Are you getting ready to launch a Kickstarter campaign and feeling overwhelmed about how to make and ship orders? Don’t worry – we’ve got you covered! In this video, we’ll talk about what you need to do to make sure you fulfill your campaign on time and in-budget.
We’ll show you how to predict the number of backers you’ll receive so you can plan for demand. To keep your supply chain resilient, we’ll delve into securing sources and backup sources for raw materials and identifying primary and backup manufacturers and fulfillment centers. We’ll also talk about estimating delivery time.
Lastly, we’ll cover inventory management, freight transportation, handling returns, and addressing backer complaints. But by the end of this video, you’ll be equipped with enough knowledge and confidence to start asking the right questions. And that’s one HUGE step closer to getting your Kickstarter shipped.
My name is Brandon, here on behalf of Fulfillrite. If you need help shipping your Kickstarter orders, go to fulfillrite.com and request a quote. We’ve shipped thousands of Kickstarters, and we’re happy to help you ship yours too. The quote doesn’t cost a thing, so if nothing else, you get some good information about pricing. Link in the description.
But enough self-promotion. Let’s dive in and set you up for Kickstarter success!
Step 1: Plan For Demand
Preparing your supply chain for a Kickstarter campaign begins with accurately forecasting demand. Estimate the number of backers for your project and add a buffer to ensure enough items are manufactured to fulfill all orders.
Start by analyzing data from similar Kickstarter campaigns to estimate the number of backers and required units. Analyze product type, target audience, and funding goals to make informed projections. This process will give you a rough sense of how large your campaign could become.
Another way you can estimate the number of backers you will receive is by looking at the size of your audience. For example, if you have 5,000 people on your mailing list and expect 4% to back you, you would have about 200 backers from your mailing list alone. Kickstarter will provide a 30-40% boost to your audience, so you should expect around 260-280 backers, provided you have no other major sources of leads.
Every situation is different, so be sure to consult online marketing resources that can help you estimate conversion rates for different types of audiences.
Again, you must also add a buffer to your estimated demand. This extra stock is a safety net to account for any unexpected surge in demand or unforeseen production challenges. It also enables you to respond quickly to backer inquiries or concerns and replace damaged or lost items.
It’s essential to strike a balance between ordering too few units, which may lead to disappointment and harm your reputation, and ordering too many, which can result in excess inventory and increased storage costs. By establishing the right balance, you can minimize risks and maximize your campaign’s chances of success.
Communicate your demand projections clearly to your manufacturer, ensuring they can meet your needs. Regularly review and adjust your forecasts as your campaign evolves, making necessary changes to ensure you can deliver on your promises.
Step 2: Source Raw Materials & Find A Manufacturer
Securing sources and backup sources for raw materials and having a primary and backup manufacturer is vital for a successful Kickstarter campaign. This approach not only safeguards your supply chain but also helps you stay prepared for unforeseen challenges and maintain the momentum of your campaign.
Begin by researching and identifying reliable suppliers for the raw materials required to manufacture your product. Establish strong relationships with multiple suppliers, ensuring you have a backup source in case your primary supplier faces shortages, delays, or other issues. Diversifying your sources reduces dependency on a single supplier and ensures continuous availability of materials.
So, how do you find the best suppliers and manufacturers?
· Research potential manufacturers: Research potential manufacturers online, using platforms like Alibaba, Global Sources, or ThomasNet. Look for manufacturers with experience in your product category or a related field.
· Check references and reviews: Once you’ve identified potential manufacturers, reach out to their previous clients or read reviews on platforms like Glassdoor, Clutch, or Trustpilot. This will give you insight into their performance, reputation, and reliability. If you can, contact actual clients and ask them how the manufacturer performed.
· Request samples: Ask for product samples from potential manufacturers to assess the quality of their work. Evaluate the samples based on your product requirements and standards, such as material quality, durability, and craftsmanship.
· Visit the manufacturing facility: If you’re running a really large campaign and you can manage to do so, visit the manufacturing facilities in person or schedule a virtual tour to get a better understanding of their production processes, equipment, and work environment. This will also allow you to meet the team and gauge their expertise and commitment to quality.
Again, try to find both a primary and backup manufacturer. The last thing you want is to raise millions on Kickstarter only to find that your manufacturer is unavailable when you need them.
Step 3: Make A Timetable
As many as 84% of Kickstarters ship late. If you want to ship on time, you need an accurate timetable for Kickstarter fulfillment. In addition, you must factor in payment processing, manufacturing, freight, customs clearance, and order fulfillment. Do this, and you’ll be able to prevent delays and ensure a seamless process. Let’s go through it step by step.
- Kickstarter payment clearance: After your campaign ends, block off two weeks for Kickstarter funds to clear. (And while you’re at it, don’t forget about Kickstarter’s 5% cut, the credit card companies’ 3% cut, and the roughly 1-3% failed transaction rate).
- Manufacturing: Allow sufficient time for manufacturing, depending on your product’s complexity. Ask your manufacturer how long manufacturing will take, and then add 25-30% to that estimate to account for unexpected delays.
- Freight and shipping: Coordinate with a reputable logistics provider to ensure timely and efficient transportation of your products. Ask your freight partner how long shipping is expected to take. Again, include buffer time to accommodate unexpected delays, such as inclement weather or transportation disruptions.
- Customs clearance: Factor in the time required for customs clearance in the destination countries. Customs clearance can take days to months and depends heavily on what you’re trying to ship. Ask others who have made similar products how long it took to clear customs for a rough estimate of time.
- Order fulfillment: Allocate time for receiving, unpacking, and preparing your products for shipping to your backers. If you’re working with a fulfillment center, maintain clear communication and ensure they’re prepared to handle the incoming inventory. Assuming you have a good fulfillment partner, this can take anywhere from a couple of days to a few weeks.
By establishing a comprehensive timetable, you’ll be better equipped to manage your supply chain during your Kickstarter campaign. This proactive approach will help you address potential challenges and ensure a successful outcome for you and your backers.
Step 4: Book Freight
Arranging freight transportation for your finished goods is a vital step in ensuring the success of your Kickstarter campaign. Efficiently coordinating the delivery of your products from the manufacturer to your warehouse, distribution center, or home or office helps maintain a smooth supply chain and keeps your backers satisfied.
When it comes to booking freight, you can choose between a freight broker or a freight marketplace. Freight brokers are intermediaries who negotiate the best shipping rates and services on your behalf. Freight marketplaces such as Freightos, on the other hand, allow you to compare and book shipments directly from multiple carriers. Weigh the pros and cons of each option to determine the best fit for your shipping needs.
When choosing the type of freight you want to book, you will often be given a choice between sea, air, and rail shipping for the bulk of the journey. The main trade-off is that sea shipping is much less expensive, and air shipping is much faster. For example, sea shipping from China to the US East Coast takes about 6-8 weeks. Air shipping usually takes about 1-2 weeks but is usually about five times as costly.
Familiarize yourself with Incoterms, which are standardized international trade terms that define the responsibilities of sellers and buyers in the shipping process. Understanding and negotiating the right Incoterms can help minimize risks and ensure smooth customs clearance. For example, DDP shipping means items will go from the manufacturer to you or your warehouse, and all customs and charges will be paid. On the other hand, FOB shipping means the manufacturer will pay to get your products on a boat or a plane. Then, you must do everything from there, including customs clearance and getting the items to a warehouse.
Regarding customs clearance, work closely with your logistics provider and ensure that all necessary documentation, such as customs forms or commercial invoices, is accurately prepared and submitted. This will help avoid delays or complications during transit.
Clearly communicate shipment details, such as quantities, dimensions, and timelines, with your logistics provider. In addition, make sure to provide them with all necessary documentation, such as customs forms or commercial invoices, to avoid delays or complications during transit.
Stay informed about your shipments’ progress using your logistics provider’s tracking system, and be prepared to address any unforeseen challenges.
Step 5: Find A Fulfillment Center
Ensuring a seamless order fulfillment process is crucial for your Kickstarter campaign’s success. You have two primary options when fulfilling orders: self-fulfillment or working with a fulfillment center. Each approach has pros and cons, so choosing the one that best aligns with your needs and capabilities is essential.
If you choose to ship on your own, this will give you direct control over the quality of your order fulfillment process. You can personally pack each item carefully, apply postage, double-check the address, and send each order on its way.
However, this is time-consuming and only makes sense if you’re shipping less than 250 orders. It can be costly, too, since order fulfillment centers have access to deeply discounted postage that individuals still need.
If you choose to ship on your own, we recommend purchasing supplies from bulk on ULINE and buying a label printer to save on ink.
If you have a large campaign with high order volumes, hiring a fulfillment center is the most efficient choice. They will handle all the picking, packing, and postage. All you have to do is get the bulk inventory into their warehouse, fill out paperwork in a timely manner, and upload address and order information into their system.
Just make sure you find one that specializes in crowdfunding fulfillment! Also, be sure to check online reviews.
To decide which option suits your needs best, consider factors such as the size of your campaign, the complexity of your product, and the resources you have available. For example, a fulfillment center might be a more efficient choice if you have a large campaign with high order volumes. Conversely, suppose you have a small campaign with a manageable number of orders. In that case, self-fulfillment may provide more control and flexibility.
In either case, maintain clear communication with your backers, providing updates on order status and shipping timelines. This transparency helps build trust and keeps backers informed about the progress of their rewards.
Step 6: Prep For International Shipping
When shipping products internationally, choosing the right strategy for your business is important. Here are three ways to handle international shipping, allowing you to find the right balance between efficiency and customer satisfaction:
Ship internationally from your own country: For businesses with low international order volumes, shipping directly from your home country using a reliable carrier is a simple and cost-effective option. However, be aware that customers may be responsible for VAT and customs fees.
Ship from your own country using Delivery Duty Paid (DDP): As your order volume increases, consider using DDP to streamline the customer experience by paying duties, taxes, and fees on their behalf. This is how campaigns can have “EU-friendly” or “Australia-friendly” shipping while having just one warehouse in the US.
Work with one or more fulfillment centers outside of your country: For example, if you’re shipping a significant volume of orders to EU customers, partnering with an EU-based fulfillment center can lower shipping costs and improve delivery times. The one catch: if you have multiple fulfillment centers, you need a freight shipment booked to go to each one.
Step 7: Prep For Returns & Complaints
Handling returns and addressing backer complaints are essential aspects of managing a successful Kickstarter campaign. Make a clear plan for managing these situations so you can help maintain positive relationships with your backers, protect your reputation, and demonstrate your commitment to delivering a high-quality product.
No matter how well you handle fulfillment, 1-3% of packages will break in the mail. So establish a clear and concise return policy. Outline the acceptable reasons for returns, such as damaged or defective items, and the time frame within which backers can initiate a return. Communicate this policy transparently on your campaign page and in correspondence with your backers.
Next, create a system for processing returns efficiently. This may involve coordinating with your fulfillment center, setting up a separate storage area for returned items, and keeping track of refunds or replacements. Ensure you have adequate stock to cover replacements and allocate resources to manage returns, minimizing delays and inconvenience for your backers.
When it comes to backer complaints, responsiveness, and empathy are key. Set up dedicated channels for backers to voice their concerns, such as email or social media, and assign a team member to monitor and address these communications. Acknowledge complaints promptly, investigate the issue, and provide a timely resolution. Be transparent about any challenges or delays you may encounter, and keep your backers updated on the steps you’re taking to resolve their concerns.
By having a well-defined plan for handling returns and backer complaints, you can demonstrate your commitment to customer satisfaction and uphold your Kickstarter campaign’s integrity.
Final Thoughts
Congratulations on making it to the end of this video on preparing your supply chain for your Kickstarter campaign! By accurately planning for demand, tracking inventory, securing raw materials and manufacturers, arranging freight transportation, setting up fulfillment centers, and preparing for international shipping, returns, and backer complaints, you’ve laid the groundwork for a successful campaign.
Remember that proactive planning, clear communication, and efficient organization are key to managing a smooth Kickstarter supply chain. By addressing potential challenges head-on and staying adaptable, you’ll be well-equipped to navigate the complexities of your Kickstarter campaign and deliver a high-quality product to your backers.
We hope this video has provided you with the information you need to take the first steps in preparing your supply chain for Kickstarter. If you found this video helpful, please give it a thumbs up and subscribe to our channel for more informative content on Kickstarter campaigns and supply chain management. And slap some postage on that bell so we can express ship new videos to you as soon as they leave the warehouse.
If you need help shipping your Kickstarter orders, go to fulfillrite.com and request a quote. We’ve shipped thousands of Kickstarter campaigns, and we’d be happy to help you ship yours too! The quote doesn’t cost a thing, so if nothing else, you get some good information about pricing. Link in the description.
And last but not least, if you have any questions, leave a comment below. I will personally answer as many as I can.
Good luck with your next Kickstarter. We’re rooting for you!
You’ve done everything by the book. Your Kickstarter campaign is almost ready to launch.
You made a great product. Built an audience. Set up a campaign page.
But how do you ship it?
We put this checklist together to help you get started. It's free.
