"RuffRuff 予約販売" helps reduce lost sales opportunities that occur when a product is out of stock, before a new product launch, or while waiting for restock.
You can set up pre-orders on your Shopify store with surprising ease, registering an unlimited number of pre-order products and accepting an unlimited number of pre-orders. It also lets you prevent customers from ordering pre-order and regular items together in the same order, and offers back-in-stock notifications for items with no confirmed restock date.
It also includes many unique features not found in other pre-order apps, such as "deferred payment," which lets you collect payment before the product ships.
Crowdfunding is a fundraising method that has rapidly spread in recent years, becoming a powerful tool for individuals and businesses to bring new ideas and projects to life. By using the internet to raise funds from a large, unspecified number of people, it makes fundraising possible without relying on traditional financial institutions. This article explains the basic concepts and types of crowdfunding, its benefits and drawbacks, and recommended Shopify apps in detail.
What is crowdfunding?
Crowdfunding is a method of raising funds over the internet. It's a mechanism where individuals or companies raise the funds needed to develop a product or launch a business from a large, unspecified number of people. Backers can invest in projects that interest them, and if the project succeeds, they typically receive early access to the product or other perks. Well-known crowdfunding services in Japan include CAMPFIRE, Makuake, and READYFOR.
The blog article below introduces recommended pre-order apps for offering early access to products. Please use it as a reference.
Types of crowdfunding
Crowdfunding mainly comes in the following types.
It's important to choose the crowdfunding format that best fits your organization's needs from among these. The ideal type varies depending on the nature and goals of your project and how you plan to raise funds.
Reward-based crowdfunding
In this type, backers provide funds to a project creator's campaign and receive a product or service in return. Backers are, in effect, pre-ordering the product. Well-known platforms in Japan include CAMPFIRE, Makuake, READYFOR, and A-port (operated by The Asahi Shimbun).
Donation-based crowdfunding
In this type, backers provide funds to highly socially impactful projects without expecting anything in return. Backers receive no rewards or perks.
Notable platforms in Japan include CAMPFIRE for Social Good and READYFOR.
Lending-based crowdfunding
In this type, funds raised from individual investors are lent to companies or sole proprietors. Investors receive repayment of principal plus interest. Notable platforms in Japan include COMMOSUS and funds.
Equity-based crowdfunding
In this type, a company raises capital from individual investors in exchange for issuing shares. Investors acquire equity in the company. Notable platforms in Japan include CF Startups, FUNDINNO, and Unicorn.
Fund-based crowdfunding
In this type, funds are raised from individual investors for a specific business, and returns based on the business's performance are distributed to investors. A notable platform in Japan is Securite.
Hometown-tax-donation crowdfunding
In this Japan-specific model, a local government launches a project to address a regional issue, and funds are raised through Japan's "hometown tax" (furusato nozei) donation system from people who resonate with the cause. Notable platforms include Furusato Choice and Satofull.
The benefits of crowdfunding
Easier fundraising
Crowdfunding makes it easier to raise funds compared to traditional methods such as bank loans or investor funding. Because you raise small amounts from a large, unspecified number of people over the internet, you don't need to run large-scale advertising campaigns.
Gauge demand in advance
With crowdfunding, you can see backers' reactions to your project before you fully commit. Backer response lets you gauge market demand for your product or service ahead of time, helping you avoid wasted investment.
Build a fan community
Crowdfunding allows for two-way communication between backers and the project creator. Deepening your connection with backers can help you build brand fans and inform product development in a variety of ways.
Advertising effect
Crowdfunding project pages can be shared on social media, which can also raise awareness of your product or service.
The drawbacks of crowdfunding
Risk of failing to raise funds
With crowdfunding, there's a chance you won't reach your funding goal. Depending on the appeal of the project, your promotional efforts, and the competitive landscape, fundraising may fail.
Responsibility is created
Once you've raised funds through crowdfunding, a certain level of responsibility arises — such as delivering the product or fulfilling promised perks to backers. If the project doesn't progress smoothly, it can become difficult to respond appropriately to backers.
Crowdfunding requires you to follow through on delivering products or services, and fulfilling perks, to your backers.
Fees apply
When using a crowdfunding platform, a certain fee is deducted from the funds you raise. Success-fee-based platforms tend to have higher fees.
Difficult to establish trust
Because crowdfunding has a high degree of anonymity, fraudulent activity and projects that fail to fulfill their responsibilities to backers do exist. To earn backers' trust, it's necessary to increase the transparency of your project and establish a reliable execution structure.
Recommended Shopify apps for crowdfunding
Crowdfunder - for popularity
Source: Crowdfunder｜Shopify App Store
Crowdfunder is a Shopify app that lets you run a crowdfunding campaign directly on your Shopify store. Crowdfunder is easy to set up and manage — since it's configured directly from your shop admin, launching a crowdfunding campaign is simple. You can also manage backers and reward fulfillment in one central place.
It's one of the most popular crowdfunding apps available.
Crowdfunder pricing plans
| Plan name | Price | Details |
|---|---|---|
| Unlimited | $24/month | All features available Unlimited campaigns Unlimited order management No additional fees |
MyStoreFunding - for Japanese-language support
Source: MyStoreFunding｜Shopify App Store
MyStoreFunding is a crowdfunding app developed in Japan. Merchants who aren't confident in English can still get support in Japanese. It's available starting from free with a success-fee model (a 3% fee on order value), so you can get started risk-free.
MyStoreFunding pricing plans
| Plan name | Price | Details |
|---|---|---|
| Free install | 3% of sales charged as a fee | All features |
Fundpop Crowdfunding - for cost-effectiveness
Source: Fundpop Crowdfunding｜Shopify App Store
Fundpop Crowdfunding is a Shopify app that lets you run a crowdfunding campaign directly on your Shopify store. Its simple UI and range of features (brand settings, campaign milestones, pre-order functionality, and more) have earned it high ratings from shop owners. A free plan is also available, letting you run up to 2 campaigns at no cost.
Fundpop Crowdfunding pricing plans
| Plan name | Price | Details |
|---|---|---|
| Free | Free | Run up to 2 campaigns simultaneously Analytics overview Customizable campaign design Email support Live chat |
| Basic | $9.99/month | All Free plan features Unlimited campaigns Detailed analytics dashboard Campaign progress management Hide Fundpop branding |
In closing
Crowdfunding offers a variety of advantages not found in traditional fundraising methods. Beyond making it easier to raise the funds needed for product development or launching a service, it offers many benefits, such as gauging demand in advance and building a fan community. On the other hand, you'll need to be mindful of drawbacks, such as the risk of failing to raise funds and the responsibility you take on toward backers.
If you're running a Shopify store, using a crowdfunding app makes it easy to launch a campaign. We recommend choosing an app based on your organization's needs — the popular Crowdfunder, the Japanese-language-supported MyStoreFunding, or the cost-effective Fundpop Crowdfunding. Why not use crowdfunding to take on a new business venture or grow your brand?
Finally, this article covered recommended Shopify apps for running crowdfunding campaigns, but the blog article below introduces a variety of recommended apps by genre — beyond crowdfunding apps — that support "LTV growth" and "sales growth." Please use it as a reference.
