The world of e-commerce is constantly evolving, with new tools and techniques emerging every day to help businesses increase their sales and reach wider audiences. One such tool that has gained significant popularity in recent years is the concept of preorders. Preorders allow customers to purchase items before they are officially released or in stock, generating excitement and increasing demand for a product.
Shopify, one of the leading e-commerce platforms, provides merchants with several preordering apps that can significantly benefit businesses. In this article, we will discuss how you can boost your business with Shopify preorders, from understanding the basics of preorders to implementing them successfully in your online store.
What are Preorders?
Preorders are a sales strategy in which customers have the option to place an order for a product before its official release or availability. This allows businesses to gauge the demand for a product and generate buzz before its launch. Preorders are commonly used for new product launches, limited edition items, or products with high demand.
Why Should You Consider Shopify Preorders for Your Business?
Shopify is one of the most popular e-commerce platforms, boasting over 2 million businesses worldwide. It offers a range of features, including a simple and user-friendly interface, customizable themes, payment gateways, and marketing tools. The addition of preorders makes Shopify even more attractive for businesses looking to boost their sales.
There are several reasons why Shopify preorders can benefit your business:
1. Generate Buzz and Increase Demand
Preorders can create a buzz around a product, generating excitement and anticipation amongst customers. By allowing customers to place an order before the product is officially available, businesses can build hype and create a sense of urgency, encouraging customers to make a purchase and secure their item before it sells out. This increased demand can lead to a surge in sales and drive revenue.
2. Test Product Demand
One of the biggest advantages of Shopify preorders is that they allow businesses to gauge the demand for a product before it is officially launched or in stock. This can help businesses determine the appropriate inventory levels, as well as identify any potential issues with the product that need to be addressed before the official release.
3. Secure Sales in Advance:
Taking preorders means that customers are paying for products before they are shipped. This allows you to gauge the demand for a particular product and ensure that you order enough inventory to fulfill Shopify preorders. It also provides a steady stream of income before the product is officially released, giving you a financial boost.
4. Build Customer Loyalty
Customers who place preorders are often early adopters and loyal fans of a brand, making them valuable customers. By allowing preorders, businesses can reward these customers and build a loyal customer base. This can lead to repeat purchases and positive word-of-mouth marketing, further boosting sales and revenue.
5. Improve Cash Flow Management
Shopify preorders also help with cash flow management. By collecting payment from customers before the product is released, you can use those funds to cover the production and shipping costs. This eliminates the need to front the cost of inventory, which can be especially beneficial for small businesses with limited resources.
How to Set Up Preorders on Shopify
Setting up preorders on your Shopify store is a simple process that can be completed in a few steps. Fortunately, there are several tools that allow store owners to take Shopify preorders. One powerful app is Notify Me! Back in Stock & Pre-order helps merchants accept preorders with discounts, notes, delivery fulfillment, and more.
Step 1: Install the app
To enable preorders on your Shopify store, first log in to your account and install Notify Me! Restock & PreOrder app on your Shopify store. You can find it on the Shopify app store, or you can search from the admin dashboard on the top.
Step 2: Activate pre-order
The second step is to activate the pre-order widget. To access the pre-order section, go to the Widgets tab in the app. Here, you can edit product details such as badge title, widget title, and widget description. Furthermore, you can customize the widget’s style to fit your store easily.
Now, press the toggle button to turn the preorder on. Your products will now display a preorder button, allowing customers to request Shopify preorders.
Step 3: Setup pre-order
To display the pre-order button on your store, make sure you’ve set up all the required settings.
Basically, you must have out-of-stock products to let your customers pre-order. Keep in mind the pre-order button will not appear automatically for every stock-out product.
Make sure that the “Continue selling when out of stock” option is enabled for the product you want to enable pre-orders for. This way, the product is ready to be purchased even when it becomes out-of-stock. To activate this option, go to the product page in your Shopify admin and click on the Inventory section.
There are also settings that determine when the preorder button appears, such as the billing policy, discount option, and fulfillment trigger. You can customize them to match your store’s preferences. Go to the Widgets tab> Pre-order->Settings.
Payment Options for Shopify Preorders
Shopify offers two payment options for preorders – full payment and partial payment. With full payment, the customer is charged the full amount at the time of purchase. With partial payment, the customer is charged a deposit (typically a percentage of the total amount) at the time of purchase and the remaining balance is charged on the release date. You can choose which option works best for your business.
Step 4: Monitor Pre-orders and Fulfillment
Once preorders are set up on your store, it is important to monitor them and ensure that you can fulfill orders on the release date. Keep track of how many preorders you have accepted and adjust the available quantity if necessary. Orders can be monitored from the reports section. Here, you will get an overview of the various pre-orders that have been placed and the ones that have been shipped.
Tips for Successful Shopify Preorders
While setting up preorders on Shopify is relatively easy, there are a few things to keep in mind to ensure a successful and smooth process:
1. Set Realistic Expectations for Customers
When setting up Shopify preorders, it is essential to be transparent with customers and provide accurate information. Let them know the expected shipping date and be honest about potential delays or changes. This will help build trust with customers and avoid any disappointment or negative reviews.
2. Offer Incentives
To encourage customers to place a preorder, consider offering incentives such as a discount or free shipping for preorders. This can entice customers to make a purchase and increase sales.
3. Communicate with Customers
Keeping customers informed is crucial when it comes to Shopify preorders. Keep them updated on the progress of the product and any changes to the expected shipping date. This will show your customers that you value their business and keep them excited about the product.
4. Use Preorders to Build an Email List
By requiring customers to provide their email address when placing a preorder, you can build an email list for future marketing and promotions. This can help you engage with customers and drive sales even after the preorders are fulfilled.
5. Choose the Right Products:
Not all products are suitable for Shopify preorders. It’s important to choose products that have a high demand and limited availability. This creates a sense of urgency and exclusivity, which can drive up sales. You can also consider offering special discounts or promotions for preorders to entice customers.
Shopify preorders can be a powerful tool for businesses looking to boost their sales and revenue. With the right approach, preorders can create buzz, increase demand, and build customer loyalty. By following the steps outlined in this article, you can set up preorders on your Shopify store and take advantage of this sales strategy to drive success for your business.