Companies are looking for ways to accelerates the purchasing process, increase sales, and get more products to their clients faster when it comes to e-commerce. "The hardest part is waiting," It's not just a song lyric but it applies to all the product-selling stores.
So, a strong way to sell is by creating anticipation among the customers. By converting a prospective sale into a purchase, pre-orders help you grow your business and improve relationships with your customers. They provide clients the chance to feel the age-old rush of anticipating the arrival of their brand-new favorite item at their doors, and they help your organization improve its accuracy and transparency you need to better estimate revenue and predict demand. Pre-orders are a powerful method to sell as a result.
Pre-orders: What Are They?
Pre-orders are anything you provide on your site or in your store that isn't now for sale but will be at a later time.
This is how we're defining them for the sake of this article.
Pre-orders provide your consumers the chance to buy an item in advance, relieving them of the anxiety that it will sell out.
When placing a pre-order, clients typically have two choices:
They can put down a small deposit to hold the item and pay the remaining balance when it is released.
They might pay in full right now.
Depending on how you go about it, using pre-orders enables your clients to skip the rush on launch day to receive your latest brand and gives them a variety of payment alternatives. It benefits both parties.
When Can Firms Use Pre-Orders?
Let's discuss when applying the pre-order strategy to your business now that we understand the fundamentals of pre-ordering.
You're likely considering what impending product launches you have that could profit from a pre-order program at this time. The main lesson to be learned from this is that you DON'T want to start a pre-order campaign for everything you publish.
You should generally avoid launching a pre-order campaign for, example, a tiny upgrade to a product you already offer or a minimal new product you're getting ready to launch.
Here are some instances where you should think about starting a pre-order program.
- Whenever a Fresh Flagship Product is Released
- Retailers have learned over the past 20 years that preorders are a crucial component of a new product's successful launch. This is especially true when introducing significant flagship products.
- Create a compelling pre-order campaign if you want to launch a new product with the highest possible sales velocity.
- Of course, a preorder campaign is not always necessary for a brand-new product.
- When starting a brand-new company, you can apply the same concepts.
- Naturally, you'll need a product for customers to pre-order, but in this case, you're selling your company or brand just as much as a product.
- After Covid, additional businesses have adopted a strategy that emphasizes pre-ordering new clothing and places less importance on the conventional fashion calendar.
- Preorders make it possible for customers to interact with their favourite companies no matter the season.They can place pre-orders for products before they need them, starting the season early.
- Businesses can determine the level of curiosity in their newest lines, which is even better. Preorders provide businesses the ability to increase customer excitement and exclusivity, which increases sales.
- The same guidelines also apply to brand-new companies. A preorder campaign can have a significant impact on your firm's debut if you are a new company with a new flagship that characterizes your brand.
- When Selling Products in Limited Quantities
- Preordering limited edition products allows you to increase sales, generate buzz about your product, and make life easier for your marketing staff. It also lets your consumers acquire rare items without the hassle of having to find one on release day.
- When Running a Sale or Promotional on a Current Item in Your Line
- As most of our earlier examples have shown, preorders can be utilized to boost sales of items that are currently in your inventory.
- The simplest way to do this is to allow preorders for products that come with a discount or other offer for your clients.
- In this case, you're ensuring that you're moving stuff and driving sales acceleration and excitement while letting your consumers get in on an early promotion or discount (again, fueling their fear of missing out).
- Preorders should be seen as more than just a way to introduce new products. By extending discounts and promotions, use these techniques to breathe new life into current products.
Various benefits of a Pre-order Strategy are:
- PROVIDES INSIGHTS ON INVENTORY
- By the same token, the quantity of pre-orders you receive during pre-launch time enables you to gauge the level of interest in your product. This enables you to more accurately predict how much inventory you'll need when you launch.
- GUARANTEED SALES AND REVENUE
- Pre-orders are an excellent approach to making a fixed number of sales and money during the launch window. You can plan on all of those sales and revenue during the launch time when customers complete their transactions, even though you may not be able to predict how many pre-orders you'll receive with your offering as they come in.
- This offers you a decent indication of a product's performance as well as how much product you'll move and how much money it will make.
- Generates Excitement FOR YOUR NEW PRODUCTS
- We have talked about the hype and excitement that a pre-order campaign may generate for your innovative products. To capitalize on this, video game publishers have been advertising new releases months ahead of time and rewarding early buyers with bonuses for years.
Pre-order is something you should try if you're in an online retail company, from online product listing to e-commerce shipment. It is best to do this for a product that is supported by a well-known brand or celebrity or whose predecessors have a strong market reputation. Every business has an opportunity for a pre-ordering campaign, whether it be for smartphones, smart watches, or books. All you need is the right Shopify Partner like Lucent Commerce. Contact us to know more.