Fulfilling MICRORACK to hundreds of backers in dozens of countries turned out to be much more complex and expensive than we initially calculated.
When we launched the Kickstarter in fall 2024, we budgeted for shipping based on available DDP (Delivered Duty Paid) options and $800 de-minimis in US. Here’s what changed along the way:
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Cheap DDP methods became unavailable for many countries because of the parcels volume
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DDU / DAP shipping to RoW happend to cost ~3× more than we planned (shipping method where the receiver pays duties on arrival).
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45% to 57% US import tax / tariffs on China-made electronics and accessories were not included in our original cost model and were introduced and updated twice during production, still adding up to more than 40% for us.
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20% of rewards remain unclaimed, which means less delivery fee collected and higher per-order shipping costs. In addition to all kickstarter devices we ordered more hardware, which now seems unnecessary and we should’ve safe that money.
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Operational costs were much bigger because of much longer production preparatons and testing. Multiple samples from two factories, all our design iterations (pcbs, packaging, website, printed manuals), Georgian customs on test batches, expidited shipping costs, and extended double QA checks ate our budget.
Put simply: we miscalculated the true cost of the whole campaign and global fulfillment, and that’s on us.
For example - the cost of shipping of only 100/150 orders to the US is now roughly equal to the cost of shipping all other rewards to the rest of the world. When we started, only a third of all oders required tax coverage and average shipping cost for the majority of orders was ~$30.
But at the same time, we don’t want to shift all of those mistakes onto you through surprise obligatory fees. So here is our plan.
Three Shipping Groups
To handle this as rationally as possible, we split fulfillment into three groups with different logistics strategies.
EU and US
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Orders are shipped as consolidated pallet loads to our fulfillment partner warehouses
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Orders are imported at cost, which is lower than retail price
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We handle customs clearance and pay VAT / import tax via our fulfiller brokerage services
Result for you:
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You should not pay customs bills when the package arrives.
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Parcels should show up at your door like a normal domestic shipment.
Downside for us:
- Paying these taxes for all EU and US backers at once consumes nearly all of our remaining capital.
This is why we will send a separate, voluntary contribution email (read details below).
Rest of World (RoW)
Here the situation is more fragmented because each country has its own rules and realities.
We’ve divided RoW shipments into two flows:
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Manual shipments from Tbilisi (Georgia)
For certain high-friction destinations (for example, Ukraine, Serbia and a few others) it’s easier for us to physically take modules to Georgia, pack them here, and ship manually by air/ground mail. This lets us reach those destinations reliably while keeping forwarding costs lower. -
Direct shipments from China
The rest of the RoW orders will be shipped directly from our fulfillment warehouse in China
After your package is shipped, you will receive a separate PDF receipt/invoice from MICRORACK. This is the document you’ll need for customs.
If your order is big you will likely need to pay local VAT/duties yourself according to your country’s regulations.
We simply physically cannot pre-pay or reduce those local taxes on your behalf.
If you’re in RoW (not EU nor US), please watch for an email titled something like “Your MICRORACK Customs Receipt & Instructions” – it will include detailed steps.
Why We Can’t Import and Clear Customs in Every Single Country
Each country has its own tax rates and thresholds, rules for electronics and multi-component kits as well as customs brokers and paperwork formats.
Setting up proper legal entity, VAT registration, and customs clearance in every single RoW country is simply inpossible, would take months of additional legal and administrative work and cost a tons of money.
So instead, we chose this hybrid model:
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We take care of EU and US taxes and customs (65% of backers, one-time import, significant economies because of scale)
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We ship RoW as DDU and provide backers with PDF and precise instructions so you can clear customs individually if needed with as little friction as possible.
We completely understand that this is not ideal, but it’s the only realistic way for us to ship in 2025 instead of postponing everything further.
Voluntary Contributions from EU & US Backers
This part is emotionally hard to write, but also important.
When we add up all extra shipping costs (switch to DDU), unexpected US import taxes and the extended production / QA period
…it becomes clear that paying for thw whole shipping with all EU and US taxes from our side burns remaining capital.
We feel that at this point it’s not appropriate to suddenly charge you mandatory extra fees. So instead, we decided on a voluntary model for EU and US backers:
- All Kickstarter rewards will ship regardless of any extra payments
- EU and US backers will receive a separate email with a link to pay a reduced contribution toward the taxes we’re paying on your behalf, based on order manufacturing cost, not the full retail value
- You choose whether to support us or not. We will respect either decision
We will also share here more data on per-backer averages later so you can see the real scale of cost for everyone.
We trust you, our community. If you’re in a position to help and you value MICRORACK’s long-term future, your contribution will make a very real difference.
Packaging, Damage Risk and Trade-offs
You’ve seen in the Kickstarter update that we decided to ship in simple packaging
Our original factory couldn’t deliver custom printed boxes in time, and finding a new packaging provider and managing them remotely, across borders and languages, would have added new risks and weeks of delay.
What we’re doing instead:
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All your kits, addons and modules are packed together in one box
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All modules are packed in ESD-safe bags + foam, and padded with bubble wrap for protection
We fully understand that this may reduce the “wow” effect of unboxing. On the other hand, we believe that the synth itself is the wow effect. We decided that you’d rather patch cool powerful sounds than admire printed cardboard after another six-week delay.
Note: if you receive damaged goods despite all precautions, please document it (photos of the box, labels, internal packaging, and modules) and contact support@microrack.org – we will handle replacements case by case.
What Happens If Customs or Courier Contact You
Relevant only for RoW backers, a few realistic scenarios may happen:
You may be asked to provide an invoice / proof of payment
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Use the PDF receipt that we email you after shipment.
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It will list contents and quantities, total amount you paid on our site, our company details and contact.
You may be asked to pay VAT / import duty
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This is expected behaviour in some RoW countries.
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Local tax rules vary – some countries tax electronics differently, some have de minimis thresholds, etc.
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Unfortunately we cannot change these rules.
If you are facing a problematic customs situation, please contact us first (support@microrack.org) with details. We will try our best to help you navigate it.
If you consider refusing the package
Please be very careful here.
When a parcel is refused and sent back, couriers charge us a penalty between $100 and $400 depending on country and shipment size + cost of shipping cost of device (if disposed).
Just a few of such returns can seriously hurt us.
If you are facing a problematic customs situation, please contact us first (support@microrack.org) with details. We can to help you navigate it and find best solution. We will treat such emails as the most urgent.
Preorders and Next steps
To be fully transparent our working budget is temporarily broken.
This is why preorders from our website will only ship in Q1 next year – after we stabilize the flow and complete the first Kickstarter wave.
We also made a conscious decision not to push preorders a lot in general and do not participate in this Friday madness before your rewards are on the way. We didn’t want to loudly sell new units, cause it did not feel honest to us while backers were waiting.
We chose to focus on delivering first.
And now when everything will gradually ship, we are thinking to start to promote MICRORACK pre-orders more actively in the coming weeks.
Please let us know in comments if you find this appropriate or not or suggest us better ways to gain more momentum sooner. It feels right to ask you first.
Still Good News
Amid all these logistics headaches, there is a very bright side: all hardware is produced – it’s real, it’s yours, it’s performing great and its coming!
You didn’t back just a dream. You backed a very real, working instrument – and it’s finally about to move toward your desk.
Let’s Talk
We know that all of it may be upsetting for some of you. Taxes and logistics are rarely fun topics – especially when they come with words like “we miscalculated”.
If you’re frustrated, skeptical, or just tired of waiting, that reaction is completely understandable.
We’re not asking you to be happy about any of this. We’re trying to be fully transparent about what happened and where we stand.
We hope to give you here a dedicated place to ask detailed questions, offer ideas, and – if needed – vent.
Please use this thread for:
- Any questions about your specific country or situation
- Suggestions on better shipping or customs strategies
- Emotional reactions (good and bad) that you want us to hear
- Anything else you find relevant
We’ll answer as frequently and honestly as we can.
Thank you for reading this far and for staying with us. We’re doing everything we can to make this final stage of this huge journey as fair and smooth as possible, even if it’s not perfect.
Stay strong and never stop!
MICRORACK Team