Kickstarter and Fulfillment
Kickstarter is one of the most effective methods of raising capital for new ventures that might otherwise not be funded due to their speculative nature, or potentially due to the fact that investment firms will generally only fund a full company and not just a product. While many companies have only one or two products that are manufactured or marketed, it is quite difficult to secure actual investment in them due to the fact that the firms which provide capital are generally looking to not only make their money back, but to secure an interest in an ongoing venture that they feel will generate money which will pay them a dividend. A single product company will generally show sales which will be large for a short period of time then level off or stop all together, which will usually make investment firms pass on the injection of cash. Kickstarter works by allowing people to essentially sell products before they are manufactured, based upon the innovative ideas that are presented in the speculative product designs, or the necessity that the public sees in the ownership of something that has never been manufactured. The public buys the product on the speculation that it will be produced, and is given a guarantee of a return by receiving the product once the manufacturing happens. This may or may not get the person an ongoing interest in the company, and usually represents a small investment that will secure a product at a deep discounted price. If the goal of the campaign is not reached, all investors receive their money back.
Due to the fact that Kickstarter basically funds the ability to produce a product but not necessarily to keep a company going, the ongoing sales are the responsibility of the newly formed structure, and ongoing fulfillment services are generally only a partial consideration, it considered at all. Many people who find their Kickstarter campaign successful figure that they will be fulfilling orders from their home or a small office, packing the boxes of orders and delivering them to a shipment company themselves. This is an issue on campaigns where they find large scale successes and product fulfillment services are larger than can be handled by a single person or small team. The alternatives to a fulfillment service would be warehousing on your own and the hiring of employees with which to perform the actual fulfillment services. This may be out of the scope of abilities for many startup companies, and the ongoing operations are not stable enough or predictable enough to hire employees and commit to warehouse spaces.
A specialized Kickstarter fulfillment company can take care of the responsibilities of warehousing your inventory as well as performing the actual duties of fulfillment using our employees. This provides you to not have the commitment necessary that cannot be predicted, and allow for you to plan for the sales of your single product ongoing over time, without the necessity of product line expansion if it is not desired in the future.