Pre order means ordering a product before it's available, meaning the customer will wait for it to be delivered as soon as it is officially released. This method is often used by start-up businesses to generate funds for manufacture or to understand the demand from customers.
Advantages
Less risk
Receiving a payment before the product is available guarantees funding for manufacture or for purchasing inventory before it is released. You know some of the products you are manufacturing or purchasing are already paid for.
Forecast demand
Pre orders provide insights into demand so the business has a better picture of what sizes, colours and options you should produce in order to meet existing customer demand.
Generate excitement & drive growth
Generating a buzz beforehand and creating awareness for a new product release is a really positive strategy which can come with making pre orders an option. To increase interest you could offer a limited amount of pre orders to increase the products desirability and generate urgency to purchase. When advertising this ensure you are using professional images and good, informative copy. To help increase pre orders, when you advertise you could offer discounts, free customization, a free gift etc, you can promote this on social media either organically or through targeted paid ads.
When advertising on social media it is important to research your target audience so you know exactly who you are marketing and how to go about it. It would be beneficial to be as organised as possible when it comes to social media marketing so you can maximise results, create a clear and consistent content schedule which includes things like teasers, countdowns, product info, release dates and all professional imagery etc. Make sure you know what platforms are available and which ones will benefit you the most. Influencers can be a great strategy to help increase excitement and generate awareness. Using the correct hashtags can help reach the right audience, and if you can collect user generated content to post on social media this is a very strong method to influence sales.
Disadvantages
Delays from manufacturer
Pre orders typically take place before the inventory is ready which means if there is a delay or production issue you could receive complaints, bad reviews and upset customers who were expecting the product by a certain time frame which could result in lost customers. It is important to choose a reliable manufacturer, preferably one you have worked with before.
Marketplace issues
Pre orders don't work on marketplaces like amazon and eBay due to strict requirements regarding processing and shipping times. Bad reviews from customers through these sites can result in account suspension.
.png)
.png)
