7 Comments

Summary:

Kickstarter projects are the new normal for a hardware projects, but even though the challenges associated with manufacturing are documented, fulfillment too, can be an issue.

makeymakey
photo: MaKey MaKey

Kickstarter, and services like it, have changed how entrepreneurs fund and market their products, but as many young inventors have found, manufacturing and distribution are still a business governed by old rules. And while the manufacturing woes that can come with a widely successful Kickstarter project have been documented, it’s also worth delving into the trouble of fulfillment and distribution — namely, one you’ve made your widget, how do you get it out to customers?

It’s a topic that came up recently during a conversation with SparkFun, the retailer of DIY electronics kits headquartered in Boulder, Colo. While sitting at a table with Nathan Seidle, the CEO of SparkFun and Pete Dokter, the director of engineering, we discussed the impact of Kickstarter on the firm’s business. In general, Kickstarter is great marketing for the DIY movement that SparkFun is dependent on, and it is happy to supply boards for prototypes.

However, once you start talking about huge production runs of an electronic board for the next big widget, or even worse, fulfilling those orders, Seidle is leery.

He pointed to the MaKey MaKey campaign of 2011 as an example. The MaKey MaKey team, which was building a kit for would-be hardware hackers, worked with SparkFun ahead of the campaign to guarantee the production of the needed boards and for fulfillment. If the MaKey MaKey campaign was successful, SparkFun would manufacture and assemble the product and then ship it out.

What happened next was a nightmare for SparkFun, which to this day is still seeing at least two returns a week from the product. The problem wasn’t a bad product, but bad data. As Seidle puts it, Kickstarter doesn’t have checks in place to ensure people don’t enter the wrong address or make other mistakes when ordering a product.

The result was that about 40 percent of the data Kickstarter sent over on behalf of Makey MaKey needed clarification. That led to SparkFun’s customer service people trying to verify addresses — one example: is there a Houston, South Africa? — and it is still leading to returns. Seidle vowed to avoid that side of the business from this point forward.

Luckily a quick check among the people doing current and former Kickstarter projects shows that there are plenty of companies that will offer fulfillment for Kickstarter orders, and most entrepreneurs plan to use them. But it’s yet another sign of the holes we need to fill if we’re going to make the transition from the more traditional large-scale manufacturing process or the traditional funding models for a crowd sourced future.

It’s also a good idea to double and triple check your address when you enter it into Kickstarter.

Update: Kickstarter’s Dave Ghallagher notes that Kickstarter fixed the bad data problem by implementing an address validation system back in 2012, too late for the MaKey MaKey project, but in place for existing projects.

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  1. David Gallagher Friday, March 22, 2013

    Hi Stacey: Since last July our site has had a much better system in place to handle address entry. Unfortunately it went live just days too late to help SparkFun. Here’s a post about it.

    Would appreciate an update to the piece to reflect this. Thanks!

  2. Hi Stacey, At Grommet, we’ve been active donors on IndieGoGo and Kickstarter for “hardware projects”. (I don’t call them that….they are consumer products.) We have a 90% campaign success rate so we have a very good radar for the best ones. But you are so correct…getting a project funded is just one piece of the puzzle and the operational capabilities (or lack of them) show up immediately after the campaign closes. We’ve gone on to have launched about a dozen crowd-funded products on Grommet (MakeyMakey was one, COOKOO connected watch, SushiQuick for example) and we recommend these young companies consider working with Shipwire for their distribution. It’s a cool Palo Alto company that has networked a bunch of global distribution centers with a modern software layer. Totally unique. They offer enterprise level logistics for the little guy.

    Separately, I think your next post should be about all the businesses forming around the “hardware renaissance”. Every one of them needs enterprise level funding, prototyping, market intel, packaging, scalable manufacturing, market launch skills and activities, retail contract negotiations skill, and logistics. Joe Rizk of IDEO wrote a good post on this topic and there is need for more reporting in this area.

  3. Jarrett Streebin Sunday, March 24, 2013

    You can use EasyPost to generate many pieces of postage at a time, minus the hassels of Endicia or Stamps. This will solve a lot of the problems with fulfillment for successful campaigns.

  4. I’ll second the comment that EasyPost is awesome!

    For people having trouble with fulfillment, hop over to Swish.com — we like doing fulfillment for Kickstarter projects, and we charge less than Amazon (plus we’re super friendly)

  5. Thanks Jules for the comment! Very much appreciated.

    Happy to see the Kickstarter Address Verification system in place.

    We set up a resource page of best practices for Kickstarter projects to help alleviate some of the pains of fulfillment. We are constantly adding to it as we learn by helping the community. http://www.shipwire.com/kickstarter

    Nate
    Shipwire

  6. Jarrett Streebin Wednesday, March 27, 2013

    And in the time it took you to read the first half of that, you could have integrated EasyPost… :)

  7. Just keep it simple with https://teelaunch.com — we print & ship for you, save you time and long lines at the post office. 5-10 day quick turnaround with solid pricing and high quality.

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