Fulfilling Kickstarter: Shipping Your Rewards A Guide to Shipping Your Kickstarter Products to Domestic and International Backers

1. Fulfilling Kickstarter:
Shipping Your Rewards
A Guide to Shipping Your Kickstarter Products to
Domestic and International Backers
by Nate Gilmore
Vice President Shipwire, Inc.

2. Table of Contents
Getting Started with Kickstarter Fulfillment 3
Why Read This 3
What You Need to Know 4
Getting Products to Warehouses 8
Shipping Kickstarter Orders 11
About Shipwire 12
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3. Getting Started with
Kickstarter Fufillment
Congratulations on your Kickstarter success!
You have read the basics of shipping on “Kickstarter School”. Now, the
Shipwire team is ready to help you put it all into action. Shipwire has
shipped many Kickstarter rewards and helped the project owners turn their
Kickstarter success into an ongoing business.
We welcome the opportunity to help you. If you need help, please
contact us.
You can contact Shipwire here:
shipwire.com/contact
Below are some best practices to increase your Shipping IQ and
successfully deliver on your reward promises while positioning your
product to become a global hit.
Why Read This
Shipwire is one of the platforms that has helped some of the most
successful Kickstarter projects deliver. Our team has talked to hundreds
of Kickstarter project owners and helped them deliver many thousands of
orders. This is a compilation of our notes, tips and best practices.
We are asked many questions time and time again, so this guide is in a
question and answer format, and is separated by category.
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4. What You Need to Know
When should a Kickstarter project start thinking about fulfillment?
It doesn’t hurt to identify a shipping partner early, but don’t overthink it
too soon. Make sure the project is successful and your product packaging is
optimized first. Once your project is successfully funded, getting set up with
Shipwire and ready to receive your finished project can be done quickly.
What fulfillment features do I need to successfully ship my project?
Shipwire was custom-built to meet the needs of products like those on
Kickstarter. The most important features you need are:
• Global warehouse network, strategically located near the largest
markets
• On-demand pricing, which scales with you as you grow
• On-demand processing, so that you are able to ship without hassles
when you’re just starting out and when you’re experience explosive
growth
• Automated and smart fulfillment, which will do the hard work for you,
including choosing the best location to send inventory out of, picking the
right packaging, and optimizing shipping to save you money
When should you start thinking about packaging?
Early. As early as possible. Intelligent packaging can make or break
the profitability of a product. Our white paper has an entire section on
designing packaging for maximum shippability.
How do I check shipping rates?
With Shipwire, it takes about 5 minutes to get incredibly accurate rate
quotes globally. The easiest way is to get a Shipwire free trial and create a
product with your desired weight and dimensions. Once you have entered
the information you can get some trial shipping quotes from any global
fulfillment facility to any address in the world.
Any tips for international shipping?
Kickstarter is a global platform. You likely will have some international
shipments in your rewards tiers.
Shipwire warehouses can ship domestic and international orders from any
facility. When you set up your account, product, and shipping options in
Shipwire, you will go through a process that will optimize your international
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5. shipping. Shipwire helps you with every step involved, and our global network
of fulfillment warehouses means you have the option of having your products
already located near your international customers and can avoid having to
deal with those matters
One important piece of data you can determine early in the process will be your
product’s Harmonized Tariff System (HTS) Code. Harmonized Tariff System
codes are also required by customs and border patrol to understand what is in
the shipment and what the tax rate should be.
What do I need to know about brokerage fees?
Remember that some carriers (like UPS) will charge brokerage fees on cross-border
shipments and these fees are part of CDT (Customs Duties and Taxes)
that are not included in shipping rate quotes. We recommend national
carriers for most common cross border shipping scenarios.
What about taxes & duties?
The important thing to remember is that international shipments mean having
to deal with customs and duties. In a Shipwire order, Customs, Duties, and
Taxes (CDT) are not included, so make sure to tell your buyers they will have to
pay taxes if they are in a country that charges VAT (Value Added Tax).
Shipwire makes it easy to ensure that each order is only being charged for the
VAT that corresponds to that specific order’s retail value. This will be important
if you have backers who have paid different rates for their pre-orders.
How do I describe my product to a fulfillment company?
With all new Kickstarter projects we typically recommend understanding:
• Product catalog definitions
• Master cartons, case packs and eaches
• “Pick & Pack” compared to “Lick & Stick”
• Dimensional weight
Knowing just these few things will increase your Shipping IQ and make
setting up your fulfillment services much simpler. Knowing a little about
bulk shipping and master cartons can save you a fortune on shipping.
Find resources on all these topics here:
shipwire.com/kickstarter-resources
$
A Harmonized Tarriff
System (HTS) code
is a 6-digit code
that helps identify
the type of product
you are shipping
internationally
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6. Any tips on product catalog setup?
Candidly, this is very similar to the points above. It’s so important we want
to say it a different way. We want to help you understand how to define
your products before the products arrive.
First, make sure you understand the difference between Pick & Pack and
Lick & Stick. Shipwire Lick & Stick products are sent as pre-sealed boxes,
and as orders enter our system, we simply print, peel off, and attach (“lick
‘n stick”) a shipping label on these products, and ship them out on your
behalf. Pick & Pack products are not in shipping-ready packaging. They
may still be in retail packaging, but as orders for these products enter our
system, we will pick and pack these into shipping-ready boxes, add fill
material, and ship them out.
Second, make sure the product name you enter into Shipwire matches
the exact name that is labeled on your product packaging. If you already
created products in Shipwire and they are named differently from those you
use in your e-commerce platform, don’t worry; we have a solution for this.
Lastly, ensure all product details are accurate including description,
dimensions, weight, cost and retail values, and HTS code.
Why should I learn about wholesale shipping?
Planning to ship wholesale can save you a small fortune if you plan early. We
have noticed a lot of successful Kickstarter projects will be approached by
big box retailers, wholesalers, and flash sales sites. These buyers often want
wholesale inventory shipments, so it makes sense to plan for success.
Even if you don’t ship to retailers, you can cut your fulfillment costs and
expand internationally much faster if you leverage the information on this
page. Since we know this is a path you eventually may go down, we want to
ensure your inventory is set up properly for shipping at all types of levels.
Fulfillment companies charge you when they move a unit. The unit can
either be an individual product or a box of 50 of them, and you can save a
lot of money by making it so you are only charge for a single unit when you
ship many of them.
Read about shipping in bulk:
shipwire.com/kickstarter-resources
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7. Here are some other examples of when wholesale/bulk shipping comes in
handy, even when you are not selling wholesale:
• Eliminating deposits
• Moving inventory between warehouses
• Shipping product to yourself at a tradeshow
• Returning a batch of products with a manufacturing defect
• Liquidating inventory
Can I change inventory from wholesale to retail automatically?
Yes, automatic lot breaks accomplish this. You should keep all your
inventory as wholesale and let Shipwire decide when to “break bulk” to ship
an individual item to a customer.
We use the term “Bulk Shipping Optimization” for circumstances when
Shipwire receives an order that can be more efficiently shipped as a case.
Assuming available inventory, Shipwire will use these to minimize the
number of items being shipped. Shipwire will charge you only for the
number of items processed in the optimized order.
Ask your Shipwire representative about this feature, currently available at our
fulfillment warehouses in Los Angeles, Philadelphia, UK, and Hong Kong.
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8. Getting Products to Warehouses
Which warehouse is best?
In our experience the bulk of Kickstarter orders are domestic USA. For many
Kickstarters, the optimal warehouse location will be Pennsylvania, serving
the New York tristate area. The choice of how many domestic warehouses
to use will usually be dictated by your product’s weight, and your order
volume. All Shipwire warehouses can also ship international orders as well.
I’m ready to schedule inventory. What is an ASN?
An ASN is an Advanced Shipping Notice.
ASNs tell Shipwire what you are sending us, in what quantities, and when it
will arrive.
You will want to create your ASN as soon as possible, after you have finalized
dimensions and weights, so you can make sure your supplier / manufacturer
places it on the shipment. You can create your ASNs as far in advance as you
would like. The ASN will automatically be canceled 7 days after the expected
arrival date, so just make sure you keep this date updated if required.
Note: This isn’t to torture you. Your ASN arrival dates are used to forecast
loading dock volume and team staffing, and helps us assure that inventory
flows smoothly.
Put your ASN number on containers, pallets and master cartons being
shipped in. If it is landing on our loading docks, you want an ASN number
clearly visible so your product does not get misplaced or not received in a
timely manner.
Example: If you give UPS 15 boxes of inventory that are all going to the
same Shipwire warehouse, put your ASN number on every box in a visible
place, and make sure it will not fall off. Also tell Shipwire what is in the
boxes. This will ensure your inventory is received properly.
Read more about ASNs:
shipwire.com/kickstarter-resources
What should I know before I send in inventory?
After you have a Shipwire account and have set up your products, review
the topics below for you and your suppliers. The vast majority of inventory
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9. and shipping issues have to do with shipments that are considered
Unqualified (shipments that do not follow standard guidelines).
• ASN receiving
• Label specification
• Sending products to Shipwire
• Packaging requirements
• Shipping in bulk
Read about these topics:
shipwire.com/kickstarter-resources
What are common packaging and labeling mistakes I should avoid?
• Always avoid mixing products in cartons. Pack same products in the
same cartons.
• When sending in inventory, always send it at the master carton level.
• If you send multiple boxes through the mail to the warehouse, put your
ASN number on every loose carton or box coming into the warehouse.
• The outside of all cartons should be labeled with the quantity (QTY)
of the product inside of it (Example: Qty 50 x SKU RedMShirt).
• If shipment is coming in on a pallet, make sure label is on all 4 sides
of the pallet and the ASN number (ASN) is in the Reference Line (Ref
Line) of the Bill of Lading (BOL).
• If your shipment is > 8 pallets, you must schedule an appointment
at least 2 business days in advance of delivery by calling Shipwire at
(650) 561-4800.
• If your carrier needs specific warehouse contact information, please
let your account representative know, and they can help you with this.
This applies to all Shipwire facilities.
How long does it take to receive inventory?
With a proper ASN number and Qualified inventory, it will be received in
2-5 days. Unqualified shipments will cause delays and can take up to 10
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10. business days to process. Highly Unqualified shipments can take longer or
even be rejected.
Why am I being asked for a deposit?
Shipwire does not charge for inbound receivings. When a new customer
sends in lots of individual items (250-500 units or more) we ask for a
deposit to fund your account up to half the outshipping costs. There are a
few reasons for this:
• We want to ensure that you are sending inventory in bulk to save
money. A master carton and an individual product are both units.
You can send Shipwire inventory in master cartons to avoid deposits.
• A deposit ensures that you have enough money in your account to
cover your Shipwire handling costs. We use deposits to eliminate
surprises and ensure we are setting expectations with you properly.
• Deposits are not fees. They pre-fund your account, and you get to
use the funds against your shipping.
Talk to your Shipwire representative to go over your specific
business requirements.
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11. Shipping Kickstarter Orders
How do I get my orders into Shipwire?
You can upload your entire list of orders via spreadsheet upload to your
Shipwire account, which is accessible online using any standard browser.
We ship orders on a First In, First Out basis, so if you have higher priority
shipments, upload those first.
How do I quickly ship my rewards as backorders?
Your Kickstarter rewards are considered backorders (orders taken that do not
have inventory at the time order was taken). Now that you have inventory
you need to get us the orders and the inventory and we will do the rest.
Some things to consider:
• If you are shipping orders in waves (hundreds/thousands at a time), you
can upload your orders in the order you want them shipped.
• When inventory arrives and there are orders waiting to ship, Shipwire
will automatically assign orders to inventory and ship.
• If you have large waves of backorders (over 20% of your normal daily
volume) and you want Same Day Shipping guarantees to apply, please
talk to your Shipwire representative. With a little notice we can get a lot
accomplished for you.
• After your orders are uploaded, review your account to make sure that
any held orders are cleared. Shipwire may hold orders that have specific
problems with them (e.g. unshippable address, backordered inventory).
Your can easilyfind and correct any held order in your Shipwire account.
• Review all your orders for accuracy ahead of time. Once they drop
to the warehouses, they are going out the door very quickly and you
cannot edit the order once the warehouse is shipping it.
If this is your first time shipping with Shipwire and you are shipping
hundreds/thousands of Kickstarter orders, coordinate with your
representative. They will pave the way for a great operational experience.
The more notice you can give us the better.
Case Study: see how we shipped 7,000 orders for the Glif in 24 hours:
shipwire.com/casestudies
Over 7,000 Glifs
shipped in 24 hours
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12. Why should I not submit orders to the warehouse in real-time?
Shipwire offers many options to control when orders are submitted to the
warehouse. Once orders are “in warehouse”, they are being processed and are
not longer editable.
We recommend that new merchants start with 1 or 2 warehouse order
submissions per day and no drops over the weekend. The reason is that you
want a little time to review your orders as you get started. Also, weekend
orders are often changed or edited by the buyer, so sending them on Monday
is a good idea.
What parcel carrier should I use to ship?
As a default Shipwire will select the lowest-cost, most efficient parcel carrier
based on your shipping preferences. You tell us if you want everything
insured, signed for or not, and we will take care of the rest.
You can also set up Shipwire to use specific carriers.
Additional options that are not generally available in your account such as
USPS first class international (cheap, uninsured, up to 4lbs.). Talk to your
representative if you have any specific needs.
About Shipwire, Inc.
Shipwire provides cloud-based logistics, shipping software and
ecommerce order fulfillment services from warehouses around the world
for companies of all sizes. Shipwire’s industry-leading logistics platform
helps you grow sales, expand into new markets, and delight customers
by eliminating the hassles of shipping and storage. Instantly connect
your online store or marketplace with our warehouses in U.S., Canada,
UK, or Asia, and let Shipwire optimally pick, pack and ship orders to your
customers faster, and for less.
Visit shipwire.com/why-shipwire to learn more about order fulfillment.
Please contact us for more information:
Contact sales through sales@shipwire.com or 1-888-SHIPWIRE
Connect with us on Twitter: @shipwire
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