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How Do Crowdfunding Fulfillment Services Work?

You came up with a great idea, and a crowdfunding campaign has helped you successfully raise the money needed to start bringing your idea to life. That’s great news! But now that you are moving on to the next step of the crowdfunding process, you likely have rewards that need to be sent out to your donors.

During the crowdfunding process, many campaign creators offer their backers a reward in exchange for their monetary support. These rewards can range in size and value, being as small as a sticker or tshirt, or as large as a prototype. In some campaigns there are multiple products offered as rewards, typically based on the amount a donor has given.

With various types of products needing to be shipped out to a long list of donors, fulfilling these orders is often the last thing that someone wants to deal with as they work on building their prototype and business. That’s why many individuals, businesses and nonprofits turn to a crowdfunding fulfillment service.

How does a crowdfunding fulfillment service work exactly?

When you outsource to a crowdfunding fulfillment service, you simply send them your inventory of backer rewards, and let them take care of the rest. Your 3PL services company will manage the storing, picking, packing, kitting, and shipping of rewards, ensuring that they reach your campaign’s backers quickly and efficiently. A leading crowdfunding fulfillment service like Global Response 3PL uses the most cutting-edge technology to provide you with total transparency, and the ability to track your products and deliveries in real-time.

Here, we will break down the steps to explain exactly how a crowdfunding service works:

  1. An entrepreneur or business develops an innovative new product, service or idea.
  2. A crowdfunding campaign is launched on a site like Kickstarter or IndieGogo to raise the capital needed to bring the idea to life.
  3. Money is raised, and now rewards must be sent to the individuals who backed the campaign.
  4. The campaign creator partners with a crowdfunding fulfillment service, and ships its inventory of backer rewards to them.
  5. Once received, the fulfillment services partner will sort and store the rewards in their warehouse.
  6. Rewards will be picked, packed, kitted (if necessary), and sent out to the campaign backers.
  7. Campaign supporters receive their reward and are excited!

What do crowdfunding fulfillment services offer?

Crowdfunding fulfillment services are a popular choice among entrepreneurs and businesses for a variety of reasons. In addition to clearing your plate to give your more time to work on building your prototype and business, here are some of the other ways that a crowdfunding fulfillment service can offer value:

  • Faster shipping- two-day and next-day air shipping options are available
  • Lower shipping costs as a result of shorter shipping distances, relationships with shipping carriers, and knowing how to score discounts
  • No need to lease or purchase warehouse space and equipment
  • A better overall experience for your supporters, making them more likely to back your future crowdfunding projects.
  • Less money wasted on the mistakes that can come with self-fulfillment
  • Less headaches
April 15, 2020
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