A preorder is an agile approach where sales and production work simultaneously. There is capital and risk involved to sell physical goods. Merchants invest hundreds of dollars to establish physical products that might or might not sell. Capture the preorders upfront right before you put money into manufacturing. That could be a valuable approach for validating products. Here in the article lets us know how pre-orders can validate, pre-sell and boost sales.
What is a pre-order?
If a customer likes to order a product that isn’t launched then it’s known as a preorder. Preorder enables people to create products before they are even accessible. Then the product is shipped to the consumers after it’s ready in stock.
Most brands utilize pre-order features, from big brands to startups. Unique kinds of preorders are utilized for several scenarios. A startup that needs to run manufacturing has extra requirements than the established brand to test and validate demand
Different types of preorders:
Based upon the type of your business niche there are three kinds of pre-orders for you:
- Pay now: Consumers pay for the product fully after they buy it. It can work if the product isn’t accessible now yet has a positive restock date.
- Pay later: Merchants will design a waiting list for shoppers to register. With this list, consumers suggest that they like to buy products. But, they could cancel at any time.
- Crowdfunding: Crowdfunding is a way to raise money to support businesses and projects. It encourages fundraisers to gather money from many people through online platforms. Crowdfunding is utilized by startup brands to grow companies to access alternative funds.
How does pre-order work with Shopify?
The simple technique for running pre-orders over Shopify is using a Shopify app which has excellent features to handle the campaign. The main aspect of every pre-order app is informing people that the product is in the pre-order listing that will not be offered. This is indicated by adding the pre-order button in place of the buy button.
After the order is taken Shopify management system of the order app is used based on if the pre-order passed through the checkout process. The functionality of these pre-order applications depends upon conversation optimization tools and what products will be in pre-order.
1. A pre-order plan
The main part of the product launch isn’t something you do before launch days. But it is something you do weeks before launching the product. Shopify agency reported that 28% of pre-orders are ordered on the first day and start to see within 4-6 months before the actual launch. And the next month numbers can change due to the marketing and all. Depending upon this life cycle, one can plan a pre-launch campaign calendar, that’s as follows:
- When are you going to announce the pre-order launch?
- How are you going to make buzz before the start of the pre-order campaign?
- What marketing strategies will you use? Are you going to hire any Shopify plus agency for a hassle-free launch?
- What activities are ripping to use for raising the spike?
2. Scarcity & value is needed
Consumers look for a reason for pre-ordering products rather than buying the product. So, it’s your turn to add great value to the products to make them buy in advance. Make consumers add discounts or a gift to reward them for the support to pre-order the products. Also, bundle new products with the existing products for boosting profit from the pre-orders.
Another best way to steer urgency & demand is by creating scarcity. Limit products that are accessible for the pre-order to have the ultimate impact. For instance, declare discounts on the first 100 pre-orders & a bonus gift for 200 pre-orders. So, you are making people purchase now rather than later.
3. A marketing campaign
A. Digital Marketing
If no one knows about your products, what’s the use of launching pre-orders? Here is the thing to work on:
Digital advertising can improve the awareness of the product right before you launch it. Many companies use social media ads for improving their standards online. Word-of-mouth marketing is very powerful.
Over 71% of customers purchase products depending upon social media referrals. Brands leverage the word of mouth marketing while-order campaigns to boost the strategy effectiveness. The more people talk about your brand, the more people will be interested in it. Send products to digital influencers for promotion during the launch period. Offer prices to the people who share it on social media.
B. CRM & PR
Customer Relationship Management is the best road to launch the pre-orders. List an email blast to let people know about the launch of pre-orders. Partnerships & Public Relations Play an Important role in marketing. Influencers and Press release marketing get the word out that produces a wider buzz. A press release to the appropriate media publications or email newsletter gives maximum exposure to the brands.
C. Influencer marketing
New products are exciting as everyone likes you get their hands on them before everyone. You could steer traffic and c then tap into similar communities through influencer marketing. Influencers are engaged with their followers. And the audience appreciates opinions & listens very carefully to them. In terms of promoting unreleased products, you need to consider this strategy. Use influencer marketing for creating more excitement and drive brand awareness, with sales.
Conclusion
Getting the proficiency to improve, build hype, and validate products via pre-orders is a fantastic addition to the toolkit. No matter what stage your business is at. It can be paid later for pre-orders to release new products or crowdfunding for the startup business, you could get orders way before you ship them. Reach out to a Shopify agency for knowledge regarding Pre-order and its benefits to your Shopify store.