Have you ever run out of any products to sell in your eCommerce store? Or maybe you have run out of money for manufacturing your products? Or maybe you are just willing to launch a great new innovative product?
Introducing a pre-order button and offering pre-order items could be the right solution for your online store. By opening pre-orders, you will be able to sell items you don’t have yet. Your customers will have the opportunity to purchase a certain product before it is ready to ship or even before it has been produced.
Have no idea what pre-ordering is? This article will show you what it is and things to be careful about when running this type of online business.
What Is Pre-Ordering?
A pre-ordered product is actually offering an item for sale on your eCommerce website that is not in stock at the moment, but that will be in stock at a specified date. When you open pre-orders on your online store, you let your customers get the items they want by reserving them in advance before they are officially available, without having to worry about these products selling out.
Pre-orders have been used by many retailers and suppliers for years, for example in gaming and music businesses. What do pre-orders mean for retailers? First, they give retailers and suppliers a good understanding of what the current demand for certain products is.
Secondly, they guarantee a certain number of sales and revenue. One good way to ensure this is to understand the supplier you’re buying from and that they’re trustworthy. To ensure they’re trustworthy, you can read customer reviews about them. For example, if you’re buying from a supplier like Popmarket, you’ll want to read customer comments, feedback and reviews to know what people are saying about them and if they are a good supplier.
Pre-orders can be used effectively in any industry from hand-made items to luxury designer goods to video games. Many popular retailers such as Apple use pre-orders to tailor production of new products and their shipment for various locations in accordance with the local preferences.
Pros and Cons of Selling Pre-Ordered Items Online
Selling pre-order products can be an efficient way to grow your online business, but you should manage them professionally. If you fail to deliver, they can potentially damage your eCommerce website’s reputation. Before you introduce a pre-order now button to your online store, you should take into consideration the following factors.
- Pre-orders guarantee you a certain amount of product sales and revenue during a specific period of time.
- You can use pre-orders as a useful survey to determine the demand for your products in a target market and estimate what quantity you need to fulfill the demands.
- Pre-orders can be used as a great marketing technique for pre-released products because they allow you to create a buzz and make your online shop popular.
- When using pre-orders, suppliers don’t have to worry about unsold stock.
- You can’t consider pre-orders to be a complete strategy you can rely on to run a successful online business. They guarantee sales of a certain quantity of products, but that is not enough if you want to grow your revenue.
- It’s the manufacturer who controls the turnaround of the product, and in case of any cancellations or delays from your supplier, your online business can face the risk of losing customers and credibility. It’s crucial to know the exact date when the product will be released and available in your stock before you set the date in your store.
- If you work on eBay or Amazon, pre-orders won’t work because these platforms have strict requirements for quick shipping. In case of delays and negative feedback from your clients, you may lose your account.
Like all good things, pre-order campaigns are best in moderation. They can be a beneficial tool for businesses looking to gauge demand, generate excitement, and raise funds; however, it’s important to consider the potential risks involved and plan ahead.
With the right manufacturer or supplier in place, plus successful marketing, communication, and a plan for ecommerce fulfillment, pre-orders can be a successful strategy for your ecommerce business.