When it comes to releasing a new product, there’s a lot riding on the success of that launch. And one of the key components to a successful launch is a strong pre-order sales strategy.
Pre-orders show how much interest there is in your product and give you an idea of how well it will sell. But you will only realize this and other benefits if you have a strong pre-order sales strategy. Otherwise, you could be missing out on a lot of potential customers and sales.
As a Shopify merchant relying on eCommerce, pre-orders can be a great way to increase interest and sales for your new product launch.
But what exactly is a pre-order? And why is it important for your online business? Keep reading to find all the answers you need.
What Is a Pre-Order?
A pre-order is when customers purchase a product before it’s available on your Shopify store. The preorder can happen weeks, or even months, in advance. Customers reserve the product on your eCommerce store so they can be among the first to get their hands on it.
The main goal of preorders is to create excitement and hype around a product before it launches. This way, customers can secure their place in line to receive the product when it’s ready to ship. A well-executed preorder strategy excites customers because they know they can own the product before the seller releases it to the market for public purchase.
A strong preorder sales strategy means more than just making a product available for purchase before it launches. It’s also about giving customers incentives to buy the product and creating a system to ensure they receive the product on launch day.
What Are the Benefits of a Strong Pre-Order Sales Strategy?
The benefits of pre-order strategies extend beyond creating a buzz around your product.
Some of the other benefits you can enjoy include:
You Can Test the Market
A pre-order campaign can help you test the market before fully committing to a product launch. Testing is especially useful if you’re selling a new type of product or targeting a new market. Preorders will show you the demand level for your product in the target market.
By gauging customer interest through pre-orders, you can better understand whether your product will be successful. If you don’t receive many pre-orders, it may indicate that there isn’t enough interest in your product. In this case, you can make changes to your product before fully launching it.
Making Sales Before the Product Launch
A pre-order campaign can generate sales before your product is even available. During preorders, customers are more likely to buy a product if they know they can get it before anyone else. This sense of urgency encourages customers to buy the product as soon as possible rather than wait until it’s officially launched.
People don’t want to miss out on something that everyone else is buying. So, by promoting pre-orders, you can tap into this fear of missing out (FOMO) and generate sales before your product is available. The sales are especially useful if you sell a limited-edition product or have a limited supply.
This can be a great way to increase early sales and get your product off to a strong start. Not to mention, you can use the revenue from pre-orders to fund your product launch.
You Can Make More Informed Decisions
The data you collect from pre-orders can be extremely valuable in making decisions about your product launch. This data can help you make informed decisions about everything from pricing to packaging. You can also use this data to improve your marketing strategy and ensure you’re targeting the right audience.
For example, let’s say you’re selling a new product. You can use pre-orders to test the demand for this product in different markets. If you find that there’s more interest in one market than in another, you can focus your marketing efforts on that market.
You can also rely on the data to decide how much inventory to produce. If you find that you’re receiving more pre-orders than expected, you can increase your production to meet this demand. On the other hand, if you’re not receiving as many pre-orders as you’d hoped, you can adjust your production accordingly.
You Can Get Free Marketing
A successful pre-order campaign can generate a lot of free marketing for your product. Customers who pre-order your product are effectively promoting it to their friends and followers.
For instance, suppose you plan to introduce a new product to the market in the coming months. If one of your customers pre-orders this product, they may post about it on social media. Posting can generate interest in your product and encourage others to pre-order it.
Customers who pre-order your product are more likely to be brand advocates. This means they’ll be more likely to promote your product in the future, whether it’s through word-of-mouth or online reviews.
Prepare Your Product Launch for Fast Take-Off With a Pre-Order Sales Strategy
A strong pre-order sales strategy is vital for Shopify merchants. It can help you generate sales, improve your cash flow, make more informed decisions, and get free marketing. So if you’re launching a new product, promote pre-orders to give your product the best chance of success.