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May, 2025May 23, 2025
Navigating Crowdfunding in Uncertain Times
Kickstarter's New Pledge Manager: A Game-Changer for Creators
On May 9th, the largest crowdfunding platform, Kickstarter, officially published its new built-in tool for creators: the Kickstarter Pledge Manager. This tool is dedicated to maximizing creator funding with all-in-one simplicity and zero additional fees.
Other pledge management platforms like BackerKit, CrowdOX, PledgeBox, and PledgeManager previously offered solutions. While some provide free basic services, they often bundle paid features, such as advanced analytics or add-on sales, which can increase costs for brands.
For instance, PledgeBox stands out for its cost-effectiveness with no setup fees and a 3% transaction fee only on upsells, whereas BackerKit and others may charge setup fees and higher transaction rates.
▲Kickstarter's Pledge Manager, picture's from Kickstarter, copyright belongs to original authors
Thus, the Kickstarter Pledge Manager certainly becomes a crucial tool and helper for the creators. Its key features include a backer survey with automated SKU management; post-campaign reward upgrade options; a backer & order management system; more accurate shipping collection tools; and last but not least, a tariff manager, a newly built tool supposed to help campaigners handle the issues generated by series of uncertainty caused by the Trump administration on global tariffs for products imported into the USA market (for more information).
Understanding the Tariff Manager: A Tool for Navigating Tariff Uncertainties
Within all of these features, the most eye-catching element is the tariff manager, which is also a tool that has just come out recently, specifically as a solution to the recent floating tariff situation for importing goods in the US.
How does this tool work? It simply provides you with an option to add an extra fee for the tariff while your backers decide to back the project. While the backer can see what this extra fee is for, the extra payment goes directly to the creator’s pocket, ensuring transparency.
▲Kickstarter's Pledge Manager, picture's from Kickstarter, copyright belongs to original authors
However, at the end of the article announcing this new tool to the public, there’s a section called “What If My Backers Can’t Pay the Tariff”, and Kickstarter’s official solution to this crucial issue is to coordinate with every single backer one by one to find unique solutions.
But let's think through the possible outcomes of it. If the tariff is fixed somehow for the next certain period, then the only option for creators not to be burdened by it is to convert the tariff to the consumer as a consumption tax, or simply raise the overall price kit, nevertheless, either way, the price level on consumer end will be raised, and consequentially the overall trading volume will decrease.
Beyond the Tariff Manager: Additional Strategies for Creators
While Kickstarter's Tariff Manager provides a straightforward way to pass tariff costs onto backers and tries to make it more of a UX fix and not an actual marketing-sales tool, in the end, the tool just helps to make the process/info a bit more clear to handle, but it stops there, since fundamentally, this issue is not something that Kickstarter can solve such an issue. However, there are some other options for creators:
Negotiating with suppliers:
By discussing better terms or securing discounts through bulk purchasing, creators can offset some of the tariff burden before it even reaches the consumer.
Bulk shipping:
Sending goods in larger quantities to a U.S. warehouse and then distributing them domestically. This can leverage economies of scale to reduce per-unit tariff costs, potentially softening the financial hit.
Community Support:
Creators can connect with their backers through campaign updates or direct outreach, explaining the tariff situation and asking for additional contributions to cover unexpected costs. This transparency can build trust and encourage backers to step up.
Finally, cost optimization—sourcing cheaper materials, streamlining production, or simplifying product designs—can help creators absorb tariff expenses without raising prices or relying heavily on backers.
▲Picture's from Forbes, copyright belongs to original authors
Eyes on the World: International Crowdfunding Opportunities
In an era of shifting tariffs and market uncertainties, looking beyond the U.S. to international crowdfunding platforms offers creators a wealth of new opportunities. These global platforms not only provide access to diverse audiences but also bring unique strengths that can help creators thrive.
Japan’s crowdfunding scene is led by three prominent platforms: Makuake, Campfire, and Greenfunding, each contributing uniquely to the market. Makuake stands as the largest in Japan, engaging over 10 million unique users quarterly and supporting a wide array of categories like technology, fashion, and food through its innovative "cheer purchase" model, which fosters strong supporter involvement.
Campfire, distinguished by its project volume, has hosted over 100,000 projects and attracted 13 million backers, offering an extensive range of 19 categories and a competitive 17% commission structure that appeals to creators. Greenfunding, with a niche focus on tech gadgets, targets single men aged 40 and above, achieving a high success rate, reported at 89% in 2017. Collectively, these platforms underscore Japan’s dynamic crowdfunding ecosystem, blending broad appeal with specialized innovation.
▲Japanese Crowdfunding Platforms, Picture's from Goldstone Crowdfunding, copyright belongs to original authors
Beyond Japan, Wadiz, SearchingC, and Zeczec drive crowdfunding across South Korea, Hong Kong, and Taiwan, respectively, with distinct approaches.
Wadiz, South Korea’s top platform, serves over 6.6 million members and boasts success rates of 65% to 83%, supporting diverse projects from technology to fashion, while also offering pre-order options and a commerce store.
SearchingC, based in Hong Kong, functions as an e-commerce hub rather than a traditional crowdfunding platform, curating over 10,000 products from other crowdfunding sites for markets like Taiwan, Malaysia, and Singapore, emphasizing product launches and early access.
Zeczec, Taiwan’s leading platform for creative endeavors, excels in funding design, technology, and arts projects, with some campaigns raising up to US$700,000, enhanced by its partnership with Japan’s Campfire. Together, these platforms highlight the diverse and growing crowdfunding landscape in Asia, catering to varied consumer and creator needs.
▲Searching C-HK, Picture's from Searching C, copyright belongs to original authors
The array of platforms across Europe, Asia, and beyond—such as Ulule (France), Crowdfunder (UK), Startnext (Germany), Wemakeit (Switzerland), Goteo (Spain), Booomerang (Denmark), Eppela (Italy), Wspieram.to (Poland), Ready Fund Go (Australia), Kickante (Brazil), and Jumpstarter (South Africa)—alongside Asia’s dynamic offerings, collectively present a strong alternative to the US crowdfunding landscape.
These platforms unlock diverse markets with distinct preferences, like Europe’s lean toward public welfare and arts projects or Asia’s tech enthusiasm, enabling creators to target receptive audiences. Ulule’s 79% success rate and its standout “Devil Fruit Encyclopedia” campaign (raising over €467,000) show how niche projects can thrive, while Kickante’s 2 million Brazilian users and 300 million raised highlight untapped scale.
Flexible commission rates—like Booomerang’s 6-7% or Ready Fund Go’s 2% for Australian firms—add cost advantages, and multi-platform strategies reduce reliance on one market, mitigating risks like saturation or regulation shifts. By testing products globally, creators can refine offerings, boost success rates, and build broader recognition beyond the US.
▲Ulule-France, Picture's from Ulule, copyright belongs to original authors
A Glimmer of Hope: Positive Shifts in US-China Trade Talks
However, things with the US seem to be moving in a positive direction. After the recent conversations in Geneva, both parties decided to step back and give each other a break and a chance to renegotiate. Starting May 14, 2025, both sides agreed to suspend 24 percentage points of tariffs on certain goods for 90 days, dropping them to a 10% baseline.
For example, if a product was facing a 34% tariff before, it’s now just 10% until mid-August 2025, which could mean significant savings on imports that creators rely on. On top of that, they’ve set up a consultation mechanism led by some heavy hitters—China’s Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamison Greer—to tackle ongoing trade issues and work toward longer-term stability.
This could pave the way for more predictable trade policies, which would be a huge plus for creators trying to plan without worrying about sudden cost spikes. The trade war’s been a rollercoaster, disrupting markets and consumer spending, but this deal might ease some of that pressure, potentially boosting demand for creative products.
▲Picture's from NIKKEI ASIA, copyright belongs to original authors
Yet, not a permanent fix—the suspension only lasts 90 days, and tariffs could climb back up if talks falter. Creators must think beyond quick fixes like the Tariff Manager. By diversifying strategies—negotiating with suppliers, optimizing costs, or tapping into global platforms—they can build resilience against future disruptions. In an unpredictable trade landscape, adaptability and exploration are not just options; they’re necessities for thriving in crowdfunding’s next chapter.
The Path Forward: Embracing Diversification in Crowdfunding
In light of these developments, creators are faced with the question: "So what now?" The answer lies in diversification. Just as financial advisors recommend diversifying investments to manage risk, creators should diversify their crowdfunding strategies. Relying on a single platform or market can be risky, especially in an uncertain trade environment.
By exploring multiple crowdfunding platforms, both domestic and international, creators can tap into different audiences, reduce their dependence on any one market, and increase their chances of success. Diversification not only helps manage risk but also opens up new opportunities—platforms like Kickstarter excel with tech gadgets, while Ulule in France supports arts and cultural projects, allowing creators to find the best fit for their work.
▲Picture's from Forbes, copyright belongs to original authors
More broadly, this principle extends to e-commerce too: relying solely on a single platform, like Amazon, is risky due to policy or algorithm changes, so expanding to eBay, Etsy, or a personal website can safeguard and grow a business. Diversification is the key to building resilient, successful campaigns and businesses in today’s global market.
Just like what Professor Paulos said:
**“Uncertainty is the only certainty there is, and knowing how to live with insecurity is the only security”. **
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