Crowdfunding has been around for since the 1850's yet people still have no idea what they are doing when it comes to setting the shipping cost for their product or rewards. Shipping and fulfillment does in fact have a cost that needs to be addressed prior to launching a campaign. By avoiding this from the start you are setting yourself up for failure. I have witnessed million dollar campaigns not account for the shipping of their product which caused them to freak out when they were shown the estimated bill for these costs. You do not want to have fulfillment or shipping cut into the cost of goods and by waiting till it's time to ship your product you are doing just that. Like I said even campaigns that raise millions of dollars still have to leave funds over for shipping and sometimes these bills can come out to be in the hundreds of thousands. This is why you must work with a company that can help you closely estimate your shipping and fulfillment costs. You'll then be able to figure out what you'll need to set aside for shipping and fulfillment. The crowdfunding campaigns that have done this prior to launching have accomplished their goal of getting the product to their customer and avoided losing money. The biggest thing I have seen is the campaigners asking for more money after their campaign is over, which usually doesn't go over well for a campaign that has already raised hundreds of thousands if not millions of dollars. When you add the shipping at the launch of the campaign, even built into the COGS you are destined to have a higher rate of happy backers.
At Ships-a-Lot we have helped campaigns like Torch achieve a high level of customer satisfaction by dealing with the shipping and fulfillment costs. We were able to help his campaign estimate within 50 cents of the actual shipping costs for both domestic and international shipments. This gave him the ability to know exactly how much to set aside for shipping and fulfillment. If you are launching a crowdfunding campaign and are in need of assistance when it comes to setting the shipping price, please reach out to me at Info@shipsalot.com. I would love to help you estimate the correct pricing.