Shopify is an excellent platform for many merchants. Shopify offers incredible features with numerous customized benefits tailored to the merchant’s requirements have allowed it to dominate the ecommerce industry.
When a Shopify merchant launches a new product, one of the many challenges they face is managing inventory and cash flow. An effective solution? Shopify Preorders.
Using preorders, customers can place orders for products that have not been launched or are not in stock.
As the name suggests, merchants receive “pre” orders that can be fulfilled later. This can increase cashflow for merchants that require extensive investment in the manufacturing process.
Preorders on Shopify can help gauge the revenue generated and how well a product might perform before fully committing to a large production run. This can minimize overstocking or understocking situations. Additionally, merchants with stores in different locations can also determine how a newly launched product will perform in different locations.
“Why should I use Shopify preorders?” you may ask.
Here is the short answer: to accurately predict the performance of a product.
And here is the long one.
Shopify preorders can increase cash flow, provide flexibility during product launches, and minimize risks. Additionally, if you own multiple stores or get your products supplied from different stores, preorders can help you manage your inventory effectively. You can also mitigate any losses in case a product does not perform well.
Setting up product preorders involves a lot of consideration. In this blog, we walk you through the process and explain how to make your campaign successful once it goes live.
Table of Contents
What are Preorders on Shopify?
A Shopify preorder is a purchase for an item that has not yet been released or is not presently available. Customers are given an estimated date after which the products will become available. They can place orders ahead of time and are given higher priority once the orders are in stock or are launched.
Different circumstances demand different preorders. For instance, a company in need of cash to fund the manufacturing for its products will have different requirements from an established brand that is launching a new product.
What this does tell us, is that even if the target might differ, preorders can be successfully utilized by a wide range of businesses from startups to major corporations (e.g. Sony’s huge Playstation 5 pre-sale) to boutique enterprises.
When and Why Would You Offer Shopify Preorders?
Launching new products or selling out-of-stock products can incur significant losses. It’s all too common to spend hundreds of dollars on product creation and inventory that may or may not sell.
To ensure a business’s financial viability, it is critical to verify that demand for a product matches anticipated sales and expenses before investing in production. Preorders can help validate a product’s marketability before manufacturing.
Manufacturing, assembling, packaging, and dispatching orders are all inherently time–consuming and can incur several costs to the store owner. It can take up to 6 weeks for your supplier to fill an order and have the goods ready to sell in your warehouse at a profit.
Preorders allow companies to take orders and receive money before the preceding process is completed. In contrast to the conventional waterfall method, one stage must follow the next.
Another great application for preorders is the minimum viable product (or MVP). Validating a product concept before committing to it is a standard part of software development, but it’s less often discussed in e-commerce.
With preorders, testing new product pictures has become simpler. Stores can list new designs and color variants in advance, avoiding the risk of going into production until the product proves successful.
How Preorders on Shopify Work
There are different methods one can utilize to take preorders on Shopify. We’ve listed the methods and pros and cons for you to consider:
- Pay Now for preorders is the most popular form of preorder. It’s just a regular purchase with a longer delivery time in disguise. The majority of preorders are paid in advance.
- Pay later for preorders. The customer places an order now with the intention of paying later. There’s a belief that both the seller and buyer may back out of this agreement at any time because cash hasn’t been exchanged yet.
- Crowdfunding. Kickstarter and similar platforms, for example, allow companies to advertise pre-production items with a vague schedule for delivery (often months rather than days), usually with the understanding that the client will only be charged after a certain number of preorders are obtained.
#1. Pay now preorders on Shopify
Using this approach of preorder, a customer can directlypurchase a product (just like a regular purchase). The only difference will be the “buy now” button will say “preorder,” and below it, customers will see additional information about a longer delivery time.
Pros:
- You get paid upfront, which is fantastic for cash flow.
- It may be used to collect consumers for items that are currently out of stock but will be replenished by a certain date.
- Preorders can also be automatically taken using preorder apps when a product’s stock runs out.
- There is often the choice to include another piece of information (such as shipping date or stock availability) that can create urgency in customers.
Cons:
- Customers often merge their regular and preorder items in their cart, which may lead to higher shipping expenses and communication difficulties.
- Customers do not want to put their money down until they are confident in the product’s progress, and most customers would rather receive the product without any significant delays. Customers who have paid upfront will be concerned about delays or problems with deliveries.
#2. Pay later preorders
The ‘buy now’ button will be replaced by a ‘preorder’ button, just like with the pay now option. The pay later method allows you to keep track of your preorders in your own system until customers are ready to pay. At which stage, customers are sent payment links, allowing them to complete their purchase via your website.
Pros:
- You can take orders for future goods since customers aren’t charged until you’re ready.
- Customers should be able to preorder new items/variants before they are released, then only pay for them and promise to make them if enough people buy them.
- You can charge customers based on your preference, i.e., before or after you place an order with your suppliers.
- All preorders are kept in a special system separate from all other orders until they are paid.
- For each product, most applications include an email campaign that may be used to deliver updates, postpone shipping, and provide payment connections.
- Customers generally do not preorder your regular goods in order to Pay later. Customers often have a preconceived notion of how much money they want to spend, and this sort of preorder does not eat into that financial plan.
Cons:
- Payments are not immediately received in your account, reducing cashflow.
- Payment is not always requested in order for a preorder to convert.
- Out-of-stock items aren’t automatically categorized as preorders.
#3. Crowdfunding
Crowdfunding, popularized by Kickstarter, is the process of raising funds from a large number of people for a new product or venture which is in contrast to bank financing, venture capital, and angel investment.
A preorder is a type of investment that, like crowdfunding, allows individuals to purchase a product before it’s available. Using a platform like Kickstarter, IndieGogo, or your own Shopify shop with a third-party Shopify app, the procedure is made easier.
Pros:
- A successful crowdfunding campaign demonstrates a new company or product concept. You can set a sales goal for the campaign that must be achieved before you send out purchases.
- You get cash upfront that you can use to finance production.
Cons:
- This is not the greatest tool for rolling out small improvements. It’s preferable to new ideas and enterprises. Third-party companies might charge about 5%-10% of your product revenue.
- If you’re using a third-party platform, there’s a lot of work involved in maintaining and launching an excellent campaign page (for example, to demonstrate the product, you’ll frequently need a video and supporting graphics).
If you’re planning on crowdfunding, check out Shopify’s list of the top crowdfunding sites for raising cash to find one that best matches your goals.
How to Set Up Preorders on Shopify
The easiest technique to set up preorders on Shopify is to use a third party Shopify app that has the appropriate features to manage your campaign.
The most important aspect of most preorder applications is informing customers that the product in question is a preorder listing and will not be delivered until a later date.
This is generally indicated by replacing the “buy” button with a “preorder” button, as well as additional information on the product page.
When orders are taken, Shopify’s order management system or your preorder app’s dashboard are used, depending on whether the preorder has already passed through your checkout.
Functionality for most (but not all) preorder apps is based on:
- Which product/version will remain a preorder and under what circumstances (such as 0 stock, specific variant, time limit, etc.)
- The button’s visual design
- Conversion optimization tools, such as a countdown timer (for example)
You may start making listings using the Shopify app since it is now accessible through the “apps” section of the Shopify dashboard and can be launched from there. The app will react to your selections and theme in line with them.
I recommend following the app developer’s step-by-step instructions or contacting their customer service if you’re unsure and don’t have a technical staff to help.
Best Shopify Preorder apps
#1. PreOrder Globo | Back in Stock
- PreOrder Globo | Back in Stock is developed by Globo.io in 2017. It is a reputable app among US merchants and has a ‘💎Built for Shopify’ badge. The app offers numerous features and can be utilized by stores of various sizes.
- PreOrder Globo works with Google Analytics, Mailchimp, Klaviyo, Hubspot, Ominisend, Sendinblue, Weglot, Campaign Monitor, Langify, and ActiveCampaign to give you various options.
- Key Features:
- Configures preorders based on inventory levels. Automatically adds the preorder tags (like shipping date) to orders.
- Merchants can easily enable the preorder button using the app within the admin dashboard.
- Merchants can also add custom messages, set start/end dates for preorders with a countdown timer.
Pricing:
Globo offers a 7-day trial plan. Shopify handles the app charges during the monthly/yearly billing. Merchants can switch between paid and free plans.
#2. Notify! Back in Stock|PreOrder
Notify! Back in Stock|PreOrder is an app by notify-me.io that has been a top-performing app for Shopify merchants since 2020. With excellent customer service and great features, this app has garnered a rating of 4.9⭐ from 1500 reviews.
Key Features:
- The app automatically adds a ‘preorder’ button to your out-of-stock products.
- The app offers complete customization and control over the pre-order widget.
- Merchants with multi-location inventories can set up workflows to update and manage inventory.
Pricing:
Notify me offers a free plan and a 7-day free trial.
Lite: Free forever- 5 preorders per month.
Essentials: $19.9/Month – All lite features with unlimited preorders with 3% Transaction Fee on Preorders, Partial payment and 100 notifications.
Pro: $39.9/Month – All essentials features with 2% transaction fee on preorders, 1000 notifications, and hide button with tag option.
Premium Prime: $69.9/Month – All pro features with 0% transaction fee on preorders, 5000 notifications, and custom templates.
Notify Me!+: $250/Month – All premium prime features with unlimited notifications, multi-location inventory, and a professional consultation.
#3 Preorder, Back In Stock ‑ Stoq
Developed by Artos Software in 2021, the Preorder, Back In Stock ‑ Stoq app offers versatile features for Shopify merchants. It is a ‘ 💎Built for Shopify’ app and has been well-liked by over 750 users who have left positive feedback.
Key Features:
- Using the app, merchants can offer preorders, backorders, presales with deposits, etc.
- The app will sync with the inventory and alert merchants if a product is out of stock. This allows merchants to quickly enable the pre-order button from any page on their store.
- The app offers multi-language and multi-location inventory syncing, making it easier for a diverse population.
Pricing:
Preorder, Back In Stock ‑ Stoq offers a free plan and a 14-day free trial.
Start: Free for all – Up to 10 preorders, notify me, and preorder widget customization and automatic restock alerts.
Lite: $10/month – All features in the start plan plus up to 100 preorders ($0.25 per preorder above 100), no transaction fee, multi-language and multi-location inventory sync.
Standard: $29/month – All features in the Lite plan plus up to 400 preorders ($0.1 per preorder above 400) and API integration. Pro: $69/month – All features in the Standard plan plus up to 1000 preorders ($0.08 per preorder above 1000) and priority chat support.
What happens when you have multiple stores?
Many sellers own complex supply chains or are in charge of multiple stores. These merchants likely share the preorder inventories with multiple stores or locations.
When opting for Shopify preorders, avoiding problems like overselling due to lag in inventory updates is vital. To curb this problem, merchants can pick one of these two options:
Sync stocks in real-time: Many Shopify inventory sync apps provide real-time synchronization, which means that as soon as an order is placed, the inventory is immediately updated across all stores in real-time. Many third-party apps provide useful features for inventory synchronization on the Shopify app store.
Divide the stock: Another way to ensure that you do not oversell on preorders, is to divide the stock among all your stores. Merchants do not prefer this because division of stocks requires extensive analysis to accurately predict which store might sell the product easily vs which one will have stock left.
This also adds a risk factor as miscalculations could lead to loss of potential sales in stores with higher demand and low stock.
Additionally, merchants must do all this work manually, which takes up much time and labor with little reward.
Top Strategies For A Successful Shopify preorder campaign
Preordering a product is simple to do, and it may be marketed through any of the conventional ecommerce channels you already use. However, I’ve seen some particularly impressive results with the following tactics.
#1. Create a Dedicated Preorder Landing Page
A dedicated preorder landing page can be significantly helpful when launching a new product.
Using a dedicated landing page, you will be able to advertise your products before they have launched. Since creating ads on Google Shopping requires you to have a landing page for each product you choose to advertise, creating a landing page before the product is launched will increase the visibility of your products.
If you advertise, you can track the number of visitors to your landing page. This allows you to gain definitive insights into metrics like the bounce rate, conversion rate and how long a user is staying on your website. (psst! you can retarget those customers too!)
| 💡You can use third party apps like AdNabu to generate optimized product listings. AdNabu uses AI feed optimization, product score and Google keyword suggestions sourced from Google Keywords Planner to directly allow you to sync data from your Shopify store to Google Merchant Center. |
#2. Amp up your settings
Modifying the settings on Shopify or any third-party app you use can be incredibly beneficial for accurately gathering data for your next campaign. However, you need to be extremely thorough with your changes to ensure they don’t negatively affect your Shopify preorders.
Here are a few things that can help you with preorders on Shopify.
#1 Cart Abandonment Event Tracking: A clear grasp of your audience’s behavior can help you eliminate many errors your consumers might face during the buying process.
Activating ‘Cart Abandonment Event Tracking’ will help you understand why certain customers followed nearly all the steps but stopped at the last one, i.e., buying.
#2 Detailed Information and Feedback: When placing a preorder on Shopify, you must provide your customers with detailed data on what they’re buying–this includes the cost of shipping. Additionally, you can request feedback or provide an option for customizations.
Maintaining transparency and being open to feedback will help you gather a significant amount of data about what your customers truly want. Improving the experience can help you improve service and build brand loyalty.
#3 Keep Your Clients Updated: Once an order has been placed, you must notify your customers about the successful placement of the order and keep them updated about the preorder status.
This can not only improve your after-sales service but also garner trust from customers. Many third-party apps on Shopify app store provide email notifications as a feature too.
Apart from advertising on Google, you can opt to advertise on social media too. You’ll have an idea which platform performs well for your company, whether it’s Facebook, Instagram, Twitter, Snapchat, or TikTok.
Here are some paid social media strategies to consider:
- Consider creating a TikTok lookalike audience based on your current client base, then run three or four different pieces of preorder advertising. You may target past clients who have purchased a comparable product in the past if you have a large enough list and can segment the list by those who have already purchased from your store.
- Re-target visitors who have visited your preorder page but haven’t made a purchase. This time, you could potentially give a discount. If you’re using conversion tracking pixels in the EU, remember to include a cookies banner’ in your store.
#4. Email Marketing
Do you engage in email marketing tactics? If not, we suggest you begin immediately.
Simply put, email marketing is one of the top Shopify Marketing strategies that is effective and has proven to be highly beneficial for almost all merchants that have tried it.
Emails allow you to directly reach customer’s inboxes. Emails can be sent on numerous occasions like holidays to keep in touch with your customers and give your marketing a personalized touch. Emails can also serve as a proof of purchase, and increase customer’s trust in your brand as it grows.
When a customer preorders products from your store, you can send them personalized emails confirming the purchase, expected date of shipping, or any other relevant messages.
Lastly, you can use mailing lists to inform customers that have visited, or purchased from your website, to tell them about the new product launches, seasonal sales, or any updates on your store.
Early adopters enjoy being the first to try a new product, so giving them a chance to test it before releasing it to the rest of your audience might be a good idea.
#5. Collaborate with influencers
A great approach to drive sales with a large intent to buy is to collaborate with another brand or influencer on a limited edition collaboration. The influencer marketing business has developed, and many influencers are now well-aware of their worth, which implies costs have never been higher.
If you’re short on cash, but want to spread the word about your new product as soon as possible, consider sending pre-release samples to a few of the selected individuals. You might include a handwritten note explaining why you chose this influencer for this product.
It’s probably best not to request anything in return, since this may be seen as deceptive. If they like it that much, they’ll most likely share it on their social media page. You can get their mailing address by contacting them or their representative from their page.
Conclusion
Validating items, generate buzz, and enhancing cash flow through preorders may be a useful tool in your arsenal at any stage of your business’s development. Using the method suitable for your business can rake in higher profits and build brand visibility, loyal customer based and increased customer retention over time.
The complete instructions on how to set up preorders on Shopify are provided in order to assist you with completing the process without trouble. Whether you’re raising money for a new business, taking preorders for new goods, or offering “pay now” preorders to get rid of that “out of stock” banner that’s costing you sales, you can easily set up preorders to help your business grow.
FAQ
What are preorders on Shopify?
Preorders on Shopify can be used to allow customers to place orders for products that have not yet released or for products that are out of stock.
Using Shopify preorders can help merchants manage inventory effectively and set up and create a buzz for new product launches.
How can I set up preorders on Shopify?
Setting up Preorders on Shopify requires you to install a preorder app from the Shopify App Store. You can configure the app through Shopify admin and set up all the preorder settings according to your preference.
You can manually set up preorders on Shopify by making changes to the theme files, for which you will require expert coding knowledge.
What are the benefits of offering preorders?
Merchants can set up preorders to continue selling even when the products are out of stock. Additionally, it can improve the anticipation of newly released products and help merchants gather quantifiable data to forecast product sales. This can become somewhat helpful during campaigning and restocking items.
What types of preorder payment options are available?
On Shopify, you can set up both ‘pay now’ and ‘pay later’ options. Pay later allows customers to place orders without immediate payment, and pay now requires customers to pay right then.
What are some effective preorder strategies?
To get more customers to place preorders on your Shopify store, you can offer exclusive discounts for a limited time period to create urgency. Additionally, you could set up targeted ads towards customers that have previously visited or bought items from your store to increase the likelihood of a conversion.
How do preorders impact inventory management?
Inventory management can be simplified using preorders as merchants can easily predict new product demand and reduce overproduction or overselling. It can also become a long-term indicator of different audiences and also can help allocate inventory in different locations as per the requirements.
Can I use preorders to test new products?
Yes. Preorders can help merchants gauge the customer’s reaction for new, unique products that they might want to launch.
In case of success, merchants acquire data from different audiences and will make informed decisions while stocking their inventory. In case of failure, preorders can be an excellent tool to lower wastage of stock as it helps get customer reaction before a commitment is made.
