What is Pre-order? Why do businesses need it?
What is Pre-order?
Pre-order functionality in an online shop on Shopify allows businesses to offer products for sale before they are officially released or restocked. Essentially, customers can place orders and make purchases for items that are not currently in stock or available for immediate delivery. Instead, these products are scheduled to be shipped or made accessible at a later date.
Why do businesses need it?
Here are some reasons why businesses might choose to implement pre-orders in their Shopify stores:
Anticipation and Hype: Pre-orders can help generate anticipation and build excitement around upcoming products. This anticipation can translate into increased demand and sales when the product is eventually released.
Revenue Generation: Accepting pre-orders allows businesses to generate revenue before the actual product is available. This can be particularly beneficial for covering production costs or gauging demand for a new product.
Inventory Management: Pre-orders provide valuable insights into the level of demand for a product. This information can help businesses plan their inventory more effectively, ensuring they have enough stock to meet customer demand without overstocking.
Customer Engagement: Offering pre-orders can engage customers and involve them in the product development or launch process. It allows businesses to communicate directly with customers who have expressed interest in a particular product.
Market Testing: Pre-orders serve as a form of market testing. By allowing customers to pre-order, businesses can gauge the popularity of a product before making a large-scale production commitment.
Exclusivity: Businesses can use pre-orders to create a sense of exclusivity, making customers feel privileged to be among the first to access a new or limited-edition product.
In summary, implementing pre-orders in a Shopify store can be a strategic way for businesses to manage inventory, generate revenue, and build excitement around new or restocked products, ultimately contributing to the overall success and growth of the business.
Updated on: 17/11/2023