The Essential Dos and Don’ts of International Shipping
If you’re an e-commerce business owner looking to expand globally, you will want to know a thing or two about international shipping. Mistakes can be costly when it comes to international shipping, and even if you work with a fulfilment partner, having the right knowledge can help you make the best decisions for your supply chain. At Delta Fulfilment, we consider ourselves experts in UK fulfilment services, so we’re here to share the essential dos and don’ts to set you on the path to worldwide business success.
International Shipping Terms To Know
Before we get into the nitty-gritty, here are a few terms used in the world of international shipping for e-commerce brands.
- Freight forwarder: A freight forwarder organises how your goods will be transported from one place to another, handling all the logistics.
- Bill of lading: This document is used as a receipt and contract, listing the type and quantity of goods, the destination, and the shipper.
- Incoterms: These are pre-defined terms set by the ICC to provide clear terms between global buyers and sellers for each part of the shipping process, including payment, transport, insurance, and even customs duties.
- Cargo insurance: A safety net that protects you financially if your goods are lost, damaged, or stolen during transit.
Now we’ve covered a few key terms you’ll see pop up in this post, let’s get to the good stuff!
The Dos of International Shipping
Choose Reliable Freight Forwarders
If you’re sending wholesale goods, your choice of freight forwarder can make or break your international shipping experience. A good freight forwarder not only ensures your goods reach their destination on time but also helps you navigate complex customs regulations, saving you time and potential legal headaches.
You should look for forwarders with positive reviews and testimonials and a wide network in various countries. If you can get a recommendation from a fellow business owner, that’s even better! However, you should also make sure that your chosen freight forwarder has experience in your specific industry or product type, as they will be better equipped to handle any unique challenges.
Properly Package Goods
The journey from warehouse to customer can be full of potential hazards. Proper packaging for your customer orders ensures they arrive in exactly the same condition they left your warehouse and improves your customer retention rate. How you package your products will depend on the type of products they are, but you can use these general guidelines to get you started.
- Opt for double-walled boxes for added strength.
- Use bubble wrap, foam, or paper to fill gaps and prevent items from moving.
- Use strong tape, ensuring all openings are sealed.
For perishable products, consider using insulated packaging and including ice packs for items that need to stay cool. You may also find anti-static bags beneficial to prevent damage to electronics during transit.
Consider All Modes of Transport
If you are sending bulk orders internationally, there are various ways to transport goods. Over 80% of all international goods are transported by sea, which makes sense as it’s one of the cheapest ways to send goods internationally. However, delivery timescales are longer with this route, especially compared to sending by air. This option is more expensive but you can ensure quick delivery of your goods.
Alternatively, road-based transport is often used for smaller intracontinental deliveries, while rail services are best suited for large order quantities over land.
Depending on the products your e-commerce business sells, you may find that you need to increase your international shipping delivery charges to customers to cover a more expensive mode of transport. For example, if you sell perishable goods, your best option is to send goods via air so they arrive quicker, but you need to ensure this decision doesn’t impact your profit margins.
You should consider all modes of transport to ship your goods internationally and, ideally, use several to accommodate the different order sizes, values and delivery options you want to offer your customers.
Invest in Cargo Insurance
Nobody wants to think about what can go wrong with international shipping, but the reality is that shipments can and do get damaged, lost, or stolen. Cargo insurance gives you financial protection and helps to protect your reputation with wholesale customers by quickly addressing and rectifying any issues. It’s worth noting that not all cargo insurance policies cover every risk or the full value of your products, so make sure you read the fine print and understand what’s included.
Comply with Customs, Duties & Regulations
Every country has its own customs procedures, and while the specifics vary, the goal is to regulate goods entering and leaving. Duties and taxes are paid on imported goods and these rates vary from country to country as well. It’s essential that you research this so you are clear on whether your goods are likely to have higher duties or taxes in certain countries and who will be responsible for the charges.
For example, if you’re a US-based business with access to UK fulfilment centres to supply customer orders in the UK, you will generally be responsible for covering these costs. This Incoterm is known as Delivery Duty Paid (DDP) shipping. Whereas, if you ship goods to customers in the UK from a US fulfilment centre, you will need to decide if that is a cost you will cover or pass on to your customers. If you choose to pass that cost on to your customers, the most widely used Incoterm is Delivery At Place (DAP) shipping. Our guide to DDP vs. DAP shipping provides many more examples than this and can help you decide which Incoterm, if either, will work best for your business.
Your Incoterms should be effectively communicated to international customers to ensure they know any additional costs they may incur before they receive their goods.
The Don’ts of International Shipping
Don’t Slack on Paperwork
Paperwork might seem tedious, but documenting everything helps keep a smooth process in all areas of your business, especially with shipping goods internationally. Proper documentation provides a clear record of what you’re shipping, where it’s going, and its value, which ensures that your goods move through customs without delays or penalties.
Inaccurate or incomplete information can lead to your shipment being held up and, in the worst-case scenario, result in fines or confiscation of your goods. In the event that your goods or documents are lost during their shipment, we recommend you keep copies of all shipping documents so you can track them and make any disputes or claims needed.
Don’t Underestimate Shipping Costs
International shipping costs can quickly escalate, especially when unexpected fees crop up. Some of the “hidden costs” with international shipping that you need to watch out for are:
- Demurrage and detention fees if your goods aren’t picked up from a port or returned in time.
- Fuel surcharges added by couriers.
- Delivering to remote areas.
If you are working with a fulfilment partner, they should ensure they get detailed quotes from couriers or freight forwarders that include all potential charges. You should also budget a little extra for unforeseen expenses, especially if you are new to offering international shipping of your goods.
It’s also worth noting that sending goods internationally can often increase packaging costs, especially for food goods that need controlled temperatures or electronics that need protection from electrostatic discharge.
Don’t Keep Customers in the Dark
In the world of D2C e-commerce, transparency isn’t just appreciated; it’s expected. As international shipping takes longer than nationwide shipping, keeping customers in the loop, especially when issues arise, improves their customer experience and trust in your brand. Having a clear line of communication with customers can also prevent misunderstandings and reduce the number of customer service queries, which can help reduce staffing costs or heavy workloads on your customer service team.
Follow these best practices for communicating with your customers from the time they place their order.
- Provide order tracking so customers can track their orders in real time.
- Communicate delays or problems with customers before they come to you.
- Ensure your website clearly outlines shipping times, costs, and any other important information.
- Have a clear returns policy on your website and consider partnering with local return centres.
Don’t Sacrifice Quality Over Costs
As you explore modes of transport, make sure you don’t let the costs impact the overall quality of your brand’s customer experience. While it might seem ideal to use sea freight for international delivery of your customer orders, your delivery timescales will be a lot longer. Depending on your business model, this may not be an issue. After all, brands like Shein quote 7-11 working days for deliveries and customers are happy to wait that long because of how inexpensive the goods are. However, if you’re selling a premium product or price competitively for your industry, making customers wait too long for their goods can lead to negative reviews or a low customer retention rate.
International Shipping Opens Doors
Offering international delivery for your customers can open up many doors for your business. So, even if this blog post has given you some food for thought, know that it’s a step that can scale your e-commerce brand to global success. If you’re feeling unsure about how to get started with this, at Delta Fulfilment, we’re here to steer you in the right direction. We specialise in UK and EU order fulfilment services for growing e-commerce brands, and we’re passionate about creating trustworthy and reliable fulfilment partnerships. After all, your business success is our business success!
Dani Mechlowitz is the Founder & Managing Director of Delta Fulfilment. When you’re ready to expand into new markets, Dani and the Delta Fulfilment team are here to help guide you every step of the way. Request your quote today for UK and EU fulfilment solutions!
What happens if your products are really successful?
Let’s say there’s huge demand for your eCom products. But you just don’t have the capital to fill that demand.
What do you do?
Turns out, there’s a service called inventory financing that can sometimes help in situations like this. That’s why I’ve brought on David Koifman, the VP of Sales at Kickfurther, a company that specializes in inventory financing.
We’re going to cut right to the interview in just a minute. But real quick – my name is Brandon, this video is brought to you by Fulfillrite. We ship orders for eCommerce and crowdfunding. Link below for more details. Quotes are free!
One last quick note – we edited with a light touch on this interview because we wanted to keep it simple, a little lo-fi, and honest, just like two professionals on a Zoom call.
Alright, let’s cut to the interview!
Raw Transcript
This transcript is AI-generated and may contain minor inaccuracies.
00:00.00
Brandon Rollins
Right? So David first of all, thank you so much for coming on. Absolutely so to start us off can you briefly explain to me what kick further is and what the company does.
00:02.66
David Koifman
Thanks for having me Brandon. It’s awesome to be here with you.
00:15.53
David Koifman
Kickfrither is an inventory financing platform. We’ve been around nine years now and our goal is to provide business owners who either produce or purchase physical goods and then sell them later at a profit to have access to the capital. To pay for the the goods as they produce them essentially every single business that is growing fast the faster they’re growing the more they feel this cash flow pinch exhibits a tightness when they have to pay for stuff that they plan on selling but it takes so much time. From the moment that they have to issue the payment to their manufacturers or their raw materials producers until the point in time where those materials turn into finished goods and then get sent to a buyer and then sometimes even get paid for by the buyer months later based on payment terms. So. There’s a variety of a variety of different timelines that ah can occur from point a to point b and we’ve developed a program that is custom built for every customer’s unique timeline case. To provide them the capital to pay for the stuff and not require their payments until the stuff gets turned into cash on the other side.
01:33.19
Brandon Rollins
So It’s interesting because it sounds like what you guys do essentially is if a company is doing really well. They’ve got a product that is just going to be a smash success and you know this and you have the data to prove this. You just make sure that they are not. Limited by the amount of capital they have available to them. Um, in order to meet the demand. That’s there.
01:54.75
David Koifman
Exactly imagine you have an opportunity to produce an order for somebody like target for the first time ever and so you’ve been selling your product on shopify through your own website and it’s taken off and the sales are increasing and every time you place an order with your. Manufacturers you’re paying a little bit more because the order quantitynt is increasing a little bit but now Target comes to you and they say hey I’m going to place an order that exceeds everything you’ve done in the last twelve months so all of a sudden you have to double your biggest previous order ever. How are you going to pay for that right? and some businesses actually have to say no to those opportunities. Because they don’t have the cash available and so there’s a lot of different ways to access cash and I think we’ll be discussing that in more detail today inventory financing is the method that we’ve developed that intends to align most closely with the cash flows of this type of business.
02:47.48
Brandon Rollins
And that makes a lot of sense because it would be terrible to be in a company’s situation like that and say well we’re five hundred bucks short we cannot produce this massive run for target that’s no fun for anybody not for the business certainly not even for Target. Um, but you had mentioned ah just a second ago inventory financing. So for those who are unfamiliar with the concept. Can you explain how that works.
03:12.70
David Koifman
Inventory financing is not ah, a new concept. It’s been around for I would say over 100 years and it’s been tackled from a number of different angles. Um, it’s interesting because. Inventory is the collateral in all of the deals that do inventory financing. We operate a unique agreement based on consignment where we’re actually purchasing inventory on behalf of the business and then they’re selling it on our behalf on consignment. Which is it’s kind of like if you think of a consignment store where you bring them a couch and then they sell it for you and then you take in the proceeds minus their fee. That’s how our deals work. So.
03:49.69
Brandon Rollins
Um, a.
03:56.27
David Koifman
Inventory is collateral. You know as opposed to other financing methods where you have like your entire business as collateral for say a bank loan or a line of credit or for say accounts receivable financing where the accounts receivable is the collateral. And that would be actually applicable in our previous target example where target place is in order. Let’s say for a 100000 worth of goods you deliver those goods to them and then they say cool. Thanks, we’ll pay you in sixty days and a an accounts receiveable financing program at that point would say all right. They’re gonna pay you a hundred k in sixty days how about we’ll pay you ninety now and then we’ll get paid by then sixty days from now we’ll take our fee and then we’ll give you the balance. So. That’s that’s how accounts receivable financing works and that’s been around for for ages. The difference now is that so many businesses are selling through marketplaces and through their ecommerce website and you have no accounts received wool because you’re not delivering a big order to somebody who’s paying you at a later point in time.
04:54.21
Brandon Rollins
Um, a.
05:06.95
David Koifman
So you have these multiple channels for delivering product to customers and they all have different terms like if you sell up 1 widget on your website. You’re getting paid for it instantaneously some some buyers buy on 10 day terms some buyers buy on 30 day terms some buyers buy on 60 day terms.
05:24.00
Brandon Rollins
Is it.
05:26.27
David Koifman
The funny thing is those buyers are actually financing their own inventory by giving the terms to begin with right because they don’t have the cash to be paying everybody upfront for stuff what they’re doing is they’re taking the stuff they’re selling it. They’re turning it into cash and then they’re buying it from you. Right? So That’s kind of their their own little version internal version of and inventory financing that just is an industry standard for all big retail.
05:52.52
Brandon Rollins
And you’re just kind of opening that up to a larger E-commerce market.
05:57.89
David Koifman
Yeah, we’re we’re trying to target Multi-channel or any individual channel and and sort of giving them the same treatment but hyper focused on solving their unique problem or their combination of channels.
06:01.81
Brandon Rollins
And.
06:15.78
David Koifman
As a whole.
06:15.89
Brandon Rollins
Now How does this compare in terms of advantages and disadvantages to something more like what’s the word I’m looking for like business loans or credit lines.
06:28.45
David Koifman
It depends on who the provider is I would say you know I’m trying to be educational here. So I’m not just going to say take further is the best for everything um a bank will give a line of credit. Or a small business loan that will be the lowest rate you can access outside of friends and family. That’s your number 1 choice the problem with that is that often. They decline businesses that are in high early stage growth because they’re looking for a longer track record or they’ll provide a limit that. Is nowhere near what you’re looking for so we look at it as part of the capital stack and so you have a number of different places where you get your money. One of them might be your own personal bank account. You know you, you might be looking at line of credit or a loan from a bank. Um, you might be looking at. Raising an equity round to bring cash into the business inventory financing is something to definitely consider as part of that Nix then you have revenue financing you have accounts receable financing purchase order financing. These are all different programs different products to look at.
07:39.20
Brandon Rollins
Now that makes sense now because the banks generally they’re going to be ones looking for just something that’s been around for a while. That’s that’s kind of how they like to roll they like to minimize their risk. Um, but I’m assuming that you probably still have some qualifications in place that kick further requires Before. You’re able to provide inventory financing is that is that fair to say.
08:00.37
David Koifman
Yeah, it’s it’s funny. The name kickrither came from like ah essentially a playoff of kickstarter. So kickstarter is the first production run right? You have a great idea. You’ve developed a prototype and.
08:06.94
Brandon Rollins
Are.
08:15.10
David Koifman
You’ve contacted a manufacturer about producing your first major production run and now you go to kickstarter to finance your first production run where a community of participants who is interested in buying the product is also financing their own unit of products and so you gather that money together. Pay your manufacturer and then you’ll fulfill the order to all the customers now what happens next you want to make another run and you want to start selling it on Amazon how are you going to pay for that production run because each customer isn’t always willing to wait a year for their one widget to arrive.
08:41.27
Brandon Rollins
Is in.
08:53.38
David Koifman
So that’s kind of the genesis of the platform is what happens next and the idea is you’ve worked out the kinks you’ve produced your stuff once or a handful of times and demonstrated your ability to manufacture quality control sell deliver product take in revenues. And run your business and so for that reason we require four hundred k in trailing twelve months sales in order to qualify for inventory financing with kick further.
09:22.28
Brandon Rollins
Okay, yeah, that makes sense. Um, can you also help by let me let me let you do this one again. That’s a beauty of editing isn’t it. Um, yeah, that makes a lot of sense so far.
09:30.48
David Koifman
Soon.
09:37.30
Brandon Rollins
So kind of on my related note can you break down the costs that are associated with inventory financing.
09:41.47
David Koifman
We look at it on a cost per and month basis. So essentially you are looking at the amount of time between when you need to pay your manufacturers and when you expect the cash to start coming back in.
09:45.30
Brandon Rollins
See.
09:57.69
David Koifman
Ah, from the sales of that particular inventory run. That’s when you start making payments and then once you’ve seen 80 to 100% of the cash come in from those sales. That’s when you expect to stop making payments. So every deal has a unique duration based on your projections as a business owner.
10:00.47
Brandon Rollins
It.
10:16.22
David Koifman
Um, and the total duration multiplied by the rate per month is what your cost is going to be and I would say as a rough estimate one to two and a half percent a month is sort of the range and where you fall within that range is based on the risk of your business. We look at data.
10:26.31
Brandon Rollins
And.
10:34.99
David Koifman
That comes from bank accounts accounting platform and sales platform.
10:40.72
Brandon Rollins
Now Let’s say somebody does it secure inventory financing. How is that going to affect their cash flow in their working capital.
10:51.53
David Koifman
The idea is to streamline the cash flow right? So you you want you don’t want to have lumpiness in your cash flow where all your money is coming in when you sell the product and the rest of the time you’re just spending here. You’re getting access to money to buy product.
10:54.46
Brandon Rollins
Me.
11:10.10
David Koifman
Before you actually sell the product. It’s also freeing up cash for whatever other needs. The business has. For example, if you need to spend on equipment or marketing or.
11:24.57
Brandon Rollins
No.
11:26.62
David Koifman
Some sort of R and D this sort of smooths out your cash flows so you have access to capital more frequently than just when your product is selling.
11:33.23
Brandon Rollins
That makes perfect sense. So have you observed any trends or shifts and demand for inventory financing in the last five years particularly because ecommerce has changed so much.
11:48.99
David Koifman
Yeah I mean 5 years is ah is a big period in time and I’ve actually been with kick further that entire time. Um, it’s interesting. How things have changed with the relationship with China and also the pandemic. It’s it’s really just driven businesses.
11:50.32
Brandon Rollins
You.
12:05.23
David Koifman
To want to buy more less frequently. So they’re placing bigger orders maybe instead of 4 times a year three times a year or twice a year and there’s a couple things that they’re they’re essentially trying to address risk and costs so risk.
12:09.52
Brandon Rollins
Um, even.
12:14.53
Brandon Rollins
Is it.
12:24.34
David Koifman
Comes in some sort of delays in fulfillment or logistics where you know they experience that containers were sitting in port for a while or waiting to go out to sea and they were unable to get their inventory on time. So ah, and especially when you have multiple orders that are sort of. Staggered throughout that delay process. It becomes even more painful. So it’s important to get larger quantities of inventory in-house so you can be more resilient to those sort of events and the other thing is if you place bigger orders. Then one you can save on logistics costs so you can maybe fill a container or have multiple containers and 2 probably most importantly, you can get discounts from your manufacturer because you’re placing larger orders and so that’s really the best way to drive down costs and a third thing is. A lot of people will get terms from their manufacturers and essentially that means the manufacturer is offering them some sort of inventory financing and most of them are not in the business of finance and do this just so they can close more deals. So if you bring them an opportunity to maybe reduce their margin a little bit but not deal with having.
13:23.49
Brandon Rollins
Is it.
13:30.37
Brandon Rollins
Um, yeah.
13:36.44
David Koifman
Ah, payments do after you sell your inventory or after you receive it. They would definitely offer you Not definitely start that one over.
13:42.37
Brandon Rollins
Um, if.
13:49.73
David Koifman
They are often likely to offer you a discount in favor of the terms that they’re currently offering you.
13:52.46
Brandon Rollins
And that just makes a lot of sense because if you do financing on a regular basis. You have a pretty good idea of like when you’re going to get paid Back. You get a you you get a good sense of that I imagine after a while manufacturer they just specialize in manufacturing. Like sure they they know what they’re doing with billing but um, they might charge a higher percentage than your rates just for being able to send that stuff out in advance and have it on Net thirty Net Sixty Net ninety or whatever they need to do just convince people to buy the bigger loan.
14:23.70
David Koifman
They would need to because they’re almost certainly less sophisticated and evaluating business risk so they need to cover their losses more conservatively.
14:30.93
Brandon Rollins
Um, you know.
14:37.46
Brandon Rollins
That makes a lot of sense. Um, so with that in mind where can people learn more about kick further link in the description.
14:44.93
David Koifman
Kickferther.com is a great place also feel free to email me directly David at Kickfrither.com and our our team is great at answering questions. You know, many businesses do come to us a little bit before they’re qualified. We’re happy to be a resource. Ah, we have a number of partnerships that may help businesses grow faster and also can give you guidance for when you are ready to engage with us. Um, that’s it for that question.
15:07.54
Brandon Rollins
The.
15:15.38
Brandon Rollins
Yeah, absolutely and also in addition to that I’m going to include the kick further social media down below so you can also check that out if you would like to follow kick further on well on whichever channels you’re on all right? Well thank you very much for your time.
15:28.60
David Koifman
Cool.
15:34.13
Brandon Rollins
We really appreciate it all right.
15:34.37
David Koifman
Thanks Brandon that was a great chat.
Final Thoughts
Thanks for watching this interview. I appreciate it and I know David at Kickfurther does too!
Details on both our companies are in the description.
And just in case you missed the name earlier, 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 for thousands of eCommerce companies before and we’re happy to help you too. 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!
According to a PwC poll, 30% of consumers desire to try new brands. It reminds businesses to focus on retaining their current customers and enticing new ones by providing original and differentiated products and services.
In our fast-paced world, establishing brand loyalty is crucial for the growth and prosperity of any e-commerce enterprise. Especially now that customers have vast arrays of options and the competition is intense.
But how can you build and maintain brand loyalty in a constantly shifting market?
This article will show ten strategies to keep customers loyal to your brand and propel your e-com biz to success. These tactics will enable you to develop a foundation of devoted customers and find long-term success, regardless of your online store experience.
Provide Exceptional Customer Service
Exceptional customer service fosters brand loyalty. It’s a vital aspect that helps develop a loyal clientele making them spend more on your product or service. But what precisely qualifies as excellent customer service?
To begin with, it involves actively listening to and addressing the needs and apprehensions of your clients. It’s critical to answer quickly and courteously to any queries customers may have, whether related to a problem with their order or concern regarding your product or service.
Allowing clients to contact you through various methods is one of the best approaches to providing outstanding customer service. Nowadays, it can be done through social media platforms effortlessly, but helping through phone calls, emails, and live chats adds more value to your business.
In the eCommerce world, AI chatbots have become a massive trend. By leveraging this tool, you can offer exceptional customer service by providing instant responses and personalized recommendations. To implement a chatbot, you can find Java, Ruby, and Python developers for hire, ensuring a seamless integration that enhances the overall user experience.
Allowing your employees the freedom to provide extraordinary service can lead to the creation of above-and-beyond customer service. Encourage them to pay attention to clients’ issues, develop unique solutions, and then check in to ensure the problem has been fixed.
Helping your consumers requires effort, commitment, and a sincere desire. While it may require dedication and commitment, creating a foundation of long-term customers can have significant payoffs.
Deliver a Consistent Brand Experience
To develop and maintain brand loyalty, you have to be consistent. Wherever your brand is encountered, it should be recognizable and trustworthy to your customers. Delivering a consistent brand experience across all channels, including your website, social media accounts, packaging, and shipping, is necessary.
So how do you guarantee a unified brand experience?
First, set your brand identity, including your brand values, mission statement, and visual identity. Ensure that everyone on your team knows these concepts and how to apply them consistently across all platforms.
Next, ensure your tone of voice and messaging are the same across all media. It must be unified via email, social media, or your website.
Finally, ensure your branding is consistent outside of the digital realm. Your packaging, shipping supplies, and in-person customer interactions are included. No matter where they come across it, your brand should be recognizable to your customers.
Building trust and familiarity with your customers through a consistent brand experience will help maintain their loyalty. The secret to long-term success in e-com is having devoted customers.
Create a Strong Brand Identity
Building brand loyalty in the e-commerce era requires a strong brand identity. Your brand’s identity comprises its mission statement, core values, and visual representation, and it should be uniform across all channels.
You can start by defining your brand values and the guiding concepts to help your company stand out. Ensure everything you do, from your website copy to social media posts, reflects these principles.
Make a mission statement summarizing your brand’s purpose and objectives next. This assertion should be clear, memorable, and the foundation for all you do.
Craft a visual identity that accurately represents your brand’s mission and values. Your brand’s logo, color scheme, and typography are integral components in visually representing your brand.
A well-crafted brand identity helps distinguish your business from competitors. It attracts customers who connect with your values and mission. The secret to long-term success in e-commerce is having devoted clients. Spend the effort necessary to create a solid brand identity that accurately portrays your company.
Offer Competitive Pricing
Price is usually the decisive factor for many buyers in online shopping. Offering competitive pricing is therefore crucial for fostering and maintaining brand loyalty.
It doesn’t necessarily imply that you must offer the lowest pricing; instead, you should follow what customers reasonably anticipate paying for your goods or services.
You can also look for pricing patterns and trends and use this knowledge to guide your pricing choices. Keep in mind that in addition to considering your expenditures and desired profit margins, your prices should also consider what your target market is ready to pay.
In addition to providing competitive pricing, consider additional pricing tactics that can promote and maintain brand loyalty. For instance, offering discounts and other incentives to loyal consumers can encourage their continued patronage.
You can create a dedicated customer base that trusts your brand by strategically pricing your goods and services. In the end, maintaining competitive prices is just one aspect of developing customer loyalty.
Personalize the Customer Experience
Building brand loyalty in the e-commerce industry can be easier by personalizing the customer experience. Personalizing customer interactions can demonstrate a commitment to meeting their unique needs and building long-term relationships.
Here are some ways to provide a personalized customer experience:
Gather information such as their demographics, purchasing, and browsing histories. Utilize this information to adapt your messaging and product recommendations to each customer individually.
Knowing where to optimize your user journeys is also incredibly important. You won’t find much ROI personalizing a section of your user journey that doesn’t have any issues or customer drop-outs. Instead, you want to focus on the areas that customers are consistently dropping out of. This is where you’ll find the most gains.
Deliver individualized help and communication. It can include tailored interactions with chatbots or emails, product recommendations, or packing and shipping choices. But remember that personalization goes beyond simply utilizing a customer’s name in your email.
Be sure that your efforts to personalize the consumer experience are sincere and meaningful and improve it. You will then establish closer relationships with your clients and entice them to use your services repeatedly.
Invest time in understanding your customer’s needs and preferences to create personalized experiences that set your brand apart.
Provide High-Quality Products
Offering superior quality products can help differentiate your business from competitors and build a robust and loyal customer base. Customers seek assurance and satisfaction in their purchases and therefore require goods of impeccable quality that align with their expectations.
To do this:
- Use premium materials to create durable items.
- Ensure that all your products are constantly dependable and well-made.
- Include detailed product descriptions and photographs depicting the goods you’re selling.
Offering top-notch goods will help win clients’ trust. Customers are more inclined to suggest your company to others and keep doing business with you when they feel confident in your offerings.
Producing high-quality goods demands investment in raw materials, production techniques, and quality control procedures; therefore, it can be more complex, but the reward is worth it. You’ll establish a reputation for excellence and prepare clients to spend more on superior goods.
Engage Customers through Social Media
Social networking is a potent tool for attracting customers today and fostering brand loyalty. You can share your brand’s story on social networking websites to connect with customers and excite them.
To properly engage with customers on social media, publish user-generated content. It includes testimonials, videos, audio, images, and even polls. Use appropriate hashtags and tags to broaden your audience and inspire your followers to interact with your brand.
Offering special offers and promotions to your followers is another approach to attracting customers on social media. They can be exclusive discounts, freebies, or first access to new products. Making your followers feel like members of a select group will entice them to shop with you repeatedly.
Social media interaction with customers involves much more than simply broadcasting your brand’s message; it requires attentive listening, social media moderation, and a genuine desire to understand their needs. Always watch your social media accounts, and answer comments and questions quickly.
Be imaginative in your approach, offer exciting information, and build a sense of community among your fans.
Encourage Customer Reviews and Feedback
Actively encourage reviews and comments from your customers. Their opinions and evaluations offer insightful information about what’s working (and what isn’t) in your company and assist other customers in making informed purchasing decisions.
You may strengthen and increase the loyalty of your customer base by paying attention to consumer feedback and adjusting your goods and services but make sure it’s easy for them to do this.
On your website and email correspondence, provide clear calls to action urging visitors to submit reviews or offer feedback. You can also reward customers for ratings by giving them discounts or freebies.
Ignoring reviews and feedback, positive or negative, is not an option for businesses that value customer relationships. Customers are more inclined to stick with your company and refer you to others if they feel like their opinions are being acknowledged.
Use comments and reviews as a tool for ongoing improvement. Then make adjustments to your business based on feedback. Consistently engaging with customer reviews and feedback can help your brand establish itself as a customer-focused business that prioritizes meeting customers’ needs.
Reward Loyal Customers
Cherish your loyal customers with special discounts, gifts, and other benefits. One good strategy is implementing a loyalty program where customers receive points for each transaction. You can offer them the opportunity to exchange their points for deals or free goods.
Offering special discounts or promotions to clients who have patronized your store for a specific amount of time or have made a certain number of purchases is another method to thank devoted customers. You can generate excitement and brand loyalty by giving your clients the impression that they are part of a select group.
Rewards for recommending your company to their friends and relatives is another good strategy. You can encourage word-of-mouth referrals and build a strong network of devoted customers by providing a discount or freebie to both the referrer and the new customer.
Make sure that your rewards program is easy to comprehend. How your program works should be simple to read, especially on your websites, emails, or social media accounts. Add a way for customers to monitor their progress. Spend time establishing a rewards program that benefits your company and customers.
Provide Fast and Efficient Shipping
Every e-commerce company needs quick and efficient shipping. Nobody wants to wait weeks for a product to arrive, so ensuring your shipping procedure is as streamlined and effective as possible is crucial.
Working with dependable shipping companies and fulfillment services that provide quick delivery times and real-time tracking is one approach to ensure prompt and effective shipping. Give your customers the flexibility to choose their preferred shipping speed by offering various shipping options, including regular and expedited shipping.
Offering free shipping on orders exceeding a specific quantity is an additional method to help you win customer loyalty. Your company will be chosen over rivals who don’t offer free shipping.
Keeping your customers updated on their shipping progress is beneficial throughout the shipping process. Customers’ worry will be reduced, and their excitement about their purchase will be maintained by sending frequent updates via email or text.
To strike the right balance between speed and cost in shipping, consider offering a range of options to customers. While some may be willing to pay for overnight delivery, others prefer a more affordable standard option.
Conclusion
For your e-commerce business to thrive, cultivating brand loyalty is a critical strategy. You can build a compelling, distinctive brand that stands out from the competition by putting the ten ideas we’ve listed in this post into practice.
Building brand loyalty requires outstanding customer service, a consistent brand experience, and a strong brand identity. Different ways to differentiate your company from the competition include competitive prices, a customized customer experience, and high-quality goods.
Other crucial techniques include engaging customers on social media, encouraging reviews and comments, and rewarding devoted customers.
Finally, fast and effective shipping is a must in building a seamless and delightful buying experience that keeps customers pleased and satisfied.
Establishing and maintaining brand loyalty necessitates a comprehensive strategy covering every part of your company. By concentrating on these methods, you can build a distinctive and appealing brand that attracts customers and keeps them returning for more, resulting in long-term growth and success.
Will Schneider is the founder of WarehousingAndFulfillment.com, a company that operates as a match-making service for the fulfillment industry. Prior to starting WarehousingAndFulfillment.com, Mr. Schneider gained extensive experience in the logistics industry running two private warehousing and fulfillment companies, and served as the Vice President of netQuote, a real-time quoting service for the insurance industry. In addition to writing informative posts about outsourced fulfillment and shipping services, he is also passionate about helping businesses find the right solutions to improve their overall operations. When not working, Will enjoys coaching youth basketball.
E-Commerce has created new opportunities for selling products outside of the traditional brick-and-mortar store. And, as a result of the COVID-19 pandemic, more people are turning to their screens to make purchases. The influx in selling and spending via the web, plus easy-to-use selling platforms on the market like Shopify, Amazon, Etsy, and more, has made starting an e-commerce business more accessible.
While selling online allows many conveniences for both the seller and the customer, like working and shopping from home, there is one aspect that can be particularly challenging—fulfillment.
From keeping inventory organized, to shipping labels, and everything in between, it’s easy to make mistakes during the fulfillment process. Incorrect, delayed, or lost orders can have devastating effects on your customer base. For this reason, e-commerce businesses of every size should consider utilizing fulfillment software to streamline their supply chain operations.
About Fulfillment Software
Fulfillment software helps business owners with some or all aspects of fulfilling customer orders, including the six essential aspects of fulfillment:
- Storefront Management
- Order Management
- Inventory Management
- Shipping Management
- Packaging
- Picking, Packing, and Labeling
This software will also help sellers to process orders via one of three main fulfillment methods:
- Self-Service: Self-Service is the “do it yourself” approach to fulfillment where a seller fulfills their own orders. This could be done in a warehouse with a team of workers or by an individual in their own home.
- 3rd Party Logistics (3PL): To fulfill via 3PL, sellers ship their products to the 3PL provider’s warehouse. The 3PL provider will then store this inventory until an order is placed. Once an order is placed, the 3PL will then pick, pack, and ship the order to the customer.
- Drop Shipping: Drop shipping is similar to a 3PL, except that sellers do not own the items they sell. When an order is placed, the drop shipper is notified and will then fulfill that order with items from their warehouse, shipping the order out directly to the customer.
By utilizing fulfillment software, you can save time and money on your fulfillment process, allowing you to focus on the aspects of your business that you love.
What to Look for In Fulfillment Software
While fulfillment software can offer a wide range of useful services, order management tools and smart shipping are two essential aspects a fulfillment software should provide.
Order Management Tools
Order management tools help simplify many aspects of your orders and integrate directly into your storefront or marketplace. Order management software addresses a number of fulfillment pain points, such as syncing inventory across multiple sales channels, viewing all orders in a single dashboard, stock level alerts to ensure inventory availability, and helping create custom orders.
Smart Shipping
When it comes to shipping and packaging, fulfillment software should recommend the best shipping rates and shipping packaging. These recommendations will help make the picking, packing, and labeling process more efficient.
Keeping the above points in mind, here are the 7 top fulfillment software options available for e-commerce sellers today:
7 Best Fulfillment Softwares
1. Soapbox
Soapbox is an all-in-one software that makes e-commerce fulfillment easy and efficient, at scale. Whether you’re a small business owner or a large corporation, Soapbox has tools to simplify your fulfillment.
Top Features
- Add and sync storefronts and marketplaces or input custom orders under a single-view dashboard.
- Automatically recommends the best shipping packaging for your orders based on the packaging you have available.
- Print your pick list, pack list, and purchase and print your labels in one convenient place.
- View, split, and fulfill orders from all your storefronts and marketplaces.
- Simplified product, inventory management, and reconciliation across your stores with restock alerts.
- Automatically shops and selects the most cost-effective shipping carrier for every order.
- Top-notch customer service including Slack channel communication.
Subscription Plans
- Free Plan
- Basic Plan: $10/month
- Growth Plan: $25/month
- Commercial Plan: $45/month
- Mainstream Plan: $300/month
- Mid-Market Plan: $1,000/month
- Enterprise Plan: $3,000/month
- Worldwide Plan: contact Soapbox for pricing
For additional plans and services, reach out to Soapbox for a custom quote.
2. Fulfillrite
Fulfillrite offers order fulfillment for your e-commerce brand or crowdfunding campaign. This all-in-one order fulfillment platform allows you to scale your business with a logistics partner that feels like an extension of your team.
Top Features
- Integrate Fulfillrite with your Shopify store to fulfill orders on autopilot.
- Several e-commerce fulfillment features, including real-time inventory tracking, remote order and inventory management, and seamless shopping cart integrations.
- Fulfillrite preps items for Amazon FBA.
- If you’re a subscription box service, Fulfillrite can customize your packaging.
- When customers return items, Fulfillrite can help repackage and refurbish them so that they can be resold.
- Crowdfunding fulfillment specialists and software allow for quick turnaround time on large, crowdfunded orders.
Subscription Plans
For plans and services, reach out to Fulfillrite for a custom quote.
3. inFlow
When it comes to managing inventory and orders, inFlow has got your back. This all-in-one software is designed to simplify the pieces of inventory management such as keeping track of current inventory, how much additional inventory to order, fulfilling customer orders, and more.
Top Features
- All-in-one barcode software allows small businesses to create and optimize a barcode system.
- Sales and invoicing software allow you to sell, ship, and invoice in one place.
- inFlow’s Showroom B2B portal allows you to create custom, online product catalogs.
- Purchase order software keeps track of each inventory item throughout its sales journey.
- 38 sales, purchasing, and inventory reports help sellers make educated business decisions.
- inFlow integrates with a number of platforms. If the desired integration is not available, the software’s API feature allows developers to read and write their own data.
- Use your smartphone to manage orders, products, fulfillment, and even act as a barcode scanner.
Subscription Plans
- Entrepreneur Plan: $99/month or $948/year
- Small Business Plan: $279/month or $2,628/year
- Mid-Size Plan: $549/month or $5,268/year
For additional plans and services, reach out to inFlow for a custom quote.
4. ShipStation
ShipStation can help you sync, manage, and ship your orders efficiently. With direct integrations to over 70 selling channels plus automation rules and filters, you can save time managing all of your orders.
Top Features
- Integrate shopping carts, order management systems, and more from your storefronts and marketplaces.
- Manage inventory remotely, viewing stock levels, setting inventory alerts, and allocating stock.
- Customize shipping labels, return portal, and tracking page with your branding.
- Generate discounted shipping labels.
- 400+ available partner integrations.
- Import orders, manage shipping, print labels, and receive instantly updated tracking for orders.
Subscription Plans
- Starter Plan: $9.99/month
- Bronze Plan: $29.99/month
- Silver Plan: $49.99/month
- Gold Plan: $69.99/month
- Platinum Plan: $99.99/month
- Enterprise Plan: $159.99/month
For additional plans and services, reach out to ShipStation for a custom quote.
5. Easyship
Easyship’s goal is just as its name says—to make your shipping process easy. This cloud-based fulfillment software provides solutions for e-commerce sellers, crowdfunding campaigns, and even developers.
Top Features
- Save up to 91% on 250+ couriers.
- Integrates with a number of storefronts, marketplaces, and fulfillment softwares.
- Easyship provides one tool to manage and automate your shipping needs, including comparing shipping quotes, generating labels, scheduling pickups, and monitoring finances.
- Access to Easyship’s global network of warehouses.
- Optimized store checkout allows customers to choose recommended shipping options.
- Easyship’s Branding Suite will notify customers with shipping updates as well as add your logos and advertising material to emails, landing pages, and packing slips.
Subscription Plans
- Free Plan
- Plus Plan: $29/month
- Premier Plan: $69/month
For additional plans and services, reach out to Easyship for a custom quote.
6. Zoho Inventory
Zoho Inventory is an online inventory management software for growing US businesses. This software enables sellers to control inventory, manage orders, and streamline multiple sales channels.
Top Features
- Item management allows users to track, manage, and customize items from a single application.
- Customer lifecycle removes the stress of having to fill in information at every step of the fulfillment process.
- Manage back orders, drop shipments, vendor price lists, purchase orders, and billing solutions all in one place.
- Post-Shipment, EDI, marketplace, shopping cart integrations, accounting solutions, and CRMs can help expand your business.
- Automation features include barcode scanning, email and field updates, webhooks, and custom functions.
- SKU generator, reorder points feature, and reporting and analytics tools all help to keep your business up to speed with the latest industry trends.
Subscription Plans
- Free Plan
- Standard Plan: $79/month or $708/year
- Professional Plan: $129/month or $1,188/year
- Premium Plan: $199/month or $1,908/year
- Elite Plan: $299/month or $2,868/year
- Ultimate Plan: $399/month or $3,948/year
7. Multiorders
Multiorder’s inventory and order management allows your e-commerce business to have the power of four platforms in one. Sync inventory and automate order fulfillment and reporting from a single dashboard.
Top Features
- Inventory software helps multi-channel e-commerce sellers create bundles, manage variations, tag and categorize products, and more.
- Insights and reports provide full visibility of your inventory.
- The order management system allows for multichannel orders, merging of orders, and manual orders.
- Multi-Carrier shipping management software provides a number of features, including discounted shipping rates, expedited shipping processes, and bulk printing.
- E-Commerce analytics and reports provide full visibility of your inventory, shipment monitoring, and an overview of all of your order statuses.
- Data provides insights into inventory levels, sales across all stores, best-selling products, and total shipping costs.
Subscription Plans
- Pro 500 Plan: $49/month or $490/year
- Pro 1K Plan: $99/month or $990/year
- Pro 2K Plan: $149/month or $1,490/year
- Pro 5K Plan: $249/month or $2,490/year
How to Know Which Software Is Right for You
With all of these choices, how will you know which software is right for you? Here are some points to keep in mind as you’re weighing your options:
Quality Customer Service
It is crucial to find software with exceptional customer service. How does this software address problems when they arise? What is this software’s preferred method(s) of communication? What is their average response time?
Additionally, if there is a method of communication that you prefer, like text messages or a messaging app like Slack, see if this software can accommodate this. Reading reviews can also help to shed some light on how responsive the team will truly be.
Pain Points
What aspects of your business are the most challenging? Walk through every step of your current fulfillment process, taking note of every change you would like to make along the way. Once you’ve compiled this list, decide which points are deal breakers and which you are willing to compromise on. Finally, consider any new aspects you would like to add to your fulfillment process.
Fulfillment Type
Consider how you’re fulfilling your orders now, as well as how you’d like to fulfill them moving forward. Are you looking to fulfill via self-service, drop shipping, or 3PL? Additionally, are you looking to ship domestically or internationally? Most software has a specialization, so knowing this will help you to narrow down your options.
Customization Requirements
Do you need to have fulfillment software or services customized for your brand, or can you use a ready-made solution? Explore what features most ready-made solutions offer, and if there are features missing that you feel you need, explore what customization offers are out there as well. While many softwares offer customization, even this can have its limitations. If you are looking for custom software, speak to a few different providers to weigh your options.
Costs
Finally, consider the costs associated with the fulfillment softwares you’re looking into. Be wary of anyone charging significantly less or more than similar softwares. These costs should all be in the same ballpark as one another, so if one is drastically higher or lower than the others, this could be a red flag.

Lauren Moore is Digital Media Content Manager at Soapbox. She creates a wide range of e-commerce content regarding fulfillment education, small business spotlights, and industry news.
See how Soapbox software can help you grow your e-commerce brand by creating a free account. You can also reach out to us at support@soap-bx.com with any software questions.
The eCommerce industry has witnessed unprecedented growth over the last decade. It is predicted that eCommerce retail sales will go up to 7.4 trillion dollars by 2025. With the boom in eCommerce sales, customer’s expectations have increased, and the rise of sustainable custom packaging plays a large part in that.
Gone are the days when customers were happy receiving their products in a traditional brown box. Customers expect their products to come in customized boxes that keep their products safe from any damages during shipping. Additionally, more eco-conscious customers expect their packaging to be recyclable.
Seventy-two percent of American consumers say their purchasing decision is influenced by packaging design. Furthermore, 61% of consumers say they are much more likely to repeat a purchase of a luxury product if it came in premium packaging. All these statistics show that customers love it when their purchased products come in packages that are customized. The majority of the brands are now including packaging options as a part of their marketing strategy
According to a recent study, the vast majority of Generation Z shoppers prefer to buy sustainable brands, and they are most willing to spend 10% more on sustainable products. As consumers become more conscious of sustainable practices, many companies are now making the switch to eco-friendly and sustainable options when it comes to packaging, to reduce their carbon footprint and also keep their customers happy.
Offering sustainable packaging has shown to be more environmentally friendly and more profitable for brands. Combining custom packaging with sustainable options is a great way to stand out in the market amidst the competition.
This article will explain custom and sustainable packaging and how it can benefit your business and make your customers happy.
Packaging is the first thing that grabs the attention of the customers when they get their product. Customization of the packaging adds great value to your product as well as to your brand, overall. This article will provide you with all the helpful information you need to know about custom packaging and how it can benefit your business.
What is Custom Packaging?
You may have read about custom packaging in numerous eCommerce newsletters and blogs but this article will break the specifics down for you. Custom packaging is the kind of packaging that is created specifically for your product so that it fits perfectly rather than traditional packaging where there is a one-size box that the product is put into.
A customized box in which the product is packaged in, prevents breakage and ensures that the product reaches the customer in the same condition it was in before it was shipped.
In custom packaging, the dimensions of the package that ensure the product fits perfectly are as important as the design of the product. The design can be customized by printing logos on the boxes, patterns, shapes, pictures, hashtags or anything else the company wants to include that speaks the brand’s language.
Custom packaging is a great marketing tool for your business as it sets your product apart from the competition in the market. In a world of standard, bland boxes, custom packaging design stands out.
Here are some of things to consider when choosing a custom package:
- Different Packaging Materials: It is important to ensure you get the best material that suits the design and item you have to ship. If you are looking for durable and strong materials, you can go for the kraft and cardboard packaging materials. You can opt for custom poly mailers for clothes. You can use custom inserts in your mailers for an extra touch of elegance and to ensure the safety of your items.
- Colors: Using a singular color scheme that best represents your brand for your custom packages can help create awareness for your brand. For example, you can recognize the Tiffany blue box instantly. That is the power of strong branding!
- Shape and Size: It is important to measure the right shape and size while choosing a custom package. This will prevent damage to the product and waste of packaging material.
- Themes: By choosing themes, color, and patterns, you can communicate your brand image to customers and can attract new customers to your business. For example, Starbucks used a red and green themed holiday cup design to bring some holiday joy to their customers.
What is Sustainable Packaging?
Eco-friendly packaging is the kind of packaging that reduces its environmental footprint. When David Attenborough issued a call to action to combat plastic waste in the second series of Planet Earth II, searches for “plastic recycling” saw a dramatic uplift of 55%. His call to action went far beyond internet searches, leading to more environmental documentaries and with the passage of time, with government initiatives, corporate pledges, and greener business initiatives, we are now witnessing an increased demand for eco-friendly packaging.
Customers are now more conscious about sustainable practices of brands they purchase from. Hence, implementing greener practices has now become the cornerstone for most businesses. Most brands seek out eco-friendly packaging to align with their sustainable business practices.
Eco-friendly packaging is implemented in a number of ways:
- Ingredients: Raw or recycled materials, sourced responsibly (FSC certified)
- Reusability: Creating a circular economy around the packaging, extending its life cycle and usability.
- Production process: Solar-powered plants at production site, reducing carbon footprint
- Shipping process: Ships in its own container (SIOC) (allows for less waste and a better unboxing experience)
Benefits of Custom Sustainable Packaging:
Custom packaging and sustainable packaging can go hand in hand when brands ensure that they source their boxes through companies that are FSC certified and use recyclable packaging materials in the manufacturing process. Here are some of the benefits of using customized packaging that is also eco-friendly:
Creates Brand Awareness
In custom packaging, you can use your brand’s logo, colors and themes to make your package more appealing to your customers. Custom packaging is a great way to make your brand stand out. By incorporating these branding elements into your packaging, you are automatically creating brand awareness. The instant your product arrives your customer will know what is inside the box just by looking at the packaging.
Custom Packaging is More Functional and Practical
Size matters! Custom packaging allows you to select the dimensions and sizes that are optimal for your product. Choosing the correct sizing for your package helps reduce waste as well as there is no extra packaging that needs to fill up the landfills.
Better For the Environment
Most custom packages are made using eco-friendly raw materials. These help in waste reduction. Most custom packaging boxes are recyclable or reusable.
Eco-friendly manufacturing companies also don’t use chemicals that are harmful to the environment while producing papers. They don’t cause any harm to the atmosphere and aquatic life.
Conclusion
Customized, environmentally friendly packaging has a key role in every business. It helps boost sales, make your branding stronger, and invite new customers.
Your customers will be excited when they open a well-designed custom box that is also great for the environment and less wasteful!
This post is by Phil Akhzar, CEO & Founder of Arka, a custom packaging design company.
Several weeks ago, Noissue, a leader in custom paper and ecommerce product branding sat down for a chat with some of the industry’s most innovative and customer-driven fulfillment centers. Fulfillrite‘s input is featured here, together with insights from our industry friends.
3PL’s and their ‘value-add’ to the ecommerce industry
When it comes to fulfillment and third party logistics, those not in the industry might find it difficult to navigate the waters. For all intents and purposes, we order online and our package shows up in a day or two – voilà. However, every ecommerce business owner knows what happens in between can be the stuff of nightmares! Luckily, third party logistics companies (3PLs) have mastered the art of fulfillment and most businesses of size are now using their services. So let’s dive into 3PLs and explore what they can offer you as a business!
Ecommerce is growing at an astoundingly quick rate. Cumulative data from Statista suggests that the online selling industry will top $4.8 trillion by 2021. This is up from $1.3 trillion in 2008, representing a 269% increase. If you own an online store, go ahead and take a moment to congratulate yourself! Online selling, which was once a manageable, minor aspect of business, has now become a crucial revenue driver for many brick and mortar retailers. And when it comes to business online, consumers have come to expect a certain level of service. At the forefront of these expectations is speed and accuracy, two areas that the fulfillment industry has well under control. With the rare exception, reliable 3PLs can get your parcel to the correct end destination as fast as you need it delivered.
Lately, however, customers are expecting a bit more from their online retailers – just search for ‘unboxing’ on Youtube if you don’t believe us. Not only are customers looking for memorable experiences with the packaging, tracking, free shipping, worldwide delivery and more have all entered the playing field of expectations. This has led to quite the shakeup for logistics companies. When it comes to innovation, however, you’ll find some of the best minds in the business being put to work. At Shipbob, “Our clients request value-added services on a regular basis and we work together to invent and create processes that will provide the client what they’re looking for and what Shipbob can deliver on.” If you can think of it, odds are good your 3PL will be willing to work with you to make it happen.
While outsourcing fulfillment has become a necessary part of doing business, losing control of branding, packaging and the customer experience wasn’t meant to be part of the deal. Early on in the shift to ecommerce retailing, there was a void where sellers were unable to offer their goods in anything but plain packaging–brown cardboard boxes with packing peanuts. This opened the door for companies like innovative 3PL NRI Distribution. They realized from the outset that maintaining brand integrity was a key part of any online business, and was one of the first logistics companies to offer customers the option of using their own packaging. In their words “[our] core values revolve around providing custom and flexible solutions. Value-added services are primary to that. Many of our clients request [custom packaging] which is often why they choose us in the first place as their 3PL.”
Mention ‘custom packaging’ to any operations manager and we’re fairly confident you won’t be met with excitement. After all, the core business of fulfillment is getting the package to the right door, fast and cost-efficiently. That’s what they do. SKU, LTL, kitting, RMA’s – this is the language of fulfillment and until recently, value-added services hadn’t entered the foray. But more and more innovative shipping companies are popping up. At ShipMonk, for example, they have seen a sizeable amount of their customer base turn to the subscription model. As a result, ShipMonk has adapted, now offering custom boxes and tissue. And they’ve seen the results as well; “our clients trust us in packing their product the same way they would. We have many measures in place to make sure we pack the product to deliver the unboxing experience our clients are hoping for.”
Now why, you may ask, doesn’t every fulfillment company offer custom packaging solutions? It’s a clear revenue driver, and indeed has come to be expected by many ecommerce retailers. The answer is relatively straightforward: they are worried about the complications that come with custom packaging. As stated earlier, a 3PL’s core business is speed, accuracy and efficiency. Custom packaging throws a wrench in the mix. So how can the fulfillment industry go about offering this to their customers without sacrificing their systems? The answer shouldn’t surprise you: keep it simple.
Utilizing packaging components like custom tissue, stickers or custom tape is an easy way to maintain your brand. There’s no need to create ridiculous displays or boxes with 17 different components that each have to be assembled individually by hand. While no doubt these look amazing, they fall well short of the ‘worth your time’ line. So with simple solutions, 3PLs don’t even have to break stride to include custom packaging. And with these options becoming more prevalent, logistics companies are embracing the change.
In the words of CEO and Co-Founder, Mathew Galt of Fulfilio, “customers love being able to work with providers who care about their customer’s delivery experience as much as them, and one that helps carry their brand message through the journey.” He goes on to say “we get a lot of customers requesting any number of these. From personal notes, custom wrapping paper and packaging, to the way in which each item is kitted. It’s how they’re able to set themselves apart, and our staff love being a part of that experience.”
“So how can the fulfillment industry go about offering customization to their customers without sacrificing their systems? The answer shouldn’t surprise you: keep it simple.”
What would a conversation on fulfillment be without bringing up the $784B elephant in the room. Amazon has completely changed the way that ecommerce and fulfillment works. Granted, they’ve changed a lot of other aspects of life as well, but when you break it down, Amazon is the largest fulfillment business in the world. Indeed, just a few weeks ago Amazon made the announcement that 100 million people are “Prime” members, making them the largest subscription outfit in the world as well. What has made Amazon so successful? Well, in large part it’s due to their branding.
Early on in their development, the marketing team at Amazon realized that the moment of receiving a package provided a huge opportunity for them as a business. Now on their online marketplace, it’s rare to be able to pinpoint the store that you’re buying from. More likely you simply know that you’re ordering from Amazon. With Amazon you are still able to customize what is inside of the Amazon box. However, the modern day 3PL can offer an enticing alternative here: complete custom packaging solutions. Not only do 3PLs like Shipbob not charge a thing for extra custom packaging, they’ve made it a distinct selling point of their offering; “At Shipbob, we believe each client’s brand should stay in the spotlight through the unboxing experience, not ours. We build a partnership with the seller to service their end customers while growing their brand and ensuring a stronger connection between our customers and their end customers.” The modern-day 3PL makes their mark on delivery timelines and accurate fulfillment; you make your mark with what you’re selling and how it’s presented. It’s the perfect partnership.
Another aspect that independent 3PLs are taking the initiative on is reducing their environmental impact and making their industry more sustainable. The push for eco-friendly options is not unique to any one industry, but in an industry that is mostly operations behind the scenes, it’s uplifting to see a concerted effort being made. Michael at Fulfillrite makes it clear that 3PLs have embraced positive social and environmental trends that have swept other industries. Putting it simply, “sustainability is a huge concern, especially with the boom of ecommerce.”
Now, plenty of people claim to be making sustainability a priority without ever following through on their promises. So what are 3PLs like Fulfillrite doing? Quite a lot, as it turns out. “[We have] a number of initiatives to seriously reduce waste and make fulfillment as environmentally friendly as possible. Firstly, we have software that determines the most efficiently sized packaging for each item. Every single item we ship is measured by 3D imaging programs and fed to the computer. Aside from saving the customer money on packaging and dimensional weight charges, we don’t waste space. The environmental impact of over packaging is astounding, so this really helps.”
With the tidal wave that is ecommerce, fulfillment will continue to play a huge role. Those 3PLs that are offering value added services such as custom packaging and kitting will continue to be far more attractive for businesses that are trying to build their brand.
Noissue.co is a platform for designing and ordering branded, eco-friendly packaging. They are partnered with numerous 3PLs around the world and offer streamlined services for the fulfillment industry – contact here.
If you’ve been around the crowdfunding scene for a while or are just starting to dip your toes in the water, you’ve most likely at some point visited one of the industry’s most well-known sources of information, CrowdCrux.com. A comprehensive site filled with crowdfunding news, podcasts, interview, tips and more, it has become one of the go-to places on the web for creators of all levels looking for help.
Behind the scenes (well, not really behind) is the site’s creator and curator, Sal Briggman. We sat down with Sal for a chat about his passion for helping others, how CrowdCrux came to be and what his thoughts are on the future of the world of crowdfunding.
Hi Sal! Thank you for taking the time to talk.
How many websites are you up to now? Crowdcrux, CrowdfundingPR, SalvadorBriggman,com, Kickstarterforum, MusicMind.co, 2&2Labs, PitchFuse…
(Laughs) Like many entrepreneurs and bloggers, I’ve started several websites over the years at different points in time. Some have been more successful than others.
The main one I am focused on is CrowdCrux.com. CrowdCrux has ~10k email subscribers and we have thousands of users on KickstarterForum and CrowdfundingForum. I’m proud of helping so many people raise money on different crowdfunding platforms, even if it’s in a small way.
What is your goal with CrowdCrux?
My goal with CrowdCrux is to bring the best tips, tricks and advice to creative types and entrepreneurs looking to raise money for their passion project. I want to show crowdfunders exactly what they need to do to run a successful crowdfunding campaign and demystify this whole fundraising process.
Crowdfunding is changing the fabric of our economy. It’s giving everyday Americans the power to innovate in ways that our grandparents only dreamed of.
There’s nothing that gets me more riled up than when I hear about an entrepreneur or a creator who has the potential to succeed, but for whatever reason, doesn’t.
We all make the same excuses as to why we’re not successful.
“I don’t have the time.”
“I don’t have the money.”
“I don’t know where to begin.”
The excuses as to why you’re not succeeding are becoming fewer and fewer. Nowadays, you just need the desire, commitment and persistence to get through the early days of starting a new venture.
How do you find the time to be so prolific?
When I first started the blog, it was very easy to “be prolific” because I had so many questions!
I wanted to figure out why some crowdfunding projects raise millions of dollars and others sputter out. I wanted to know what really makes the difference between success and failure.
Really, I almost felt like it was my duty to discover and report on what works on Kickstarter, Indiegogo and other crowdfunding platforms. So many people are counting on me to help make their dream a reality. I’m just privileged to be able to make such an impact!
Communicating it is another matter. I’ve done my best to write helpful articles, eBooks and conduct podcasts to get the best tips out there to the people that matter: the entrepreneurs and artists.
I wouldn’t be where I am without Krystine Therriault, a terrific writer and community manager for CrowdCrux. In the past year, she’s become a stronger voice on the blog and is as enthusiastic as I am about the crowdfunding industry.
But if you’re looking for an inside tip as to how to bang out 2,500 words in a single writing session, I’ll give you my secret…coffee! (Just kidding.)
You tweeted that you are also writing an eBook as well, what’s that about?
I am! The eBook, Crowdfunding Fast Track, is designed as the go-to tool for launching a successful crowdfunding campaign.
I want creators to come away feeling like they have a complete understanding of precisely what they need to do to exceed their fundraising goal and launch that project of their dreams.
Believe it or not, as a student in college at George Washington University, I hated attending classes – most of the class content was fluff and useless in the real world.
I’ve made this eBook actionable. I don’t dish out theories or vague suggestions. I don’t waste your time. I get straight down to business.
Tell me about how you first discovered crowdfunding. That moment you heard the term for the first time and said, “What is that?” How did you get into it?
Oh! Good question.
I think the first time I actually heard the term crowdfunding was in 2012, when I heard about the Jobs Act, which allows every day Americans to invest in startup companies.
I was fascinated! A new industry was emerging that would redefine innovation and really let people get on the fast track to achieving the American dream.
I had to do a mini-thesis to complete my economics degree and I decided to do it on crowdfunding. I quickly became enraptured in Kickstarter’s crowdfunding platform and all of the company’s transparent data. I compared the different categories on Kickstarter and how, if you launch in a category like Publishing, the size of your social network might matter more than if you had launched in the Gaming category.
I started sharing some of my findings on CrowdCrux and quickly learned that there was a real thirst out there for quality information on the crowdfunding process. It’s a huge mystery to most people.
At the time, I had been a part of several different tech startups, all of which had failed. It takes a lot of energy to commit to a new startup. It’s a lot of worrying, uncertainty, and trial and error. No one is really there to show you the right path or to tell you “this is the right course of action.”
I remember sitting at the kitchen table in my dorm room, debating whether or not to start this website. Was it going to be worth the work?
The thing that pushed me over the edge was that, like many of the crowdfunders out there, crowdfunding was a passion for me. So, I viewed CrowdCrux as a side project. I never expected it to go anywhere or help the hundreds of thousands of creators that it has. I just wanted to explore a topic that I was interested in and be helpful in the process.
Since you’ve been along for most of the ride, how has the crowdfunding industry changed? What platforms and funding types have you seen rise and fall?
Oh boy. It’s changed a lot.
For one, just recently, the regulations surrounding Title III of the Jobs Act have been formalized and equity crowdfunding is going to be a reality in 2016. In addition, more entrepreneurs are taking advantage of Regulation A+ equity crowdfunding raises.
Kickstarter and Indiegogo have seen massive growth in the past several years and crowdfunding has become much more mainstream as we’ve seen successes covered by the media.
Peer-to-peer lending, or debt-based crowdfunding, has exploded into a multi-billion dollar industry. I don’t think anyone could have predicted the way that it is challenging traditional forms of credit and financing.
Real estate crowdfunding has also grown aggressively and up until now, has been seen as the unexpected breakout child of equity crowdfunding.
I myself am very surprised at the tremendous success of personal crowdfunding campaigns. GoFundMe alone has helped individuals raise over 1 billion in funds for personal, medical, education, funeral expenses, etc. We’re also seeing lots of nonprofits use crowdfunding and peer-to-peer fundraising to raise money from their donors and attract new donors.
Overall, I think that both crowdfunders and the media are taking crowdfunding campaigns far more seriously than before. This isn’t a phenomena or some fad. Crowdfunding is here to stay.
Along with the rise of crowdfunding has come a flood of consulting agencies and campaign analytics platforms. Do you feel they are worth the investment or is research enough? Have you seen creators get a boost?
Very true! First of all, I think there are three types of firms out there.
- Firms that help with tangible assets
This might include a company that will help you put together your video, reward tiers, or campaign copywriting. I think these firms are very valuable and their deliverables are tangible. They should be measured in whether or not they’re crafting assets that will convert browsers into backers.
- Firms that help with promotion
Firms that help with PR, marketing or promotion are also valuable components of a successful crowdfunding campaign. I’ve interviewed many entrepreneurs who have hired a PR agency or firm just to do their Facebook marketing.
Obviously, this isn’t always realistic if you’re on a tight budget. As with all areas of business, you don’t need someone else to do it for you. You can take the time to learn marketing, sales, copywriting or PPC on your own. The skills that you learn will be transferable to running your e-commerce business.
The important thing is to determine when you should spend time learning something and when you should just outsource it.
- Firms that promise the sky
These are the scammy marketing firms that promise your campaign will be funded for a ridiculously low price. There have been many unhappy reviews of such marketing firms on our forums. Some firms will actually scam you and just take your money. Do your research.
There are many more firms emerging that claim “backer communities.” Some of these are legit. Some aren’t. Always have a slight degree of skepticism, particularly if the offer seems too good.
What mistakes do you see most often?
Probably the biggest one is lack of thorough preparation for a crowdfunding campaign. Each category has a different preparation strategy. For example, I’d prepare for a publishing campaign much differently than a technology or design campaign. But, unless you invest some time in learning the differences and looking at campaigns that are similar to yours, you won’t know that.
Crowdfunding has become SO competitive that you really need to make the first 3 days of your campaign count, so that you rank well in the platform’s algorithm and begin to generate some momentum.
Don’t get me wrong, you can make a comeback halfway through the campaign and maintain momentum throughout it. It’s just more difficult. For many campaigns, the biggest influx of pledges is in the first week and last several days.
The second biggest mistake has nothing to do with crowdfunding. You need to validate your startup product or idea as thoroughly as possible before launching.
Does your target audience actually want these rewards you’re promising? Are you solving a problem or are you just trying to raise money for something that would benefit YOUR life and not the lives of your backers?
Finally, you need a compelling story. You need a great WHY. You need a way of connecting with your backers and developing relationships at scale.
It’s important to nail down how you’re going to cut through the noise and seduce backers into liking you AND your product.
Many of us are taught to treat customers differently than our friends. When we talk with customers, we’re supposed to use corporate language. We’re supposed to get them familiar with a logo, not our face.
But, that’s not how crowdfunding works. You need to treat your backers like your friends. A campaign with personality and a creator who genuinely connects with backers will win out when put up against that same campaign that reads like an infomercial.
It’s sad that we ARE seeing more campaigns with commercial-style videos and detached creators, but I genuinely believe that the campaigns that use crowdfunding as a way to develop a genuine relationship with a group of backers will have much more success.
With all that you know behind how campaigns work, do you think you’ll ever be inspired to run a campaign of your own?
If anyone has read my history, they’ll know that I started programming in middle school and am proud of some of my technical abilities. It’s taken me a while to learn this, but I’m not a hardcore programmer. I’m not a hardcore technical engineer. I’m not a designer.
I’m a marketer and sales guy. I’m not comparing myself to these people, but I’m far more Mark Cuban than Elon Musk (if you get that reference, we should be friends).
If I did my own campaign, I’d partner with a designer or technical cofounder to bring the product to market. Right now, I don’t have the time to focus on finding that person, but maybe some day. Some day, I might even do another tech startup. Who knows – with Title III in effect early next year, I might even fund a few!
(Laughing) It almost sounds like I don’t have the time to pursue a romantic relationship, but at the end of the day, a finding that perfect co-founder is very similar to finding a great marriage partner. You’re going to go through ups and downs and you need a shared vision.
For now, I’m going to stick to demystifying the crowdfunding industry. Crowdfunding is still in its early childhood and moving into its teenage years. We have a lot to look forward to!
Follow Sal on twitter at @sbriggman and @crowdcrux
Hardware. Isn’t there just an app for that? Such is the life of the hardware entrepreneur. When most people ask me how a project is going they say, “How’s your app coming along?” There are so many software developers; app developers, web developers and anything-developers making digital products that people are forgetting the electronics that make it all possible! We constantly underestimate how much effort goes into that tiny piece of cell phone magic you’re probably reading this on.
Now, I’m not belittling software developers at all, their work is astounding and worthy of a mountain of praise. They are, however, just one piece of the puzzle that encompasses our digital lives. So why are so few people trying to create hardware products? I believe it’s entirely due to the high barriers of entry. Here are some of the challenges we faced when developing our product DrinkMate which we find especially unique to hardware development
1. Microcontrollers
Everyone has something with a screen on it – just bust out that laptop, phone, or tablet and start coding away. There are countless tutorials online to help you through any and all programming questions. Hardware products, however, and specifically the microcontrollers that control most of them, are a bit trickier. There are still plentiful resources online, but many of the tips and tricks for creating a manufacturable and mass-produceable product are kept as trade secrets.
Tip: Use a brand of microcontroller from a company/manufacturer that has invested in tutorials and example firmware for its products. These take most of the hard work out of the firmware coding so you can concentrate on, say, circuit design. Atmel is especially good at this.
What we learned: Forums are your best friend! Ask questions as you go along to see if anyone has already solved your problem before you invest too much time. This way you can focus on the truly difficult obstacles.
2. Product Quality and Consistency
When you attempt to create a new digital product like a website or app, the final product is exactly the same every time. Yes, there is always individual and platform customization, but the underlying code is guaranteed to remain unchanged. With hardware, quality control becomes a much more complicated issue. All of a sudden you have a large number of different real-world components that all are at risk of either failure or improper installation. If just one of these “cogs in the machine” fails, the entire product will be a hunk of useless junk, which is often more costly to repair than to replace.
Tip: Samples, samples, samples! PCB (printed circuit board) samples from manufactures are easy, but don’t get overconfident! There’s a difference between hand-made samples and machine-made production line final products, so you need to make sure you have a final testing procedure in place. Make sure to get enclosure samples as well. It is much easier to fix problems prior to a product launch than try to recover and repair post-launch. Take your sample and drop it, kick it, touch it, see what makes it fail or not fail. If there is a particularly weak design characteristic, talk to your manufacturer. Many times the manufacturer will offer to make the design change or potentially have ideas for how to fix the problem.
What we learned: Our samples had certain seemingly minor components switched with inferior brands. It wouldn’t make a difference for most products, but for ours it caused significant quality problems.
3. Costs
Digital products have bugs and glitches all the time, but they are always solved by software updates. The fix takes time and money, but the implementation is free. With hardware, any error with, say, a plastic injection mold not only requires time and money to redesign, but a massive fixed cost of mold reproduction. We’ve found a good rule of thumb is that every small plastic piece in your product will cost around $5,000 in mold production costs alone (excludes design costs).
Tip: Crowdfunding! Hardware products don’t have the luxury of a digital soft launch, it’s just too expensive to build anything in small quantities (less than 1,000). Put together a well-planned campaign and launch on a crowdfunding website such as Kickstarter or Indiegogo. This allows you to see if there’s a demand for the product you’re trying to produce. Additionally, there are now companies founded by hardware product experts who offer pre-crowdfunding manufacturing plan reviewing, advice and certifications such as Dragon Innovation.
What we learned: Make sure you have your product 100% designed before crowdfunding. Seriously – every single detail no matter how small. You will not have a spare second to do anything other than logistics once you launch!
4. Packaging
Create packaging for your product that’s based on your target market. If you want your product to be sold in convenience stores next to lottery tickets, package it in a plastic anti-theft blister pack. If you’re trying to get luxury points, package it in a gift box like you’d see in an Apple store.
Tip: Nobody saves blister pack plastic, but many people hold onto nice gift boxes out of sentimental value (i.e., “too nice to throw away”) or for reuse. You know you still have the box your cell phone came in lying around somewhere…
What we learned: Have your manufacturer prepare quotes for both “luxury” and “retail” packaging options. Your distributors and retailers will have different needs.
5. Shipping, Handling, and Storage
Ecommerce order fulfillment services do cost a pretty penny, but they can take all the pain out of actually delivering your product. Amazon is the leader in this, but they are very expensive. There are other options such as Fulfillrite. Make sure they handle product returns!
Tip: Collaborating with a smaller company like Fulfillrite was an invaluable experience. They helped us through every step of the fulfillment process that led to a fully successful product launch with no shipping problems at all. We use them to this day and they’ll be scaling with us as we grow our company.
What we learned: Direct API interfaces into your product’s website will save an incredible amount of time and make sure your product gets shipped ASAP.
6. Lead Times
Anything hardware-related has a lead-time, either to manufacture or ship. If it’s being custom-made, this time usually quadruples at a bare minimum.
Tip: Adopt the policy of under-promising and over-delivering. Most people attempt to meet a certain ship date, but never consider the option of shipping (or simply being ready) early. That means their options are either ship on time or ship late. Most of the time it ends up being late. It’s important to consider that delays happen and extra time needs to be factored in to any promised delivery dates.
What we learned: Paperwork delays add up. This can range from order processing to bank transfer holds. Always add a “buffer” to your anticipated lead times to account for the logistics of getting the order started in the first place.
Last Words of Advice
Always be ready to learn. There is no perfect way to deliver a hardware product. There is no “compile” or “upload” button. Keep an open mind and always seek advice from others who have gone through this process before. Prepare backup and contingency plans based on the experiences of you and others. This way, should the unexpected happen, you’ll at least feel like you already have a path towards a solution or have the resources to reach out and ask for help.
Good luck and have fun along the way!
Shaun Masavage is an engineer, entrepreneur and the inventor of DrinkMate, the world’s smallest portable breathalyzer which plugs directly into your Android phone.
Use a brand of microcontroller from a company/manufacturer that has invested in tutorials and example firmware for its products. These take most of the hard work out of the firmware coding so you can concentrate on, say, circuit design.
Intro: Don Moyer has completed six successful Kickstarter projects and gradually found ways to share his unusual products with people who appreciate things that are beautiful, useful, and funny. The first product was a porcelain plate that added the calamity of flying monkeys to a traditional blue, Willow-pattern dinner plate. Additional projects added more plates, mugs, bandanas, and more. All celebrate traditional designs, but add a twist.
Can you start by giving us a quick overview?
I retired last year. For 40 years, I worked as a designer solving problems for my clients. Now I get to define my own projects and explore things that I think are fun. I draw every day and some of my drawings become products that people will enjoy having in their homes. I use Kickstarter to find sponsors for these self-inflicted projects. I also have a Shopify site link where folks who missed the Kickstarter projects can catch up.
I don’t manufacture anything myself. I want to design things and rely on others to help with business tasks—production, customer service, accounting, etc. Fulfillrite is my partner to handle packing, shipping, and tracking of orders.
Where did the idea for Calamityware come from?
I love to draw. The drawings I like best make me laugh.
When I inherited a traditional Willow-pattern dinner plate, I felt an urge to redraw the scene and add a pterodactyl. Countless porcelain manufacturers have made versions of these traditional plates for nearly 300 years. All feature variations of a vaguely Asian scene with willow trees, pagodas, bridges, exotic plants, and more. I enjoyed drawing several versions of plates and added a different calamity each time. Think Sasquatch, volcanoes, and voracious sea monsters.
I post my daily drawings on Flickr. Several people who saw my plate drawings urged me to reproduce the drawings on real plates. When I retired, I had time to experiment with Kickstarter to fund production of a real porcelain plate.
Why did you use crowdfunding?
Crowdfunding is perfect for projects like this. An artist has an idea for a project that is too ambitious to finance alone. If enough people are willing to support it, the funds for the project are available. If there are not enough supporters, you get to walk away from the idea having spent very little time and money.
The old method was to borrow money and fund a production run. Before crowdfunding platforms like Kickstarter and Indiegogo, too many people ended up with debt and a basement full of products they could never sell. Those days are gone.
My first project (flying monkeys) was fun and reached its funding goal, so I promised myself that if interest remained high, I’d do a series of at least 8 plates…maybe 12.
How do you create new products?
First, I goof around. I draw things and explore possibilities. No rush. No pressure. Basically, I’m trying to please myself. So I draw things that I like. When I find something that is both beautiful and funny, I’m satisfied.
Sometimes my supporters suggest product ideas. These unsolicited ideas are almost always wrong for me. But on rare occasions, they may offer an idea that fits my sense of humor.
I can’t stress enough the importance of simply messing around, doodling, and exploring for pure fun. For me, that’s where the best ideas come from.
Who is your audience?
One of the surprising things about Kickstarter has been how easy it is to get feedback from sponsors about why they are supporting my project. Kickstarter makes it easy to have digital conversations with sponsors. So, I’ve formed impressions of my sponsors.
In general, my sponsors are diverse in terms of gender and age. They live all over the world but most are in the US. They all have a good sense of humor and appreciate the notion that products can be beautiful, utilitarian, and funny at the same time.
I think that the people who sponsor Kickstarter projects are looking for something new. They are looking for things that are not yet in stores or weird products that are never going to be found in any store. Some of them are drawn to the idea of supporting an artist who’s trying to pursue a goofy quest.
What problems have you encountered?
Problems are part of bringing any new product to market. One expects that. In fact, watching how problems are dealt with is part of the fun of supporting Kickstarter projects. Updates about problematic suppliers, pokey supply chains, and problems with packaging are common.
Initially, I didn’t invest in any business systems. My first projects were pretty small, so it was possible to get by with rudimentary tools like a spreadsheet and a note pad.
My biggest problem was a lack of transparency. I couldn’t get fast, accurate, honest answers from key suppliers about what was really happening. This problem was compounded when supporters and customers asked questions about the status of the project. If I answered based on the latest information from the production team, I found myself, a few days later, issuing a correction and an apology. At times I had to craft apologies for my apologies.
Apologizing was NOT how I wished to spend my days. I wanted to be drawing or designing the next product. Within a few months, I became a foot shorter and displayed a permanent frown.
All this changed when I finally got my inventory installed at Fulfillrite. Suddenly, I had full visibility through their web portal, of inventory levels, order status, tracking numbers, and postage funds. My smile returned.
With Fulfillrite, I export the address file from Kickstarter, clean it up slightly, and upload it to Fulfillrite’s web portal. It immediately becomes visible on my Fulfillrite web portal. As the orders are packed and shipped, I can see the status on my screen. Most recipients get an email with a tracking number when their shipment rolls out the door.
Orders that come to my Shopify site flow on to Fulfullrite electronically and also become visible immediately. Everything seems to go out the same day the order is received.
Fulfillrite also gives me constant visibility of inventory levels so I can make decisions about production. All in all, a simple and beautiful system. I wish I had found Fulfillrite sooner.
How did you go beyond porcelain plates?
Working with Fulfillrite has also made it possible to add more products. In late November 2014, I launched a Kickstarter project for BADbandana 1—the world’s first bandanas with angry paisleys. This blue bandana celebrates traditional bandanas but adds the excitement of monsters, pests, a plethora of bats, and other bad boys.
By consolidating all fulfillment with Fulfillrite, I can accommodate mixed orders—plates, bandanas, whatever. So now there’s nothing to prevent adding all kinds of new products. Move over Amazon.
What’s next?
I have a list of more than 100 potential projects. It’s my bucket list. I’d like to see how many of these projects I can complete before I kick the bucket.
For 2015, there will be a new series of four Calamityware plates (Pirates in the neighborhood, Rambunctious volcano, Tentacles!, and Vortex of doom). My sixth Kickstarter project is BADbandana 2—Pixels on a rampage is a mash-up of early video game characters and genteel embroidery with more than 260 monsters and minions.
I’m working on a letterpress print with sea monsters, robots on tea pots, ugly mugs, bowls, and some holiday cards. I also have requests for designs for pocket squares, tea pots, gravy boats, playing cards, socks, and neck ties. I’ve added them to the bucket list.
Any more advice before you go?
If you need an unusual gift for someone, I urge you to visit Calamityware.com.
Crowdfunding is perfect for projects like this. An artist has an idea for a project that is too ambitious to finance alone. If enough people are willing to support it, the funds for the project are available. If there are not enough supporters, you get to walk away from the idea having spent very little time and money.
Having raised over half a million dollars in 25 days on Kickstarter, Robot Turtles founder Dan Shapiro has been featured in major print and online publications, including the New York Times, NPR and Techcrunch. Not only did he soar past his $25,000 crowdfunding goal by more than 2500%, he also delivered the perks he promised to backers earlier than expected.
Where most Kickstarter creators struggle with shipping rewards out on time and dealing with unpredictable levels of demand, Shapiro was able to scale his original plan, execute on his vision, and successfully navigate the choppy waters of product fulfillment to both domestic and international backers.
In our interview with Shapiro, we’ve given you an inside view of a smash-hit six-figure Kickstarter project and how a small project turned into a thriving business.
How did you come up with the idea for Robot Turtles as a board game?
I was tired of kids’ board games that were thinly veiled luck or games of skill in which the kids were hopelessly outmatched. I wanted something that would afford real quality time with my then four-year-old twins. And I wanted some of that cool “A-ha!” discovery that is so fun to watch.
What was your kids’ initial reaction?
They got it immediately. Their first reaction was to tell me how I should improve it: “Daddy, I don’t like that wall. I want lasers!” or, “Daddy, I want to play more than just one card at a time!”
Why is it called “Robot Turtles?”
The game is very loosely based on a programming language called Logo that I learned in computer camp in the early 1980s. Logo features a turtle character that players, using the Logo programming language, send around the screen to draw pictures.
Why did you choose to crowdfund and who were you targeting?
I could have self-funded a small print run, but then I’d be stuck with a thousand games in my garage. And if it turned out that nobody wanted the game, what then? Kickstarter was the best way to find out if people truly wanted the game to exist so I’d know if I was wasting my efforts before starting manufacturing.
What made your Kickstarter video a success?
I don’t really know, but I think it has to do with the concept more than the game. People never got to try the game before they pledged. It’s lots of fun, but they had no way of knowing that. I think the backers had an intuitive sense that this was something worthwhile.
Programming concepts like order of operations and decomposing complex actions are basic elements of thought—things that kids tend to be really good at. Why should they have to wait to learn to read to start exploring these skills? That resonated, and people got excited about seeing what a product like that could be.
I think crowdfunding campaigns work best when they describe something to the world that people want to exist. If it’s a good idea, people will get excited about it. It also helped to email, tweet, and post on Facebook to get the ball rolling.
Did anything happen during the crowdfunding phase that you didn’t anticipate? How did you respond?
I was bowled over by the enormous reception. It was fully funded in five hours and at four-times my goal in two days and then never stopped. From the moment it fully funded, I switched into overdrive reviewing all my production plans to see if they would hold up under the strain of a much larger order.
What challenges did the excessive funding present post-campaign?
Everyone’s expectations were high. I tried to be incredibly communicative, sharing pictures and updates, so everyone had 100% transparency. Ironically most overfunded crowdfunding campaigns are very late, but I shipped a smidge early. I think that bought me a lot of breathing room with my backers for the snags that did come up, such as lost packages.
How quickly did you shift to order fulfillment, and were you able to meet the holiday orders?
The manufacturing process started the day the Kickstarter campaign closed. I had a schedule with two weeks of buffer to get product to U.S. addresses in time for Christmas. I wound up getting it out about one week before Christmas. There were a few delays, but Delano Services, my manufacturer, stepped on the gas and made up the time by finishing early.
How did you get your first non-Kickstarter customers?
I sold out the remaining inventory in a month or two through the product’s website: www.robotturtles.com.
Are you still printing copies of the game?
No, I’m done. But Thinkfun, an amazing manufacturer of kids’ board and educational games, has started. They’re producing a version of the game that’s very similar but with a few great improvements, such as shiny gold highlights on the pieces and a nicer box and manual. You can buy it now at Target and Amazon.
What happened post-Kickstarter with regard to operations, such as staffing, changes to tactics or strategy, struggles, and successes?
There’s not much to report. This is a one-man show with some amazing contractors helping out with design and support. I just worked like mad to get everything out for the holiday, breathed a big sigh of relief, and turned over manufacturing to Thinkfun who’s done a tremendous job with it.
When did you develop the e-book?
My friend, Brad O’Farrell, the creator of Story Wars, helped me write it during the campaign. Then the same designer who designed the game illustrated it after the campaign closed.
Did anything occur during the first year that you didn’t anticipate? How did you respond?
Just one huge hiccup: I was planning on using Amazon for fulfillment, but they miscommunicated about their ability to fulfill overseas orders. I was left with nearly 2,000 international game orders and no way to get them out for the holidays. Fulfillrite jumped in and saved my bacon—sitting on the phone with me until the late hours in order to get the process squared away and rushing the packages out the door. I would have been in deep trouble without their help.
What are your plans going forward?
I’m working on a book about startup CEOs for O’Reilly Media and enjoying the Seattle season.
To read more about what it’s like to launch and run a successful crowdfunding campaign, be sure to check out the rest of interviews in this series LINK.
The game is very loosely based on a programming language called Logo that I learned in computer camp in the early 1980s. Logo features a turtle character that players, using the Logo programming language, send around the screen to draw pictures.
Six-figure crowdfunders Ricky Choi & Phil Moldavski raised almost 400% of their Kickstarter goal with the vision to redefine our relationships with our sock drawers. Their mission was to bring colorful and premium socks to the marketplace at an affordable price, which they’ve since accomplished by actively selling Nice Laundry socks on their website.
However, as with all overnight successes, this dream took immense planning and dedication from day one. Below, we’ve included our discussion with the team, where they detail how they were able to raise $119,321 from 2,000+ backers in the span of 40 days.
They also gave us a ‘look under the hood’ of the project, sharing why they decided to launch a crowdfunding campaign, how they validated their business assumptions, and how they’ve managed to scale the project after experiencing high order volumes.
How did you come up with idea to redo men’s sock drawers?
Ricky Choi: I met [co-founder Phil Moldavski] when we both worked at Living Social, and I noticed that he was very well dressed, but every day he would wear these white athletic socks with his dark dress shoes.
It just wasn’t giving him the look that I knew he was going for. I’ve always been a sock guy. As soon as I felt like I knew Phil well enough, I suggested that he buy a pair of socks—a colorful, dressy, more refined pair—which he did. He ordered a pair online, wore them to work, got a ton of compliments, and loved how they made him feel. But when he got home, he threw them in the wash and didn’t see them again for another two weeks until they came back through the wash.
He wanted every single pair in his sock drawer to be a go-to pair of socks. So he spent weeks and hundreds and hundreds of dollars refreshing his sock drawer with high-quality, colorful, fashionable socks. It was kind of at that point that he said, “Hey, this refreshing your sock drawer is such a great experience but there’s no current solution that allows you to do it for a reasonable price.” [Thus, Nice Laundry] was born from a personal pain point.
How did you turn that into a business and why did you decide to crowdfund it?
RC: Coming from the startup world, we’re all about testing and minimum viable products. Therefore, we weren’t going to go raise $500,000 to test this unproven concept.
Our first step was to call all of our friends and family and pitch them on the idea. We asked them what was their relationship with their sock drawer. Are there some socks that they always wear first? Are there some socks that are always left over [after doing laundry]? How many socks have missing pairs? How many have holes in them, etc.
After walking them through these questions, we realized almost everyone has a terrible experience with their sock drawer. Next, we went to Macys, Nordstrom and all the bargain basements. We would just hang out by the sock displays and wait for people to come up to buy socks and kind of walk them through that same set of questions to get a little bit of objective feedback. We quickly realized that this strained sock drawer relationship was a common experience.
Then, we took out a little bit of an ad spend with Google Adwords, using keywords such as “colorful socks,” “affordable socks,” and “dress socks” and drove people to a landing page with very simple value propositions: refresh your sock drawer in a few clicks, recycle all of your old socks, affordable pricing, high quality. We were capturing a very high percentage of emails, which told us this is an idea that we could definitely communicate online. The next step was a Kickstarter campaign to see if we could convince people on a larger scale since there was relatively low risk on our part and no upfront investment except for a little bit of a budget for a video.
Who were you targeting?
RC: Our target was fresh college graduates and people starting to get serious about their career or professional track. This sense of starting fresh is something that was definitely appealing to that demographic.
The other chunk of our demographic was an older crowd. I think it’s an easy way for the Baby Boomer generation to stay hip as workplace attire is becoming more casual. Whereas they used to wear a tie to showcase their character and personality, ties are not being worn anymore on a daily basis. What better way to replace a tie than with a stylish pair of socks?!
The bulk of our customers are men. About 20% of our customers are women and half of them are gifting to significant others or friends while the other half are actually buying them for themselves.
When did you realize this campaign was going to be bigger than the anticipated $30K?
RC: On launch day. At the time, we broke the record for the most backers on opening day for a fashion Kickstarter project, acquiring nearly 200 backers. We had a steady stream of backers throughout the course of the campaign. Given the fact that we had sold almost 30,000 pairs of socks through Kickstarter to over 2,000 customers, it was at that point that we thought this could potentially scale into a real business because there’s enough demand.
Fundamentally, you can have a great product and you can have a great market, but if you don’t have a product-market fit, you don’t really have anything. And that was the biggest question. We know we can make good socks. We know people like good socks out there. But, the way we’re merchandising these socks, the price-point, the look, feel and style – is that a fit for the audience that we can easily reach online? That was the biggest unknown and I think Kickstarter did a great job of helping us answer that question.
When did you start scaling?
RC: That’s always the question, right? Toward the end of our campaign as we were getting ready to place our order with our manufacturer, we were unprepared for the sheer volume. I mean 30,000 pairs of socks, that’s a 40 foot container! We had anticipated filling all of our own orders. That’s when we realized we’re going to need to bring in some outside help for sure. That’s when we contacted Fulfillrite to be our order fulfillment partner.
We fulfilled the Kickstarter orders at the end of July and delivered them on time to the day. About a week later, we launched our website to the public and again we were a little bit unprepared because, almost unbeknownst to us, we had landed in the Wall Street Journal’s Off-Duty section as their ‘Steal of the Week.’ We were unprepared for the volume. Our phones were ringing off the hook. It’s been a trial by fire as far as how to scale. I think that’s the nature of startups—you don’t scale until you have to because resources are tight. You don’t want to over-engineer solutions for a problem that you don’t have.
How did you manage that process?
RC: It wasn’t anything that impressive that we did in order to cope with the demand. We had a chat function on our website. We created a 1-800 number and had it funneled to my co-founder’s phone. He kept getting calls while he was on the phone with customers so we funneled it to my number. Eventually we had to bring in an extra friend. Our goal was to create as many channels as possible for our customers to reach us. There were times where I would be chatting with four customers online while responding to email while also talking on the phone with customers.
Did you do anything during that period that didn’t work?
RC: It’s not so much that it didn’t work. Our goal was to hand-sign cards for our first 10,000 orders, which we did, and that quickly became very tough to continue to do. We ended up signing 20,000 cards because we ordered too many cards and we said, we have them, we might as well sign them. I’d like to think that we added that personal touch for some of the early adopters of our business.
At the beginning, you just have to a lot of things manually. We initially had a promo code for a bonus pair of socks. We then had to manually go through the orders to see if they had applied the promo code and add it to their order. Over time we’ve leveraged software to help us automate.
Do you have any tips for vetting external partners?
RC: The only vendors that we really work with are Fulfillrite for order fulfillment, our vendors overseas and our expeditors—literally the people who will freight the stuff over from overseas. We do the design, marketing, and coding in-house. But as far as external vendors—especially at the beginning when you need to be flexible—it comes down to the person. Having access and a direct line of communication is the most important thing at the beginning—it’s more important than cost. After that, it’s who is going to best fit your needs.
Have you had to cut a vendor?
RC: Knock on wood, we haven’t had to do that so far.
Have you had any major surprises—good or bad—throughout this process?
RC: Obviously there are nice surprises. Today I was out in New York City and I counted four people wearing our socks. Seeing your stuff in public is always great validation. As far as anything unexpected, we were taking things day by day, so there weren’t any huge surprises. But you think about how many socks we’re bringing in at a given time and how much inventory costs and shipping costs and it all seems like a fairly simple equation, but there’s hidden costs all over the place. Things definitely start to add up.
In a world where you’re selling a lot and you’re getting sales notifications every minute, it’s really easy to lose track of the baseline fact that you’re trying to build a business. The goal isn’t to sell a lot of socks. It’s to build a sustainable business—one that is profitable and one where, after paying everyone, you’re still profitable. And we’ve done a good job of that. It’s just been surprising that as you scale and you grow, these marginal and incremental costs keep adding up. So it’s important to stay on top of it.
How do you keep your team on the same page in understanding that?
RC: We have all sorts of dashboards and do tons of reporting. We track in real-time our revenue, visitors, shipping cost, and product cost. We have a monitor up on the wall that tracks all that kind of stuff. Every week, we do a one-hour metrics session where we go over our website traffic, conversion rate, CPAs and customer lifetime values. We also track different cohorts of customers. For example, comparing customers over time that we acquired with a certain promotion versus customers that we acquired during the same time but not through the promotion. It’s just consistently staying on top of metrics over time.
What’s next for Nice Laundry?
RC: We’re building a neat model here. As we grow and scale, whether there is a real business here is always the question. We’re focused on socks right now and figuring out that as a category. Once we feel like we’re doing a good job with socks, we may look at another category and apply the same model. But as to what that next category is, I have no idea today. In the next year we’ll probably start slowly figuring that out.
Just over a year after their Kickstarter campaign, Nice Laundry has continued to grow and has been featured in Fast Company, Mashable, The Washington Post, Wall Street Journal, Uncrate and Thrillist.
To read more about what it’s like to launch and run a successful crowdfunding campaign, be sure to check out the rest of interviews in this series LINK.
To bring color and premium socks to the marketplace, at an affordable price. They have been working to redefine our relationships with our sock drawers!
Eric Heins is the founder of Corter Leather and Cloth. After raising over $58,000 on Kickstarter for his Bottlehook Bottle Opener, he has built a successful leather goods company that has been featured in the pages of Real Simple, GQ, and Esquire Magazine amongst other print and online publications.
Having started the company in college and still in his 20s, entrepreneur and leather smith Eric Heins is a great example of how the American dream lives on and how it can be accessed through a new method – crowdfunding.
We had the chance to sit down with Heins, a Fulfillrite customer, who shed some light on what it takes to launch a successful Kickstarter campaign.
How did you come up with the idea for Corter Leather?
Eric Heins: I’m a leather smith and in college I started making wallets in my dorm room because I couldn’t afford to buy one. I put pictures of the wallet online and a bunch of other kids wanted one, too. Corter Leather was slowly born. I continued the business after graduating in 2009 with a degree in graphic design and at that time switched to doing one-off custom work.
Why did you decide to crowd-fund the launch of your bottle opener?
[In 2012], I injured my hand and was in an air cast for six weeks. I couldn’t work and I had the idea for a hook with a bottle opener. That’s pretty much it—I made a left-handed sketch, and thought ‘I have six weeks to kill.’ I only put it on Kickstarter for 17 days because I wanted to get it to market really quickly.
You raised more money on Kickstarter than anticipated. What was your reaction?
EH: I was excited. I was also kind of scared out of my mind because that was a lot [of volume] at that point. I had one other product, a leather guitar pick, that had done similarly in sales to the bottle opener –an overnight success type thing – and I could make the guitar pick, but we were hand-shipping 400 or 500 pieces at a time. To ship that product, I had to hire friends to address and package envelopes.
[With the bottle opener], I was more prepared. We raised a lot of money through the Kickstarter campaign, but it was only about 1,200 orders and I had shipped about 3,000 orders the year before with the guitar pick, just from my own business, so I knew I could do it. It was going to be a couple of months of really hard work but I was happy to do it because I was proud that the product was received the way it was. Plus, it’s a really simple product. [Besides the hook], there were only two other parts we needed: the leather tab which we made in-house and the O ring, which I worked with a metal smith in Montana. He got everything made super-fast. We delivered on time and there were no real hang-ups.
Following the Kickstarter campaign, how long did it take to scale Corter Leather to meet needs of another high demand product?
EH: It didn’t take that long actually. We had a 100,000-piece mold made so our fabricator could make as many bottlehooks as we needed. That was in July of 2012. Fulfillrite had contacted me to use its fulfillment services. Once I had Fulfillrite established as my order fulfillment partner, I knew I could produce as much product as I could sell.
Fulfillment was about 80 percent of my job before. [With Fulfillrite], I had 80 percent of my time free to make more products. It was liberating because now I had time to do what I wanted to do and I didn’t have to do as much housekeeping. We shut down the website after Christmas in 2012 and I redesigned it. In March 2013 we launched the new website with new products. I hired my first full-time employee in April of this year, so I was still doing it myself for another 18 months after the re-launch.
The challenging part came after that, when I had to scale the entire company, because I just didn’t have the experience. I was 25 years old, a couple of years out of college and with no business degree. I did a lot of my own research on how ecommerce can be optimized. We’re in a unique position because we’re not selling a digital product. We manufacture our products as we’re selling them, which is kind of rare these days. A lot of the challenges were with balancing workload.
Can you give an example?
EH: I realized after the fact that I did a lot of stuff right. I was lucky to have already set up my brand. What you don’t realize with Kickstarter is that if you make it to a top position [on the home page], it’s not the press you get that takes over your sales but rather it’s the organic traffic from Kickstarter. I had my website set up, so I had a place for that traffic to go. But if I had a brand new product—no website, no brand, no anything—I could have easily become that one thing that someone found on Kickstarter and now can’t find.
It’s very important to have a place to send traffic, even if it’s just a Facebook page or an Instagram account. The most valuable aspect of Kickstarter wasn’t necessarily the funding—it was the exposure. It brought us out of our niche.
How did your use of social media factor in?
EH: That’s how the campaign gained traction. We were mentioned in blogs and I showed our design and fabrication process on our social media accounts. I posted pictures of the sketches and pictures of the prototypes so people knew that a new product was coming. In some instances, a company with no presence can put up a product and people will find it. But if you’re trying to fund a designed line and you don’t have a presence, you have to tell people about it. They’re not just going to go to Kickstarter and find it.
So it’s about building up a brand.
EH: Don’t look at what you’re doing as launching one product. You’re launching [your brand] to the world. It’s like meeting someone and not having a business card on you—you can say that you’ll give the card to them the next time you see them, because it’s going to be a lot harder to find each other. You have to have the bare-bones structure of whatever you’re launching and make it available for people to at least bookmark.
How did you get your post-Kickstarter customers?
EH: After the Kickstarter, we immediately put the bottle opener up for sale and put the link to the website on the Kickstarter page. But as far as the company was concerned, we kept going where we left off. My hand healed, and I started making my wallets again.
A lot of people from Kickstarter actually had no idea that I was a leather smith until they went to Corter Leather’s website. I put the money from Kickstarter back into the business to make new metal pieces to expand the line. The funding allowed me to take more steps [with the business] and to make cooler stuff.
I design all my products and I use their popularity as a barometer of sorts. If a product doesn’t sell, that means it’s not good enough. So, I take it off the market, re-design it, and put it back in my line.
I don’t want to be white noise. I want to make things that people need and that aren’t readily available. I don’t email bloggers, I don’t do any of that stuff. Over the years, I’ve gotten enough press that people follow me, which is the way I want my business to be run.
What’s next?
We’re moving into some bigger pieces now, including full-sized and snap wallets. I’m also launching another company called The Albatross Brand, which is machine-sewn leather. It’s going to be a truly direct-to-consumer wholesale leather goods company.
We’re not saying, ‘Our competitors offer them for $100 and we make ours for $60.’ We’re saying, ‘We make this wallet for $19 and sell it to you for $38.
Is there a meaning behind your new brand name, The Albatross Brand?
Yes. In Samuel Taylor Coleridge’s The Rime of the Ancient Mariner, the albatross was an ode of good fortune to anyone that embraced it and fed it and let it sit on its ship, and it was an omen of bad luck for those who tried to kill it. So that’s pretty much what we’re trying to do: To bring really good, high-quality products to kids that might not be able to afford the handmade stuff and, for anyone that tries to kill us, we’re going to try to bring them down. That’s the whole mantra behind it.
You’re launching The Albatross Brand on Kickstarter. Why are you returning to crowdfunding?
Because it’s a totally different entity. Corter is growing so fast that it has capital and I don’t want to take capital away from the business to put into another one. That’s the number one reason. The number two, and most important reason, is one of the things that I like the most about Kickstarter. I don’t want to spend time on something that people don’t want. When you put a product on Kickstarter and you tell people about it, they have the ability to say yes, I think this should exist, or no, I don’t think this should exist.
Corter Leather started in a dorm room and is now expanding into new product lines after having raised over $58K on their initial Kickstarter campaign. Every item they sell is handmade, down to the last stitch, and the company is completely solar powered.
To read more about what it’s like to launch and run a successful crowdfunding campaign, be sure to check out the rest of interviews in this series LINK.
Yes. In Samuel Taylor Coleridge’s The Rime of the Ancient Mariner, the albatross was an ode of good fortune to anyone that embraced it and fed it and let it sit on its ship, and it was an omen of bad luck for those who tried to kill it. So that’s pretty much what we’re trying to do: To bring really good, high-quality products to kids that might not be able to afford the handmade stuff and, for anyone that tries to kill us, we’re going to try to bring them down. That’s the whole mantra behind it.