Over the past few years, the trust the public had with crowdfunding efforts began waning as major campaigns on various such platforms failed to deliver on millions of dollars’ worth of promises. In order to combat this issue and regain the trust of the people, Indiegogo CEO David Mandelbrot has announced measures that could potentially turn the site from a goodwill middleperson to a pre-sales e-commerce site.
Mandelbrot told tech news site The Verge that one of the new features would be called “Guaranteed Shipping”, a payment method that enables backers to receive refunds if the campaigners fail to deliver after guaranteeing a specific product. The CEO also explained that the raised funds will not be cleared for creators until the promised products ship.
“By guaranteeing delivery of certain perks we can help ensure backers get their perks or get their money back. So far, backers of products in the Indiegogo Marketplace where shipping is guaranteed have been very happy with the experience,” Mandelbrot told The Verge via email.
This payment method was first tested by Indiegogo on its Marketplace, which is similar to eBay or Etsy, by letting creators to put up their products to sale on the platform. Much like other e-commerce sites, Indiegogo ensures that vendors have already shipped their product before transferring the sales proceeds to the creators.
At the moment, creators will still be given the option of choosing to have the “Guaranteed Shipping” on their pitch profile. However, this will definitely alter backers’ perception of which campaign to fund as more items are guaranteed for their money.
With this payment method crossing over from the Marketplace to the crowdfunding segment, Indiegogo is altering the way crowdfunding has always been done – backers risking their money to support a creator and at least basking in the glory of having tried to help a startup take off.




