Keeping track of your product inventory is crucial as a retailer. But what happens if a product is sold out? As a bakeshop owner, you must ensure that all baking supplies are readily available. But what if the raw materials supplier fails to deliver on time? Will you pass up the chance to make a sale because of small setbacks? You can easily handle stockout problems by creating a strategic pre order alternative.
You'll be able to sell products you don't have yet by opening pre-orders. Your customers will be able to buy a product before it is ready for delivery, or even before it has been made. How to do it? You can simply add a “pre order now” button on your website.
A pre order can provide a fair indication of demand and a guaranteed amount of transactions, which is why more manufacturers and retailers are accepting them online. However, pre-orders can potentially damage your store's credibility if they are not treated properly.
So let's go through the following:
- How does pre order work?
- When are pre-orders acceptable for businesses?
- Advantages and Disadvantages of Pre order
- Pre order methods
- How do you run a pre order campaign?
- Setting up pre-orders in Strikingly
- Examples of pre order campaigns
Understanding Pre Orders and how it works
What does pre order mean for retailers and business owners? When you feature a product on your website or in your store that hasn't been made yet, or that isn't on sale yet but will be at a specific time and date, you're doing a pre order. Allowing pre-orders on a product helps consumers to pay a deposit or the full price of the product before it is released, ensuring that it will not sell out and that they will receive it as soon as it is released.
For years, many retailers and manufacturers have used pre-orders, such as in the gaming and music industries. What are the implications of pre-orders for sellers? For starters, they provide retailers and manufacturers with a clear picture of existing product demand. Second, they guarantee a certain level of income and sales.
However, various cases require different kinds of pre-orders. A startup in need of funding for its first production run would have different requirements than a well-established company looking to test, validate, and catch interest for its next product.
Pre-orders can be used effectively by a wide range of enterprises, from startups to large organizations (such as Sony's massive PS5 pre order launch) to smaller businesses.
When are pre-orders acceptable for businesses?
Although pre-orders are useful, they should not be used for any minor product launch or upgrade, because the last thing you need as a small business is a pre order disaster. As a brand, you want to create buzz and make consumers feel compelled to order your product, which will help you gain traction and increase demand.
Pre-orders are ideal for corporate events or product launches, such as:
- Businesses launches
- You've added a new flagship product to your line-up.
- Special items, such as limited-edition summer items
- If you're introducing a major campaign or offering significant discounts proven product
Pre-ordering has several advantages
There are many reasons why e-commerce retailers choose to accept pre-orders for new items on their websites. Here are the most popular and efficient pre order marketing strategies:
- Determine the level of demand
Pre-orders will assist you in forecasting demand for your product and determining how much of it you can manufacture or order. An online business can estimate the number of sales for pre-order products using this strategy, avoiding the issue of out-of-stock products.
- Reduce the financial risk
You should be able to supply or buy inventory before the release date if you receive payment when customers request a pre-order. This is particularly useful for younger retailers that don't want to borrow money to buy inventory that may or may not sell.
- Excite your customers
Pre-orders can help you build buzz around your business and item, particularly if you use the scarcity concept and restrict the number of pre-orders available for a limited time.
Limited pre-orders will make the customer feel important and like influencers, which would possibly drive engagement both online and offline through social networks and word-of-mouth. To boost sales, you can use content marketing, email marketing, or even influencer marketing to add to the hype. This will help raise awareness of the product in the run-up to its general release.
Pre orders have disadvantages
Despite the advantages mentioned above, depending on pre-orders can also have setbacks in your business
- Heavy reliance on the supplier
If you're using a pre order campaign to raise resources before ordering products, your company's fate is entirely in the hands of your manufacturer. The item could arrive late, change in price, or be of lower quality than what you sold to your customers. Pre-orders can only be offered if all of these risks are worth it to the business owner.
If these things happen, customers will quickly point the finger at your business, resulting in avoidable refunds, negative reviews, and customer dissatisfaction. To prevent this, we suggest working with a reliable manufacturer who is open and honest about lead times, as well as product quality and costs.
- Pre orders can not self suffice your business
Pre-orders cannot be considered a full strategy for running a profitable online business. They guarantee a certain number of product sales, but it is insufficient if you want to increase your sales.
- Not for Marketplaces
Pre-orders would not work if you work on eBay or Amazon because these sites have stringent standards for fast delivery. You risk losing your account if you have delays or get negative reviews from your customers.
Pre order methods
- Pay Now option: A pre order of this kind is the most common. It's the same as regular orders, but with a longer delivery time.
- Pay Later option: The customer places an order right now to pay later. Since no money has been paid, both the seller and the buyer have agreed that they will pull out of the agreement at any time.
- Crowdfunding: Brands can list pre-production goods with a rough delivery period (often months, not days) on crowdfunding platforms, with the expectation that the buyer will only be paid in the future if a certain number of pre-orders are placed.
How do you run a pre order campaign?
Many companies take the opportunity to introduce a product before it will be launched. Before making a huge investment, business owners should test the market. Customers can position an order using a pre order now button. Furthermore, you can use the pre-order function to create excitement in your target market before a particular item is manufactured.
Here are 4 simple steps in running a pre order campaign:
- Planning
- Marketing
- Communication
- Completing Orders
- Planning is essential
The most crucial element of a product launch isn't the day before or the day of the launch. In reality, what a company does in the weeks and months leading up to a product launch is much more important than the day of the launch itself.
Consider the following questions:
- When will you confirm the availability of pre-orders?
- What product would you make available for preorder?
- What marketing platform would you use to promote the advertisement?
These basic questions will help you ensure that your campaign's messaging is a success.
- Market your product on Social Media
A pre order can be a great way to promote your business on social media. Your online pre-order strategy should generate interest in your product. The main goal of using pre-order for a newly launched product is to increase traffic to your website. To alert your target audience, consider running paid ad campaigns on Facebook, Instagram, and Twitter.
- Communicate with suppliers and customers
It's important to maintain constant contact with your customers once you've received pre-orders. Keep them informed about the production process, and update the estimated ship and delivery dates as required.
Also, don’t forget to keep your line active with your suppliers or manufacturer. You need to maintain a good relationship with them since you depend on them on producing and shipping your products.
Even if your product arrives later than anticipated, your customers will appreciate the constant communication and clarity. Customer confidence and loyalty are built by communication, and loyal customers can become an invaluable source of not only sales but also word-of-mouth marketing.
- Fulfill Orders
Remember to keep timelines short. Pre-orders are most successful when the customer does not have to wait too long. For most items, a week to two months is considered a decent timetable. Customers can lose interest or forget about the order if you extend the deadline longer than anticipated.
Setting up pre-orders in Strikingly
Now that you fully understand how preorders work. Here are our easy steps in setting up a pre-order option on your website.
Simple Store allows you to set your items as preorders to receive payments for items that can't be delivered right away.
The image is taken from Strikingly Website
- Create a website where you will sell your products. If you don’t have one yet, worry no more because Strikingly’s mobile-friendly features can help you set up your professional website within minutes!
The image is taken from Strikingly Product
- Go to Store > [Products] to enable the pre order choice for your product. Then, for pre orders, edit one of your items. Select "Show as pre order and set shipping date," then enter a delivery date in the box below and click "Save."
The image is taken from Strikingly Product
- The [BUY NOW] button for that one particular product will be updated to “Pre-order” after you activate the Pre-order option. Your expected delivery date will be included in your product description as well.
The image is taken from Strikingly Product
Here are some examples of pre order campaigns:
- Nike Zoom pre order
The image is taken from magesolution.com
- PS5 pre order
The image is taken from yugatech.com
- Health Watch pre order
The image is taken from Strikingly Website
Maximizing Pre-orders
Since certain items don't sell themselves, you'll need to incorporate promotional and marketing efforts to make your pre orders a success. Pre-orders can be a quick and reliable method for increasing sales and rising the eCommerce business if used correctly.
At any stage of your business, having the opportunity to anticipate the demands of a product, create awareness, and boost revenue through pre orders can be a valuable addition to your business plan. Set up your hassle-free pre order campaign with Strikingly, inquire now!
