Product Crowdfunding and Amazon

0
1752

For many backers, the future of crowdfunding is in equity. What the future might really be in is product crowdfunding, however, and Amazon has an amazing opportunity to change the world forever. Although crowdfunding platforms like Kickstarter and Indiegogo have always stated they are not a store, some high profile products have failed to meet their shipping goals.

The Jorno folding keyboard might just be the worst offender of the bunch. It was crowdfunded in 2012 with over $100k and is currently scheduled to ship March 2015. Having 1-2 years of delays has become common. Product crowdfunding through Amazon could change all of that.

We’re Not Talking About Wedding Gifts Here

Product crowdfunding might refer to those gift registries were people can come together to spend a little so that people can get a big item that they need, but not here. Amazon has everything in place to stop these massive delays like Jorno and others have experienced almost immediately.

They might be a retail outlet, but Amazon has these unique advantages that could make this become a reality.

  • They create, source, and sell their own goods.
  • They have distribution networks already in place.
  • They have the largest, most mature, and most developed affiliate program.
  • They have already tried crowdfunding in some limited ways.

Amazon seems to have realized this. They’re already looking for someone to manage a platform for startups. They’ve tested crowdsourcing for their original pilots they have competing with Netflix. Product crowdfunding is a natural next step because it fits in with their existing expansion model.

What Would the Consequences of This Be?

If anything, product crowdfunding with Amazon involved on the back end would potentially enhance the entire community at large. With fewer delays and more guarantees of shipment dates being met, backers would be more willing to invest. Kickstarter, Indiegogo, and other niche platforms can still handle the front end. Successful programs could then transition into Amazon’s startup platform to work on distribution and manufacturing.

Is crowdfunding a store? It isn’t right now, but maybe it should be. Amazon sticking their foot in the door makes a lot of sense to do.