Small-scale projects: Self-fulfillment works for teams with limited orders and in-house storage capacity.
Large-scale projects: Partner with a 3PL provider (e.g., Dream Fulfillment Centre, DFC) located near your manufacturer. Benefits include:
Warehousing, sorting, and international shipping handled seamlessly.
Labor and time cost savings.
Pro Tip: Negotiate logistics agreements early to lock in discounted rates.
Regional hubs: Place inventory in overseas warehouses (e.g., U.S., EU, Asia) based on backer distribution to reduce delivery times and avoid cross-border tariffs.
DFC’s Global Network: Leverage DFC’s strategically located warehouses for tailored solutions.
Example: If >50% of backers are in the U.S., bulk-ship products to DFC’s U.S. warehouse for local distribution. Use a centralized EU warehouse (e.g., Germany) to cover all EU countries.
Shipping Cost Factors
• Measure finalized product + packaging: DFC provides specialized rates for Kickstarter/Indiegogo campaigns, including air and sea freight options.
• Hidden costs: Tariffs, VAT, remote-area surcharges.
DAP vs. DDP
• DAP (Delivered At Place): Backers pay duties upon delivery. Suitable for low-value items (<$20) but risks cart abandonment.
• DDP (Delivered Duty Paid): Taxes prepaid. Ideal for premium items (>$100) to ensure seamless delivery.
• Recommendation: Prioritize DDP to avoid customs disputes and negative reviews. DFC’s solutions focus on DDP, including IOSS VAT handling for EU backers.
Tactical Approaches
• Global free shipping for small items: Bake postal costs (
10/item) into product pricing.
• Targeted free shipping: Offer free shipping to key regions (e.g., U.S./EU), charge partial fees elsewhere (e.g., $15).
Marketing Messaging
Highlight “Free Shipping to US/EU” on campaign pages to attract target backers.
Promised delivery date = Production lead time + shipping duration + 15-day buffer (for customs delays).
Use tools like ShipStation to batch-generate tracking numbers and send automated delivery updates.
Reserve 10% of budget for unexpected cost spikes (e.g., freight rate hikes, tariff changes).
Key Reminders:
Clearly state shipping terms on campaign pages (e.g., “DDP taxes included,” “Estimated delivery: X month”).
Partner with DFC to master global fulfillment logic, mitigate risks, and ensure rewards reach backers safely. Build a foundation for future campaign success!
Need a stress-free crowdfunding fulfillment partner?
Contact Dream Fulfillment Centre (DFC) today for end-to-end logistics solutions tailored to your campaign!