An online store could be the link that fills the gap of a fantastic idea that you have procrastinated for a while now. However, getting off the ground to raise capital for such a venture which can bring your vision to life can be a challenge. Here you can find business ideas https://www.shopify.com/market
If the traditional route of securing a loan from the bank is not for you, then crowdfunding could be the answer. In this article, we will examine eight best crowdfunding sites for a scalable enterprise eCommerce so that you can produce, market and ship products globally.
What is Crowdfunding?
Unlike pitching your idea to traditional investors and banks, to fundraise capital, Crowdfunding is an online platform that allows you to solicit support from online communities or a group of individuals who collectively invest in your idea and make it into a reality.
What’s more? Crowdfunding is an excellent way to get noticed and allows potential businesses to validate their idea even before it comes into reality. This method of fundraising capital to launch scalable eCommerce enterprises is quickly gaining popularity adding more than $65 billion to the global economy with crowdfunding giants like Kickstarter receiving 9.9 million visitors in a month.
In the United Kingdom alone, the crowdfunding industry is worth over £14 billion making it something worth considering if you’re starting in the eCommerce business.
Benefits of Crowdfunding
- Helps you to raise capital that you may not have been able to access using traditional methods
- It’s easier and less taxing than applying for a bank loan or pitching an idea to investors
- You don’t have to give out considerable stakes in your company
- Encourages and motivates eCommerce entrepreneurs
- Enables less connected potential entrepreneurs
- Works as a marketing tool that opens you to access a large audience that you may not have otherwise had
- Allows you to develop, launch and improve your idea
There are over 450 crowdfunding platforms in the market right now, finding the right one that will help you pitch your plan for a scalable enterprise eCommerce can be a daunting task. Backers (the crowd) of a crowdfunded project can range from family, friends, acquaintances or the general public.
To set up a crowdfunding page, you must describe the project and the purpose in detail because potential donors will need to know how their money is going. Consequently, to reach niche markets around the globe, you’ll need to include videos that will demonstrate the product and the vision in detail.
Besides, the most successful crowdfunded pages introduce vital players that help the donors match the face with the organization. Also, a backstory that describes the potential project effect on the global scale is essential if you’re looking to scale your enterprise eCommerce.
Crowdfunding Platforms of Choice for Small Business Startups
Kickstarter is a popular crowdfunding platform where innovative entrepreneurs can pitch their ideas to jumpstart a project, service or product. The platform receives 9.9 million visitors in a month making it the best platform that can help you reach out to an extensive audience and a great way to fundraise.
The Kickstarter Crowdfunding community has funded over 156,000 additional projects and raised above $4.1 billion. In this platform, backers are offered incentives to support an idea from t-shirts to pre-order discounts. If you meet the initial fundraising goal, you’ll have access to your funds, but if you fall short, the backers remain with your money.
Most projects on Kickstarter are high quality and innovative catching the attention of early adopters and headlines from the media.
If you’re looking for a robust crowding platform, then, we’d recommend Indiegogo for eCommerce businesses. It comes with a set of unique features and campaign options. It also supports ideas from artists and non-profit organizations.
Unlike Kickstarter which is an all-or-nothing funding goal, Indegogo features flexible funding especially if you can fulfill the promise to backers in your fundraising campaign. Additionally, this platform will enable you to continue raising more funds even after the campaign period ends. If you’re launching a new product line in the U.S, you may want to consider Indiegogo.
Patreon is a unique crowdfunding site that can scale an enterprise eCommerce that focuses on a specific niche of creators like bloggers, live streamers, cartoonist, musicians, and other internet personalities. The platform generates recurring revenues through paid memberships.
The platform offers many different perks based on different payment tiers like branded swags, sneak peeks, shoutouts and branded swags. If you’re an online creator with exclusive content and a sizable online audience in Australia, it would be worth creating a Patreon page.
#4. Crowdfunder (Shopify App)
If you already have a Shopify e-store and have a product that you’d like to fundraise for through your e-store, then Crowdfunder Shopify App would be an excellent idea that would transform your page into a crowdfunding platform.
Shopify Crowdfunder app will help you avoid commissions charged by third-party platforms and accepts pre-orders as a way to fund the production of your new product. Additionally, you can launch limited run-products or test your new products with more predictable monthly fees.
Fundable is a crowdfunding platform registered in the U.S that offers rewards or equities in exchange for funding for $179 in a month during active campaigns. To succeed fundraising in this platform, you’ll need to show your backers a solid business plan, a pitch deck and a track record of the growth of your eCommerce business.
Unlike other platforms in this list, GoFundMe is a free crowdfunding platform that supports individuals for personal causes especially from private networks and close-knit communities. The platform is not designed for crowdfunding campaigns but helps individuals to raise money to tackle hard times or overcome personal challenges.
Would crowdfunding be the best way to raise capital for your business? Maybe, maybe not. Before you consider any of the platforms we’ve mentioned here, you need to seek an expert’s advice and due diligence for monetary support from a community.
However, if you’ve decided crowdfunding is for you, choose a platform that will support your idea best and plan a campaign that will convince your community to invest in your product.