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How Do Pre-Orders Work on Shopify?

3 minutes read
How do pre orders work on Shopify?

Want to build buzz and lock in sales for upcoming product releases? Pre-orders check both boxes, creating a win-win situation for customers and e-commerce store owners.

Website On Demand answers the question of how do pre-orders work by spotlighting key benefits, including inventory management and improved revenue, in this helpful step-by-step guide. Learn how to master the art of the pre-order.

How Do Pre-Orders Work?

By running a pre-order campaign, customers can buy products before you officially release or stock them in your online store. Letting customers make reserve orders gives them the thrill of guaranteed access to new products. As an online store owner, offering pre-orders is a time-tested way to predict demand and manage inventory.

Pre-Order Advantages and Disadvantages

Now that we’ve answered how a pre-order works, let’s delve into the advantages.

  • Generate Buzz: Pre-orders get customers excited about your latest product. Promoting upcoming releases and letting customers order them early will spark interest among your target audience.
  • Secure Sales Early: Pre-orders are perfect for generating revenue before releasing products. An early influx of cash can help cover production costs, mitigate financial risks, and provide valuable insights into your brand’s popularity.
  • Manage Inventory: How do pre-orders work to help manage inventory? By letting you gauge demand accurately and adjust inventory levels accordingly. When you know how many customers pre-purchase a product, you can better plan production and supply chain management.

Here are some disadvantages of pre-orders and tips for overcoming them:

  • Cash-Flow Uncertainty: Although pre-orders can bring in an early influx of cash, they may also introduce cash-flow uncertainty. Customers pay upfront for yet-to-be-released products, so manage your finances carefully to ensure you have enough capital for production and fulfillment costs until you’re ready to ship orders.
  • Risk of Overpromising: Setting unrealistic expectations or overpromising delivery dates could frustrate customers. If unforeseen delays occur, be transparent with buyers and keep them updated.
  • Increased Customer Support Demands: Managing pre-order campaigns could require extra customer support. As pre-orders roll in, you may need to allocate more resources to ensure timely and effective communication with shoppers.

The Pre-Order Process

How do pre-orders work on Shopify? Our steps help you understand this function.

Here’s our step-by-step guide to mastering the process of how pre-orders work on Shopify:

  • Set Up Your Pre-Order Campaign: Select the products you want to offer for pre-order and determine their availability dates. In your Shopify admin dashboard, you can enable the pre-order option for each eligible product and specify the expected release date.
  • Communicate Clearly: Communicate important details, such as the expected release date and estimated shipping times, early. Regular updates and promptly addressing customer inquiries can help build trust and credibility.
  • Manage Expectations: Be realistic about pre-order timelines and set reasonable customer expectations. While promising quick turnaround times is tempting, it’s essential to consider potential setbacks or unforeseen challenges during the production or fulfillment process.
  • Collect Payments: Customers are typically charged upfront for the full or partial product amount when they place a pre-order. Ensure your payment processing system can handle pre-orders securely and efficiently, and share your refund and cancellation policies.
  • Fulfill Orders Promptly: Once your pre-ordered products become available, fulfill orders promptly and provide tracking information and shipping updates to ensure smooth and transparent delivery.

How Do Pre-Orders Work Better? With Website on Demand

With clear communication, transparency, and personalized customer service, you can create a seamless pre-order experience that fosters customer loyalty. But how do pre-orders work even better? With help from Website on Demand’s Shopify e-commerce and dropshipping apps. Contact a representative to find out more or start your free trial.

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