eCommerce has become the forefront of the retail world and in the upcoming decade, it might become the face of the retail environment. This has made it crucial for merchants to move to the eCommerce platforms, such as Shopify. As it helps to create a personalized shopping experience for their users. For this, they can use the solutions available in Shopify, also they can hire Shopify experts to establish their online website from scratch. This will aid developers to improve their visibility and provide exceptional consumer services as well.
However, running an online store comes with its own unique set of challenges and risks. These risks and challenges include factors such as inventory management, on-time delivery, and customer retention. And the solution to these challenges is usually unique for every business. However, when it comes to new product launches these risk factors increase dramatically in their business, and handling them is much crucial for merchants. For this, doing proper business analysis and market research is very significant. With this article today, we will discuss a variety of pre-order strategies that could be used by the merchants as an efficient market research medium. But before we dive into that, let us first understand what is pre-order and what are its advantages.
What is Pre-order and its Benefits –
Pre-orders are one of the best ways for merchants to test the waters and understand customer expectations. As through this merchants can easily understand the demand for a specific product before investing in its production and inventory stock. In pre-orders, customers basically purchase a product that is currently not in production and the inventory. In this when the products finally get created then the order placed by the buyers is fulfilled. The initial product unavailability and longer time for order fulfillment are the factors that seller and user both agree upon while opening up their upcoming product for pre-orders.
Different types of Pre-order Methods for Merchants –
We can easily conclude that with help of proper preorders it becomes very easy for merchants to understand the product’s demand. Also, helps to create an estimated risk analysis of their business. However, for this, merchants must choose the right pre-order strategies for their product launches. Hence, understanding the user’s perspective and the risk involved in opening up pre-orders is a must for merchants. Below is a detailed discussion about various pre-orders that can aid merchants in achieving higher profits without any hassles:
This is one of the most commonly seen and experienced pre-order procedures adopted by eCommerce merchants. In such pre-orders, customers make a payment to the merchants before receiving their orders with the understanding that the delivery and fulfillment will take longer than the normal order completion. Although this aids merchants in gaining funds for their production procedure in advance. Such orders when not fulfilled efficiently can also destroy the brand’s image and make the order management process harder for buyers as well.
Pay later Pre-orders:
This would be one of the safest bets for established online merchants. In this, buyers place an order before the production phase of a product and pay for it after receiving products. In such cases, there is a mutual understanding between the merchant and the buyers that the order might or might not be fulfilled in cases of unforeseen circumstances. Hence, helps merchants in providing a safer pre-order experience.
Crowdfunding is one of the best ways for creating hype about a product that is yet to be launched in the market. In this, the production phase launches after the merchant receives a certain amount of orders. This is a great strategy for products that need larger funding and investments.
To Wrap up –
We can finally say! That pre-orders can be handled in a variety of ways by the merchants. However, the right choice always depends on the business requirements and the market demand for the product. Hence, choose the right pre-order strategy for your business today to achieve higher profits and sales.