Pre-orders can help an eCommerce store manage inventory lulls by allowing customers to purchase items that are not yet in stock. The merchant can gauge demand for the product and order enough inventory to meet that demand when the product becomes available. It also allows the store to spread out the financial burden of purchasing inventory over a longer period, rather than having to place a large order all at once. Pre-orders can also help to generate buzz and excitement around a new product, which can drive additional sales when the product is finally released.
Keeping Appropriate Stock Levels
Pre-orders can be a useful tool for managing inventory stock levels in an eCommerce store. By allowing customers to purchase items that are not yet in stock, the store can get a sense of the demand for the product and plan its inventory levels to stock accordingly. This can help the store to avoid overstocking or understocking, which can both have negative consequences. Overstocking can lead to wasted resources and financial strain, while understocking can lead to lost sales and disappointed customers. Pre-orders can help the store to strike the right balance and ensure that it has the right amount of inventory to meet customer demand. In addition, eCommerce stores can better optimize their inventory levels, reducing the risk of overstock and its associated costs.
Create a Sense of Urgency
Offering preorders on your Shopify store can create a sense of urgency and drive sales of old or excess inventory. By allowing customers to pre-order the product, the business can generate buzz and excitement around the product and create a sense of scarcity, which can encourage customers to purchase before the product runs out. This can be especially effective if the business is offering a special deal or promotion for pre-orders, as it can provide an added incentive for customers to make a purchase. When trying to move excess inventory, offering mystery boxes of a specific category of products like t-shirts, socks, and snacks on pre-order can be really exciting for our customers and can help you deplete old season’s inventory. Overall, pre-orders can be a helpful tool for businesses that are trying to move old or excess inventory in a timely and efficient manner.
Moving New Inventory Quickly
Pre-order capabilities have many advantages beyond moving old inventory. Some of these include providing customers with the opportunity to get the latest products as soon as they hit the market, driving incremental sales, and offering customers the convenience of shopping early, saving them time and money. Additionally, pre-orders can help better manage customer demand, since they help eCommerce stores to better gauge interest, allowing them to plan and budget for stock appropriately.
Increase Market Reach
eCommerce stores can increase their marketing reach by offering pre-orders to new markets, regions, and even countries. If a certain region or country sells well in that area, decisions on stocking and managing inventory in those areas can be determined at lower risks than opening up new warehouses prematurely.
Selling products on pre-orders has a lot of advantages for inventory management. The majority of these strategies can be used in tandem or at various points in the year to test out new ways of maximizing revenue while depleting old inventory in the catalog.
To have a solution that Shopify stores can turn on and off by product and specific collections, it gives the competitive advantage and freedom to test new ideas and capture higher profits all year round. PreOrder Now is available on Shopify and Shopify Plus free for 14 days.