Indiegogo’s New Shipping Guarantee Program Promises Backers Get What They Paid For
Crowdfunding platform Indiegogo wants to ensure backers get what they pay for thanks to a new Shipping Guarantee Program.
The Shipping Guarantee Program promises to reduce the risk of crowdfunding campaigns, at least for some products on Indiegogo.
The Shipping Guarantee Program (SGP) is only available for select campaigns, and Indiegogo must approve applications for the program on a case-by-case basis. For a campaign to be eligible for the program, which conceivably would improve its success on the platform with users who may otherwise be concerned about the risk of crowdfunding, the organizer must have a proven track record of successful Indiegogo crowdfunding and launch with products that are in “the final manufacturing stages.”
Indiegogo says the SGP can “significantly enhance” a campaign’s credibility while attracting more early adopters and improving conversion rates. There are no additional fees for a campaign to be included in the program, provided that Indiegogo’s Trust and Safety team approves its eligibility.
There is some risk absorbed by an SGP campaign organizer, too. If the company or developer fails to ship their project on time, backing funds will be held to process potential refunds. This means that Indiegogo holds all campaign backing funds until the product has been shipped to backers.
This important consideration relates to Indiegogo’s emphasis on a campaign product being in the late stages of final manufacturing. In some cases, companies use crowdfunding to raise the necessary funds to begin manufacturing a product, or to perform additional research and development work. However, while acceptable as part of crowdfunding, that arrangement will not work with the SGP.
In the event that shipping delays are unavoidable, campaigns can work with Indiegogo to figure out a solution, but transparency with both Indiegogo and campaign backers is expected.
“Indiegogo is dedicated to driving innovation and ensuring the success of our campaigners, while protecting the interests of our backers,” says Becky Center, CEO of Indiegogo. “The Shipping Guarantee program represents a significant milestone in our commitment to fostering trust within the crowdfunding community. By providing a guarantee that backers will receive their products or their money back, we are enhancing the overall crowdfunding experience and encouraging more people to support bringing these innovative products to life.”
Among the first campaigns under the new Shipping Guarantee umbrella is the HoverAir X1 Pro and Pro Max campaign. These new self-flying camera drones, building upon last year’s HoverAir X1, are currently in the funding stage on Indiegogo, having received nearly $1.1 million in funding, shattering the campaign’s $50,000 goal by almost 2,200%. The HoverAir X1 Pro and Pro Max are guaranteed to ship by October 31, 2024, “or your money back.”
“We’re excited to return to Indiegogo and honored to be part of the Shipping Guarantee program,” explains MQ Wang, Founder and CEO of ZeroZero Robotics. “The incredible support from our backers in 2023 has fueled our innovations for HoverAir X1 Pro and Pro Max this year. We’re confident in our ability to ship on time, ensuring backers can support us with peace of mind.”
Image credits: Indiegogo and ZeroZero Robotics
