Peak Peak Torque: Launching a Kickstarter Marketplace on a Budget

Introduction

The online marketplace industry has grown at an exponential rate over the past few years, with no signs of slowing down. According to Statista, there are more than 2.4 billion consumers shopping online, and the e-commerce industry is expected to reach .2 trillion in sales in 2020. With the rise of mind entrepreneurial and opportunities such as Kickstarter, these numbers are only expected to increase.

Starting a Kickstarter business is an exciting way to make your mark in the world of e-commerce. However, there are many hidden expenses associated with running a successful Kickstarter business to consider before launching their business. In this blog post, we’ll discuss the costs associated with starting a marketplace on Kickstarter and offer tips for finding the best deals that suit your business needs.

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start-up costs

When launching a Kickstarter Marketplace, costs can vary widely depending on the nature of the idea, tools implemented, overhead, legal fees, and even luck. Below is a list of common startup costs associated with launching a Kickstarter Marketplace, including average amounts in USD.

Website design

It can often be difficult to determine how much a website design will cost you when launching a Kickstarter marketplace. Depending on the size, complexity, and features you need, website design prices can range from several hundred to several thousand dollars . It’s important to strike the right balance between cost, features, and your budget.

According to recent statistics, the average global website design cost is hovering around ,000 . However, the cost can vary greatly depending on the features, complexity, and size you need. Depending on your budget and desired features, prices can start as low as 0 .

The cost of website design can also depend on the type of website you are looking for. For example, simple websites with limited functionality may cost less, while more complex ones with many features will cost more. Some of the features that may affect the cost include:

• Content Management System – The CMS is used to add content to the website and gives you full control over the design and functionality of your website.
• Accessibility Compliance – This feature makes it easier for people with special needs and disabilities to access your website.
• eCommerce – If you’re looking to start an online store, you’ll need to pay extra for features like shopping cart integration, analytics, and more.
• Integrations and Plugins – Plugins and integrations are additional features added to your website which add to the overall cost.

Before you start looking for a web designer, it’s important to know what features you need. This will help you determine the right budget for your website design. You should also research different web builders to find the right one with the right price. Look for designers who specialize in the type of website you are creating, as they may be able to provide more value for your money.

Software licenses

Having a successful Kickstarter Marketplace can be difficult, not only because you have to consider marketing your business, setting up a website, and other costs, but also because of software licensing costs. Depending on the license types, the cost may vary – some are free and some require a one-time payment or a monthly subscription.

Software licenses may include operating system licenses, web server licenses, and licenses for applications or plugins. Having the correct software licenses helps keep everything running smoothly and ensures that the marketplace operates legally. Estimating the cost of software licenses can be complex due to the wide range of providers and it is important to shop around to find the best deals.

Although the cost of purchasing software licenses can be considerable, in many cases it is still a cost-effective solution for businesses. According to a recent survey, the median cost of software licenses is 2.77 per user per year, although some licenses are as low as 9.50 while others go as high as ,500 per user per year. For example, if you have an on-premises server with 100 users, the amount can reach 0,000 per year and you also need to consider maintenance costs.

Therefore, it’s worth making sure you check the cost of software licenses before launching a Kickstarter marketplace, as this could be a major cost that can eat into your budget. Often there are discounts available for bulk purchases, so it’s worth trying to get the best deal.

Payment processing platform

If you’re planning on launching a Kickstarter Marketplace, it helps to understand the costs associated with setting up. While you generally don’t need to invest in hardware, marketing, or any expensive hardware, you will need to find and pay for a payment processing platform. Payment processing platforms are companies that provide online businesses and e-commerce platforms with payment services and related technologies.

To use a payment processing platform for your Kickstarter marketplace, you will need to consider the cost. On average, a payment processing platform can cost anywhere from .25 to per transaction . Fees vary depending on the payment processor and the type of payments you receive. You should also consider setup fees, monthly and/or yearly.

In addition to the per-transaction fee, you will also need to consider other fees such as monthly fees and additional funding fees. On average, monthly service fees range from to depending on the payment processor. Additionally, additional finance fees range from .50 to .00 for each additional finance transfer made for your business.

Before settling on a payment processing platform, you should research the fees and payment plans of different options. This will help ensure that you choose the most profitable option for your business.

Hosting Product Lists

Product listing hosting can be an expensive business, but it is also one of the most necessary aspects of owning an e-commerce business. Depending on the level of service you need, the cost of hosting products on a platform like Kickstarter can range from a few hundred to thousands of dollars. According to a recent survey, the average cost of hosting products on Kickstarter is around 2. This cost usually includes listing fees, advertising fees, and other service fees.

In addition to these costs, you will also need to consider additional transaction fees. These fees may include payment processing fees, taxes, and other miscellaneous charges which may vary depending on the location of the seller. All of these different charges can add up quickly, so it’s important to do your research and figure out your budget before you start.

It’s also important to keep in mind that product listing hosting costs change depending on the volume of sales you make. For example, if you are selling a high item, you can expect to pay more for hosting the product listing than for a lower priced item. Additionally, some platforms may offer reduced fees for higher sales volumes. Additionally, features such as product tracking, customer support, and inventory management may require additional fees.

Finally, if you offer physical products, you will also need to consider shipping costs. Most platforms charge for shipping, although some may offer reduced fees for higher sales volumes. Also, if you’re shipping internationally, you’ll likely have to pay additional taxes and duties.

Marketing / advertising

Opening a Kickstarter Marketplace is a big investment, and one of the associated costs is the amount of money you’ll have to spend on advertising and marketing. Advertising and marketing help the right customers in your market to ensure success. According to Statista, businesses in 2020 are on track to spend around .6 billion on online advertising in the United States. This number is expected to increase significantly over the next decade, reaching approximately .2 billion in 2026.

In addition to online advertisements, you can look at traditional and modern marketing approaches to spread the word about your new Kickstarter marketplace. Examples of traditional marketing tactics include print advertising, direct mail, public relations campaigns and of course word of mouth. New digital marketing options include influencer marketing, search engine marketing, content marketing, and email marketing. Depending on the size and scale of your market, how much you will need to spend on advertising and marketing can range from a few hundred to thousands of dollars.

A great way to measure the success of your advertising investment is to track key performance indicators (KPIs). A few of the most important KPIs include website and app downloads, website and app traffic, user engagement, and most importantly, conversions. Conversion tracking will give you the best sense of how much money your ads have made for you.

Overall, advertising is one of the most important investments you can make when launching a Kickstarter marketplace. By tracking exposure, reach, impressions, and most importantly, conversions, you’ll be able to control and tweak your marketing budget to get the best returns every time.

Office supplies and setup

Before you can begin your Kickstarter Marketplace, certain office supplies and setup need to be in place. Depending on the size of your market and how you plan to handle it, the cost of installation can vary. Generally speaking, however, it is really possible to start a market using very small capital investments.

Below, we’ll discuss some of the supplies and furnishings most markets need and the estimated cost of each item in USD:

• Barcode readers: – 0
• Inventory control software: -/month
• Work tables and shelves: – 0
• Computers, point of sale equipment and scanners: 0 – 00
• Additional office furniture and supplies: 0-0

When starting a market, it is important to ensure that sufficient funds are available to purchase supplies. Don’t forget to budget for items such as extra office supplies, such as paper, pens, folders, and mailing supplies.

With these office supplies and setup in place, it’s time to focus on marketing, customer service, and other important operations necessary to launch and sustain a successful marketplace.

production equipment

Producing products for a Kickstarter marketplace can be expensive when considering the diverse range of equipment needed to manufacture and package products. For example, depending on the market product, machines such as 3D printers, sewing machines, and mixers may be required.

According to Statista (2019), the cost of a 3D printer can vary widely, but the average cost of a 3D printer system is ,399 – ,000 USD.

Sewing machines also vary in quality and features, the average cost of a basic commercial grade sewing machine usually costs between 0 and 00 USD.

Blenders also vary in range and pricing, but light commercial blenders, suitable for home businesses, can typically range in cost from 7 USD to ,500 USD.

In addition to machinery, packaging materials, such as shipping boxes, labels, and product containers, are necessary for successful product delivery and customer satisfaction. Product packaging varies widely in price, but the average cost per unit can range from $.03 to $.19 USD.

For the production of a successful Kickstarter market, investing in the necessary equipment is essential. Understanding the types of equipment needed and the expected costs of these materials will help ensure a stable and profitable production line.

Legal/accounting services

Opening a Kickstarter marketplace requires a variety of legal and accounting services, some of which come with significant costs. Before embarking on a crowdfunding journey, it’s important to understand the associated costs and be aware of the many services available.

It is recommended that you consult a lawyer and an accountant to determine the costs associated with the integration of the business and taxes. A lawyer can draft the necessary documents and contracts, while an accountant can ensure the business is set up correctly and personal and business taxes are closed properly. Depending on the complexity of the market setup, legal fees can range from ,000 to ,000 USD . Accounting services often range from ,000 to ,000 USD .

At a minimum, be sure to research and include the following services in the budget:

• Incorporation costs 0 – 00 USD
• Attorney fees ,000 – ,000 USD
• Accountant fee 00 – 00 USD
• Payroll Services 0 – 0 USD
• Filling fee 0 – 0 USD
• Ongoing business costs vary

Starting a market with the help of an experienced team can reduce upfront costs and prevent costly mistakes later. It is important, however, that sufficient funds are set aside for the ongoing costs associated with maintaining the business.

Consultants / Advisors

When starting a Kickstarter Marketplace, it may be necessary to hire consultants and advisors to better understand the nuances of the launch. Consultants and advisors can be a great resource for meeting the challenges of building a marketplace on the Kickstarter platform, with marketing and fundraising success. According to Statista.com, in 2019 the average cost in the United States to work with a consultant was 0 per hour . Additionally, the average cost of business consulting services was estimated to be 4 per hour . As such, it’s important to factor in the cost of working with consultants and advisors when determining the cost of opening a Kickstarter marketplace.

In addition to consulting services, consulting services can also be beneficial when looking to open your own Kickstarter marketplace. However, the costs associated with hiring advisors may be slightly higher than those of consultants. According to the 2019 Small Business Counselor Awards Survey, the average rate for business counselors in the United States is 3 per hour . In addition, the hourly rate for contractor advisors is estimated at 4 per hour . So, when understanding the costs of opening a Kickstarter marketplace, it’s important to consider the cost of hiring advisors.

Overall, the costs associated with launching the Kickstarter Marketplace can vary depending on the size and scope of the project. It is important to consider the cost of consultants, advisors and other associated services when planning your budget. The following list outlines the estimated costs associated with Hiring Consultants and Advisors in the United States:

• Consultants: 0 per hour
• Business Consulting Services: 4 per hour
• Business Advisors: 3 per hour
• Contractor Advisors: 4 per hour

Conclusion

For entrepreneurs ready to join the e-commerce world and make their mark, there’s no better option than starting a Kickstarter Marketplace. However, there’s a lot more to it than meets the eye. As such, it’s important to consider all of the potential costs associated with launching your business, from website design to marketing and advertising. With careful budgeting and planning, you can ensure your business has everything it needs to succeed.

To sum up, it costs anywhere from ,000 all the way up to ,000 to set up and launch your own Kickstarter marketplace. Depending on your vision for the business, some of the estimated costs include:

• Website design
• Software licenses
• Payment processing platforms
• Hosting Product Lists
• Advertising Marketing
• Office supplies and setup
• production equipment
• Legal/accounting services
• Consultants / Advisors

With the right resources and the right budget in place, you’ll be ready to launch a successful and profitable business on Kickstarter in no time.