A pre-order strategy is when a company receives orders from customers for products before the official product is released. It is a tactic used in preparing for a new product launch to garner excitement. Pre-orders are attractive to the consumer because it means they can purchase the product before it is available for public purchase. This is especially true if the product is a high-demand item that is likely to sell quickly. When done well, a pre-order strategy can have a profound effect on customer response, as it builds excitement and a sense of exclusivity.
What is a pre-order?
Pre-ordering is when customers buy a product before it is available in the store. Pre-ordering can take place weeks or even months in advance. Customers book the product on your e-commerce store so that they are among the first to receive it.
The main objective of pre-orders is to create excitement and hype around a product before it is launched. This way, customers can secure their place in line to receive the product when it is ready to be shipped. A well-executed pre-order strategy excites customers because they know they can own the product before the seller puts it on the market for public purchase.
An aggressive pre-order sales strategy means more than just having a product available for purchase before launch. It's also about giving customers incentives to buy the product and creating a system to ensure they get the product on launch day.
How do pre-order sales increase?
Pre-orders give you a head start on selling your product, allowing you to generate revenue before your product launches. It also enables you to build momentum around the launch date and promote launch day events.
1. Pre-order campaigns
Pre-order campaigns are an effective way to increase traffic and increase brand awareness in anticipation of upcoming product launches. These campaigns are often run alongside social media posts or emails that make people aware of the launch date. However, building successful pre-order campaigns for a product requires careful planning, strategy, and execution.
2. Understand your market and product
Before launching your pre-order campaign, you must understand what your market wants. What do they want? How much do they want? Why do they want this particular item? How will they use this product once it reaches their homes? Once you have answered these questions, you can begin to define your customer base, and the best way to engage with them.
3. Determine your target customer base
This is the second step towards success because without knowing who your target audience is, you cannot advertise the product effectively. Who do you market to? What do they care about? How do you communicate with them? Knowing these questions helps you create an e-commerce pre-order strategy so that you can reach your intended audience and convert them into customers.
Once you've identified your target audience, you can start narrowing down exactly who your ideal customers are. If you sell flowers, you may only want to sell to people looking to buy flowers. On the other hand, if you sell concentrates, you may focus only on high-end consumers who enjoy high-quality products.
4. Preparing the advertising plan for the pre-order
Set up pre-order and order availability announcements at least 3 to 5 months before the official product launch to improve your chances of flooding in before actually ordering any stock.
Plan to handle the increased demand on the official product release date by ordering additional inventory. Also, consider planning for the months ahead to ensure you have the people resources available to efficiently pack and ship orders, even if that means hiring temporary staff.
1. Pay now
Pay Now is the most popular type of pre-order. The full sale price of the item is due at the time of pre-order, and payment is charged as normal purchase. You can almost think of it as a normal sale, but with an extended execution time.
With pre-orders, the customer will receive information stating when they can expect to ship.
2. Pay later
The other type of pre-order is pay later. This method allows customers to place a no-payment deposit or "hold" on a product, and then be charged the remaining or full sale price once the item is shipped.
Pre-orders allow you to increase sales and strengthen customer relationships by turning a potential sale into a purchase. They help give your business the clarity and insight it needs to better forecast revenue and forecast demand, and allow customers to enjoy the age-old thrill of anticipating their new favorite product - yours - arriving at their doorstep.