How Does Pre-Order Work? 5 Strategies to Sell More with Pre-Orders
A person in business should make and apply good marketing strategies frequently to remain successful in the market. Focusing on managing the pre-orders is the latest trend being followed in the market. Many newcomers in the market may have a query regarding this new concept. A focus on the idea may help many in achieving success.
Understanding Pre-Orders: What They Are and How They Work
Pre-orders allow customers to reserve an item before it's released. This benefits both buyers, by guaranteeing they receive the product, and sellers, by gauging demand. Here's what you need to know about pre-orders and how to use them effectively.
What Is a Pre-Order?
A pre-order is an order placed for a product before it's available for purchase. Customers can reserve their copy by putting down a deposit.
Pre-orders have two key benefits:
- For customers, it guarantees they will receive the product once released.
- For businesses, it helps estimate demand and plan production.
Placing a Pre-Order
Customers can place pre-orders through a company's website, physical store, or other sales channels. Typically, they will put down a deposit or pay in full to complete the order.
Most pre-orders have a set window, after which no more orders are accepted. This creates urgency for interested customers.
Changing or Canceling a Pre-Order
Customers can sometimes change or cancel pre-orders, depending on the company's policy. The ability to modify an order typically decreases the closer it gets to the release date.
Once the product ships, customers lose the ability to make changes.
Benefits for Sellers
Pre-orders offer several key advantages for businesses:
- Estimate demand - The number of pre-orders received helps predict total demand.
- Improve production planning - With more accurate demand forecasts, companies can better plan manufacturing.
- Generate capital - Money from deposits helps fund production costs.
Pre-Order Marketing Strategies
To maximize the benefits of pre-orders, sellers should focus on these key strategies:
- Offer discounts or perks for early adopters.
- Use social media and email lists to promote the pre-order opportunity.
- Limit the number of items available for pre-order to create urgency.
- Prioritize pre-orders during fulfillment to delight customers.
Following best practices for pre-orders ensures a smooth process for customers and sellers alike. Reach out to our ecommerce experts if you need any help managing pre-orders!
FAQs
What is a pre-order?
A pre-order allows customers to order a product before its official release date. It involves putting down a deposit to reserve their copy.
How do pre-orders benefit my business?
Key benefits include gauging demand to improve forecasts, planning production runs, and generating capital to fund manufacturing costs.
What's the best way to promote a pre-order?
Successful pre-order campaigns offer early adopter perks, build hype on social media, announce scarce availability, and prioritize pre-order customers.
Can a customer change or cancel their pre-order?
Customers can sometimes modify pre-orders depending on seller policies. But once an item ships, no changes are allowed.
When should I stop accepting pre-orders?
Set a clear end date for pre-order acceptance so production can be planned accurately. Limiting the window also encourages customers to act fast.
How much deposit should be required?
Typically 10-20% down is needed to complete a pre-order. This helps cover production costs without overburdening customers.
Should my whole inventory be available for pre-order?
No, holding back some regular inventory allows for flexibility to meet demand surges. Allocate 80-90% for pre-orders, and the rest for normal ordering.
When will pre-order customers receive their items?
Communicate expected delivery timelines clearly. Prioritize fulfilling pre-orders first when inventory arrives to delight early supporters.
