What is preorder, and how does it work?
Pre-orders started appearing back in 1980 in the gaming industry market. At that time, consumers used them to ensure that their copy of a physical product would be delivered as soon as it was available. This strategy has been a huge success until today. Based on this, we can conclude that pre-order expresses a consumer's intention to reserve and purchase a product (or service) prepared for production or sale soon.
Here's a classic lifecycle of a pre-order campaign:
- Announcement: a company announces a product that will be available soon. This could be anything: an updated bestseller, a new tech gadget, a book, or a limited-edition clothing line.
- Promotion: The company promotes upcoming products, often emphasizing their unique features or early-order benefits. This creates anticipation and demand.
- Placing an order: Interested buyers place an order (and usually prepay) before the product is available. They do this through the company's website or other sales platform.
- Production and Supply: Behind the scenes, the company uses these pre-orders to estimate demand and adjust production and inventory accordingly.
- Shipping: Last but not least - shipping the product to customers. Try to make it as smother as possible.
What are the Shopify Pre-order Methods?
In Shopify, pre-orders are mainly divided into two types: Pay Now and Pay Later.
"Pay Now" Pre-order method.
In the Pay Now method, customers go through the usual checkout process and make their payment at the end. Since you receive payment immediately when the order is placed, it's essential to provide comprehensive information, adhere strictly to the shipping schedule, and effectively manage customer expectations. Therefore, this method is ideal if you have already gained buyers' trust and have a proven product.
Some advantages of the "Pay Now" pre-order method:
- Prepayment: Helps manage cash flow and strengthens the business's financial foundation.
- Inventory management: It's much easier to manage your inventory when you know how many goods are pre-ordered and will be shipped as soon as possible.
- Establishing client relationships: The pre-order method assumes more communication with your clients than regular sales. This is a great moment to build trust and reliable customer relations.
"Pay Later" Pre-order method.
In this pre-order method, customers place their orders without making an immediate payment. This method allows customers to reserve a product for free right now and pay for it later.
Some advantages of the "Pay Later" pre-order method:
- Demand check: Test new products and gather valuable customer reviews and feedback information.
- Sales for delayed products: Increase sales of products that will become available but have a high probability of being delayed. In most cases, the ability to pay later causes significantly less resentment when goods are delayed.
“Crowdfunding” Pre-order.
The crowdfunding pre-order method works similarly to "Pay Now" but with a twist: customers pay during production. This option generates the cash flow needed to finish creating the product. However, customers may have a bit of a longer wait before their product arrives.
Why Should You Set Up Pre Order in Your Shopify Store?
Setting up Shopify pre order in your store can increase sales and enhance customer satisfaction by providing several key advantages. One such benefit is capturing early sales for out-of-stock or soon-to-be-launched products. By offering customers the opportunity to purchase items before they become widely available, you can gain a competitive position in the marketplace and secure your profits.
Another benefit is the ability to measure customer demand for specific items before investing in them. Additionally, pre-orders improve the overall customer experience by allowing shoppers to reserve popular or limited-quantity items, ensuring they get all desired products.
Pre-ordering offers several benefits for both businesses and customers:
- For Businesses: It indicates customer interest and demand, which helps plan and manage inventory. It also generates early revenue, which can be crucial for funding production, especially for smaller businesses or startups.
- For Customers: They get the assurance of receiving a desired product as soon as it becomes available. Sometimes, pre-orders come with special incentives like discounted prices, additional features, or exclusive bonuses as a reward for their early commitment.
Furthermore, pre order let merchants collect important information about customers, their preferences, shopping behavior, and product interest. Later, collected data can be used to optimize marketing strategies and product collections.
What are Shopify Pre-Order Apps?
Shopify pre order apps, sometimes called pre-order Shopify apps, are specialized tools designed to help merchants offer customers the option to order products before their official release. These apps optimize checkout by implementing a single-step, quick order form tailored for pre-order orders.
The EasyOrder - Order Form app simplifies the checkout experience pre-orders, enabling online store owners to reduce abandoned carts, monitor customer interactions, and customize the ordering process to align with their store's unique requirements.
EasyOrder ‑ Shopify Pre Order app
Customizable, one-step order form to sell ин Pre Order and Cash on Delivery. Universal solution for different business models.
What are the Advantages of Shopify Pre-Order Apps?
Shopify pre-order apps provide several significant benefits for e-commerce merchants, enabling them to enhance their store's performance and customer experience. Below are some notable advantages:
Test Demand
Shopify pre-order apps allow you to assess customer interest in specific products before investing in inventory or production. By understanding the demand for particular items, you can make informed decisions about which products to prioritize, ultimately improving store performance.
Capture Early Sales
Pre-order apps enable you to secure sales for out-of-stock or soon-to-be-launched products. This ensures that you capture revenue from eager customers and gain a competitive edge in the market by offering items before they become widely available.
Generate Revenue
By offering pre-orders, you can generate additional revenue for your store. Customers excited about a particular product are more likely to pre-order, providing you with an early boost in sales.
Reduce Risk
Pre-orders help mitigate the risk associated with overstocking or understocking products. By gaining insight into customer demand, you can better manage your inventory levels and avoid issues such as unsold stock or missed sales opportunities.
Build Anticipation
Launching pre-orders can create a sense of anticipation and excitement around your products. This buzz can help increase brand awareness and attract more customers to your store, driving additional sales and interest in your offerings.
How to Set Up Pre-Orders on Shopify?
Implementing pre-orders in your Shopify store is a simple process that every merchant can handle. Follow these simple steps to set up everything you need:
Step 1: Enable Pre Orders on Shopify
Install Shopify pre-order app EasyOrder Configure the app settings to align with your store's requirements and preferences.
Step 2: Apply Pre-Order to Products
After installation, you'll see the app's dashboard. Navigate to the "Apply to" tab and chose to which products the COD form must be applied (Whole store, Selected collections, Selected products).
Step 3: Set Pre-Order Form
Design your pre-order form by customizing fields, text, and layout. Ensure that the form aligns with your store's branding and provides a friendly experience for your customers.
Step 4: Choose Placement
Decide where the pre-order form will appear within your store. You can choose to display it on the catalog page, product page, or both, depending on your desired customer journey and user experience.
Step 5: Choose How to Store Pre-Orders
Select whether to store pre-orders as regular or draft orders in your Shopify store. This choice may depend on your store's specific workflow and fulfillment process.
Step 6: Final Setups: Shipping Cost Settings and Advanced Settings
Complete the pre-order setup by configuring shipping cost settings and adjusting advanced settings. That is it - with these simple steps, you’ll quickly set up pre-orders in your Shopify store.
What are the risks of pre-ordering?
Pre-ordering on Shopify, while beneficial, carries inherent risks as well. We've collected the most common potential problems so that you don't run into them:
Overestimating Demand: Misjudging customer interest can lead to overproduction, resulting in excess inventory and financial strain.
Production and Supply Chain Issues: Delays or problems in production or supply chain can result in failing to meet the promised delivery dates, affecting customer trust and satisfaction.
Financial Dependence on Pre-Order Revenue: Relying heavily on pre-order revenue for funding production can be risky, especially if sales don't meet expectations.
Reputation Risk: Failure to deliver as promised can harm the brand's reputation and future customer trust.
Customer Service Overload: Handling queries, complaints, or refund requests related to pre-orders can strain customer service resources.
Wrapping up
Setting up pre-orders on your Shopify store can provide significant advantages, including testing demand, increasing revenue, reducing risk, building anticipation, and collecting data. By implementing EasyOrder ‑ Order Form for COD in your Shopify store, you can streamline the pre-order process, creating a convenient and enjoyable shopping experience for your customers. Embrace the power of pre-orders and elevate your e-commerce business to a new level with apps by NexusMedia.
EasyOrder ‑ Shopify Pre Order app
Customizable, one-step order form to sell ин Pre Order and Cash on Delivery. Universal solution for different business models.
FAQ
How does Shopify pre order differ from regular orders on Shopify?
A pre-order represents a customer's commitment to purchase an item that is unavailable or temporarily out of stock. Upon the product's availability, it is shipped to the customer who placed the pre-order. Pre-orders allow customers to order products before their official release or restocking.
Can I offer pre orders on certain products only?
Yes, using the EasyOrder app by NexusMedia, you can easily adjust which products will have a pre-order option. You can choose exact products or product collections.
Can customers cancel their pre-orders on Shopify?
Your customers can cancel only partially paid pre-orders that haven’t been fulfilled yet. If the order has been fulfilled, then the customer can't cancel the order, but he can still issue full and partial refunds for fulfilled items.
