficial to start with operational analytics or insights tools rather than a full inventory management tool,” Hutcherson explains.

“Tools like SellerPulse, for example, offer inventory planning reports, FBA fee alerts, and SKU-level profitability analysis.”

Effective inventory management reduces additional order fulfillment fees, aged inventory surcharges, and disposal costs. Smart use of software is an all-around good way to help maintain optimal stock levels.

How can a seller use Amazon ads to boost initial sales and visibility?

Amazon’s advertising platform is one of the most effective ways to drive traffic and increase sales. Sponsored Products, Sponsored Brands, and Sponsored Display Ads help new sellers reach their audience quickly.

To start, sellers should focus on keyword targeting. Using tools like Jungle Scout’s Keyword Scout can help identify high-performing search terms. Optimizing bids and monitoring ACoS (Advertising Cost of Sales) will help you make sure ad spend remains profitable.

Running low-bid automatic campaigns initially can help uncover valuable search terms. After identifying strong keywords, shifting to manual campaigns with refined targeting can improve efficiency. Additionally, testing Sponsored Brands and Display Ads can enhance brand recognition and keep products in front of customers.

What best practices should a newcomer follow to maintain high seller performance metrics?

Amazon tracks seller performance metrics closely. You’re going to need to maintain strong scores if you want to succeed in the long run.

The most important factors include order defect rate (ODR), late shipment rate, and customer feedback.

To keep metrics high, sellers should:

  • Ship orders on time – FBA automates this, but FBM sellers need reliable fulfillment partners (Fulfillrite is one good option).
  • Provide excellent customer service – Fast responses and accurate product descriptions reduce negative feedback.
  • Monitor inventory closely – Stockouts hurt rankings, while excess inventory leads to storage fees.
  • Handle returns quickly – A clear return policy minimizes chargebacks and disputes.

If you are able to consistently meet these standards, you will keep the buyers’ trust and your seller performance metrics will reflect this reality. And that is necessary if you want to stay in good standing with Amazon.

What else do I need to consider when selling on Amazon?

It’s also smart to keep in mind the long game. You’re ultimately going to want lifetime customers, and not just one-off purchases.

Marty Bauer, Ecommerce Expert at Omnisend says that “the strongest driver for increasing lifetime value is consistent communication post-purchase.” This is true whether people purchase from your own store or from a large centralized one like Amazon.

He goes on to further clarify that “something many businesses overlook when obsessing over loyalty programs or discounts. Customers return when they feel remembered and cared for, and coupon codes don’t necessarily convey that. Even if flows are automated, you can still set clear expectations, share tips, and follow up after delivery in a personal manner.”

If absolutely nothing else, you always have a chance to use custom packaging to direct people to your own store and your own ecosystem. That can help you stay in touch with customers, even if they find you via Amazon.

Final Thoughts

Winning on Amazon isn’t about guessing—it’s about understanding the platform, using the right tools, and making data-driven decisions.

The best sellers don’t just pick products at random. They research trends, optimize listings, manage inventory wisely, and use Amazon ads for visibility.

Whether you’re weighing FBA vs. FBM, fine-tuning pricing, or improving seller metrics, success comes down to consistency and adaptability.

Keep testing, keep optimizing, and most importantly—keep learning. The grand game of Amazon is always shifting, but sellers who stay informed and strategic will thrive.

Finding the right manufacturer is absolutely critical if you want to bring your dream product to life. A good manufacturer can make your vision a reality, ensuring high quality and timely delivery. But if you choose poorly, you could face delays, cost overruns, and subpar products.

This guide will help you navigate the process of finding the ideal manufacturing partner. In it, we will cover:

  • Basic manufacturing information you need to know
  • Common problems and how to avoid them
  • Methods to find manufacturers
  • More websites for further research

With this information, we hope to help you find the perfect manufacturer for your loftiest ambitions!

Manufacturing Basics: 7 Concepts You Must Understand

Manufacturing is about transforming raw materials into finished products. Conceptually, it’s simple. Practically, it’s complicated.

Here are seven things you need to understand before you go down the manufacturing rabbit hole online.

#1: Manufacturing in a Nutshell

Manufacturing is what transforms raw materials into finished products. It includes multiple stages: planning, designing, prototyping, production, and quality control.

  • Planning sets the groundwork by defining what needs to be made and how.
  • Designing turns ideas into detailed plans.
  • Prototyping tests these designs to catch any issues early.
  • Production is where the real making happens, turning designs into actual products.
  • Quality control ensures everything meets the required standards.

Each stage must be managed well to produce a final product that meets all specifications and quality standards.

#2: Different Types of Manufacturing

Manufacturing isn’t one-size-fits-all. There are different methods depending on what you need.

Batch production is for smaller quantities, making it flexible and adaptable. It’s great if you need limited runs or want to test a new product without a huge commitment.

Mass production is for large volumes. It’s cost-effective but requires significant setup, making it ideal for products with high demand.

Bespoke manufacturing is for custom items. It allows for high customization, perfect for unique or specialized products.

Choosing the right method depends on your product’s needs, balancing flexibility, cost, and volume.

#3: The Importance of Design for Manufacturing (DFM)

Design for Manufacturing (DFM) is about making products easy and cost-effective to produce. It’s crucial to consider DFM from the start to avoid problems later.

If you ignore DFM, you might face higher costs and production challenges. DFM principles focus on simplifying designs, using standard materials, and minimizing parts.

A simpler design means fewer things can go wrong, making production smoother and cheaper. Standard materials are easier to source and often cheaper. Fewer parts mean less assembly time and fewer points of failure.

It’s really important to think about DFM early on. Of all the possible levers you have to keep costs low and production simple, DFM is probably the strongest one.

Don’t skip this!

#4: Why Minimum Order Quantities (MOQ) Matter

Minimum Order Quantities (MOQ) is the smallest quantity a manufacturer will produce in one order. Knowing your product’s MOQ is crucial for budgeting and planning.

High MOQs can mean higher upfront costs, which can be a challenge, especially for startups or small businesses. With Kickstarter campaigns in particular, the cost to produce an MOQ is extra important. That’s because a lot of crowdfunding campaigns are held in order to raise funds for production, whose cost is directly influenced by MOQ.

Sometimes, you can negotiate with manufacturers to lower the MOQ or get more flexible terms. Always consider MOQ when planning your production runs to ensure you can meet these requirements.

Proper understanding and planning around MOQ can make a big difference in managing costs and ensuring your production is viable.

#5: How To Request Quotes

Requesting a quote from a manufacturer is a key step in starting a business relationship. To get accurate quotes, you need to be clear and detailed about your product specifications.

In all likelihood, you will already be talking to manufacturers before requesting a quote. After all, you will need to have information about the MOQ, sampling, and turnaround time first. You’ll also need to finalize the specs, and manufacturers will likely have feedback for you to make sure your desired products can be made.

Ultimately, you will need detailed drawings, material specifications, and an understanding of any special requirements your product might have. When you have that, then it’s time to request a quote.

You will need to request quotes from multiple manufacturers so that you can compare prices. This will let you evaluate potential deals from different manufacturers.

This is not a process you want to rush. Thoroughness matters a lot!

#6: Quality Assurance & Packaging

Quality assurance makes sure your product meets all necessary standards before it goes into mass production. Always order samples from your manufacturer and inspect them critically.

This helps catch any issues early. Quality control involves regular inspections, testing, and making sure everything adheres to set standards throughout production.

Packaging is another big part of manufacturing and quality assurance. It often goes overlooked.

Your packaging needs to protect your product during shipping and handling. But you also can’t forget it’s also part of the overall customer experience in terms of branding and marketing.

A great packaging design can enhance the unboxing experience, making it memorable and shareable on social media. Think about durability, branding, and how the packaging reflects your product’s identity. Work closely with your manufacturer to ensure they understand and can meet your packaging requirements.

Proper packaging not only keeps your product safe but also boosts customer satisfaction and can influence their decision to buy from you again. So, prioritize quality assurance and packaging to make a lasting impression on your customers.

#7: Sustainability & Compliance

Modern manufacturing increasingly requires attention to environmental and regulatory compliance. Many manufacturers now offer sustainable material options, energy-efficient processes, and waste reduction programs that can differentiate your product while meeting consumer expectations.

Research regulatory requirements early in the process. Different markets have varying standards—FDA approvals for food contact, CE marking for European markets, or California’s Proposition 65 requirements. Some manufacturers specialize in compliance documentation and can guide you through these requirements.

Consider lifecycle impacts when selecting materials and processes. While sustainable options may cost more upfront, they often justify premium pricing and appeal to environmentally conscious consumers.

Common Problems in Manufacturing

Manufacturing can be tricky, with lots of potential pitfalls. In the sections that follow, we talk about some common problems. As we go over them, we’ll talk about how you can sidestep them to keep your production running smoothly.

#1: Poor communication and misaligned expectations

Clear communication with your manufacturer is absolutely crucial. Misunderstandings about design details and expectations can lead to big issues.

For example, imagine expecting a shiny silver finish on your product, only to receive a dull matte gray instead!

To avoid this, make sure every single specification is documented in detail and agreed upon by both parties. Use clear drawings, precise measurements, and unambiguous descriptions.

Regular updates and open lines of communication help ensure everyone is on the same page. Misaligned expectations can derail your project, so take the time to clarify and confirm every detail.

#2: Delays and unexpected costs

Delays and cost overruns are all too common in manufacturing. They can throw your entire plan off track. To tackle this, always add a cushion to your budget and timeline.

Expect the unexpected and be prepared for it. Create a contingency plan to handle surprises without panicking. Regular communication with your manufacturer is key here too.

This is especially true if you’re manufacturing overseas. Tariff hikes can drastically increase landed costs without much notice—another reason to build in extra margin and keep a close eye on trade policy updates.

Stay updated on the progress and any potential issues that could cause delays or extra costs. While you can never eliminate the possibility of unexpected costs, you can at least reduce the odds that they break your business by following tip #1.

#3: Late design changes

Changing your design mid-production is a recipe for disaster. It can lead to significant delays, increased costs, and even quality issues.

The best way to avoid this problem is to finalize your design before starting production. Once you’ve started, stick to the agreed design. Of course, some changes might be necessary, but try to limit them and understand the potential consequences.

Having a solid design from the start helps so much here. It will let you avoid last-minute changes, which will lead to a smoother production process and a higher quality end product.

#4: Poor quality control

Quality control is a critical aspect of manufacturing. A single bad batch of products can seriously damage your reputation and customer trust.

Conduct quality checks at every stage of production to maintain high standards. Regular inspections, thorough testing, and clear quality standards are essential. Don’t just assume everything will be fine—actively verify it.

#5: Poor logistics planning

Without good logistics planning, you can face major headaches. Imagine your products stuck in customs for weeks or customers getting their orders late.

To avoid these problems, plan your freight, customs, and fulfillment costs and times well in advance. Efficient logistics can reduce delays, lower costs, and improve customer satisfaction.

When choosing a manufacturer, consider all aspects of shipping and delivery. Think about the transportation method, packaging, storage, and handling. Also, be mindful of international shipping laws and customs regulations if you’re manufacturing overseas.

Any way you look at it, proper logistics planning can save you a lot of time, money, and stress.

And don’t forget tariffs. In 2025, many product categories face new or increased duties, especially for imports from China and Southeast Asia. Make sure you calculate landed costs early and consult with a customs broker before choosing a factory.

#6: Payment issues

Payment issues can cause significant disruptions. Manufacturers often require a deposit before they start production, and clear agreements on payments can prevent disputes later. Consider using escrow services for added security.

Define payment terms, conditions, and milestones clearly in your contract to avoid misunderstandings and ensure timely payments. For instance, you might agree to pay a certain percentage upfront, another portion upon completion of a milestone, and the final amount upon delivery.

Regularly review and reconcile payments to avoid any discrepancies. Keeping on top of payments helps maintain a good relationship with your manufacturer and ensures a smooth production process.

Evaluating manufacturer capabilities

When evaluating manufacturers, consider their capabilities, costs, location, and reputation. Make sure they can produce your product as you imagine it and meet your quality standards.

Visit facilities, if possible, to see their operations firsthand. Look for manufacturers with experience in your industry and good reviews from other clients.

Methods to Find Manufacturers

Finding the right manufacturer requires thorough research and patience. Start by searching online, visiting trade shows, and tapping into industry networks.

Websites like Alibaba, ThomasNet, and industry forums are great resources. Don’t rush this process—take your time to gather information and compare options.

Build a list of potential manufacturers and narrow it down based on your criteria. Look at factors like their production capacity, lead times, quality control measures, and pricing.

Reach out to them with detailed RFQs and evaluate their responses. The right manufacturing partner will align with your needs and help you bring your product to life successfully.

Bear in mind that as the world leans more toward tariff-driven policy, you need to consider that as part of your cost as well. As Jehann Biggs, President of In2Green says, “some product lines are more sensitive to tariffs than others, especially those made from more expensive materials or complicated supply chains.”

Again—we can’t emphasize this enough—don’t rush! Patience is your friend here.

Finding a Manufacturer – 14 Sites You Can Use

When it comes time to find a manufacturer, you will need to do a lot of industry-specific research to find the right one. We highly recommend that you read more information relevant to your industry before starting a business relationship with a manufacturer.

That said, we’ve compiled a list of manufacturing websites that you can use to start finding manufacturers. Our original sources are Shopify and Small Biz Trends.

  1. ThomasNet
  2. Maker’s Row
  3. MFG
  4. Kompass
  5. Shopify Dropshipping
  6. Alibaba
  7. AliExpress
  8. IndiaMart
  9. Sourcify
  10. Core77 Design Firm Directory
  11. Industrial Designers Society of America
  12. Upwork
  13. JobShop.com
  14. IndustryNet

Remember: before committing to any manufacturer, it’s a good idea to verify their credentials thoroughly.

Check business licenses, quality certifications (ISO 9001, etc.), and insurance coverage. Request references from recent clients and follow up with them about their experiences.

Consider third-party auditing services that can evaluate facilities for quality, safety, and ethical practices. Many buyers now require manufacturers to meet specific social responsibility standards.

Final Thoughts

Finding the right manufacturer can be the key to turning your dream product into a reality. Remember, thorough research and clear communication are your best tools.

Be patient and meticulous in your search, and don’t rush into decisions. A good manufacturing partner will align with your needs and contribute significantly to your product’s success.

Nothing beats making your ideas tangible. Creating a product prototype is how you do that. This is the process that turns concepts into realities.

When you have a prototype, you can test, refine, and perfect your design before mass production. But it’s not always a straight path to get there. You need to plan, research, and adapt as you learn new information.

Many aspiring inventors rush through the prototyping phase. They might overlook important details or skip critical tests, only to end up paying for it later. A well-thought-out prototype, on the other hand, can save time, money, and headaches later.

In this guide, we’re going to talk about how you can prototype your product in five simple steps. Along the way, we’re going to share thoughts from industry experts who’ve been through the process.

How Product Manufacturing Works

Before you start working on a prototype, it helps to know what goes into product manufacturing. It starts, of course, with an idea. You come up with a clear concept and then you make a prototype.

Prototyping means creating detailed specifications, including those around materials, dimensions, and functionality. Depending on what you’re making, you might end up using computer-aided design (CAD) software.

Once the design is finalized, you’ll need to choose a manufacturer, assuming this isn’t something you can make in-house. Manufacturers vary in terms of capabilities, quality standards, and costs. So if you want great results, you’ll be doing a lot of research.

Your design might require special processes, like injection molding, CNC machining, or 3D printing. But that will all depend on what you’re making.

Once you find a few manufacturers you like, then you request quotes. Once you review those, you settle one you like best and then start production. This might involve doing a small test run to make sure everything goes OK. If the sample run turns out well, you can move on to full-scale production.

Bearing all that in mind, we’ll now share advice from experts on common mistakes to avoid during the prototyping and manufacturing processes.

5 Tips Before You Start Manufacturing

When you start having product manufactured for you, it can be stressful, even if you know what you’re doing. But with some forethought, you can avoid common issues.

1. Know your customers.

Jason Wingate, CEO of Emerald Ocean Ltd., illustrates this especially well in a story he shared with us. He says, “a few years ago we released the Rotary Thread tool, a thread filing tool that was revolutionary and nothing was like it on the market. It could file threads quicker and faster than anything. We sold (and still sell) to Lowe’s and Home Depot in the USA, and Canadian Tire in Canada.”

“But sales were not as good as we expected. Why? Because the customers of most retail chains don’t need a thread filing tool most of the time. If a nut or bolt comes loose, they just buy a new one for a few cents.”

Wingate’s team was ultimately able to pivot into a much more profitable niche with time. But he stresses the importance of knowing your customer before total commitment to a certain course of action. “If the customer doesn’t have a problem or need your product – you need to reflect on that and find out what they do need and how your product fits.”

2. Start small and iterate quickly.

You’re not going to get everything right the first time. Multiple sources stated this to us, perhaps best said by Jorge Argota, a marketing consultant with a background in product development.

Argota says it’s best to “start small with your prototypes to keep costs down and iterate quickly based on feedback. Engage potential users early in the process to make sure the product meets their needs. Keep detailed records of all changes and decisions during the prototyping phase, it will help you in future development.”

He also emphasizes that it’s important to be flexible with your design, and to adapt to challenges or new opportunities as they come.

On a related note, Ryan McDonald, COO of Resell Calendar, states that it’s important to not “forget packaging and branding during the prototyping process. Early consideration of these elements can significantly impact the perceived value of your product. At Resell Calendar, we’ve found that your product’s resale value is much improved by appealing, well-designed packaging.”

3. Don’t underestimate the costs.

One unfortunately common issue that product creators run into is underestimating costs. It’s easy to overlook certain expenses, especially when they’re not obvious. But hidden or not, costs associated with material testing, design revisions, and multiple iterations add up. So does gaining access to specialized tools or machinery, like plastic molds.

When asked about mistakes best avoided, Argota said that “I underestimated costs early on, didn’t vet some manufacturers well enough and sometimes rushed through the prototyping phase without enough testing.”

The learning curve is formidable and making mistakes is common. But nevertheless, Argota emphasizes that “miscommunication about product specs led to some costly mistakes.  Looking back better planning and clearer communication would have saved a lot of trouble.”

When in doubt, assume manufacturing – including prototyping – will cost more than you think.

4. Don’t hurry the process.

Another tempting mistake is to rush through the prototyping process. But ironically, this can end up wasting more time, in addition to leading to costly mistakes. When you’re in a hurry, it’s easy to skip steps like testing, refinement of the design, and gathering feedback.

“Anyone beginning their own product prototype should never hurry the process,” says McDonald. “Spend time evaluating your prototypes in real-world conditions. Don’t be afraid to iterate, as every version should improve upon the last. Keep your target market in mind throughout the process. In the end, the product must fulfill the needs and wants of your customers.”

5. Consider hiring a broker.

You don’t necessarily have to manufacture your own products. In fact, you have the option to hire a broker to assist.

When asked what he would do differently, Wingate stated that “if I could change anything – first I would get a good broker. Without one we were just going back and forth ourselves looking up and trying to evaluate manufacturers, but a good broker will have that knowledge and possibly existing relationships already.”

5 Steps To Create A Product Prototype

It’s premature to start prototyping before you understand the underlying logic of manufacturing and prototyping. Having covered that in the previous sections, we can now provide a list five steps that you can follow to get started with prototyping.

1. Create the best prototype you can alone.

Everyone we talked to, independently of one another, agreed that it was vitally important to have a clear vision of what you want to make. One great way to do that is to make the best prototype you can on your own. This isn’t a substitute for a sample run, but rather a way to clarify your thinking.

McDonald says, “we’ve found that having a clear vision is crucial when prototyping products. First, we create detailed sketches and 3D renderings of our product ideas. This visualizes the end result, allowing us to identify potential issues early on. After that, we create physical prototypes. For smaller items, we use 3D printing, and for larger ones, we work with local craftsmen.”

Argota has a similar process, saying that he and his team would create “a basic version of the product using basic materials to test the idea. Depending on the product complexity and requirements, I used 3D printing, CNC machining, or even handcrafting. This stage [involved] a lot of iterative testing and gathering feedback to refine both design and functionality.”

Even Wingate, who advocates for working with a broker says that “while I don’t usually prototype the products myself – the general way is that we try to see if we can ‘throw it together’ as a prototype in-house using CAD drawings and, if possible, a 3D printer (of course – this depends on what you’re trying to create).”

2. Find a similar product.

Once you have a sense of what your product will look like, try to find similar ones. Buy them, if need be. You want to analyze similar products and try to understand how they are made.

If you’re not sure how a product is being made, you can try looking for “making of” or “X being manufactured” videos on YouTube. You might also have some luck looking for how to blogs or even searching for patents.

Even if you are unable to tell how specific products are made, finding similar ones will allow you to describe what you want to a manufacturer. They may be able to reverse engineer a product that already exists.

Sometimes, you can even find the manufacturer of products you like. That gives you chance to reach out to a company whose work you’re already familiar with.

3. Shop for materials.

Once you have similar products in hand, start researching material options through manufacturers’ catalogs, sourcing platforms like Alibaba and ThomasNet, and by consulting with industry experts if needed.

As you research, keep in mind that tariffs on imports — especially from China — have risen sharply in 2025. It’s wise to check tariff classifications (HS codes) for your intended materials and consider alternate sources, like Mexico, India, or Vietnam, if costs are too high. Bear in mind that some materials are subject to higher tariffs than others, so you may be able to save on tariffs if you choose materials carefully.

The specifics of your material research process will differ greatly depending on the nature of the product you are manufacturing, but the basic information provided above is useful in most cases.

For example, if you know you need transparent plastic, you can figure out a more specific name using this method. The screenshot below shows you what happens when you look for “transparent plastic” on Alibaba. You have options ranging from food-grade R-PET plastic to cast acrylic to polycarbonate…the list goes on.

When asked about best practices on material selection, McDonald says that “we consider cost, durability, and user experience. To evaluate performance and quality, we often order samples from several suppliers. For electronics, we prioritize components that satisfy industry standards and have a track record of reliability. Regarding clothing and accessories, we pay close attention to materials that provide longevity as well as comfort.”

Argota has a similar method, saying that in his prior career, “material selection was driven by durability, cost, availability and how well the material suited the product’s purpose. I did some initial research by consulting with material experts and engineers and factored in sustainability if that was a priority. Prototyping with different materials helped me make a more informed decision.”

Wingate emphasized the importance of “research, research, research.” And indeed, his emphasis is well placed, since material requirements vary widely based on product, price, market, your target audience, and a variety of other factors.

4. Look for a manufacturer.

When the situation calls for it, it’s a great idea to make your own prototype. But your own in-house prototype is no replacement for a true sample of a manufacturer’s work. So it is very important to note that prototyping will also involve finding a manufacturing partner.

This can be an in-depth process. According to Argota, “finding the right manufacturer required researching companies that specialized in my type of product. I used online directories, attended industry trade shows and reached out to my contacts for referrals. I made sure to evaluate each manufacturer’s capabilities, quality standards, communication style and reliability before making a decision.”

McDonald says that his team has “had success with platforms like Alibaba and GlobalSources. These platforms let us connect with many different manufacturers and evaluate their capacity and cost performance. Whenever possible, we also go to trade events since they offer great chances to meet manufacturers personally and see their work firsthand.”

To add to the above, we believe it is best practice to contact multiple manufacturers so that you can compare quotes. Alternatively, you can consider Wingate’s advice to hire a broker.

Most important of all: never commit to a manufacturer based solely on their claims or portfolio. Request samples of similar products they’ve made, ideally using materials comparable to your requirements. Pay attention to finish quality, dimensional accuracy, and consistency between multiple samples.

Consider visiting facilities if feasible, or hiring third-party inspection services. Many manufacturers excel at producing samples but struggle with consistent quality at scale. Ask about their quality control processes, testing equipment, and how they handle defective units.

Document everything during this evaluation phase. These records become valuable if quality issues arise during production.

And again, it bears repeating: rising tariffs on Chinese goods in 2025 have also made it increasingly important to explore manufacturers in regions with lower import duties. Some creators are shifting to Mexico, Southeast Asia, or even U.S.-based options for smaller production runs.

5. Request quotes.

Once you have a clear idea of what you need to manufacture and what materials you need to use to make it, then you can request quotes. You want multiple quotes from multiple manufacturers so you can compare them and make a smart decision.

“To get quotes I reached out to several manufacturers with detailed specifications of the product, including drawings or CAD files, material requirements and expected quantities,” says Argota. “Comparing these quotes helped me understand the market rates and negotiate better terms. Having all the info ready upfront made the process smoother.”

This isn’t a process you can shortcut. As McDonald states, “though it can take time, the quote request procedure is necessary to get the best value. Usually, we reach out to various manufacturers with detailed product specifications. We request quotations breaking out labor, material, and any additional fees.”

This thorough approach has a lot of benefits. “This lets us compare offerings more easily. We also consider production capacity, quality control measures, and communication responsiveness as the lowest bid as not necessarily the best choice.”

If this process intimidates you, take heart. According to Wingate, “quoting isn’t too hard.” He further states that “you’ll get feedback and pricing from a variety of suppliers, and if you did your research (or had your broker do it for you), you can select from there.”

Final Thoughts

Making a great product prototype requires patience, planning, and willingness to adapt. The goal here isn’t just to bring an idea to life, but to refine an idea until it’s the perfect fit for your customers. If you follow the steps in this article, you’ll be well on your way to doing exactly that.

Don’t rush the process and don’t underestimate its complexities. Doing that can lead to delays and extra expenses. Take your time and do things right. Test, gather feedback, and improve at every stage. If you go through this process and you’re careful and attentive to detail, you won’t just make your idea tangible – you’ll make a really good product that people desperately want to buy.

Shipping isn’t just a business process in eCommerce. Doing it well means pleasing customers, retaining them, and maxing out your long-term profitability. Failing to provide a good customer experience, on the other hand, is a surefire way to shorten the lifespan of any eCommerce business.

There is plenty of evidence to back up these assertions too. Almost 70% of shoppers are less likely to shop with a retailer if purchases are not delivered within 2 days of the date promised. Nearly two-thirds have canceled purchases because of excessive shipping fees. Another 74% of shoppers have said free shipping is one of the most important factors at checkout.

The message is loud and clear: provide a great shipping experience or else.

But how do you do that?

One useful frame for answering that question is to consider common mistakes that other eCommerce sellers make. Once you know what they are, you can take steps to avoid making them yourself.

In this post, we’ll talk about eight common mistakes that eCommerce sellers make in order fulfillment. Problems can take hold anywhere from inventory management to customer communication, so there are plenty of ways to improve. This post will give you actionable strategies that you can apply to step up your eCommerce order fulfillment experience.

What happens when shipping goes wrong?

Shipping in general is difficult, and international shipping doubly so. But if you know what can go wrong and how to prevent it, you’ll save a lot of money on shipping because of all the problems that don’t happen.

If you ask any eCommerce pro for a shipping horror story, they’ll be able to give you one. And much like tough guys comparing scars, they’ll have fun telling you too.

Dan Jones, Founder of Terrarium Tribe, shared a particularly harrowing tale with us, saying, “we ship live moss that’s in a dried/dormant state. It’s meant to be a lot less sensitive to different temperatures and environmental conditions this way, and to be fair, it is. But during the heat waves this summer, we certainly found the limit of that resilience. One week, we shipped out a few orders of fresh green moss to Texas, and those customers each received a package of brown, dry husks. Thankfully, it’s a straightforward fix now with the inclusion of cold packs, but the weather is getting increasingly difficult to manage.”

Lou Haverty, Owner of Tank Retailer also shared an unusual horror story as well. In his telling, “the order was for a high cost item and my customer actually passed away after the product was delivered to his house. A few weeks later I received a call from his widow to see if it would be possible to return the product after the return window had expired. Given the circumstances, I made an exception and we were able to return the product.”

The point of sharing these stories is twofold. First, any eCommerce operation that ships orders, domestic or international, needs to be able to prevent as many issues as possible in order to save money. But also, it should be noted that sometimes unpredictable events — like accepting a return from a customer’s window — happen as well so processes need to be flexible enough to accommodate these issues as they arise.

What metrics do you use to monitor order fulfillment?

If you want to keep order fulfillment costs in check, you need to know what kind of data to pay attention to. Ed Rakovsky, CEO of Superior Seating, chooses to monitor “production lead time, order accuracy, customer satisfaction, and on-time delivery rates.” This is a good all-purpose collection of metrics that any firm can use.

Dan Jones from Terrarium Tribe has a more in-depth process that might be suitable for different types of businesses. He says that “with shipping live bugs, there are a few key metrics that really influence the chances of them arriving safely and healthily. Shipping speed is number one, so we track the advertised shipping rate chosen (e.g., Priority 2-day) and the actual date the package was delivered. That way, we can keep track of the reliability and performance of the different carriers.”

He goes on to state that “we keep track of any dead-on-arrivals (DOAs) so we can track the performance of our own processes and see whether they were clearly down to carrier error or if there’s any way for us to improve.”

This more in-depth approach, though it sounds highly specific to Jones’ line of work, can be generalized to other kinds of products that are perishable such as food or even temperature-sensitive, such as cosmetics.

Mistake 1: Sending shipments to the wrong address.

One of the easiest ways to save money on shipping is to make sure you always send to the correct address. This is trickier to do than you might think since every country has different standards for postal addresses and people often make mistakes when providing their information.

Renante Altar, Project Manager of Creloaded, suggests using address validation software to cut down on incorrect shipments. “These programs help check that the addresses are right, and they keep track of every order,” says Altar. “This cuts down on mistakes and makes everything faster.”

Because of the nature of his business, which involves shipping large, heavy items, Haverty says that “I always contact the customer to confirm the shipment address and whether they need a liftgate. The biggest risk is if you ship an expensive product blindly to an address without confirming the customer can handle the delivery.”

Regardless of what you ship, you need some system in place to check addresses before you print postage or arrange shipping.

Mistake 2: Stocking out or overstocking.

Inventory issues will crush online stores, whether that means having too many items or not enough. You need some way to make sure that you have enough inventory available for shipping, but not so much that it’s sitting around and costing money to store.

Renante, from his experience managing an eCommerce blog, says that “companies use systems to watch their stock all the time. These systems tell them when to order more products or when to slow down because they have too much. This helps them avoid running out of items or having too many that no one buys.”

This applies not only to finished products, but raw materials as well. Rakovsky says that “since most of our products are custom-made, stockouts are rare. However, for certain materials, we use a just-in-time inventory system and demand forecasting to avoid overstocking while ensuring material availability.”

Tariffs have added fresh urgency to this as well. Amra Beganovich, founder of Colorful Socks, emphasizes how inventory strategy must adapt in a high-tariff environment: “We’ve had to shift to nearshoring and dual-sourcing to manage rising costs. Stockpiling impacted SKUs ahead of tariff hikes has helped us avoid sudden price spikes and delivery disruptions.”

Here are some specific tips you can follow to resolve common inventory issues:

  • Use an inventory management system with real-time tracking to monitor stock levels.
  • Establish good demand planning processes. Analyze past sales data for trends and stay tuned to market shifts and consumer behaviors.
  • Keep an open line of communication with suppliers to understand lead times and potential supply chain disruptions before they become an issue.
  • Conduct regular inventory audits to identify discrepancies and issues like theft or damage.
  • Diversify your inventory to reduce risks associated with demand fluctuations for certain products. In other words, make sure your business isn’t dependent upon the sales of a single hot commodity.

Managing your inventory comes down to balancing stock levels with market demands. The process takes some trial and error, but once you get it right, it can really help you grow your business, manage your expenses, and keep stock levels where they need to be.

Mistake 3: Inefficient picking and packing.

Picking and packing is the process of retrieving items from storage and prepping them for shipping. It’s not a hard thing to do well if you have processes to support you (or a fulfillment partner to do the work on your behalf), but you do have to be organized and careful because it’s easy to make mistakes.

Delays or errors in these processes can lead to customer dissatisfaction and increased returns. That means that streamlining these operations is essential for quick, accurate order fulfillment.

  • Optimize your warehouse layout: Arrange products strategically for easy access and group similar items together.
  • Implement barcode scanning technology to speed up the process and ensure accuracy in picking and packing.
  • Adopt batch picking methods for fulfilling multiple orders simultaneously, particularly for similar orders.
  • Regularly train and update your warehouse staff on best practices and new technologies.
  • Alternatively, choose an order fulfillment partner to take care of these processes for you if you don’t want to do them in-house.

Again picking and packing isn’t hard, but it does require an eye for detail. If you’re already tired or spread thin, it’s easy to mess up, so it’s important to have systems and processes to make it as easy as possible. By implementing these strategies, you can significantly reduce errors and delays, enhancing overall operational efficiency.

Mistake 4: Underestimating shipping times, delays, and costs.

Shipping challenges like delays and high costs can significantly impact customer satisfaction and profitability. This is especially true once your orders leave your warehouse and are taken care of by carriers such as the US Postal Service, UPS, FedEx, or DHL.

Though you cede direct control over your orders when carriers take custody of them, your customers will still hold you responsible. Any delays or carrier issues will require your management. Being proactive is best here, so consider how these efficient shipping strategies can help you maintain your competitive edge.

  • Diversify your shipping carriers to avoid dependency on a single carrier’s delays and rate hikes.
  • Negotiate better rates with carriers using your regular shipping volume as leverage.
  • Use regional carriers for shorter routes to reduce costs.
  • Incorporate real-time tracking systems to keep both you and your customers informed about shipments.
  • Explore using fulfillment centers closer to major customer bases to reduce shipping distances, costs, and delivery times.

Again, the key here is picking the right partners and making sure they work with you on favorable terms. If you try not to depend too much on any individual carrier, that will go a long way toward mitigating shipping issues.

This is especially important during peak season.

Failing to plan for peak season capacity is one of the more common ways that underestimating shipping times, delays, and costs occurs. Black Friday, Prime Day, and holiday periods can all put a lot of strain on carrier networks. This can, in turn, increase delivery times and even shipping costs.

Smart fulfillment planning means preparing months in advance. Reserve shipping capacity with multiple carriers, adjust inventory levels to account for longer lead times, and communicate realistic delivery expectations to customers well before peak periods begin.

Consider implementing cut-off dates for guaranteed holiday delivery and prominently display these on your website. Some businesses also offer expedited processing for an additional fee during busy periods. The key is managing customer expectations proactively rather than disappointing them with unexpected delays during crucial shopping periods when competition for their loyalty is highest.

Mistake 5: Mishandling returns.

For shippers of all kinds, returns are also a frequent source of unnecessary expenses. The trick is that you need to be able to balance customer experience and ease of making a return with cost.

“When it comes to returns, having a simple and clear return policy is really important,” says Renante. “Businesses [should] make it easy for customers to send items back if they need to. This keeps the customers happy and helps the business keep [accurate stock levels].”

To give a more concrete example, Haverty states that, “we offer a 30 day return window for all customer sales. If the customer decides to return the product during that window the customer also has to pay return shipping unless there is a defect with the product.”

Even businesses that create bespoke products need to consider returns as well. To quote Rakovsky, “given that many of our products are custom-built, we handle returns on a case-by-case basis. We aim to resolve any issues quickly, ensuring customer satisfaction while adhering to our return policies for custom itemfs.”

This is supported by a larger body of evidence too. “Over 60% of individuals will examine the return policy before purchasing” according to Ecommerce Fastlane. This means providing a good returns experience will help tremendously with assuring customer loyalty. Unfortunately, it’s very easy to think about returns only as an afterthought.

Here are some tips on how to avoid making that mistake:

  • Ensure your returns policy is clear, concise, and easily accessible to set proper customer expectations.
  • Include specific details in your policy about the time frame for returns, accepted item conditions, and the refund process.
  • Consider offering free returns, balancing customer loyalty benefits with financial implications.
  • Implement a straightforward online system for initiating returns to simplify the process.
  • Process returns and refunds promptly to avoid customer frustration.
  • Analyze returned items for recurring issues to improve product quality and description accuracy.
  • Try to minimize returns by providing clear product descriptions, detailed images from multiple angles, and – where applicable – accurate sizing charts.

Focus on establishing a clear and efficient returns process. This will allow your business to maintain a great customer experience even when the product doesn’t work out, which can help you build that much-desired loyal customer base.

Mistake 6: Underestimating the importance of customer communication.

Poor communication, like delayed responses or inadequate order updates, will make customers angry and sully your brand. Conversely, proactive and transparent communication will keep customers informed and satisfied. Below is a list of tips on how to do that.

  • Send order confirmations immediately and provide regular shipping updates, including information about any delays or issues.
  • Use automated systems for sending order confirmations, shipping updates, and delivery notifications.
  • Ensure easy access to human customer service representatives for personal queries or concerns. Chatbots and voice response phone systems can help reduce inquiry volume on your reps, but it still needs to be easy to talk to a person.
  • Encourage customer feedback post-delivery to show that their opinions are valued and to gather insights for service improvement.
  • Respond promptly and effectively to customer queries or complaints to demonstrate your commitment to customer service.

Every time someone receives an email, talks to your service reps, or checks your online system, you have a chance to build trust and loyalty. Use every chance you get.

Mistake 7: Not using common-sense technology and automation.

In eCommerce, technology and automation are essential for staying competitive and minimizing errors in fulfillment processes. Manual handling in areas like inventory management and shipping is error-prone. While nothing can replace the human touch, automation can significantly reduce mistakes and streamline operations, making it a necessity for efficient and accurate order processing.

  • Implement an automated inventory management system for real-time stock level tracking and to prevent overselling. There’s no reason to track inventory in spreadsheets.
  • Use automated picking and packing solutions, like barcode scanners and RFID systems, to speed up fulfillment and minimize errors.
  • Integrate your eCommerce platform with fulfillment systems to ensure a seamless flow of information and reduce processing time and input errors.

Smartly deployed technology will reduce the likelihood of errors and improve overall operational performance. That will help you keep your costs down and service quality high.

Mistake 8: Not measuring fulfillment performance.

It’s important to track metrics beyond basic delivery times and costs. Monitor customer lifetime value by shipping experience—customers who receive orders quickly and undamaged typically have higher repeat purchase rates.

Calculate the true cost of shipping errors, including replacement items, customer service time, and potential lost customers. Use this data to justify investments in better packaging, faster shipping options, or fulfillment technology.

Sometimes spending more on fulfillment actually improves profitability by increasing customer retention and reducing costly errors and returns. Other times, your funds are best spent elsewhere. Either way, it’s good to have the data, systems, and processes needed to be able to make the right call.

Final Thoughts

Order fulfillment is a huge part of eCommerce, not to mention unavoidable. Do it poorly, and your store won’t last long. Do it well, however, and you can retain customers, increase your profitability, and build a brand that lasts.

The seven common mistakes we’ve discussed—ranging from inadequate inventory management to neglecting the power of data and analytics—show areas where a little attention and strategy can have a dramatic impact.

Ultimately, if you care about your customers and remain proactive and adaptable, you can easily avoid these mistakes. In doing so, you can build an efficient, thriving eCommerce store for years to come.

Running a business can be tough because it’s hard to know how much you’re going to sell.

But running a Kickstarter can be even tougher, because not only do you not know how much you’re going to sell, but you don’t know how much you’re going to need to manufacture, at least before the campaign anyway.

In this video, we’re going to talk about how you can make a budget for your Kickstarter campaign. I’ll walk you through the process of making your budget on Excel with this special template we’ve made.

If you want to use what I’m using, you’re in luck! This Excel workbook is downloadable and is free. It’s just like what you see on screen.

Download the spreadsheet.

My name is Brandon, here on behalf of Fulfillrite. If you need help shipping your orders, go to fulfillrite.com and request a quote. We’ve shipped thousands of Kickstarters and we’re happy to help you ship yours. The quote doesn’t cost a thing, so if nothing else, you get some good information about pricing. Link in the description.

But enough self-promotion. Let’s make you a budget.

Making a Budget, pt. 1

On this Kickstarter budget, I’m not going to focus on startup costs or research and development, at least not that much. That’s because so much of the business expenses are incurred after the campaign funds and depend on the order volume to be fulfilled. Whether you ship 100 board games or 10,000, you’re going to pay the artist the same, spend the same amount in play-testing supplies, and so on.

So with that in mind, I’m going to show you how to use this spreadsheet.

First, go over to the right and enter in your core pledge amount – that’s the amount you think people are going to spend most frequently. Add in the percentage of extra units you want to order on top of what you need to ship to fulfill all campaign orders. You’ll see “order fulfillment average” in the same general section, but skip it for now.

Also over here, there is minimum order quantity, also called MOQ – that’s the minimum amount your manufacturer is willing to produce in a single run.

Now let’s look at these first two columns on the left, and I’ll walk you through this top to bottom.

At the top, you put in a hypothetical amount of funding you could raise. I’m starting fairly low here, at $10,000. Kickstarter and credit card fees will automatically calculate at 9%, which is a high estimate. Similarly, chargebacks will automatically calculate at 3%, which is also an unusually high estimate. Your net funding will automatically calculate as the Kickstarter funds you raise minus Kickstarter fees, credit card fees, and net funds. At 88%, this is starting you off with a conservative estimate.

In the next section, the amount of units you need to ship orders will automatically calculate based on the funds raised. Then Run Size will automatically calculate as the greater of either the units you need to ship + the extra units you want to ship OR the minimum order quantity.

Now if you’re shipping multiple items, add-ons, etc., that adds more nuance to this, but we’ll cover that later too, and that will build on this baseline budget.

Estimating Costs

Note: Worried about U.S. tariffs or the recent removal of the de minimis exemption? Don’t worry, everything in this video is still valid. It’s just extra important to use tools like Freightos & SimplyDuty to help you calculate the cost of freight. It’s also a good idea to consider hiring a freight broker as well, instead of trying do things DIY.

Next you will need to enter the cost of manufacturing, freight, and customs for each quantity by hand. At this point, I’ll level with you – I can’t walk you through this in a short video. But here are some resources to help you get those numbers:

  • Here’s a video on how to find a manufacturer. This will help you know where to start on that. Once you find a manufacturer you like, use the quotes they provide you in this budget.
  • For freight costs, once you know how much your shipment will weigh and how large it will be, go to Freightos and run some freight quotes. This will at least give you a ballpark idea of what freight will cost. Here’s a video on how to do that.
  • Lastly, calculating customs is really complex, but if you go to SimplyDuty, you might be able to get a serviceable quote that’s good enough for budgeting purposes. Enter in the kind of goods you’re shipping, value of the shipment, where the goods are coming from, and where they’re going, and you’ll get an estimate you can work with.

Just to help move things along, I’m going to enter a few stand-in values so I can keep showing you how this spreadsheet works.

Making a Budget, pt. 2

The last piece of manual entry here are your startup costs. That is, you just plug in what it costs to get your product Kickstarter-ready.

Once you do enter in those figures, though, your production cost will automatically be calculated by summing manufacturing, freight, and customs.

Then based on everything entered so far, you will see automatic calculations for:

  •  The per-unit cost
  •  Per-unit contribution margin (that is, how much each unit is putting back in your pocket)
  • Campaign net revenue (how much your campaign makes minus what it costs to manufacture and ship)
  • Gross profit (campaign net revenue minus your startup costs, not accounting for taxes)

OK, that’s it! You got through it!

Once you understand this basic concept, you can run a bunch of scenarios very quickly for different funding amounts. That makes this a really powerful tool for helping you imagine how different fundraising levels might impact your business.

Estimating Demand

Figuring out how much money you’re going to make is a lot more fun than figuring out how much you need to spend! But, of course, you don’t want to pull numbers out of nowhere. You need a system that’s going to give you at least a reasonably good idea of how much revenue you’re going to generate, because that’s likely to tell you how many orders you’re going to need to ship as well.

So, continuing along with the downloadable spreadsheet we’ve been working with, check out the Revenue Forecast tab. While you’re there, you’ll see two section – Simple Method and Advertiser Method. We’ll talk about the Simple Method for revenue estimation first.

First, as I zoom in on the Simple Method, I want to quickly give you a sense of where this data comes from and the assumptions that underlie it.

Marketers generally consider the size of your mailing list to be the best indication of how much funding you are going to raise. This is because a lot of Kickstarter creators push people to a mailing list in advance of the campaign because it’s one the most reliable ways to get people to the campaign page when it counts. Not only that, but anyone who is willing to hand over their email address is much more likely to buy than, say, a social media follower.

Email marketing is also good because the techniques you use to collect those emails – making landing pages, running ads, and so on – help answer one super-critical question.

Do people care enough to buy this thing?

That’s a huge question, and one that I honestly can’t answer for you in this video – or really, any ten-minute video. But as a marketer myself, I strongly encourage you to validate the market before you try to Kickstart a campaign. Or, put more simply, make sure the answer to that question is yes.

With that in mind, to use this revenue estimator, you will need to enter five things.

  1. Mailing list size. That’s the number of people you expect to be receiving your emails on launch day.
  2. Conversion rate. A certain percentage of email recipients on your list will back your campaign. Some people like to say 5%, but I think 4% is a safer, more conservative estimate. Enter what you think is appropriate here based on existing data, such as open and click rates.
  3. Expected pledges from other sources. How many backers do you think will come from other marketing channels you have once you eliminate emails and Kickstarter itself? Be super conservative with this figure.
  4. Average pledge. Enter in your core pledge amount here – the most common amount you expect people to enter.
  5. Kickstarter bump ratio. Kickstarter itself pushes people to your campaign, usually to a degree proportional to the backers you bring on your own. With most people I work with, Kickstarter tends to account for about 40% of funds raised. But I entered in 30% by default to be safe. Enter what you think is appropriate here.

Then you will see, automatically calculated, a revenue forecast generated directly from these numbers, in terms of both number of backers and funding dollars. You’ll also see conservative and optimistic estimates which, respectively, assume you put in numbers that are a little too favorable and a little too unfavorable.

Keep in mind this is just a model – your campaign can raise far less than the conservative estimate or far more than the optimistic one. That’s why it’s important to have a budget that accounts for all kinds of scenarios and a risk assessment that helps you prevent the worst ones.

On the right, you’ll see a slightly different model assuming you plan on doing advertising between now and the launch of your campaign. It’s really similar to the model on the left, with three differences in inputs:

  1. Enter your current mailing list size instead of what you expect to have on launch day.
  2. Advertising budget. This is the amount you plan to spend on ads between now and launch.
  3. Cost per lead. This is the amount it costs to collect an email address with ads.

This will result in a model that predicts the amount of backers you will have based on your ad budget and cost per lead. This is good if you’re working with an established method, such as the one emphasized by Launchboom, where you have a landing page that you drive people to through ads run on Facebook and similar platforms.

Final Thoughts

And there you have it! This spreadsheet will help you to create a rough budget for your Kickstarter. Be sure you fill it in with details that are very specific to your situation. We also strongly recommend you reach out to a tax professional as well, since that can really change the numbers you’ll be looking at in the future.

My name is Brandon, here on behalf of Fulfillrite. If you need help shipping your order s, go to fulfillrite.com and request a quote. We’ve shipped thousands of Kickstarters and we’re happy to help you ship yours. The quote doesn’t cost a thing, so if nothing else, you get some good information about pricing. Link in the description.

If you enjoyed this video, please take a moment to like and subscribe. Don’t forget to slap some postage on that bell so we can express ship new videos to you as soon as they drop. And last but not least, if you have any questions, leave a comment below. I will personally answer as many as I can.

Thanks for watching!

Bonus: Common Kickstarter Budgeting Mistakes To Avoid

Even with a solid Kickstarter budget, many creators run into financial trouble because of common mistakes. Bearing that in mind, here are some common mistakes that you can avoid. (This was not included in the original video.)

1. Underestimating Shipping Costs

One of the biggest mistakes Kickstarter creators make is not budgeting enough for shipping. International shipping, in particular, can be much more expensive than expected. Be sure to factor in packaging costs, dimensional weight pricing, and potential fulfillment fees.

2. Forgetting About Taxes

Many creators don’t realize that Kickstarter funds count as taxable income. Depending on your location, you may owe state, federal, or even VAT/GST taxes. It’s a good idea to consult with a tax professional to understand your potential tax liability before setting your funding goal.

3. Ignoring Manufacturing Lead Times

If your manufacturer takes longer than expected to produce your product, delays can cost you extra in storage fees, lost sales, or even refund requests from frustrated backers. Always add some buffer time to your manufacturing schedule.

4. Not Planning for Refunds and Chargebacks

Even successful campaigns face a small percentage of refund requests or chargebacks. Some backers may change their minds, while others might dispute charges with their credit card companies. Budgeting a small percentage—typically around 3%—for potential losses can prevent financial problems down the road.

5. Overordering Inventory

It’s tempting to order more inventory than you need in the hopes of future sales. However, if you miscalculate demand, you may end up with a bunch of unsold stock and extra storage costs to match. Always balance bulk order discounts with realistic demand forecasts.

International shipping is a monster. On the surface, it seems like getting products from point A to point B. But doing that involves dealing with complex logistics, handling unpredictable events, and managing your customers’ expectations.

It’s very easy to send items to the wrong address and run out of inventory. Returns are also a common source of trouble. And even if you manage to set up everything correctly, you still need to know what metrics to monitor to make sure processes continue to work properly.

These challenges are even more pronounced now that tariff rules have changed in 2025, adding new layers of cost and regulatory scrutiny.

In this article, we’re going to talk about why international shipping is tricky. Then we’ll give you some specific tips you can use today to cut down on international shipping costs for your eCommerce store.

Why is international shipping tricky?

When it comes to shipping, certain parts of the process tend to lead to problems, no matter where you’re sending items. If items are not properly packed, they are more likely to break in the mail. And the odds of this happening only increase with the long distances involved in international shipping.

Sending shipments to the wrong places is also always a risk. This is true of domestic shipping, but every country has different address formatting standards, so this is a far larger problem when shipping internationally as well.

Then there is customs clearance. Every country has customs, and every item imported into a country needs to follow local laws. Otherwise, it might get seized by customs before it reaches its destination. Sometimes, all it takes is a slight mistake on customs paperwork to increase the odds of this happening.

Cynthia Asije, CEO & Cofounder of Craftmerce says that “we once had a shipment delayed for weeks due to customs issues. It taught us the importance of clear documentation and working with trusted logistics partners.”

Customs concerns loom so large in international shipping that it repeatedly came up as a worry of eCommerce professionals when we reached out to experts as part of writing this article.

“Once, when shipping to the United Kingdom, our customer provided her new shipping address after the item had already been shipped to the address she originally provided,” says Shanna Bynes Bradford, CEO/Formulator at Grow Out Oils Clinical Aromatherapy Company. “It was quite a complicated process to track down the packages overseas.”

She was able to resolve the issue ultimately, but only after a lot of troubleshooting. “Thankfully, we had taken pictures of the box and filed a shipping claim while communicating with the shipping center in the United Kingdom. After 10 business days of mayhem, the package was finally delivered to the customer. Our team was incredibly relieved, and this experience prompted us to revise our shipping and handling process and requirements moving forward.”

New in 2025: U.S. tariffs and customs policy changes

Recent changes to U.S. trade policy have made international shipping even more expensive for eCommerce brands. As of early 2025, the government has introduced a 10% universal tariff on most imports, with some Chinese goods facing rates upwards of 40%. These costs apply at the time of import—regardless of whether you’re restocking a U.S. warehouse or shipping directly to customers.

Even small shipments are no longer exempt. The de minimis rule, which previously allowed packages under $800 to enter the U.S. duty-free has recently been phased out. That means many low-value orders from overseas will now be hit with duties for the first time.

If you’re not planning for these changes, you could be in for a surprise—either through thinner margins, higher cart abandonment, or unexpected customs delays. The rest of this guide will help you find smart ways to offset those new costs to the greatest degree possible.

15 Ways Reduce International Shipping Costs For Ecommerce

Now that you understand the fundamental reasons that shipping, in general, can get expensive, we’ll now cover 14 specific tips that you can follow today to save money on international shipping.

1. Optimize shipping rates with carriers by negotiating or shopping around.

Even though common postal consolidators like EasyShip and ShipStation have to charge more now, it’s still in your best interest to work with one. If your business isn’t large enough to negotiate directly with giants like the USPS, UPS, FedEx, and DHL, don’t worry – fulfillment companies like Fulfillrite will do that on your behalf. Negotiated rates are often far cheaper than retail postage rates, and the savings add up quickly, especially for international shipping.

Asije said something to this effect when we reached out to her as well. Her exact quote on the subject was “when shipping internationally, the best tips for keeping costs low include comparing pricing for international shipping with various carrier services such as USPS, FedEx, UPS, and DHL. This will help you determine the best options for shipping.”

Don’t just accept the first rate you see. Bargain if you can, shop around if you can’t.

2. Use your shipping account number.

We’ll borrow a tip from Enterpreneur.com about a man named Fred DuBois, a laptop battery shipper with a lot of business:

While he originally had suppliers shipping products to him and invoicing for the transport costs, he managed to persuade his domestic suppliers to ship products on his company’s FedEx account number. This not only increases his business’s shipping volume, which can lead to cheaper rates, but it also helps prevent suppliers from padding their shipping costs.

3. Optimize your item dimensions and weight for cheaper packaging.

When you are manufacturing your item, it helps to begin with the end in mind. If you know that you will be shipping your product in the mail, look at the difference in cost for different box/bag sizes and weights. If you can find a way to make your item fit into a smaller box or to weigh less, you can save a ton of money on postage in the long run.

“Keep in mind that packaging can increase the weight of an item,” Bradford advises. “So it’s essential to customize packaging accordingly to ensure it is securely wrapped and ready to go. Use lightweight materials when possible, and consider flat-rate shipping options if they are available, as these can sometimes offer significant savings.”

She also advocates for using a shipping calculator tool to estimate costs based on dimensions and weights of certain types of packaging.

4. Use flat-rate packaging.

We’ve talked a lot about flat-rate shipping before, and for good reason! Postal carriers such as the USPS charge at least partly on how much space your package takes up in their truck. Flat rate packages give them the opportunity to more neatly pack their trucks, which saves them money and allows them to pass on the savings to you.

Flat-rate postage is often cheap in the first place. On top of that, you also have the added benefit of being able to use flat-rate packaging instead of buying your own boxes or bags.

5. Buy supplies in bulk.

Sometimes it doesn’t make sense to use flat-rate packaging. If that’s the case, be sure to buy packing and shipping supplies in bulk. ULINE is a great place to start.

6. Use regional carriers.

If you do most of your business within a regional area, consider following this advice from Easyship:

Regional carriers offer the same services as major carriers like UPS and FedEx but at significantly reduced prices. The only difference is that – as their designation implies – their delivery network is limited as they only operate within a small geographic area. For example, you can partner with OnTrac in the West, LoneStar in Texas, and Spee-Dee in the Midwest. This can be a good option if your deliveries are within their region.

7. Stick to a handful of carriers.

The more you ship with a given postal carrier, the more likely they will be to give you a discount. They want to keep your business, after all. It’s not realistic for a small business to always ship by FedEx or UPS, but it often makes sense to prefer one over the other consistently. That way, you have stronger bargaining power when it’s time to negotiate rates.

8. Swap out boxes with polybags.

Postage rates are going up, but remember: a big part of shipping costs still comes from supplies. While flat-rate packaging and ordering supplies in bulk is often enough to keep costs low, you can still sometimes take it one step further. ShipBob recommends switching from boxes to polybag mailers if you ship items such as clothing.

Be careful with this, though. You have to be absolutely sure not to ship fragile items in a polybag!

9. Use prepaid shipping.

FedEx and UPS both offer prepaid shipping options with steep discounts. If you know you need to send out a lot of shipments all at once, it often makes sense to buy all of the postage up front.

10. Use third-party insurance.

Another major expense associated with shipping is replacing items that were lost or damaged in the mail. If your items are high-value, consider buying third-party postal insurance with companies like Parcel Insurance Plan. It’s usually cheaper than buying the insurance directly from your carrier.

11. Outsource fulfillment.

Fulfillment, in general, is expensive. Outsourcing it can often save you money. You save on labor, training, supplies, and storage at a minimum. You often also benefit from having peace of mind and retaining more customers. Once you’re shipping more than 100 orders per month, outsourcing fulfillment should definitely be on your radar.

“We partner with logistics providers that offer discounted rates for bulk shipments,” says Asije, “and we optimize packaging to reduce weight and size, keeping costs efficient.”

12. Research local customs regulations.

The customs clearance process can balloon costs for two different reasons. The first is that imports and exports often come with taxes, and you want to try to lower your tax burden if you can. The other is that if goods end up getting impounded frequently due to bad processes, that can become expensive as well since it means either sending another item or issuing a refund to the customer.

It’s for this reason that Asije advocates for “[researching] customs regulations thoroughly for each country, [choosing] reliable shipping partners, and always [including] tracking to ensure transparency for your customers.

U.S.-based sellers should also keep close tabs on new tariff announcements, particularly those targeting high-volume imports or specific countries.

13. Account for new 2025 U.S. tariffs and customs rule changes.

In 2025, the U.S. implemented sweeping tariff changes. A universal 10% tariff now applies to all imports, with some categories—particularly goods from China—seeing rates upwards of 40%. On top of that, the de minimis rule, which previously allowed items under $800 to enter the U.S. duty-free has been phased out.

These changes can dramatically increase your landed cost. To minimize impact:

  • Work with customs brokers or fulfillment partners to classify your goods properly and reduce errors.
  • Consider shifting production to countries with more favorable trade agreements.
  • Rerun your cost projections and update your pricing if needed.
  • Be transparent with customers about potential shipping delays or increased costs.

Shipping internationally is already complex—these new policies make it even more important to have airtight fulfillment and customs processes.

14. Validate addresses before you ship.

“If this is your first time shipping internationally,” says Bradford, “always double-check with your customer to ensure all shipping details are correct and accurate. It is also helpful to include an email address and phone number on the package, as this can assist the carrier service in case there are any discrepancies with the package address or if you need to file a claim.”

To that end, it’s worth investing in address validation software it is not included with your eCommerce platform by default. This will let you double-check the validity of addresses before sending out packages. This won’t help you if someone moves and forgets to use their new address, but it will at least make sure that every address you ship to is a real one. That can save a lot of money in the long run, especially where international shipping is concerned.

15. Keep clear records and communicate with your customers.

There are few challenges in business so gnarly that improvements to record-keeping and communication can’t make a meaningful difference. International shipping is no exception.

Bradford states that it’s a good idea to “maintain clear communication with your customers about shipping times, especially since international shipments can take longer due to customs processing.” She also suggests “[keeping] thorough records of all shipments, including tracking numbers and customs documentation, for future reference and potential disputes.”

Final Thoughts

International shipping doesn’t have to break your budget. Mastering the basics is enough to help you reduce costly errors. That is, ship to the right addresses, understand how customs works, and keep packages as small as you can.

Once you get the basics right, then you can follow the tips in this article to further cut down on costs. It’s not easy to learn at first. But if you’re proactive, you can make international shipping work for you, not against you.

If you’re planning a crowdfunding campaign this year, you’ll want to start with the right strategy. At GAMA Expo 2025, a board game convention for industry folks in the know, I sat in on a panel called Crowdfunding Best Practices.

The panel was absolutely stacked with experts, including: Nicole Amato from Kickstarter, Xinyuan Chen from the marketing firm Jellop, and Heather O’Neill from 9th Level Games and BackerKit. Together, they shared what’s working now, what’s changed over the years, and what creators need to know to run a successful campaign in 2025.

I took frantic notes throughout and will now do my very best to relay their advice to you. While they spoke about board games explicitly, their advice applies to nearly any product category you could crowdfund. And the simple fact is, whether you’re launching your first product or your fifth, it pays to learn from people who’ve seen hundreds of campaigns from behind the scenes.

In this post, we’ll break down ten key pieces of wisdom from that conversation. Think of it as your Kickstarter strategy guide for 2025: real talk, hard truths, and helpful insights to get your project funded—and delivered—without losing your shirt.

1. Build Your Audience First — Kickstarter Isn’t Magic

“The campaign is the fire, and promotion is the fuel — but you still need a fire.” That line from the panel says it all (and I really wish I wrote down who said it!)

Post-publication note: Turns out that Nicole said it, and was in turn quoting a prior manager, Jonathan Ritter-Roderick.

A lot of creators treat Kickstarter like it will automatically bring them an audience. It won’t. If no one knows about your product before launch, your campaign is likely to stall, no matter how good it looks.

The panelists all stressed the importance of building a community ahead of time. There are a million ways you can do that, such as through email lists, Discord servers, or other channels.

The methods you use don’t matter as much as the simple fact that you need to get people excited. Get them involved. Let them test the product.

Jellop’s Xinyuan Chen noted that when a campaign launches cold, it doesn’t matter how much ad money you throw at it. The early backers need to show up fast. That only happens if you’ve already done the work. Kickstarter works best when you treat it as a tool to monetize momentum—not create it from scratch.

2. Your Product Should Be Basically Done

One thing the panelists agreed on: your product should be close to finished before you hit launch. Backers are no longer interested in vague promises or “we’ll figure it out after funding” campaigns.

Heather O’Neill put it simply for game creators (the convention’s audience): the game needs to be done, playtested, and ready to go into production.

In the early days of Kickstarter, you could launch with a concept. That era is over. Too many products funded but never delivered, and now backers are skeptical.

Nicole Amato — who works directly for Kickstarter — pointed out that today’s backers expect clear timelines, proof of development, and evidence that you’ve thought through manufacturing and logistics. They don’t want to hear, “You’ll get it in 2027.” They want something closer to reality—and they want transparency if timelines slip.

If you’re not done yet, that’s fine—but wait until you are. Otherwise, you risk losing trust—and your funding.

3. Set a Realistic Funding Goal, Then Fund Fast

You want your campaign to fund early—but not by setting a goal so low it sinks you. All three panelists emphasized that underpricing your goal just to game Kickstarter’s algorithm is a risky move. You might hit your funding target fast—but if your real costs are higher, you could be in serious trouble.

Instead, do the math. Figure out your average pledge amount and work backwards. How many backers do you need to break even? To make a profit? Then set a goal that makes sense.

Funding in the first 24–72 hours is still one of the strongest indicators of campaign success. That’s when backers get excited. That’s when the algorithm helps boost your visibility.

But if you hit your goal and still can’t deliver because of shipping or stretch goal bloat? You’re setting yourself up for a nightmare.

Fund fast—but fund smart.

4. Front-Load Your Page & Make It Skimmable

Backers don’t read every word on your Kickstarter page—they skim. So don’t save the good stuff for the bottom. Put your best hooks at the top: the story, the key features, the stretch goals, the art. That’s what gets people excited—and keeps them scrolling.

Heather specifically called out campaigns that bury their most exciting updates halfway down the page. Don’t do that. If you’ve got a great stretch goal, say it early. If there’s something backers get excited about—put it in the spotlight.

Use visual anchors to break up the text. Don’t make your page a wall of copy. Clean, well-designed sections help backers understand what they’re looking at—and why they should care.

Nicole mentioned “Fit to Print” as a standout example of a long page done well: visually strong, organized, and full of personality.

There’s no way to get around it: structure matters. If people get bored halfway through your page, you’ve already lost them.

5. Shipping is a Landmine, If You’re Not Careful

Shipping can sink your campaign if you’re not prepared. All three panelists emphasized the same thing: don’t charge shipping upfront. It’s too volatile. Rates change. Delays happen. People move. If you collect shipping during the campaign, you’re locking yourself into numbers you might regret later.

Instead, use a pledge manager like BackerKit to handle shipping later—after the dust settles and you have real quotes. Nicole and Heather both mentioned that many problems stem from creators underestimating costs, then having to cover the gap themselves. Don’t do that.

Set expectations clearly on your page. What’s estimated? What’s guaranteed? What could change?

Use big, bold text if you have to. Heather noted that backers are more forgiving if you’re honest. Just don’t promise the impossible. If the manufacturer says September, you plan for November. Add padding. Backers will thank you later.

Important Note on Shipping

Since the original publication of this post in April 2025, the norms of international shipping have changed significantly. Namely, shipping has become even more complex with recent changes to international trade policies. The elimination of de minimis thresholds means more US-bound packages will face customs scrutiny and fees. So if you are shipping to US backers, this is something you will want to account for.

As a general rule of thumb, you can address this by using fulfillment centers in major markets (US, EU, UK, Canada) rather than shipping everything from one location. While this adds complexity to your logistics, it can dramatically improve the backer experience and reduce customs or tariff-related headaches.

Plan for these costs in your funding goal rather than discovering them during fulfillment.

6. Avoid Stretch Goals That Tank Your Budget

Stretch goals can build hype—but they can also blow up your budget. The panelists all warned against feature creep: adding too much, too fast, without understanding the cost. Don’t offer extras that haven’t been fully priced out. A single poorly planned stretch goal can erase your margin—or worse, leave you underwater.

Nicole told the horror story of a creator who raised $27,000 more than expected but still lost money because shipping and stretch costs ballooned. It’s easy to get caught up in the excitement and forget you’re running a business.

If you’re going to add goals, keep them simple. Heather pointed to campaigns that added multiple versions or extra components and ended up stuck in a production nightmare. Be realistic about what you can produce and fulfill.

Remember: stretch goals are optional. Backers want the core product first. Only offer more if you’re sure you can deliver it without regret.

7. Vet Your Marketing Partners

Marketing can make or break your campaign—but only if you hire the right people. Xinyuan from Jellop was quick to caution against shady firms that promise big numbers but won’t explain how they work. If someone claims they can raise $50K with no effort, run the other way.

Look for transparency. A good marketing partner will walk you through budget, ad channels, creative strategy, and actual performance data. They’ll help you understand how much you need to spend to see a return—not just take your money and disappear.

Ask for referrals. Look at past campaigns they’ve worked on. Talk to creators who’ve used them. The crowdfunding space is tight-knit, and most folks are happy to share their experiences.

As Nicole said, “Everyone seems friendly, but always double-check.” If it sounds too good to be true, it probably is. Do your homework before you hand over your ad dollars.

8. Consider Late Pledges & Add-On Platforms

Kickstarter is just the beginning. BackerKit and other platforms let you continue selling after the campaign ends—both to latecomers and to existing backers who want more. It’s one of the best ways to boost revenue without complicating your initial launch.

The panel discussed how these tools help collect shipping, manage add-ons, and offer late pledges once the chaos of launch has passed. Nicole acknowledged that while Kickstarter and BackerKit aren’t formally integrated, most creators use both in practice.

That said, be smart about what you include during the live campaign. Don’t overload your page with every option and upgrade. Save some items for the pledge manager. Keep the main campaign focused and easy to follow.

As Heather pointed out, you can always offer more later—but you can’t take things back once they’re promised. Simpler campaigns are easier to manage—and more likely to succeed.

9. Communicate Often, But Get To The Point

Your backers don’t need daily essays—but they do need to know what’s going on. The panelists stressed how important it is to send regular updates, especially after the campaign ends. Silence makes people nervous. That’s when refund requests start showing up.

Keep it short. Share wins. Share delays. Show that the project is still alive and moving forward. Heather noted that creators who wait until the last minute to say “oops, it’s late” are the ones who lose trust fastest. A quick update every couple of weeks goes a long way.

And don’t just talk at backers—show them what’s going on from your perspective. Show progress pics. Share behind-the-scenes decisions. Make them feel involved.

Just avoid spam. If you’re flooding inboxes with fluff, people tune out. When you have something real to say, say it clearly, say it quickly, and say it often enough to keep momentum alive.

10. Fraud Exists — Be Aware, Not Paranoid

Scams are rare, but they happen. Nicole talked about fake backers pledging big amounts just to inflate totals—only to cancel at the last second. Sometimes it’s done to manipulate algorithms. Sometimes it’s just trolling. Either way, it can mess with your campaign.

If something feels off—huge pledges from unknown accounts, weird patterns in backer behavior—report it. Kickstarter’s trust and safety team is active, and panelists encouraged creators to flag anything suspicious, even if it’s already been reported through normal channels.

Just don’t panic. Most backers are legit. But don’t make decisions based on your raw total alone. Wait until the smoke clears before finalizing stretch goals or making big commitments.

As Nicole put it, “The scammers work hard. We work harder.” Protect your project by staying alert, trusting your gut, and verifying before you act.

Final Thoughts

Kickstarter in 2025 isn’t just about making a flashy page and crossing your fingers. It’s about treating your campaign like a business. You need a product people want, a plan that makes sense, and a community that trusts you.

The panelists didn’t sugarcoat anything—and that’s what made their advice so valuable. They’ve seen what works, what fails, and what almost makes it before falling apart.

If you’re serious about launching a campaign this year, take their words to heart. Do the prep work. Sweat the details. Be honest. Be clear. Be ready.

Because if you get it right, Kickstarter isn’t just a funding tool. It’s a launchpad for something bigger and more lasting, be it an eCommerce store or even a retail-ready product line.

Freight shipping makes global commerce possible. Take away the trains and trucks and cargo ships and our modern economy would simply stop. Freight is how goods move from factories to customers, bridging continents and oceans.

But not all shipping methods are created equal. For many businesses, the choice comes down to sea or air.

Sea shipping is the backbone of global trade, moving enormous quantities of goods at low costs. Air shipping, on the other hand, offers speed but comes with a much higher price tag. Understanding why sea shipping is cheaper than air shipping can save businesses thousands, if not more.

It’s not just about size, though size matters. Ships can carry far more cargo than planes, but the real savings come from efficiency, infrastructure, and fuel costs. All these factors work together to keep sea shipping affordable, even though it takes longer.

The question then becomes: when does air shipping make sense? And how do businesses balance cost and speed in their supply chains?

These are the trade-offs that smart companies navigate every day. Here’s what you need to know.

Sea shipping is cheaper than air shipping

For the vast majority of freight shipments, sea shipping is cheaper than air shipping. And it’s not close at all.

We like to use Freightos to compare freight shipping rates, since their software provides instant quotes. To illustrate the price gap between sea shipping and air shipping, we’ve run a few quotes for this article.

If you were to ship 5 pallets (48” x 40” x 60”), each weighing 1,000 pounds from a factory in Shanghai to our warehouse in Lakewood, New Jersey, you would have a lot of shipping options.

Among them, the lowest priced carrier on their portal would charge $3,011 to do that. It would ship by sea and the process would take 4-5 weeks, port-to-port. Freightos estimates the actual delivery time would take between 40-48 days, which is about 6-7 weeks.

Sea shipping quote for 5 pallets, each weighing 1000 pounds

On the flip side, the cheapest available air shipping could be done in 8-9 days port-to-port, 13-16 days, at a price of $14,110. That’s about 32 days or 4.5 weeks faster, but at almost five times the cost!

Air shipping quote for 5 pallets, each weighing 1000 pounds

Not pictured, the fastest quote we saw would take only 1-3 days to ship total, but at a cost of $28,830. That’s about 7 weeks faster, but at about 10 times the price.

If you try different shipment sizes, you will see very similar results across the board. Air shipping is consistently much faster, but far more expensive. So it’s worth exploring why that is the case, and why you might choose air over sea or vice versa.

Note: These quotes were accurate on October 16, 2024, but freight rates fluctuate due to fuel prices, congestion, and trade policy. Always check current rates with your freight forwarder or platform like Freightos before making a decision.

Why is sea shipping cheaper than air shipping?

Sea shipping is cheaper than air shipping for one simple reason: efficiency. Ships can carry far more cargo than planes. This reduces the cost per unit, allowing companies to save big on shipping.

This effect is so pronounced that business owners outside of the logistics industry are well aware of its impact. “Ships can carry far more volume per journey compared to airplanes,” says Marin Cristian-Ovidiu, CEO of Online Games. “Plus, fuel is definitely a smaller part of a ship’s operating cost than for planes.”

Planes use an enormous amount of fuel to fly and customers – the folks who need freight shipped – end up paying for the cost. Ships are slower, but burn a lot less relative to the cargo they carry, thanks to the ocean doing much of the work.

Infrastructure also plays a role here. Airports are expensive to build and maintain. Ports aren’t cheap either, of course, but they have been in use for centuries and handle far large volumes of goods.

When you think about cargo capacity, fuel, and infrastructure combined, it’s not hard to understand why sea shipping is cheaper than air shipping. The mind-boggling part is how big the difference in cost is!

Even recent U.S. tariff and de minimis policies are not enough to dethrone sea shipping as the less expensive option. Sea freight is still more affordable per unit, though it should be noted that tariff hikes can create unexpected cost spikes, especially for high-volume or high-value goods.

Why would you choose air shipping over sea shipping?

Even though it’s more expensive, air shipping definitely has its benefits. Dane Nk, Founder of That VideoGame Blog gives a great example from his experience.

“All in all, from what I’ve come to observe in the last few years, air shipping typically makes more sense than sea shipping under specific instances where every second counts. For example, when it comes to tech, sending out and shipping products like smartphones close to their release date is necessary to maintaining market relevance and consumer satisfaction.”

He goes on to add that “for perishable goods like medical supplies, air freight has the necessary speed to make sure such products arrive in optimal condition ᅳ preserving their value and efficacy.”

“Despite its higher cost though, air shipping gives its consumers unmatched speed and reliability for urgent or high-value shipments, making it the go-to choice when the cost of delayed delivery far exceeds the expense of faster transportation.”

Sea shipping typically takes weeks, and there is no way around this. When speed really matters, air shipping is truly the only acceptable option for long-haul freight shipping.

What other kinds of freight shipping are there?

Aside from sea and air, there are two other major types of freight shipping: road and rail. Both have their strengths, depending on the distance and the type of goods being moved. Road shipping is flexible. Trucks can go nearly anywhere, making them perfect for that last mile.

Rail shipping, on the other hand, is ideal for heavy or bulky items. Trains can carry large amounts of cargo over long distances. It’s slower than road transport, but the cost per unit is much lower, especially when moving goods in bulk.

Rail transport is like the ground equivalent of sea shipping, with road transport being the ground equivalent of air shipping. (This metaphor has limits, of course, since you’d hardly expect a plane to land at a warehouse, although perhaps our competitors disagree!)

That said, for shorter distances, road freight is hard to beat. Trucks can pick up and drop off at specific locations, offering door-to-door service. This makes them perfect for regional deliveries and eCommerce.

Rail is more limited in its reach. You need access to a rail network, and that’s not always available. But where it works, it’s cost-effective, especially when transporting goods over landlocked areas.

Another option, and one which is very common in freight shipping, is intermodal shipping. Intermodal shipping means combining several types of freight. Goods might move by truck to a rail terminal, then continue by rail, and finally be delivered by truck. This is kind of like the freight equivalent of booking a flight, taking a shuttle, and then renting a car if you need to travel out of town.

What is the best way to keep freight shipping costs low?

The best way to keep freight shipping costs low is to plan ahead. When you have time on your side, you can choose more affordable options, like sea or rail. Faster shipping, like air freight, always costs more. The situation you really want to avoid is shipping something by air that can be shipped by sea because you’re under a time crunch.

“In our operations, while we mainly deal with digital products, we sometimes need to ship physical merchandise or marketing materials,” says Cristian-Ovidiu. “We generally stick to sea freight to keep costs down unless we’re under a tight deadline or dealing with items that need quicker handling. Then air freight becomes worth the expense.”

Planning in advance alone is the largest lever you have for lowering costs. But if you’re looking for a bit more advice, here are a few other things you can do.

  • Design with shipping in mind. Before you start manufacturing, think about ways you can make your products as light and small as possible. This will help you cut down on freight and order fulfillment costs, and might save some money during the manufacturing process as well.
  • Consolidate shipments when you can. Instead of sending multiple small packages, wait until you have enough to fill a container or truck. Shipping in bulk brings the cost per item down.
  • Pick partners carefully. A good freight forwarder can negotiate better rates and find the most efficient routes. They’ll also handle the paperwork—including paperwork related to tariffs—which can help you avoid costly mistakes.
  • Packaging matters too. Use the smallest, lightest packaging that still protects your goods. Excessive packaging takes up space, and in shipping, space is money.

Again, planning freight shipping in advance is, by far, typically the most impactful step you can take. But these other four tips can also save you considerable sums of money in the long run.

Final Thoughts

In freight shipping, time and money rarely move in the same direction. Sea shipping wins on cost, giving businesses the ability to move huge volumes of goods at a fraction of the price of air. But when speed is critical, air shipping can be worth every extra dollar.

Choosing the right shipping method depends on your needs. If your products can wait a few extra weeks, sea freight is your best bet. It keeps costs low, which can help boost profit margins or keep prices competitive.

On the flip side, for urgent shipments or high-value goods, air shipping is the answer. The speed it provides ensures you don’t lose out on sales or quality, especially for perishable goods or time-sensitive products.

Ultimately, smart planning is the key to managing freight costs. When you understand the strengths of each shipping method, you can strike the perfect balance between speed and savings.

Kickstarter campaigns are usually international. And when it comes to international shipping, customs clearance and brokerage are key parts of the process.

If you’re shipping Kickstarter orders internationally, make no bones about it—you’re in global trade. That means you need to understand customs to avoid delays, extra costs, and legal trouble.

This guide will help you handle customs clearance and brokerage for your campaign with minimal hassle. In it, we will cover:

  • What goes into customs clearance
  • Who pays for customs
  • The 3 main strategies for handling customs
  • Best practices for handling customs
  • Finding the right customs broker

By the end of this article, you’ll know how to handle customs clearance and brokerage for your campaign. That way, you can focus on the fun part – raising funds and turning your ideas into physical products!

What is Customs Clearance?

Customs clearance is a process where customs authorities inspect and approve goods entering a country. It involves several steps, like checking documents, calculating duties, and inspecting goods.

The concept of customs clearance exists for a number of reasons, but the main two reasons are very simple. Countries don’t want to let unsafe or illegal goods get in through the borders. And they want to make sure they get their fair share of taxes.

If you are shipping internationally, you’ll hear certain terms come up again and again. Some key terms you will want to know include:

  • Tariffs: Taxes imposed on imported goods.
  • Harmonized System (HS) Codes: Numerical codes used to classify products for customs purposes.
  • Import Duties: Taxes paid on imported goods based on their value, weight, or quantity.

Because customs, as a concept, exists primarily for taxation and safety, you need the right documents to get your goods over borders. Documentation is incredibly crucial for customs clearance.

Important documents include the commercial invoice, bill of lading, packing list, and certificate of origin. Making sure these documents are accurate and complete helps prevent delays and extra costs. Each country has different customs rules, so it’s important to know the specific requirements of the country you’re importing to.

Who Pays For Customs & When?

When it comes to Kickstarter campaigns, you often hear about customs through backer complaints. If you’ve followed enough campaigns, you’ve probably seen comments along the lines of “I thought this campaign had EU-friendly shipping! Why am I paying this extra bill?”

But customs fees are actually applied at two main points in the supply chain. Here’s how that works:

1. Initial Customs Fees During Import to Warehousing Country

For many Kickstarter creators, goods are manufactured abroad and shipped to a fulfillment center. Upon arrival in the warehousing country, customs fees are charged based on the value of the imported goods.

For example, when goods are shipped from China to the U.S., the creator pays customs duties upon entry into the U.S. These fees are determined by the value of the inventory and are necessary to legally bring goods into the country. This is the first point at which customs fees are applied.

This was always the case, even before the recently implemented tariffs. What’s changed dramatically in 2025 is both the cost and scope of tariffs. The $800 de minimis exemption that previously allowed small packages to enter the U.S. duty-free ended on August 29, 2025.

Additionally, tariff rates have increased substantially—China faces approximately 40% effective rates, while a 10% baseline tariff applies to most other imports. This is why it’s a good idea to use a tool like SimplyDuty to calculate the estimated cost of all customs-related charges, though always verify rates are current as they change frequently.

If you have backed a lot of campaigns but never run any, you might not know about this. That’s because the fees assessed here never go to the backers. If anyone pays them, it’s the creator.

2. Secondary Customs Fees During International Shipping to Customers

Once the rewards are stored in a warehouse, they are often shipped internationally to customers. At this point, customs fees can be applied again.

This second set of customs fees is charged by the destination country and is usually based on the value of the shipped goods. Note that as of August 2025, the U.S. no longer exempts low-value shipments under $800—nearly all commercial shipments now incur duties. Exceptions are primarily limited to domestic shipments and certain free trade agreements, though even USMCA (US-Mexico-Canada) now includes 25% tariffs as of March 2025.

If you, for example, ship a Kickstarter reward from the US to the UK, the recipient in the UK will probably need to pay a customs charge. In a lot of cases, what that comes down to is their local carrier – let’s say Royal Mail, for example’s sake – gives the recipient a bill. When that bill is paid, they get their reward.

There are ways to handle this that don’t require backers paying for customs. We’ll discuss that in the next section.

3 Strategies For Handling Kickstarter Customs

How you handle customs is important. Backers don’t like having to pay extra fees if they can avoid it. But sometimes, it just doesn’t make sense to go out of your way, as a creator, to account for all the customs regulations of all the countries in all the world.

So bearing that in mind, there are three strategies you can use to handle customs fees.

1. Making Backers Pay Customs Fees

One simple option is to have your customers pay the customs fees upon delivery. While this might sound unappealing, many international customers are used to this practice.

This approach is simple for the business but can irritate backers, especially if they are unaware of these additional charges. But just because it might cause some backers to grumble, that doesn’t mean you should write this off entirely. For many small campaigns, this may very well be the only practical way to handle customs.

If you do this, please make sure you communicate this policy clearly. This is the best way to avoid negative feedback.

2. Storing Inventory in Multiple Countries

Another strategy is to minimize international shipping and customs fees by storing inventory in multiple countries. Creators of highly successful campaigns can afford to maintain warehouses in key regions like the U.S., Europe, and Asia. That means they can provide domestic shipping within those areas.

To do this, the creator would split their freight shipments to multiple warehouses. So they would pay multiple bills to multiple countries to import bulk inventory. But individual backers in those countries or regions (like the EU) would not have bills on their individual orders.

The idea of paying multiple bills on multiple freight shipments might sound unappealing, but it’s worth noting that when you import bulk inventory into a country, you pay a tax on the manufacturing price. But when backers receive individual orders, they pay tax on the retail price. That’s a HUGE difference in most cases.

Taking this approach reduces the frequency of international shipments and the associated customs fees. However, it is often impractical for smaller businesses due to the high costs of managing multiple warehouses.

3. Using Delivery Duty Paid (DDP) Shipping

If you can’t justify having multiple warehouses, the next most customer-friendly option is to use Delivery Duty Paid (DDP) shipping. In doing that, the creator takes responsibility for paying all customs fees on behalf of the backer.

This method means that customers receive their packages without any additional charges. It improves the customer experience by eliminating surprises and making the purchase process smoother.

The key issue with this method is that creators have to pay for international shipping plus customs. Those fees can really add up to a huge total with enough backers. It’s great if you don’t have many international shipments to send, but it’s simply not reasonable if you have a large volume of orders going overseas.

Be aware that with 2025’s dramatically higher tariff rates, DDP shipping is now substantially more expensive than even six months ago. For example, if you’re shipping from China to the U.S., you’re looking at approximately 40% duties on the product value, plus shipping costs.

For a $50 product, that’s $20 in duties alone—before accounting for shipping. This can make DDP financially unviable for many campaigns, especially those with lower margins or higher-value items.

7 Best Practices for Customs Clearance

No matter which strategy you use for customs, there are some best practices that stay constant. Here are a few simple rules you can follow that will help you reduce the risk of things going wrong.

1. Do your paperwork correctly

Having accurate and complete documents is vital for customs clearance. To restate: important documents include the commercial invoice, bill of lading, packing list, and certificate of origin.

Make sure all documents are filled out correctly and include necessary details like product descriptions, HS codes, and declared values. Incorrect or incomplete paperwork can lead to delays, fines, or even shipment rejections.

Basically – dot your I’s and cross your T’s.

2. Follow import and export regulations

Every country has its own import and export rules. Get to know the specific requirements of the countries you’re shipping to and from. This means understanding restricted or banned items, packaging and labeling needs, and any special certifications required.

Complying with these regulations will make your life generally easier.

3. Don’t be afraid to hire a customs broker

Customs brokers are experts in navigating customs procedures. They can help prepare your documents, calculate duties and taxes, and make sure you follow all regulations.

Choosing an experienced customs broker can save time, reduce errors, and speed up the clearance process. Don’t be afraid to hire help if you need it!

4. Use technology and automation to cut down on grunt work

Using technology and automation can make customs clearance easier. Many modern customs solutions offer features like automated document preparation, real-time tracking, and integration with shipping platforms. These tools help reduce manual work, minimize errors, and give you better visibility into your shipments’ status.

5. Keep an eye on trade policy and tariffs news

Tariff changes, new trade agreements, and shifting customs regulations can directly impact your costs and timelines. Keeping an eye on policy changes as they happen can give you the chance you need to adapt early whether that means adjusting your pricing, changing suppliers, or altering your fulfillment plans.

Reliable sources include official customs websites, logistics news outlets, and updates from your customs or freight broker. A few minutes of research every month can save you from expensive surprises later.

This has been especially critical in 2025, as tariff rates have changed multiple times since January. What was a 10% rate in February might be 40% today. Sign up for alerts from your customs broker and check rates at least monthly during your campaign.

6. Account for de minimis elimination in your planning

The U.S. elimination of the $800 de minimis exemption means every single package entering the US now requires customs processing and duty payment. This affects your budgeting, timeline, and backer communication strategy.

Even small rewards that would have shipped duty-free in early 2025 now incur fees. Build these costs into your campaign budget from the start, as they can add 10-40% to your landed costs depending on the country of origin.

7. When in doubt, communicate like you’re an open book

Clear communication with everyone involved in the customs process is crucial. This includes suppliers, freight forwarders, and customs brokers. Make sure everyone knows their responsibilities and deadlines.

If you have questions, ask them. If you think someone might need to know certain information, make sure they know it. Err on the side of over-communication.

Choosing the Right Customs Broker

You are able to book your own freight. And if you work with the post office and other carriers like UPS and FedEx, you can also send international shipments without too much trouble.

But if you’re worried about customs clearance or tariffs, it might be a good idea to hire a helping hand. Should you choose to do that, here are a few tips to make sure you find the right partner.

1. Find an experienced broker

Look for a broker who has lots of experience with shipments like yours. They should know the rules and needs of the countries you trade with. An experienced broker can offer area expertise and help you avoid common customs traps.

2. Learn about their services

A broker with a wide range of services can simplify your logistics. Besides customs clearance, many brokers offer freight forwarding, warehousing, and distribution. Choosing a broker that provides end-to-end solutions saves time and reduces the hassle of dealing with multiple service providers.

3. Review costs

Cost matters, but it shouldn’t be your only concern. Compare pricing from different brokers but also think about the value they offer. A cheaper broker might not give you the same level of service or expertise as a pricier one. Look for transparent pricing with no hidden fees.

4. Look at reviews

Check the broker’s reputation and customer reviews. Positive feedback and a good reputation usually mean reliable, high-quality service. Ask other businesses for references and search for online reviews to see how satisfied their customers are.

5. Check out their tech system

It’s important to find a person you like working with. But it’s also wise to make sure you like their software too, since you’ll probably work with that more than the actual person.

Look for brokers who offer online tracking, automated documentation, and integration with your systems. These features streamline the customs process and give you real-time shipment updates.

Final Thoughts

If you run a Kickstarter campaign, you will probably ship internationally. That means you will need to know how to handle customs clearance and brokerage.

Getting packages across country borders is intimidating and complex. The 2025 trade environment has made this even more complex, with the elimination of de minimis exemptions and volatile tariff rates. What worked for campaigns in 2024 may no longer be viable today.

Before you launch your campaign, make a decision about how you plan to handle customs. Figure out who will pay for customs and figure out if you will be hiring help.

As intimidating as international shipping can be, don’t let it scare you away from launching the product of your dreams. This is just a logistical hurdle to clear along the way. You can do it, as have so many others before you!

Understanding the customs clearance process is extremely important if you want to import goods into the USA. The last thing you want is to have your goods impounded at the border.

Clearing customs involves strict regulations. If you don’t comply, you could face delays, penalties, and extra costs. But once you know the rules, importing can be smooth, efficient, and a real advantage for your business. This is especially true given the recent changes to U.S. tariff policy.

Most significantly, the $800 de minimis exemption ended on August 29, 2025. This means ALMOST ALL commercial shipments—even those valued under $800—now require formal customs processing and payment of duties. What used to be a simple process for small packages has become much more complex, making proper customs compliance more critical than ever.

In this guide, we’ll break down the U.S. import process step-by-step so you can avoid costly mistakes.

Step-by-Step Guide to the Import Process

Importers must meet basic requirements set by Customs & Border Protection (CBP). That includes proper documentation, accurate classification of goods, and adherence to import regulations. Here is what you need to know in order to import goods.

Step 1: Obtain a Customs Bond

A customs bond is a financial guarantee to U.S. Customs and Border Protection (CBP) that you’ll follow regulations and pay duties, taxes, and fees. Without one, your goods can’t legally clear customs.

There are two types of bonds:

  • Single-entry bond: Covers one shipment—ideal for occasional importers.
  • Continuous bond: Covers all shipments over a year—better for frequent importers.

You can get a bond through a customs broker or surety company.

Step 2: Properly Classify Your Goods

Using the Harmonized Tariff Schedule (HTS), classify each product accurately. Your classification determines the tariff rate and regulatory requirements.

For instance, if you are importing electronic gadgets, you need to find the specific HS Code that matches each item to determine the exact duty rate. Misclassifying items could result in paying higher tariffs or facing penalties. This can disrupt your business operations and increase costs.

Misclassification can lead to higher duties or penalties. If in doubt, work with a customs broker to verify codes before shipping.

As Chris Rivera, CPA and founder of The Ecommerce Accountants, warns: “Don’t just think in terms of product cost—think in terms of landed cost. Factor in duties, freight, customs fees, and delays.”

Accurate classification now avoids expensive mistakes later.

Step 3: Prepare and Submit Required Documentation

Essential documents for importing include the Bill of Lading, Commercial Invoice, and Packing List. These documents must be completed accurately and submitted to the CBP.

Double check to be sure all details are correct and consistent across documents to avoid processing delays. Submissions can be made electronically via the Automated Commercial Environment (ACE) or manually, depending on the requirements.

Your documents have to be done right. Rushing through documentation is asking for a rough import process. As an example, if the Commercial Invoice lists 500 units of a product, the Packing List should also reflect this exact quantity. Any discrepancy can trigger delays and additional inspections, complicating the import process.

Using ACE for electronic submissions not only speeds up the process but also provides real-time tracking of your submission status. That makes it easier to manage.

Step 4: Determine Entry Type

There are different types of entry for imported goods: Formal Entry and Informal Entry.

Formal Entry is required for goods valued over $2,500 or items subject to regulations and quotas. Informal Entry applies to goods valued between $250 and $2,500 for most products (though textiles and certain regulated items may require formal entry regardless of value).\

For example, if you’re importing high-value electronics worth $10,000, you’ll need to file a Formal Entry with extensive documentation. A small batch of handcrafted goods worth $1,500 would qualify for Informal Entry, but even a $200 shipment now requires customs processing and duty payment—something that wasn’t required before August 2025.

Important: The de minimis exemption that previously allowed packages under $800 to enter duty-free no longer exists as of August 29, 2025. Even small shipments now require customs entries and duty payment. At time of writing, this has dramatically increased the workload for CBP and may cause processing delays.

Step 5: Calculate and Pay Duties and Taxes

Duties and taxes are calculated based on the Harmonized Tariff Schedule (HTS) classification of your goods. Each classification has a corresponding duty rate. To calculate the duties, multiply the value of your goods by the applicable duty rate.

Let’s run through an example. If the duty rate for your imported textiles is 5% and the total value is $20,000, you’ll owe $1,000 in duties. Paying this amount promptly helps ensure your goods clear customs without delays.

Payments to the CBP can be made electronically through the Automated Commercial Environment (ACE) or by other CBP-approved methods. If you use ACE, it will help you accurately calculate and pay duties and taxes. That way, your goods cruise across the border.

Important: As of 2025, U.S. tariffs on many Chinese goods have risen sharply, affecting electronics, textiles, and consumer goods. Double-check tariff rates when importing—especially for products from China and Southeast Asia.

Current tariff rates as of September 2025 are as follows:

  • China: Approximately 40% effective rate (after negotiations and suspensions)
  • Steel and aluminum products: 41.2%
  • Automotive products: 22.3%
  • Universal baseline: 10% on most imports
  • Mexico and Canada: 25% (implemented March 2025)

These rates change frequently due to ongoing negotiations. Always verify current rates before calculating duties, as using outdated information can result in significant underpayment and penalties.

Step 6: Arrange for Inspection and Release of Goods

CBP may inspect your goods to ensure compliance with regulations. If your shipment is selected for inspection, the CBP will notify you. Prepare by having all necessary documents ready and ensuring your goods are correctly labeled and packaged.

Inspections can be random or based on risk assessments. Cooperating fully with the inspection process and addressing any issues promptly can help expedite the release of your goods.

For example, if you’re importing food products, make sure all items are labeled with ingredients and expiration dates as required. If the CBP decides to inspect your shipment, having everything in order can prevent long delays.

Should any issues arise, promptly provide additional information. If there are discrepancies, correct them. This can help speed up the release of your goods.

11 Common Pitfalls and How to Avoid Them

Customs clearance can be complicated. There are some mistakes that happen again and again for new and experienced importers alike.

Here are some common ones along with tips on how to avoid them.

#1: Incorrect Classification

Always double-check HTS codes. Misclassification can lead to fines and delays. Use CBP resources or consult a customs broker for accurate classification. For example, if you misclassify electronics as toys, you could face hefty fines and long delays while the error is corrected. Make sure you use the right code by cross-referencing CBP’s guidelines or seeking help from a broker.

#2: Incomplete Documentation

Make sure all forms are filled out accurately and completely. Missing or incorrect information can cause delays. Double-check documents before submission.

For instance, if your Commercial Invoice is missing the total value of goods or has incorrect quantities listed, your shipment could be held up at customs. Take the extra time to verify every detail on your forms.

#3: Ignoring CBP Notices

Respond promptly to any CBP communication. Failure to address notices can result in penalties or shipment holds.

If you receive a notice regarding additional documentation or clarification, respond quickly. Ignoring such notices can lead to your goods being held indefinitely or even seized.

#4: Improper Packaging

Use compliant and secure packaging. Non-compliant packaging can lead to inspection delays or damage claims.

As an example, if you’re shipping fragile items like glassware, using inadequate packaging can result in breakage, leading to claims and delayed processing. Make sure your packaging meets CBP standards and is robust enough to protect your goods.

#5: Failure to Pay Duties

Pay all required fees on time. Late payments can incur fines and delay the release of your goods.

If you fail to pay the calculated duties by the deadline, your goods will not be released until the payment is made. This could cause significant delays in your supply chain.

#6: Neglecting Inspection Procedures

Be prepared for potential inspections. Have all necessary documents and be ready to cooperate with CBP officers.

If your shipment is selected for inspection, having everything in order, like proper labeling and documentation, can expedite the process. Cooperation and readiness can make the inspection smooth and swift.

#7: Overlooking Entry Types

Choose the correct entry type for your goods. Incorrect selection can lead to processing delays and additional scrutiny.

For instance, if you incorrectly file a high-value shipment as an Informal Entry, you could face extra scrutiny and processing time. Understand the distinctions and file appropriately to avoid complications.

#8: Lack of Insurance

Protect your shipment with appropriate insurance. Insurance can cover potential losses or damages during transit. If your goods are lost or damaged during shipping, having insurance means you won’t bear the full financial brunt of the loss. It’s a small investment for peace of mind.

#9: Ignoring Import Restrictions

Make sure your goods comply with all import restrictions and regulations. Restricted items can be seized or returned.

For example, certain chemicals and pharmaceuticals require specific permits and adherence to strict regulations. Ignoring these can result in your goods being confiscated and heavy fines imposed.

#10: Assuming De Minimis Still Applies

The $800 de minimis exemption ended August 29, 2025. All commercial shipments now require customs processing and duty payment, regardless of value. Many importers haven’t adjusted to this change and face unexpected duties and delays.

For example, if you’re importing $500 worth of samples that would have entered duty-free in early 2025, you now need proper documentation and must pay applicable duties. Plan accordingly and budget for these additional costs.

#11: Using Outdated Tariff Rates

Tariff rates have changed dramatically in 2025 and continue to fluctuate. Using rates from even a few months ago can result in significant underpayment.

Always check current rates through official CBP resources or your customs broker before calculating duties. What was a 10% rate in April might be 40% today.

Tips to Use Technology to Speed Up Customs Clearance

Smart use of technology can significantly streamline the customs clearance process. Various tools and software are available to simplify and automate different aspects of importing goods.

The Automated Commercial Environment (ACE) is an important platform provided by the CBP. It allows for electronic submission of documents, real-time tracking, and communication with customs officials.

Additionally, customs management software like Descartes and ONESOURCE Global Trade offer comprehensive solutions for managing compliance, documentation, and duty calculations.

Automated solutions provide lots of benefits, including reducing human error, speeding up document processing, and ensuring compliance with regulations.

These systems can alert you to missing or incorrect information, helping to avoid delays and penalties. For example, if you submit a document with an incorrect HTS code, the software can flag the error and prompt you to correct it before submission, preventing delays.

Real-time tracking allows you to monitor the status of your shipments and quickly address any issues that arise. Imagine being able to see exactly where your shipment is and knowing immediately if it’s stuck at a port, enabling you to take swift action to resolve any problems.

Where possible, avoid manual paperwork. Using the latest tech can keep your import processes efficient in terms of both time and money. Plus, you can cut down on the hassle. It’s worth the slight learning curve of using new software.

Final Thoughts

Understanding and following the customs clearance process is mission-critical for importing goods into the USA. Key steps include obtaining a customs bond, properly classifying goods, preparing documentation, determining entry types, calculating and paying duties, and arranging for inspections.

The elimination of the de minimis exemption and current tariff volatility have made customs clearance more complex than ever. What worked in early 2025 may not work today. Stay informed about current rates and requirements, as they continue to evolve.

Attention to detail counts for a lot here. As long as you are thorough and careful, you can see your products through the import process and clear customs without unnecessary trouble.

Additional Resources

For more information, visit these resources:

US trade policy has seen some remarkable and dramatic changes in 2025. The greatest among them are sweeping tariff policies that directly impact how eCommerce businesses and crowdfunding campaigns operate.

Whether you’re running a Shopify store, launching a Kickstarter campaign, or managing an Amazon FBA business, these changes affect your bottom line. And they do so in ways that require immediate attention and your ability to strategically adapt.

It all started with a universal 10% baseline tariff was implemented on most imports in April 2025.

China currently faces an effective rate around 40% after negotiations and suspensions.

And the $800 de minimis exemption that allowed small packages to enter duty-free? It ended August 29, 2025.

For businesses that have built their operations on affordable overseas manufacturing, this is a massive and fundamental shift. And it’s one that requires an immediate reassessment of sourcing, pricing, and fulfillment strategies.

In this post, we’ll go over some common questions to give you context and answers you need to make better decisions, starting with the most high-level question first.

What are tariffs and how do they impact businesses?

Tariffs are taxes on imported goods, collected when products cross international borders into the United States. When your shipment arrives at a US port, customs officials calculate what you owe based on your commercial invoice.

This bill must be paid before goods are released—and critically, the importer (typically the US business) pays it, not the overseas manufacturer.

Consider a practical example: You’re importing smartphone cases from Vietnam valued at $10,000. With the current reciprocal tariff structure, Vietnam faces varying rates depending on the product category and recent negotiations. Your actual tariff bill depends on the specific Harmonized Tariff Schedule (HTS) code for your products.

The federal government uses tariffs for three primary purposes:

  • Protecting domestic industries by making foreign goods more expensive
  • Generating federal revenue (tariffs collected $77 billion in fiscal year 2024 before being broadly expanded in 2025)
  • Creating leverage in trade negotiations

For importing businesses, however, tariffs represent an additional cost that either reduces margins or gets passed to consumers through higher prices.

Of recent tariff-related news, perhaps the most disruptive has been the removal of the de minimis exemption, explained below.

What was the de minimis exemption, and what does its removal mean for businesses?

The de minimis exemption previously allowed packages valued under $800 to enter the US duty-free. This provision enabled business models for companies like Shein and Temu, and helped thousands of small sellers maintain manageable costs. That exemption is now history.

On May 2, 2025, China and Hong Kong lost de minimis privileges. Every package from these regions now faces duties, regardless of value.

Then on August 29, 2025, de minimis ended globally. Almost all commercial shipments under $800 now incur duties.

Standard duty rates apply to regular shipments. For postal packages, importers face either the applicable tariff rate for their country or flat fees ranging from $80 to $200 per item, depending on the effective rate.

The scale of this change becomes clear in the numbers. De minimis shipments grew from 134 million in 2015 to over 1.36 billion in 2024. What the government viewed as a loophole, businesses relied upon as essential infrastructure.

Small sellers face particularly acute challenges. Etsy vendors report that small-value shipments now trigger substantial flat fees through USPS. Many have shifted to bundling products and shipping via private carriers like UPS, which calculate duties on actual declared value rather than imposing flat fees.

How do current tariffs compare to historical norms?

When it comes to tariffs, the year 2025 is, by a mile, the most important one in modern history. The last time tariffs were such a prominent part of US trade policy was in 1930 as part of the Smoot-Hawley Tariff Act.

Before 2025

From 2018 through 2024, the US primarily employed targeted tariffs, mostly directed at China. Section 301 tariffs ranged from 7.5% to 25% on specific product categories. Businesses could often plan around these by switching suppliers or absorbing costs on high-margin items.

The USMCA (formerly NAFTA) maintained mostly duty-free trade with Canada and Mexico until very recently. So in that regard, the North American continent had free trade for about 30 years.

Meanwhile, the de minimis threshold was $800 from 2015 to 2025, which kept small-batch importing viable for many businesses. Even before 2015, the de minimis threshold was $200, and the tariffs applied after crossing that threshold were lower.

2025 & Beyond

The April 2, 2025 announcement, dubbed “Liberation Day,” fundamentally restructured US trade policy in the following ways:

  • Universal baseline tariff: 10% on most imports
  • Reciprocal tariffs: Intended to match rates that other countries charge the US
  • China-specific measures: Complex negotiations resulting in suspended rates, currently effective at approximately 40%
  • De minimis elimination: First for China in May, then globally in August

The implementation speed caught businesses unprepared. The China de minimis change went from announcement to enforcement in under 30 days.

Meanwhile, as of the time of writing, many postal services worldwide have suspended US shipments until they have a chance to update their systems for compliance.

Current effective tariff rates vary significantly. Most notably, tariff rates are, at time of writing, set to the following:

Bear in mind that these rates continue to fluctuate based on ongoing negotiations and policy adjustments.

How do tariffs affect eCommerce stores?

Tariffs are making imported goods more expensive, which means eCommerce store owners have two options: accept lower profit margins or pass the cost onto consumers.

Let’s examine concrete numbers using current rates. You sell yoga mats sourced from China at $15 per unit with a retail price of $45.

Previous cost structure:

  • Product cost: $15
  • Shipping: $5
  • Gross margin: $25 (56%)

Current structure with 40% effective tariff:

  • Product cost: $15
  • Tariff (40% of $15): $6
  • Shipping: $5
  • Gross margin: $19 (42%)

While the example above shows a gross margin which is still viable, it’s a big change nonetheless. Not every product is going to continue to be viable without price increases or a change of supplier.

And on that note, store owners have a handful of options on dealing with these additional expenses:

  1. Price Adjustments: Pass the increased cost onto consumers and potentially risk lost sales.
  2. Supplier Diversification: Shift manufacturing from high-tariff countries like China to comparatively low-tariff countries like Vietnam, Thailand, and Mexico. This sometimes can offset costs, but it’s important to calculate the real effect on total landed costs all the same, as manufacturing internationally, but outside of China, is often more expensive than manufacturing in China—even with lower tariffs.
  3. Supplier Negotiation: Some manufacturers are absorbing partial tariff costs to retain customers to keep their businesses afloat.
  4. Domestic Production: Sometimes, tariffs are enough to make even higher-cost domestic manufacturing attractive for US brands, so some are switching when they can.
  5. Product Mix Optimization: Some brands are switching to higher-margin items that can better absorb tariff impacts.

In truth, many brands are doing a combination of these things in order to mitigate tariff costs.

It’s also worth noting that stores are running into additional supply chain costs that go beyond just tariffs. Among them are:

  • Customs broker fees (typically $100-300 per shipment)
  • Extended storage costs during customs clearance
  • Cash flow impacts from upfront duty payments
  • Increased accounting complexity for landed cost calculations
  • Potential delays affecting inventory planning

How are tariffs affecting crowdfunding (Kickstarter, Indiegogo, Gamefound, etc.)?

Tariff issues are especially tricky with crowdfunding since there is a long gap between funding and delivery of product.

For one, most campaigns lock pricing months before shipping begins. When tariffs change after funds are collected and production initiated, creators face unexpected costs that can eliminate margins entirely. Case in point, popular board game publisher, Stonemaier Games, reported facing nearly $1.5 million in unexpected tariff costs on games already in production. Their margins shifted from healthy to negative due to tariff changes.

In response, creators are employing the following tactics to keep their margins intact:

  1. Using Tariff Management Tools: Kickstarter introduced a Tariff Manager tool in April 2025. It allows creators to add surcharges to cover import costs during the pledge manager phase. While not ideal, it provides a mechanism for cost recovery.
  2. Adjusting Shipping Separately: Instead of including shipping in pledge levels, many creators now charge it later through the pledge manager. This provides flexibility to adjust based on actual costs at fulfillment time.
  3. Maintaining Transparency: Creators finding success are those explaining the situation honestly to backers. Most backers understand that global trade policy changes are outside a creator’s control.
  4. Building Larger Buffers: New campaigns are adding 15-30% padding to funding goals to account for tariff uncertainty and potential changes during the campaign-to-fulfillment timeline.

It’s also worth remembering that not all backers are in the US. Typical Kickstarter campaigns receive 40-60% of funding from international backers who are already accustomed to paying VAT and customs fees.

How can I prepare my business for tariffs?

Though the changes in US trade policy are sweeping in scope, there are still a lot of things that you can personally do to prep your business for tariffs. We’ve listed five tips below:

1. Calculate your true landed costs.

Review your most recent import invoice and calculate:

  • Base product cost
  • Applicable tariff rate for your country and product category
  • Freight and logistics expenses
  • Customs broker fees
  • Storage and handling charges

This total represents your actual landed cost. If current pricing doesn’t support profitability with these costs, adjustments are necessary.

2. Verify your HTS codes.

The Harmonized Tariff Schedule code determines your exact tariff rate. Incorrect classification can result in wrong rates and potential penalties.

Consider hiring a customs broker for a consultation to ensure proper classification. The investment typically pays for itself through accurate duty calculation.

3. Optimize fulfillment strategy.

For businesses importing to US warehouses:

  • Consolidate shipments to spread fixed costs across more units
  • Consider fulfillment centers near ports of entry to minimize inland transportation
  • Establish fulfillment operations in other countries for non-US customers

You’d be surprised how much you can save by carefully manage where you store items and ship them from.

4. Diversify supply chains.

It’s not a good idea to depend too much on one supplier for key products. Even if you want to keep working with your primary supplier, consider backups in other countries.

That way, if tariffs change quickly and your landed cost match changes, you can easily switch to your backup supplier.

5. Communicate proactively.

Whether selling on Shopify or Kickstarter, inform customers about potential impacts.

They’ll discover changes when prices adjust or shipments delay. Proactive communication maintains trust and manages expectations.

Moving Forward

There’s no denying that the current tariff-heavy environment has created some new challenges for eCommerce and crowdfunding businesses.

The companies succeeding are those that acknowledge the new reality, carefully analyze their costs, and make strategic adjustments.

If you’ve read this article and you still feel like you need help, that’s OK. At Fulfillrite, we’ve been helping eCommerce and crowdfunding brands ship quickly and cost-efficiently since 2010.

While we can’t make tariffs disappear, we can help optimize your fulfillment strategy to minimize their impact through our services of US-based shipping,  warehousing, and order processing. So if you’re looking for ways to adapt your fulfillment operations to this new trade environment, reach out to us today for a free quote.

Frequently Asked Questions

Are these tariffs permanent?

They might be. Trade policy can change with administrations or new trade agreements. The situation remains fluid.

Do tariffs apply to product samples?

Yes, unless marked as having no commercial value. Even then, customs officials may assess duties. Plan accordingly when requesting samples.

Can I mark packages as gifts to avoid tariffs?

It’s not a good idea to do that. While gifts under $100 are exempt, false declarations are illegal and can result in import privileges being revoked. The risks far outweigh any potential savings.

What if I’m dropshipping from China?

Each individual package faces duties with no de minimis exemption. Consider bulk importing to a US warehouse for more cost-effective fulfillment.

How do I determine my exact tariff rate?

Check the Harmonized Tariff Schedule using your product’s HS code. Add any additional tariffs (reciprocal, Section 301, etc.) that apply to your country of origin. Rates change frequently, so verify before each shipment.

Should I delay my Kickstarter launch?

Delaying may not help, as tariff policies continue evolving. Build flexibility into your fulfillment timeline and maintain transparent communication with backers about potential adjustments.

What about products already in transit?

Review your incoterms to determine responsibility. If you’re the importer of record, duties are owed upon arrival. Some shipments may qualify for transitional provisions depending on timing.

Can fulfillment centers help manage tariff impacts?

While fulfillment centers cannot eliminate tariffs, they can help optimize logistics through consolidated shipping, strategic inventory placement, and proper documentation. Even warehousing your goods in the US alone can have a big impact, since you would only pay tariffs on the wholesale value of the goods rather than the retail value (as you would if you shipped individual packages to US recipients from outside the US).

People don’t spend long on web pages. A 2021 report by Contentsquare says the average time users spend on a web page is 54 seconds. That means if you want to succeed in eCommerce, you need to make every element on every page count. In this guide, we’ll give you eCommerce website tips and tricks to help you do exactly that.

Setting up an eCommerce shop looks easy because of tools like Shopify and WooCommerce, as well as sales channels like Amazon. In many ways, it is easier than before. But then again, so is getting lost in the crowd.

To really stand out, you need to be able to develop an excellent eCommerce strategy. Then you need to make sure your site is set up for optimum performance at every step of the way.

In this guide, we’ll focus on three areas: strategic excellence, website optimization, and apps to help you grow your store.

You don’t need to do everything in this guide. Just pick a few tips and really focus on doing them well!

Tips to Start Selling Online Now

Starting an online store is a multi-step process. In order to succeed, you need to define a clear target audience. Then you need to choose the right products and set up a seamless supply chain to get them shipped. Along the way, you’ll also need to configure all the bells and whistles in your chosen eCommerce software.

These tips will help you lay a strong foundation for your online business.

#1: Figure out who to sell to and what to sell

You can’t just sell anything you want. To make sales, you need to identify a target audience and research their online behavior. Every product you sell needs to meet some existing need that your target audience wants.

Ecommerce success starts with having a solid understanding of what your market wants. Not all products that sell well offline will perform equally well online.

You need to be able to understand your target audience so well that you can describe their wants and needs in your sleep. To get started, consider making a buyer persona. (Hubspot has a free tool to help with this.)

Once you do that, conduct thorough market research to determine what your target audience needs and wants. Make sure your product fills an existing demand and stands out from competitors.

#2: Validate the market

It’s tempting to design a product, order tons of units, and then start selling afterward. But this can be a huge mistake if you don’t go about it the right way.

Think about your ideal customers. Every product you sell needs to meet one of their needs. But you shouldn’t just take it on faith that what you want to sell will do that.

Before you commit to ordering a lot of inventory, try selling a small amount first. You want to see if there is a market for what you want to sell. If you can’t sell a small amount first, try collecting information with surveys or small-dollar advertising campaigns.

If you do this, it will help you avoid the mistake of ordering a lot of products that no one wants to buy.

You can apply a similar principle to your store’s branding as well. Make sure that the way your website is presented lines up with customer expectations. Show it to members of your target audience and ask them for their feedback. Then you implement that feedback as often as you can.

#3: Figure out the supply chain

According to a recent study with Voxware, of 500 surveyed consumers, almost 70% say they are “much less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the date promised.”

Translation: ship on-time or else.

To succeed in eCommerce, you need to be able to:

This is more complicated than we can cover in this article. But suffice it to say, if you plan on making it big in eCommerce, you also have to have a clear plan to ship orders to customers.

#4: Build your brand

Customer retention is incredibly important to long-term eCommerce success. According to Bain & Company, a 5% increase in customer retention can lead to a 25-95% increase in profitability.

A big part of customer retention is being memorable. For that, you need to build up a brand. It’s not just about having a good-looking logo, though that is valuable. You want to have clear brand values that line up with what your target audience cares about. Then you need to have all your brand elements—from logo and colors to brand voice—reinforce those values.

This is a far more complicated subject than we cover in this guide, so here is an additional resource to help you define your company’s brand identity.

#5: Choose your eCommerce software

When it comes to setting up an eCommerce site, you have a lot of different software options. Shopify, BigCommerce, and WooCommerce are some of the most common ones in use today.

Shopify is known for its ease of use and wide range of features. It’s a great all-purpose tool and ideal for small to medium-sized businesses. 

BigCommerce focuses on scalability and has a variety of built-in features suitable for growing businesses.

WooCommerce is an open-source solution that can be installed right on top of WordPress, a powerful advantage, given that WordPress is the most common website management software in use today.

Choosing eCommerce software is one of the most consequential decisions you’ll make in your business. It’s not easy to switch once you start with one. Think about which of these platforms—or others not listed—is going to be the best fit for your needs.

#6: Configure your eCommerce store

Don’t launch your eCommerce store until it is set up correctly. You want to make sure you’re providing a smooth shopping experience.

You need to make sure all the backend details are handled. That means setting up payment gateways, shipping options, and tax calculations, among other things.

Make several test orders. Add different things to your cart. Try inputting different addresses to see how it affects shipping prices and availability.

Do this until you feel completely comfortable in saying that your store is in working order. The last thing you want to do is spend a ton of money driving traffic to your store, only to have errors stop people from making purchases.

#7: Drive traffic to your eCommerce store

Think about how you want to get people to find your eCommerce store. Then develop a plan accordingly. There are a lot of ways you can do this, such as:

  • Search engine optimization. That includes optimizing your website for keywords to pull in organic traffic.
  • Advertising. This might include using Facebook, Pinterest, Instagram, Google, YouTube, or TikTok to put your products in front of people and entice them to buy.
  • Content marketing. That will mean creating blog posts, videos, or other forms of content that people will want to see and that will refer people to your store (such as gift guides).
  • Email marketing. This can be used to keep in touch with potential customers as well as repeat ones. You can also use it to educate potential customers about your products or send coupon codes.

“Use Google Search Console to see how your site performs in search results and identify issues that need to be fixed,” says SEO Consultant, Jase Rodley. “BuzzSumo is another underutilized tool that allows you to see what content performs well in your niche and create more engaging marketing materials.”

Paul DeMott at Helium SEO also mentions that “one tool I think deserves more attention is AnswerThePublic. It’s fantastic for finding questions that real people are asking, which you can then turn into content.”

Creating a marketing and promotion plan for your store is incredibly nuanced. There are so many ways that you can do this. But the most important thing is to figure out what you want to try and come up with a plan.

#8: Focus on improving user experience

You want to make sure your store is pleasant to use. Start by installing Google Analytics so you can gather data on user behavior. This will help you see where they are from, how long they spend on the site, and which pages they are interested in.

You can use data that you gather to run retargeting ads and send follow-up emails to users that abandon their shopping carts. This will encourage them to return and complete their purchases.

Beyond that, there are some aspects of user experience that are common sense and can be implemented almost immediately. For example, make sure your checkout process is easy. Eliminate surprise shipping fees and make sure you don’t have to create an account to make a purchase. These two things alone can make a huge difference!

#9: Use advanced personalization tools

Modern eCommerce success increasingly depends on personalized experiences. Use customer data to show relevant product recommendations, customize email campaigns, and display targeted content based on browsing history.

Tools like Dynamic Yield or Optimizely can automate personalization at scale. Start simple with “recently viewed” and “customers who bought this also bought” sections, then expand to behavioral triggers like exit-intent offers or cart abandonment emails.

Personalization extends beyond product recommendations, though. You can also customize your homepage for returning visitors, show location-based shipping information, and adapt your messaging based on traffic source. A visitor from a social media ad might need different information than someone who found you through Google search.

Tips to Optimize Your eCommerce Website

Slow websites don’t make sales. Neither do difficult to use ones.

Time spent optimizing your eCommerce site for speed and usability is time well spent. Here are some specific tips on how you can do that well.

#10: Remove unused apps

It’s been years since most tech users have had to seriously think about deleting files and programs to clear up space on their devices. But this is still an issue you need to pay attention to when it comes to website management.

Unused apps can slow down your site, affecting load times and user experience. Regularly review the apps installed on your eCommerce platform and delete those that are not essential.

This simple step can significantly improve your site’s load times. You would be shocked!

#11: Optimize images

Using high-quality images is really important in eCommerce. Showing people what they are going to be buying is a great way to build trust.

But at the same time, large images can slow down your site, leading to a poor user experience. So you need to find the right balance.

To do this, use the smallest images you can without compromising quality. When in doubt, favor WEBP and JPG formats over others for faster loading times.

Compress images to reduce their file size and ensure they are optimized for the web. This will help your pages load faster, improve overall site performance, and enhance user satisfaction.

You can always use tools like Pingdom and GTMetrix to see how long it takes your web pages to load.

#12: Optimize fonts

Using fancy fonts is a great way to improve your store’s branding. But you need to make sure you use them correctly.

This point is a bit technical, but it’s important—incorrectly installed fonts can block other parts of web pages from rendering. This can slow down your overall website time, despite it seeming like a small detail.

When in doubt, use GTMetrix or PageSpeed Insights and make sure you’re not running into font-related errors.

#13: Install a lazy loader

Lazy loading helps load images and assets only when they are needed. This helps improve perceived loading times. Lazy loading helps your site appear to load faster, even if all elements are not fully loaded immediately.

Implementing a lazy loader is an easy way to create a smoother, more efficient user experience. As a result, you can more easily keep visitors engaged and cut down on bounce rates.

#14: Make sure your theme isn’t slowing you down

Most eCommerce platforms like Shopify and WooCommerce are, by their nature, pretty fast. But all of them use themes in order to give sellers the opportunity to customize their sites. This is where things can start to go wrong.

Not every theme is made well. Before you commit to using one, you need to make sure that your theme loads quickly. Otherwise, you might end up spending a lot of time configuring one that’s going to ultimately slow down your site in a way that you cannot easily fix.

If you’re already committed to a theme that slows down your site, you should consider swapping to another one. It’s a pain to switch, but this is one of the most valuable things you can do to speed up your site and likely increase sales.

#15: Eliminate pop-ups and lightboxes

Overuse of pop-ups and lightboxes can slow down your site and annoy users. Use these features sparingly to balance user experience and performance.

Focus on essential pop-ups that provide real value to your visitors. Eliminate those that are unnecessary. This will help you maintain a fast, smooth browsing experience.

When in doubt, keep it as simple as possible.

#16: Find a good CDN

A CDN (Content Delivery Network) distributes content delivery load across multiple servers, speeding up your site. Or, more simply, files don’t have to travel as far to get to your users. That makes your site faster.

This is an easy way to speed up your site and increase the odds of making sales. If you’re a Shopify user, Shopify has a built-in CDN as long as you are on Shopify Plus. Otherwise, look for a good CDN for your eCommerce software solution. It’s worth it to help keep your loading times in check.

#17: Use schema markup for increased search visibility

“Make use of schema markups to provide additional information to search engines,” suggests Nikola Baldikov, Founder of Inbound Blogging. “This will improve your chances of being featured in rich snippets. You can do it by using structured data tools like Google’s Structured Data Markup Helper or by adding it manually to your website’s HTML. Platforms like Shopify, WooCommerce, and Magento also offer plugins that simplify this process.”

#18: Use A/B testing to improve conversion rates

“Testing different versions of landing pages, product descriptions, or promotional offers is underused by many eCommerce stores,” states Michelle Symonds, Founder & CEO of Ditto Digital. “A/B testing tools…help improve conversion rates by optimizing the user experience based on data.”

Prior to its sunset in 2023, Google Optimize was a go-to choice for many store owners to run A/B tests. Now, VWO seems to be winning the hearts of conversion optimization professionals.

#19: Submit coupons through Google Merchant Center

Google Shopping is known for its ability to drive traffic to stores, particularly smaller ones. To that end, Lana Phillips from Planet of the Vapes recommends “Google Merchant Center’s coupon submission feature, which is a powerful way to showcase deals directly in search results.”

She goes on to say that many eCommerce sites overlook it. There’s no reason for you to make the same mistake!

#20: Optimize for voice and visual search

Voice search and visual search are growing rapidly, especially on mobile devices. Optimize product descriptions for natural language queries people might speak aloud. Instead of just “blue running shoes,” include phrases like “comfortable blue running shoes for women” or “best blue athletic shoes.”

For visual search, ensure your product images have detailed alt text and are high quality with clean backgrounds. Pinterest Lens and Google Lens are becoming significant traffic sources for eCommerce sites. Products with optimized images and descriptions perform better in these visual search platforms, creating additional discovery channels for your store.

Apps to Add to Your Store

Adding the right apps to your eCommerce store can help you enhance functionality and improve customer experience.

Now to clarify—no amount of apps can replace smart strategic planning or basic website optimization. But they can make it a lot easier to handle certain aspects of marketing, customer retention, and store management.

Here is a list of some of our favorites.

#21: Smile

One way to retain customers is to implement a loyalty program. After all, giving one-time customers an incentive to return is a pretty good way of getting them back onto your website. The trick is finding a system that will let you do that with minimal hassle.

That’s where Smile comes in. This app lets customers earn points for actions like creating accounts, placing orders, and leaving reviews. It also features a referral program and provides analytics to monitor performance.

#22: Printful

Printful enables you to create custom products and connect directly to Shopify. This app is suitable for dropshippers and custom product creators, allowing you to design and sell items like t-shirts, posters, and more. Printful handles manufacturing and shipping, making it easier to manage your eCommerce store.

#23: ReferralCandy

If you’re looking for a way to make customer referrals easier to manage, start with ReferralCandy. This app allows you to create email and pop-up campaigns to encourage customers to refer their friends. You can reward customers with cash, coupon codes, or gifts for successful referrals.

#24: Plug in SEO

Plug In SEO makes it easier to improve your search engine rankings. This app includes tools for structured data, keyword optimization, and fixing broken links. It’s also pretty easy to use overall.

SEO is complicated. This often scares people away from focusing on it. But this tool makes it a lot easier to manage.

#25: Yotpo

Yotpo calls itself a customer retention platform, which is a pretty good summary of what it does. Describing it succinctly is tough because it simply does a lot!

Among its many features, you can collect reviews, ratings, and user-generated content. This app helps improve conversion rates by showcasing customer feedback prominently.

In short, if you’re thinking about “social proof” but don’t have a process for gathering it yet, look into Yotpo. It might make your life easier!

#26: Growave

Growave does a little bit of everything. You can use it to set up loyalty programs, incentivize referrals and reviews, and also manage social media.

If you’re looking to keep it simple with an all-in-one tool, Growave is a great option. You won’t have to juggle a whole lot of different apps. That will make it easier to handle the administrative responsibilities that would otherwise be frustratingly hard to manage.

After all, you know how important it is to encourage customer retention, gather reviews, encourage referrals, and show off user-generated content. As always, though, the real obstacle is finding a way to do this that doesn’t take up too much time!

#27: Glew.io

For data-driven insights, Brandon Schroth at Reporter Outreach recommends Glew.io, a powerful analytics tool designed for eCommerce.

About the tool, Schroth states that it is “built especially for eCommerce merchants, providing detailed reports on customer activities including how much they buy, how often they shop, and the items they buy. Thus, by centralizing information from different sources, it allows companies to develop better SEO tactics and improve marketing campaigns.”

Final Thoughts

Running a successful eCommerce store is not easy. But if you get the foundational parts right, including overall business strategy and technical website optimization, it’s a lot easier. Then, once you get the basics right, you can use the right apps to help you turbocharge your marketing efforts.

Over time, you can build up a loyal customer base and boost your sales. Just remember: eCommerce success comes down to three basic principles. Know who you’re selling to, sell something they want, and make it easy to buy.

Follow these three rules and you’ll be well on your way to lasting success.