Kickstarter Fulfillment Services - What You Should Know

Key Concepts

• Fulfillment: The end-to-end process of receiving, packing, and shipping rewards to backers.
• 3PL (Third-Party Logistics): A service provider that handles warehousing, picking, packing, and shipping on behalf of the creator.
• Pledge Manager: Software (e.g., BackerKit, CrowdOx) used post-campaign to collect shipping addresses, manage add-ons, and calculate final shipping/tax costs.
• Landed Cost: The total price of a product once it has arrived at the buyer's door, including manufacturing, shipping, duties, and taxes.
• Pick and Pack Fee: The labor cost charged by fulfillment centers to retrieve items from inventory and prepare them for shipment.
• Weighted Average Shipping Cost: A calculation used to determine a flat shipping rate by balancing domestic and international shipping expenses.

1. The Mindset Shift: Fulfillment as Brand Equity

Salvador Briggman emphasizes that fulfillment is not a back-end administrative task but the final, most memorable chapter of the customer experience. Poor delivery (late, damaged, or missing items) destroys brand loyalty, while professional, timely delivery builds the foundation for future successful campaigns.

2. Estimating Shipping Costs: A Step-by-Step Framework

Creators often lose money by underestimating shipping. Briggman outlines a rigorous process to avoid this:

• Define the Package: Use physical prototypes—not CAD files—to measure weight and dimensions. Add a 10% buffer to account for packaging materials and weight variances.
• Use Real Carrier Data: Use tools like Pirate Ship, ShipStation, or onlineshippingcalculator.com to get quotes from major carriers (USPS, UPS, FedEx, DHL) for different global regions (e.g., domestic, Europe, Australia).
• Calculate Weighted Averages: Determine the ratio of domestic vs. international backers (a common starting estimate is 70/30). Calculate the average cost per backer to set a sustainable shipping fee.
• Rule of Thumb: Shipping costs should ideally represent approximately 15% of your total funding goal for physical products.

3. Fulfillment Strategy: DIY vs. 3PL

• DIY (Do-It-Yourself):
  • Best for: Small campaigns (under 300–500 backers) with simple, lightweight products (e.g., enamel pins, small books).
  • Pros: Lower upfront costs.
  • Cons: High labor intensity; risk of burnout and storage issues.
• 3PL (Third-Party Logistics):
  • Best for: Large campaigns (hundreds/thousands of backers), heavy/complex items, or creators looking to scale a long-term brand.
  • Pros: Professional handling, bulk shipping discounts, and regional hubs (US, EU, Asia) to reduce transit times.
  • Cons: Monthly storage fees and per-order pick-and-pack fees ($2–$4 per order).

4. Managing Backer Expectations and Communication

Communication is the primary tool for preventing "backer riots."

• The Framework:
  • Post-Funding: Announce the manufacturing and shipping timeline.
  • During Production: Provide updates every 2–4 weeks with photos/videos of the process.
  • During Shipping: Notify backers when specific regions begin receiving their packages.
• Transparency: If delays occur, explain the problem and provide a new estimate. Backers are generally forgiving if treated like adults.

5. Addressing Hidden Costs and Risks

• Wrong Addresses: Always collect addresses via a pledge manager shortly before shipping, not months in advance, to account for backer relocation.
• Damaged Goods: Use adequate padding (at least one inch of protection on all sides).
• Taxes and Duties: Be explicit in the campaign about who pays VAT or import duties. Generally, the backer is responsible for these fees.

6. Synthesis: The Fulfillment Checklist

To ensure a successful delivery, follow this chronological flow:

1. Pre-Launch: Weigh prototypes, get carrier quotes, and decide on DIY vs. 3PL.
2. Campaign: Clearly state shipping costs and tax policies.
3. Post-Funding: Confirm manufacturing schedules and secure a fulfillment partner.
4. Pre-Shipping: Launch a pledge manager to lock in addresses and final shipping rates.
5. Fulfillment: Roll out shipping by region and provide tracking numbers.
6. Post-Fulfillment: Gather testimonials and social proof for future marketing.

Notable Quote: "Fulfillment is the last chapter of your story and it's the chapter that people remember the most. It's what sets up future successful Kickstarter campaigns and really builds your brand equity." — Salvador Briggman