Crowdfunding fulfillment occurs when a project is finished and ready for its big debut. It includes manufacturing, freight, and sending rewards to backers. While the fulfillment process begins at the end of a successful Kickstarter campaign, it's better to start planning much sooner since it requires careful budgeting and solid communication. Not considering how to handle shipping before launching the campaign is one of the most frequent mistakes Kickstarter creators make.

Keep in mind that you need to devote a lot of time to organizing and planning your crowdfunding fulfillment and supply chain if you want to ensure an excellent experience for your backers and deliver all of your products on time. It's the only tried-and-true way to build long-term trust with your supporters.

This article will discuss all the details regarding Kickstarter fulfillment fundamentals. Follow through to have every question you might have about Kickstarter fulfillment answered.

What is Kickstarter Fulfillment and Why Do You Need It?

It's time to rejoice once you've met your Kickstarter campaign goal. Nonetheless, Rome wasn't built in a day. The project is still far from over — it's time to start shipping out the rewards.

Completing the project and sending the Kickstarter rewards to backers is known as fulfillment. Although it can be a monumental task, the creators must do their best to deliver the rewards as promised.

An independent analysis of nearly 500,000 Kickstarter backers conducted by the University of Pennsylvania shows that the vast majority of those who backed a failed project will back another Kickstarter project in the future. However, 81% of backers of failed projects said they wouldn't back another project by the same creator whose project failed. Hence, the project was a success if the backers received their rewards. It's important to note that the fundamental question of the study was whether the creators delivered the promised rewards, not whether the creative project saw the light of day.

Besides not finding backers for future projects, creators may also face legal action from backers if they fail to:

• Deliver completed rewards as promised
• Provide refunds where possible
• Give a clear, honest explanation of why rewards will not be fulfilled

How Does Kickstarter Fulfillment Work?

Kickstarter fulfillment is a vast process, and every fundraiser does it in their own way. However, there's no reason to reinvent the wheel each time. There are some standard rules to follow.

Everything starts with research. When deciding on your project and how you will realize it, think about your delivery strategy — don't leave it for later. The pre-campaign phase is the ideal time to figure out the fulfillment plan. Consider all the small details, then get in touch with your suppliers to determine the cost of producing the rewards, the turnaround time, and the shipping charges. Remember that it's always better to overestimate the weight and size of each object to have wiggle room in case there are some changes during the production phase.

Fulfillment is what determines the long-term success of all campaigns. So always plan your project around the fulfillment process, spend time on research, and decide carefully on your rewards. And eventually, you have to decide whether to deliver your rewards yourself or outsource this step to a service provider.

Choosing the Right Kickstarter Fulfillment For Your Project

Fulfillment is an essential aspect of the overall campaign, and it isn't easy to do it right. According to the CNN Money examination of Kickstarter's top most-funded projects, 84% missed their target delivery dates. So consider all the aspects before defining your crowdfunding fulfillment strategy. But how do you decide whether it's better to outsource to third-party fulfillment services or do it yourself?

In-house Kickstarter Fulfillment vs. 3rd Party Logistics

In-house fulfillment means being concerned with storage area, storage location, delivery method, customs declaration materials, import and export documentation, and so forth. Besides, if you are going to pack yourself, you will need to consider the packing material and quantity, as well as barcoding and labeling. Build a clear roadmap of all the steps. It's possible to do it all by yourself, despite how daunting it may seem, and you can use some dedicated tools and software. Remember to give yourself the space, time, and means to succeed. Also, consider flat-rate formulas when doing everything by hand — it will allow you to avoid surprises in your shipping costs.

Third-party logistics (3PL) is worth considering if you want to avoid dealing with the hassles of the fulfillment process, or if you're shipping more than 500 packages. More and more creators are contracting out this project component to companies that handle the entire process on your behalf. They are your fulfillment partner — they put forth all the efforts to ensure the rewards are sent out on time.

Nevertheless, choosing the right partner is not something to do lightly. The cost of fulfillment is high, frequently exceeding the cost of production. When looking for the right third-party logistics partner, consider:

• Whether they can reach backers in remote and unpopular countries
• The available shipping options
• Their ability to handle many orders promptly
• Their order management system
• Their after-sales services

Benefits of Using a Professional Fulfillment Service

The advantages of using a professional fulfillment service go beyond simply not having to do it yourself. Fulfillment partners lift the burden off Kickstarter creators in terms of storage, packaging, and delivery of goods, giving them more time to focus on managing their projects. Here are those benefits:

• Reduce the costs: Fulfillment companies have warehouses to store your rewards, employees who will prepare your items for shipping, and delivery services ensuring your backers receive their rewards. Furthermore, service providers may have warehouses all over the country and even overseas, balancing your inventory across their network to keep rewards closer to your backers and reduce shipping costs.
• Increase shipping speeds and extend your reach: Many fulfillment service providers have the network to ship and deliver orders to any part of the world. Having multiple warehouse locations also results in faster delivery.
• You can focus on your project: The hours spent organizing the fulfillment process can be reinvested into your project, letting your fulfillment partner handle the heavy lifting.
• Satisfied backers: Professional fulfillment service providers will get the job done for you, ensuring rewards are delivered on time.

Kickstarter Fulfillment Service Providers

If you decide to outsource your crowdfunding fulfillment to a third-party logistics company, take your time and do the research. Here is a list of some of the best Kickstarter fulfillment service providers.

ShipBob

ShipBob specializes in picking, storing, packing, and shipping crowdfunding rewards of all shapes and sizes. Their goal is to assist crowdfunding campaigns in offering high-quality service at an affordable price. They provide warehouses in spread-out, key regions, allowing you to ship rewards closer to your backers — the less distance they travel, the less money you spend, and the faster they arrive. Once the rewards leave the warehouses, you can track them from one central dashboard updated in real-time. Bulk shipping discounts are also available.

Send From China (SFC)

If you have Kickstarter rewards manufactured in China, SFC might be the fulfillment service provider you're looking for. They offer global shipping, accessible storage for 30 days, and strengthened or custom packing. SFC provides a custom platform to manage fulfillment where you can store and manage your inventory and monitor real-time tracking. They'll also send emails with tracking information to your backers and will pick up your rewards from the factory and pack them with bubble wrap and corner protectors.

ShipMonk

ShipMonk is another timely and cost-effective Kickstarter fulfillment service provider. Their proprietary inventory management software gives you complete control of the fulfillment process, including shipping, tracking, notifications, missing inventory, address verification, various shipping options, batching, and more. Their software integrates automatically with your crowdfunding site, making setup simple and quick. You can choose from the slowest and cheapest to the most reliable and fastest carriers available, giving you full control over shipping costs.

Things to Keep in Mind When Preparing for the Kickstarter Fulfillment Phase

The satisfaction of your backers heavily depends on the fulfillment phase. So it's essential to have a complete and thorough plan to avoid unexpected events. Here are the key aspects to consider when drafting your Kickstarter fulfillment plan:

• Decide on your rewards. Try to avoid complexity. It's always better to focus on the core of your project and factor in the shipping costs of each reward.
• Think of the weight, dimension, and packaging. Some shipping methods have strict regulations on weight and size. If your product is small enough, a standard envelope can save money. Use bubble wrap or appropriate packaging for fragile items.
• Draw up a list of shipping countries from the outset. International postage might be complicated for beginners, so it might be better to stick to your own country or pick one or two others based on your backers' profiles. Consider digital rewards as an excellent way to attract backers from around the world.
• Prepare for the best, not just the worst. The CNN Money examination found that sometimes ambitious but inexperienced creators launch a project expecting only a few hundred backers, but end up raising vastly more money than anticipated — affecting the original production plans and timeline.

Common Problems With Kickstarter Fulfillment and How to Solve Them

While crowdfunding is a risk-free way to raise capital, it still comes with many responsibilities. Be ready for fulfillment problems to arise, and know that handling issues the wrong way will harm your reputation as a creator.

Dealing With Backers Who Have Questions or Problems

Keep your backers as informed and up-to-date as possible, especially during the shipping phase. If you encounter unexpected manufacturing delays, don't delete negative comments or leave them unanswered. Respond quickly, show you understand their frustration, apologize if needed, and keep a polite attitude no matter what. If someone keeps spamming your comments with inappropriate content, you can permanently delete, hide, or report them to Kickstarter.

Tracking Down Backers Who Haven't Claimed Their Rewards

There will always be some backers who never return to claim their rewards. Mention on your Kickstarter that pledges will be fulfilled only if backers fill in surveys before the deadline. Also, remind backers to check their account settings to confirm the email used for registration is the one they use daily.

Handling Customs Forms and Taxes

You have three options depending on the size of your campaign:

1. Do nothing — international backers are generally used to paying customs and taxes themselves.
2. Split your inventory between countries and manage multiple warehouses, so backers receive rewards quickly without paying customs.
3. Store everything in a single warehouse and pay customs and taxes on behalf of your backers — often cheaper than splitting the freight shipment.

Preparing and Shipping Out International Rewards

Start by estimating the size, dimensions, and weight of your rewards, including packaging materials. Seek shipping quotes from several providers, research international shipping rates, and decide who will cover customs fees. Stay flexible and leave room for the unexpected.

Troubleshooting Any Issues That May Arise During Fulfillment

Most backers support projects because they want to see something come to pass, and they typically understand creators who are truthful and open. In the event of issues, publish an update outlining the circumstances and telling the whole story. If problems are severe enough that you can't fulfill your project, consider providing refunds and detailing how funds were used.

To run a successful Kickstarter campaign, you must meet your backers' needs and expectations. When it comes to crowdfunding fulfillment, those expectations are high. Delayed, missing, or incorrect shipments are all surefire ways to alienate your backers — which is why it's crucial to get Kickstarter fulfillment right.

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