How Does Pre-Order Work? 5 Strategies to Sell More with Pre-Orders

How Does Pre-Order Work? 5 Strategies to Sell More with Pre-Orders

A person in business should make and apply good marketing strategies frequently to remain successful in the market. Focusing on managing the pre-orders is the latest trend being followed in the market. Many newcomers in the market may have a query regarding this new concept. A focus on the idea may help many in achieving success. 


What Does A Pre-Order Mean?

To define pre-order is simple. The pre-order meaning can be expressed in two ways. In general, a pre-order is supposed to be an order placed for an item in advance but not yet released. The pre-order meaning in eCommerce terminology refers to a situation where the payment is concerned. The retailers have two options – either they collect the revenue from the customer on receipt of the order or at the time of receipt of the product at the customer's end. A clarification related to the queries like "What is a pre-order item?", "How to pre-order?" etc., is very important. This explains the importance of pre-orders and their management.


What Is A Pre-Order Item?

The item that is booked or ordered in advance can be considered a pre-order item.  Some products are marketed but are not readily available for consumption. In such a case, based on the need of the item, customers place an order by paying an advance payment. This small amount is taken to confirm that the customer/is interested in purchasing the item—for instance, booking a 2-wheeler or 4-wheeler vehicle. 


How To Pre-Order?

As soon as the item or product is promoted in the local media, the customer can visit the local branch and check out further details. If satisfied, the customer can place a pre-order by paying some amount as confirmation and giving some documents required for documentation. After the item or product is entirely manufactured and ready for delivery, the item will be delivered to the customer.


Can A Pre-Order Item Be Changed?

A pre-order item can be changed initially, where the paper or documentation work is done. When the product is ready for despatch or already dispatched and is expected to reach the destination, changing the pre-order item is meaningless, and nothing can be done at that particular time.


How Does Pre-Order Work?

There are two aspects – the customer's point of view and the retailer's point of view. To a customer, a pre-order confirms that a certain quantity of the item has to be given to the customer irrespective of change in prices at the time of delivery. When it comes to the retailer's point of view, pre-orders work in many ways. When the topic "how do pre-orders work? '' is analyzed, it results in benefits of pre-orders to the retailer.


Related: What Is The Difference Between Out-of-stock And Backorders?

Benefits Of Pre-Orders To The Retailers

Opportunity To Analyze The Demand For The Product

When pre-orders for an item are received, it helps the retailers to plan for the manufacture of the items. When things are done in a planned way, a lot of expenses incurred can be minimized. The chances of retaining unsold stocks also can be minimized.


Learn more about demand forecasting.

Financial Support

 When an item is pre-ordered along with some initial amount as confirmation, it helps the businessman provide some amount for production purposes. So, it supports the businessman financially to some extent. 


Production Planning

 When pre-orders are received, the businessman will be able to analyze the actual requirement of the product in the market. Based on this analysis, the businessman can plan their production activities.


5 Best Strategies Useful For Pre-Order Marketing

1. Accepting Limited Pre-Orders

When a product is marketed, and only a few or limited pre-orders are taken, it creates a particular interest in the public's minds. There are chances of people rushing to the nearest outlet and booking their piece. Limited stocks may make the customers feel that they are unique, and due to limited product supplies, they may think that they are trendsetters.


2. Awareness

Awareness about the product should be done using social media. The public would like to purchase the product only when they know the importance of the product.


3. Pre-Orders Facility To Be Provided Only New Products

 Even though any product can be purchased on a pre-order basis, if new products are given more importance by offering specific discounts on pre-order booking, it promotes the latest products and increases the demand of the product.


4. Analyze The Customer

The public is so busy that it does not have much time to waste on products. Only a select group of customers are very particular about their choice of product. If the product is not available In the market, they pre-order it and wait until it is manufactured and dispatched. In such a case, the customer should be offered special discounts for being loyal to the brand and the product. But some opt for alternate branded products and satisfy their need, and do not waste time. Even such customers can be attracted by providing them some discounts. Of course, the benefits offered to a loyal customer are always more.


5. Fulfill The Pre-Orders

A transaction will be successful only if it is fully executed. Just accepting a pre-order and leaving it unattended will damage the businessman's reputation, brand, and product. The marketing team should always ensure that the pre-orders are fully executed, and the required products are delivered to the destination promptly. Any disturbance in the process will hamper the customers' emotions, and a loss of a customer means a lot to a business – not only in terms of money but also in terms of reputation.



The ever-changing landscape of eCommerce has made it more difficult for entrepreneurs to keep up. Pre-orders are a new phenomenon that is changing the way we buy and sell products online, but if you're not careful they can become an obstacle rather than a benefit. In this blog post, we'll explore 5 strategies for successfully using pre-orders in your business. Still have questions? Get personalized help from our experts at Simpl fulfillment! Our team will work with you every step of the way so you never get lost again. Ready to take control of your own fulfillment process? Contact us today.

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