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When starting a campaign on the Kickstarter crowdfunding platform, creators often ignore the shipping and reward fulfillment costs. A recent study showed that 65% of backers agree that they got their products on time, but 35% of them said that their rewards were not delivered on time. That’s why planning for shipping backer rewards should be included early in the product design and development stage. Otherwise, you could lose most of the funds on shipping that you raised through a Kickstarter project. At Premier Fulfillment, a leading provider of Kickstarter shipping fulfillment services in Dallas, we have prepared this guide to help you determine the shipping and fulfillment costs so that you can price your rewards right.
1. Shipping Destination
First, know where you want to ship your products to. Determine where your backers are mostly located. If most of your backers are located in the United States, then your shipping costs will vary from the international ones. Shipping will be costlier for you if you have thousands of potential backers across the world.
2. Packaging Weight and Dimensions
Knowing the exact shipment dimensions is essential for choosing the right carrier. Every carrier has weight and size limits for each package that you want to deliver. If a package has a larger weight-to-size ratio, then it requires special pricing. This might increase your total reward tier cost. The best option to determine the exact weight and dimensions of your packaging is to create a sample and ship it through a carrier to the location where most of your supporters are located. This will help you figure out packaging dimensions. Try to keep the package weight as low as possible.
3. Carrier Rates Vary
For instance, UPS calculates shipping costs for packages based on the Dimensional Weight Divisor and mail class. So the lowest cost for a UPS Ground package for a 1lb. shipment will be $11.84. USPS® Rates are determined based on package weight, mail class, and shape. USPS Retail Ground Post Office Rate for 1 lb. is $7.35 and up, if it is being shipped to zones 1&2. For 1lb. package, FedEx rates range from $5.49 for cities located within 150 miles to $6.69 for cities located within 1801 miles or more.
4. Expected Volume of the Shipment
Do you know? Volume shipments are generally less expensive than shipping just a few packages. If you have a lot of backers from the US and internationally, it makes sense to work with a provider of Kickstarter shipping fulfillment in Dallas or in your area as you will get discounts and subsidies. This would save you hundreds of dollars on shipping costs.
When starting a campaign on the Kickstarter crowdfunding platform, creators often ignore the shipping and reward fulfillment costs. A recent study showed that 65% of backers agree that they got their products on time, but 35% of them said that their rewards were not delivered on time. That’s why planning for shipping backer rewards should be included early in the product design and development stage. Otherwise, you could lose most of the funds on shipping that you raised through a Kickstarter project. At Premier Fulfillment, a leading provider of Kickstarter shipping fulfillment services in Dallas, we have prepared this guide to help you determine the shipping and fulfillment costs so that you can price your rewards right.
1. Shipping Destination
First, know where you want to ship your products to. Determine where your backers are mostly located. If most of your backers are located in the United States, then your shipping costs will vary from the international ones. Shipping will be costlier for you if you have thousands of potential backers across the world.
2. Packaging Weight and Dimensions
Knowing the exact shipment dimensions is essential for choosing the right carrier. Every carrier has weight and size limits for each package that you want to deliver. If a package has a larger weight-to-size ratio, then it requires special pricing. This might increase your total reward tier cost. The best option to determine the exact weight and dimensions of your packaging is to create a sample and ship it through a carrier to the location where most of your supporters are located. This will help you figure out packaging dimensions. Try to keep the package weight as low as possible.
3. Carrier Rates Vary
For instance, UPS calculates shipping costs for packages based on the Dimensional Weight Divisor and mail class. So the lowest cost for a UPS Ground package for a 1lb. shipment will be $11.84. USPS® Rates are determined based on package weight, mail class, and shape. USPS Retail Ground Post Office Rate for 1 lb. is $7.35 and up, if it is being shipped to zones 1&2. For 1lb. package, FedEx rates range from $5.49 for cities located within 150 miles to $6.69 for cities located within 1801 miles or more.
4. Expected Volume of the Shipment
Do you know? Volume shipments are generally less expensive than shipping just a few packages. If you have a lot of backers from the US and internationally, it makes sense to work with a provider of Kickstarter shipping fulfillment in Dallas or in your area as you will get discounts and subsidies. This would save you hundreds of dollars on shipping costs.
Domestic Shipping and International Shipping
If you are shipping your products to backers in the U.S., it is a common strategy to go for free shipping option. To account for free shipping, you have two options – price it in or bear the cost.
Price the shipping into the pledge price. If the average shipping cost to ship a bottle is $5 and your actual manufacturing cost is $25, then pledge it for $30. Tell backers that you are charging $0 for shipping and $30 for a bottle. If you have high volumes of shipments, then your profit margin will allow you to bear the shipping charges. You will also get subsidies and discounts for volume shipments, so it is a win-win situation for you. For international shipping, you can charge your supporters the shipping cost as they know international deliveries do cost a lot.
Order fulfillment is one of the biggest challenges faced by Kickstarter creators. Shipping costs can change your profit margin and could turn a great product into a failed Kickstarter project. So once you have a good idea about the average shipping costs per reward, we recommend reaching out to a Kickstarter fulfillment provider to know the exact shipping quote. Partnering with Premier Fulfillment will save you from a number of hassles as well as money. As a well-known Kickstarter shipping fulfillment provider in Dallas, we work with you to plan a sound shipping strategy to print, package, and deliver your products to end customers. From electronic gadgets to card games, we ship it all.
Contact us to request a free quote.
in Dallas or in your area as you will get discounts and subsidies. This would save you hundreds of dollars on shipping costs.
Domestic Shipping and International Shipping
If you are shipping your products to backers in the U.S., it is a common strategy to go for free shipping option. To account for free shipping, you have two options – price it in or bear the cost.
Price the shipping into the pledge price. If the average shipping cost to ship a bottle is $5 and your actual manufacturing cost is $25, then pledge it for $30. Tell backers that you are charging $0 for shipping and $30 for a bottle. If you have high volumes of shipments, then your profit margin will allow you to bear the shipping charges. You will also get subsidies and discounts for volume shipments, so it is a win-win situation for you. For international shipping, you can charge your supporters the shipping cost as they know international deliveries do cost a lot.
Order fulfillment is one of the biggest challenges faced by Kickstarter creators. Shipping costs can change your profit margin and could turn a great product into a failed Kickstarter project. So once you have a good idea about the average shipping costs per reward, we recommend reaching out to a Kickstarter fulfillment provider to know the exact shipping quote. Partnering with Premier Fulfillment will save you from a number of hassles as well as money. As a well-known Kickstarter shipping fulfillment provider in Dallas, we work with you to plan a sound shipping strategy to print, package, and deliver your products to end customers. From electronic gadgets to card games, we ship it all.
Contact us to request a free quote.