How To Set Up Pre-Orders On Shopify? Easy Guide & Tips

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Setting up pre-orders to generate awareness, refill stores, and speed your product launch. Xsolla, a worldwide video game commerce, claims pre-orders account for 20-30% of first-year revenues.

Find out how to utilize preorders on Shopify to boost sales and please customers by reading.

What Does Shopify Pre-Order Mean?

What Does Shopify Pre-Order Mean?

A Shopify pre-order enables companies to sell things before they are in stock or ready for immediate delivery.  In a pre-order system, buyers can reserve and pay for these items ahead of time, securing their spot in line to get them when they become available.

Sellers may collect full, partial, or no money at the time of purchase, depending on presale choices. Payment collection records your customer's payment method so you may fulfill and collect the rest later.

Pre-ordering is a frequent practice in various situations, such as new product launches, limited edition releases, or things in great demand.

Tesla, an electric vehicle manufacturer, is an excellent example of effective pre-orders effectively. Every time Tesla releases a new car, like the Model 3 or Model Y, consumers may pre-order it. 

How Does Shopify Preorder Benefit Seller?

After reading about pre-orders, you may wonder whether you should do it on your Shopify store. It certainly is! 

The good news is that you don't have to own a considerable brand like Tesla to benefit from pre-orders. In fact, you may use it as a method of advertising your Shopify business to increase your earnings. 

Read on to discover what happens when you use the Shopify Preorder approach:

Revenue Generation

Revenue Generation

One of the most appealing benefits of using pre-orders on Shopify is the ability to collect income before things are physically in stock. This pre-release income stream may boost a company's finances. 

Tesla is a successful example. According to the BBC, CEO Elon Musk says 276,000 Model 3 pre-orders were placed in 2016. 

Also, the CEO of Tesla said that the average selling price is $42,000 (with a base price of $35,000), implying that the overall profit would be roughly $12 billion. That's $276M in cash flow for a vehicle few have driven.

Reduced Financial Risks

"Pre-orders are a testament to the anticipation and excitement surrounding a product or project. It indicates success before it even hits the market." Oprah Winfrey, an American media executive, talk show presenter, and philanthropist, said.

Reduced Financial Risks

Regarding reducing the financial risks associated with overproduction, pre-orders on Shopify are a powerful risk management tool. 

The launching of the iPhone 13 by Apple is a real-life example of a pre-order method that helped limit financial risk. Apple has a history of using pre-orders to determine demand and reduce financial risk when releasing new iPhone models.

In the instance of the iPhone 13, Apple offered pre-orders soon after the product announcement, enabling users to reserve their preferred model before it was available in shops.

The South China Morning Post reported that Apple's official shop on JD.com had received over 2 million iPhone 13 pre-orders in China.

By doing so, Apple could correctly forecast demand for each iPhone 13 variation and modify the manufacturing and supply chain.

Moreover, consumers felt exclusivity and anticipation from the iPhone 13 pre-order approach. Apple increased popularity and sales by letting buyers pre-order their gadgets.

Demand Assessment

"Pre-orders are a strategic move that allows businesses to gauge demand and generate buzz before a product is available. It's a smart way to build momentum and ensure a successful launch." - Elon Musk said. 

Pre-ordering Sony's PlayStation 5 (PS5) game system in November 2020 illustrates the demand estimate. Sony utilized pre-orders to anticipate PlayStation 5 sales and assess user interest. Customers may pre-order the PS5 months before its availability.

The VGM analysis found that 72% of US next-gen pre-order buyers picked the PS5. To provide PS5 pre-orders, several shops and online platforms collaborated. Sony monitored pre-orders from numerous outlets and nations to determine console demand.

Marketing and Hype Generation

Marketing and building anticipation are critical components of Shopify's pre-order strategy. Pre-orders provide marketing and consumer engagement advantages beyond revenue creation. 

The CD Projekt Red pre-order approach for "Cyberpunk 2077" used several marketing strategies to build anticipation. CD Projekt Red hyped the game's rich setting and novel features with enticing videos, gameplay footage, and behind-the-scenes information. To get people to buy early, they also offered special pre-order perks like in-game things or actual collectibles.

Also, pre-ordering helps CD Projekt Red manage its marketing and promotions. High pre-order demand and game anticipation caused a snowball effect, with players enthusiastically discussing and sharing their enthusiasm on social media, increasing marketing reach and organic buzz.

3 Types Of Pre-Orders 

As seen by the successful instances above, pre-orders help companies and consumers generate anticipation and manage inventories.

When introducing a new product, handling high-demand commodities, or pursuing creative financing solutions, knowing these three pre-order kinds can help you make educated choices, generate buzz, and strengthen customer connections.

Pay Now 

Pay Now

In a "Pay Now" pre-order or regular pre-order, buyers reserve and pay for a product before it is released. Similar to a sale, but with a longer fulfillment time. During pre-order, buyers commit to buying a product and pay. This differs from other pre-order models that need a deposit or a reservation without payment.

Pay Now Pre-Order Benefits:

  • Upfront Revenue: Pay Now pre-orders provide companies with instant cash. This advance income might cover manufacturing expenses, inventories, and other company needs. It boosts cash flow and stability.
  • Demand Confirmation: Customers vote for the product by paying beforehand. The quantity of Pay Now pre-orders indicates product demand, helping firms make production and inventory choices.
  • Customer Commitment: Customers who pre-order and pay are usually more committed. Due to their product investment, they are less inclined to cancel or return their purchase.
  • Reduced Inventory Risk: With upfront payments and better demand data, firms can better manage production and inventories.

Overall, Pay Now or regular pre-orders provide quick income, demand confirmation, and consumer commitment. Businesses can safeguard cash flow, evaluate demand, and decrease inventory risk using them. 

Crowdfunding Pre-Orders

In crowdfunding pre-orders, companies solicit funds and take pre-orders simultaneously. Businesses pitch product ideas on crowdfunding sites under this strategy. Before the product is built, backers may pre-order it at reduced pricing or with rewards. Traditional pre-orders reserve things, while crowdfunding pre-orders finance and promote them.

Benefits of Crowdfunding Pre-Orders:

  • Funding for Product Development: Business pre-orders from crowdfunding finance product development and manufacturing. It lets companies and entrepreneurs get money without investors or debts.
  • Market Validation: A successful crowdfunding campaign may prove the product concept and show target consumer interest. It helps companies assess demand before mass manufacturing.
  • Early Marketing Exposure: Crowdfunding initiatives popularize goods. As marketing platforms, they raise client awareness.
  • Engagement and Feedback: Crowdfunding pre-order backers frequently get active and provide comments. This may enhance and refine products.

Peak Design's Crowdfunding strategies raised over $34 million are a good example.

Pay Later

Pay Later

Back-in-stock pre-orders, often known as pay Later, manage inventories for out-of-stock items. This method lets clients reserve desired but unavailable articles. It allows clients to indicate interest and supply payment information in advance, but they are only charged when the goods are ready for distribution.

Pay Later Pre-orders are helpful for firms who want:

  • Increasing customer satisfaction: Pay Later pre-orders might let concerned customers wait for product replenishment. They may reserve the item, reducing sales loss.
  • Inventory Management: A pre-order model helps organizations predict out-of-stock demand. Avoid overstocking and understocking by suggesting how many units to restock.
  • Deferred Payment: Charges are made when the product is back in stock and ready to ship. This may attract product-seeking clients who prefer to wait to pay ahead.

Businesses profit from customer satisfaction and postponed payment, but they must understand consumer expectations, payment authorization issues, and clear communication.

Way to Set Up Pre-Orders On Shopify

Pre-orders may boost revenue, inventory management, and product interest. Shopify, a leading eCommerce platform, provides simple pre-order capabilities. 

Now, we will help you set up Shopify pre-orders in 3 easy steps, whether you're launching a new product, managing high-demand items, or exploring additional financing options: 

1. Simple Shopify Pre-Order App Installation

To begin, search for "pre-order manager" on the Shopify App Store using the right search keywords. 

Then, you'll be presented with a selection of more than a dozen apps from which to choose. 

Shopify Pre-Order App Installation

TIP: Pick applications with plenty of downloads and decent ratings. Choose the best app for features, affordability, and personal preference.

2. Allow The App In Your Theme

Choose the app you want and do the same as we instruct.

For the sake of this tutorial, we will install the "Amai PreOrder Manager + Notify" applications. The app costs $24.95 monthly and comes with a 14-day free trial. More than 1,032 people have given it a perfect score of 4.5 stars.

After that, click the black "Install" button

Allow The App In Your Theme

 

Then, a popup will connect the pre-order app to your Shopify business. The link must be confirmed by clicking "Install" a second time.

Allow The App In Your Theme

3.Change Some Settings

Although the specifics of this step may vary depending on the pre-order applications you use, it's essential to pay close attention whenever you modify Shopify's Pre-Order settings.  

These options might help you construct a smooth and productive pre-order system:

  • Allow Cart Abandonment Tracking: You may track cart abandonment to understand consumer behavior. This tool may help you understand why consumers cancel pre-orders and improve your business and checkout experience.
  • Additional Info & Order Notes: You may gather significant consumer data during pre-orders by keeping extra information and order notes. This might contain client requests, customization choices, and other data that improve service.
  • Order Saving Method: Shopify lets you save pre-orders as draft or normal orders. Draft orders improve order management by separating pre-orders till fulfillment.
  • Ability to Confirm Successful Orders: Verifying successful orders is essential to informing clients of their pre-order status. This helps control consumer expectations and avoid misunderstandings.
  • Add Shipping Fees: Pre-purchase options that include delivery expenses allow buyers to know the whole cost of their item. Transparency may improve customer service and reduce checkout surprises.
  • Insert Tracking Pixels from Facebook, TikTok, Snapchat, Twitter, or Custom Code.

Setting Up Shopify Pre-Order Without App

Step 1: Create A Pre-Order Page

  • In the Shopify admin, choose "Online Store" from the Sales Channels option on the left side of the screen.
  • Next, under your current theme area, select the additional choices button (three dots symbol). 
  • Then, from the list of choices, choose "Edit code."

Create A Pre-Order Page

  • After that, a new interface window appears. In the left sidebar, click the “Add a new template” button.

Create A Pre-Order Page

  • Then, from the dropdown menu, choose a product template.

choose a product template

Follow Step 2 to edit the pre-order template code.

In Step 3, set the new template for pre-order goods.

In Step 4, include further information in your product description.

Note: Technical expertise is required for this procedure. You can hire a Shopify expert, partner, or independent developer for assistance.

What if you can't code and can't afford a staff of technical experts? No worries—EComposer Landing Page Builder can assist. There is no limit to what you can build using EComposer's 100+ design components and 300+ templates. 

EComposer Landing Page Builder


Build Your Solution using Shopify's Pre-order APIs

Shopify has made its pre-order APIs and infrastructure available, letting its partners and developers build innovative pre-order features directly into Shopify Checkout.

Note that This option demands technical skills. Therefore, you may need a developer if you don't code.

For developers: Discover pre-order APIs and purchase choices.

Best Tips For Pre-Order

Best Tips For Pre-Order

Pre-orders are an innovative tactic that may take your online store to new heights. We've compiled the most excellent advice for pre-orders to help you maximize their effectiveness and get access to previously inaccessible levels of income and client involvement.

Understanding Your Target Audience

Understanding Your Target Audience

Today’s digital experiences don’t start with your company’s products or business objectives. They start with what your customers want. - Sue Beckett, VP of Digital Marketing and Ecommerce, Lovesac.

Adobe found that organizations that focus on customer experience had 1.6 times better brand recognition and 1.9 times higher average order value.

To make a Shopify pre-order promotion work, you must do more than just set up the technical parts. Understanding your audience's tastes, wants, and expectations is essential. Knowing your clients and tailoring pre-order methods to them is crucial:

  • Collect Data: Salesforce found that 84% of customers value being treated like a person, not a number, to gain business. Understanding your target demographic lets you build unique and engaging pre-order experiences that strengthen customer relationships and brand engagement.
  • Conduct Surveys: Use surveys and feedback forms to engage audiences. Ask about their preferences, issues, and product needs. Give discounts to promote participation.
  • Analyze Social Media:  “Customers have so much power now,” said Salesforce Industries EVP Neeracha Taychakhoonavudh. In the social media consumer environment, everyone has a voice.  Social media is full of client data. Examine industry and product debates. Read comments, reviews, and conversations.
  • Monitor Competitors: You may attract clients from your competition. Examine your rivals' audience and tastes. This reveals market gaps and unmet demands.

Setting Clear Pre-Order Expectations

Salesforce discovered that most consumers (95%) feel confidence in a firm that makes them loyal. 

When it comes to online shopping, communicating with customers clearly before they place an order is not only appreciated but essential.  Customers trust and commit to your company when they pre-order a product. Dissatisfaction and brand harm may occur from failing to meet expectations.

Tips for Clearly Stating Pre-Order Expectations:

  • Delivery Dates: Clarify pre-order delivery dates. Consider delays and be reasonable. Lowering expectations and exceeding them is preferable.
  • Payment Terms: Explain payment arrangements and billing dates. Tell Pay Later pre-orders that payment will be handled when the product arrives.
  • Product Availability: Make it explicit whether the pre-ordered goods are restricted or will be restocked. This information may build urgency or reduce client wait times.
  • Customer Support: PwC found that 59% of 15,000 customers would leave a firm or product after numerous unpleasant encounters and 17% after one. So, address pre-order questions and concerns with convenient customer assistance. Timely and helpful replies improve client satisfaction.

Pricing Strategies

Pricing Strategies

A special price for early adopters is a great pre-order strategy. This strategy may help organizations and consumers, producing a win-win. 

  • Incentivizing Early Commitment: Special price promotes early pre-orders. Discounted prices, special features, and limited edition editions encourage people to purchase sooner.
  • Gauging Demand: Businesses may evaluate pre-order demand by providing early adopters preferential rates. The particular price reaction reveals the product's attractiveness and potential.

Also, according to Professor Edwin Agwu's International Journal of Study in Management, Science & Technology study, rivals' prices and internet pricing influence company product purchases. 

It's unnecessary to constantly be cheaper or more expensive than your rivals to satisfy clients with your products' quality.

We recommend The4 Toolkit, a Shopify software that helps consumers save time and money by comparing prices and improving their shopping experiences. 

The4 Toolkit

Customers using The4 themes like Unsen, Kalles, Gecko, and others may improve their purchasing experience with The4 Toolkit, a comprehensive Shopify tool. Both Compare and Wishlist are helpful in this toolset. By helping consumers make educated choices and easily monitor their preferences, the4 Toolkit improves shopping experiences. This boosts sales, conversions, and customer happiness.

The4 Toolkit themes

Optimizing Mobile Products

Improving mobile goods is critical for enhancing your pre-order strategy because most internet buyers explore and buy on mobile devices.  

Mobile optimization streamlines shopping. It reduces consumer annoyance and friction, making your pre-order process and transactions smoother.

Did you know 61% of Google search results are now from mobile devices? Search engines are punishing sites that don't provide integrated mobile shopping.

Since more and more people are buying online from their mobile devices, it's crucial to make the pre-order process accessible from any device. Luckily, Shopify website builder app’s EComposer Page Builder helps merchants effortlessly optimize their mobile designs. With a live drag-and-drop editor, this program supports landing pages, homepages, collection pages, product pages, blog pages, cart pages, footers, and more.

Shopify website builder app’s EComposer Page Builder

EComposer lets you establish a mobile-friendly pre-order procedure that improves client shopping experiences and sets you out in a competitive market. This tool streamlines design and optimization, saving time and money.

Others read

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[21+] Most Successful Shopify eCommerce Stores examples 

How to Do a High-Impact Shopify Giveaway

FAQs 

1. How Do I Mark A Product As Pre-Order On Shopify?

Shopify makes it easy to place a pre-order for a product. Follow these simple steps to get your items ready to accept pre-orders:

  1. Visit Shopify Admin > Products > All products.
  2. Then, click a product's name to pre-order it.
  3. Next, click Edit next to the first option.
  4. Check it out after that. This item should be available even when it is sold out.
  5. Finally, click Save.

That's all!  Customers may now view the pre-order item and its expected delivery date on your website.

Ensure your customers know all the details concerning their pre-orders, such as when to expect their things and how to pay for them. Set clear expectations to give customers an outstanding pre-order experience.

2. How Long Is Pre-Order?

Pre-orders are more successful when the client wait period is short; typically, 1-2 months is acceptable. 

The duration of a pre-order, on the other hand, may vary widely and is often governed by the seller's unique business strategy and the sort of items being offered for pre-order. 

Merchants must disclose pre-order length. The product website and marketing materials should explicitly state this information to set buyer expectations. Smart pre-order duration meets seller goals and consumer satisfaction.

3. Do Pre-Orders Charge Before Shipping?

In most cases, your pre-orders will be charged once the item has been delivered, or at most, a few days before its release if you pre-ordered it.

However, depending on the seller's policy and the platform they utilize, pre-orders may be paid before shipment or at the time of shipping. For example, Amazon charges before shipping. 

Two typical pre-order pricing methods are:

  • Charging at the Time of Pre-Order: When buyers pre-order, certain vendors charge. This offers quick money and helps offset manufacturing expenses. Crowdfunding pre-orders to start manufacturing is widespread.
  • Shipping-Time Charging: Other merchants charge consumers when pre-ordered items are sent or picked up. This method links payment to product delivery. Customers' payment methods are allowed when pre-ordering, but fees are not collected until the product ships.

Conclusion

To conclude, We've covered everything from "What Shopify pre-orders mean" to "How It Benefits Sellers" and "How to Set Up Pre-Orders on Shopify" to help companies maximize pre-orders.

Shopify pre-orders create deeper customer relationships and enhance sales. They save firms struggling to manage inventories, generate enthusiasm, and boost cash flow. Pre-order kinds, including Pay Now, Crowdfunding, and Pay Later, provide versatile alternatives for company requirements.

Now, it's up to companies to customize pre-order kinds for their requirements and products. Understanding audience preferences and building pre-order expectations is crucial. They may further drive their success with EComposer by implementing discounted prices for early adopters and making the pre-order procedure mobile-friendly.

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