Though Kickstarer only takes 5%, you pay another ~5% in payment processing fees, and then you must set up and pay for fulfillment yourself, which is time consuming and expensive! We think it is inefficient that every Kickstarter or Etsy creator has to come up with a solution on their own, often at a large expense. We want the creator to focus as much as possible on building the best product they can, not on fulfillment, website, video, PR, etc etc.
You can read more about our wholesale pricing thoughts at: http://swish.com/wholesale
Payment processing can be added easily to any customer-facing website. One-time product fulfillment for any number of customers, for completed products all located at one place isn't too hard. Yes, packaging is a challenge, but there are dedicated e-fulfillment services like Shipwire that don't cost so much.
Assuming I have a product that I would like to sell for $100, after accounting for payment processing and order fulfillment (let's say at 3% and 5% respectively), that leaves around 27% for customer acquisition. So I have to decide if paying more than $25 to acquire each customer is worth it. If we're talking about Costco, Amazon, Walmart, maybe. Some inventors would give their first born to get on a Costco or Walmart shelf, probably for good reason too. I don't think Swish offers the same value proposition, at least not yet.
From a manufacturers perspective, it is great to sell through places like this because it allows you to assess demand before investing cash in a product.
For example, http://www.unbrandeddesigns.com/ is gaining traction as "Quirky for furniture". I see many advantages. The submissions and participants are more focused and passionate since they're only dealing with the type of product they care about. And the team can source, build, sell, and distribute more effectively because they are only working within one industry.
Cool idea though.
