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How Crowdfunding Help Brands Going Abroad to Overtake?
November 29, 2022
On April 6th, AnkerMake announced their new product, AnkerMake M5 3D Printer, and got 100 million USD through crowdfunding, which was much more than expected 50 thousand dollars.
Up to May 16, this product has won 10887 supporters and gained over 8 million dollars, thus, the focus of cross-border e-commerce is once again on overseas crowdfunding.
Due to international political and economic influences, the cross-border e-commerce market has been in the doldrums since the second half of 2021, with costs soaring, overseas demand shrinking, and the "tall buildings" built by traditional pavement-based merchants shaking. Cross-border e-commerce is in a new stage of transition from "low-end supply" to "high-value brand", and the swaying supply-demand relationship is driving cross-border e-commerce back to "people" and "products".
Overseas crowdfunding has attracted more and more enterprises with product innovation capability because of its pre-sale mode of "receiving money before delivery" and its ability to reach potential customers directly and build brand image. In the new era of branding abroad, will overseas crowdfunding be the next opportunity for cross-border e-commerce?
1.What crowdfunding platforms are available?
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Kickstarter
▼Website Traffic
Over 20 million PV monthly.
▼Charging Fees
Kickstarter will charge 5% of the final raised volume, and the acquiring tool Stripe charges 3%.
▼Mode of Crowdfunding
All or Nothing. Only when achieving the expected amount of fund, will the enterprise get all the money, otherwise, the fund that has been raised will all be refunded to supporters.
Indiegogo
▼Website traffic
Over 18 million PV monthly.
▼Charging Fees
Indiegogo will charge 5% of the final raised volume, and the acquiring tool Stripe charges 3%.
▼Mode of Crowdfunding
Besides the same mode of fixed funding as Kickstarter, Indiegogo also allows enterprises to choose a free funding target, in which enterprises are able to get the raised fund whether the expected amount is achieved or not.
2.
▼How to choose the crowfunding platform？
The nature of crowdfunding requires that the product launched on the platform must be the first of its kind. Enterprises can choose an appropriate crowdfunding platform based on their own situation, and here are three dimensions recommended:
▼What kind of product do you launch?
Kickstarter and Indiegogo have their own competitive types of product . For example, boardgame, 3D printer, and laser equipment are more welcomed on Kickstarter, and outdoor products such as E-bike, Scooter are more popular on Indiegogo. So, enterprises can choose the platform for crowdfunding based on thire products.
▼Can you get more traffic?
Overall, Kickstarter has more traffic flow than Indiegogo and more products will be launched at the same time, so website traffic will be given to top programs. Therefore, small and medium brands may not gain more traffic on Kickstarter than Indiegogo.
▼What kind of services will you get?
Indiegogo is more friendly to Chinese brands with a local team in China to provide customized services for Chinese customers and avoid the impact on communicating and product launching resulted from language and time difference.
On the other hand, Indiegogo offers an affiliated platform, Indiegogo InDemand, for sale after crowdfunding.
3.Preparation before crowdfunding
▼High-Quality Products
An innovative and competitive product will lay a solid foundation for crowdfunding, which makes crowdfunding different from other channels and offers entrepreneurs unique opportunities. Usually, technology, gaming and design related products get more attention on crowdfunding platforms with their strong innovative attributes.
▼ Marketing Strategy
In addition to product, another factor that has an essential impact on crowdfunding is marketing.
The whole process of marketing includes project evaluation (market research, identification of target users, etc.), project warm-up (pre-advertising, EDM operation, PR communication, etc.), production of page materials (copywriting, pictures, videos, etc.), and continuous user interaction and project promotion after the project is launched.
The implementation of the full marketing process described above is difficult and professional, thereby it is advised that enterprises without experienced marketing teams can ask professional service providers for help to improve the success rate.
▼Overseas company entity
Currently, both Kickstarter and Indiegogo do not support companies from mainland China launching programs on their platform, so it is necessary for Chines enterprises to register an overseas company in Hongkong, China or the United States.
iPeakoin has prepared a one-stop crowdfunding service for geeks.
Company Registration
Online application and standard process, supports registration in Hong Kong and the U.S, completed within 24 hrs.
Online Account Opening
Open a full multi-currency bank account, straight from online. No minimum deposits, iPeakoin support opening of accounts for SMBs in mainland China, Hong Kong, USA, etc.
Ecological resource docking
Dock with global top acquiring platforms, green channels for direct customer teams, and exclusive preferential rates. In addition, iPeakoin can also provide third-party professional services for corporate financing, connecting projects and funds.
