Strategic similarities between Reward-based Crowdfunding Platforms and E-Commerce Portals

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E-commerce lets you sell products. Reward-based crowdfunding lets you sell your innovative, cutting edge products.

Crowdfunding is so many things other than just a device to raise funds. It helps you validate your concept. It helps you reach a wider audience. It helps you gain popularity. And, it helps you market your product.

Till date, crowdfunding has acted as a launch pad for thousands of the goods and services. There are umpteen success stories to tell. Coolest Cooler and Pebble watches are some of the most innovative products that could see the sunshine only because of crowdfunding.

However, if we talk specifically about reward-based crowdfunding for products; then you will realize that strategically a reward-based crowdfunding platform is very much an e-commerce platform for the upcoming and interesting products.

Let us take a closer look at how a reward-based crowdfunding platform is similar to an e-commerce portal in so many ways.

 

You get to reach the target audience

Crowdfunding portals keep on attracting ever-newer people to their platform, who are interested in latest, cutting-edge products and are willing to invest in them. Just like e-commerce platforms that have a continuous flow of enthusiastic audiences that can be converted into a potential customer.

You can display your product

Just like any other e-commerce website, you can put your product on display under a predefined category on a reward-based crowdfunding platform. From there people can take a look at your campaign. Obviously, the campaign text and video contain all the details including unique features and various advantages of the product, which educates the audiences about the product in depth.

All the more, websites like Kickstarter contain an option of “Remind me,” which is similar to the famous “Wishlist” feature readily found on all the e-commerce platforms.

You receive inquiries

E-commerce platforms that allow different merchants to sell their products through them allow customers to contact the dealer through the platform. In the same way, interested backers on the Crowdfunding platforms can communicate with the campaign initiator through the portal and send them queries.

You are selling the product through the platform

E-commerce obviously is the place meant for doing commerce. However, through reward-based crowdfunding platforms too, campaigners shoot a pre-order offer. If the campaign turns out to be successful; campaign creator gets the capital required to manufacture and deliver the product to those who backed the campaign.

You receive the payment through the portal

Merchants who upload their products on a certain e-commerce platform for earning sales; after a successful sale, receive their payment directly through the portal. In the same way, on reaching the set goal successfully, campaigners receive the funds directly in their accounts through the crowdfunding portal.

You can go back to sell many more of your products.

Once a campaign is successful, and the campaigner has created a repo with the investor community; it is easy for her/him to approach the investors next time. Similarly, e-commerce platforms give merchants a chance to sell their products through the platform and earn a goodwill for their organization and future product launches.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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