What is pre ordering?
We book our tickets in advance for a flight. Like we do for hotel bookings when on a trip. Just like that, there are times when ecommerce platform sellers can offer customers the option of booking a product even before it has officially been listed for sale. This is called pre-ordering – a strategy where the customers can buy a product that hasn’t yet been released.
When it comes to online selling and ecommerce shipping, pre-ordering is a tactic that retailers have followed avidly.
However, before you decide to do so for your upcoming products, it is best to read on about the pros and cons.
Why offer pre-orders?
Besides being a fantastic marketing strategy, preordering has many benefits for retailers on ecommerce platforms.
Creating A Hype
Pre-ordering campaigns help the ecommerce dealers create a sense of FOMO – fear of missing out because they work on the scarcity principle. A pre-order campaign usually offers up to a certain number of limited pro-orders only. And the race to be one of the chosen few on the pre-order list adds to the sense of hype. These products often come across as limited edition products that furthermore make people feel special. It’s a human tendency to show off the things they have and others don’t. In the same way, a user with a successful pre-order delivered to him/her is of great help in generating a buzz online and offline.
One of the biggest pros of running a pre-order campaign is the ability to calculate and estimate demand. Depending on the number of pre-orders placed, you can decide to manufacture the actual number of products because by now you will have a fair idea of how coveted the product actually is. For example, if the pre-ordering list is full and enquiries for orders keep coming in, your product is a hit and the production can be more. If the pre-order list has shown a good, not great response, you will know exactly how many products to manufacture/purchase. This automatically cuts costs and best of all, it avoids the pile-up of unsold inventory.
Pre-ordering gives you the advantage of charging the customers for the product while they place an order. So that means you have collected the cost and profit for the order even before it is purchased. This gives you a good financial safety net and greatly reduces the risk for the actual number of products you manufacture/purchase.
Create a successful pre-ordering strategy with these tips
Contemplating whether you want to run a pre-ordering campaign or not? Check out these tips!
Before the movie, comes the teaser. People see the teaser, get intrigued, show excitement, and book the tickets. This goes to show how important it is to generate buzz on ecommerce platforms even before you launch your pre-ordering campaign. To give you an example, make the most of content marketing, email marketing, and influencer marketing in your phase before you start booking pre-orders.
For eg, for the release of a book written by a celebrity, the process starts with the publishing house and the celebrity taking to social media to announce the book. Then comes the second step of releasing the cover. Then comes the step of gifting the book to influencers and asking them to post a review. Over and above all throughout the campaign, emailers and messages about the pre-ordering date inching closer add to the hype of the product.
Prepare in Advance
A pre-launch campaign is great. But in your pre-ordering phase, ensure that you are completely set for the day the actual launch takes place. To do so, get the product descriptions with SEO friendly keywords already embedded in the content, enough reviews posted from paid partnerships, and PR articles ready to be uploaded once the launch is done. The preparation also involves ensuring that the ecommerce platform with your listing is equipped for heavy traffic.
Create a Scarcity
The principle of scarcity has given birth to the ‘limited edition’ concept – a strategy used by all brands when something ‘new’, ‘special’, and ‘innovative’ is about to hit the market. By adding a ‘limited period offer’ and a ‘limited edition’ in your communication, you can create a hype among the customers about how exclusive your product is and only the coveted few can get it. You can also offer your product only for a limited period of time to increase the hype further.
As mentioned earlier, staying prepared for doing all the work once the pre-orders have been booked and locked is crucial. And here is where shipping comes into play. Shipping software in India has developed a lot over the years because of which it is considered foolish to try and do the entire fulfilment all by oneself when fast and favourable options are available. One such option is choosing a third party logistics partner. And with ithinklogistics, you’ve found the perfect partner. With our AI-based dashboard and process, we are one of the best fulfilment and shipping software providers in India. From real-time step by step updates to finding out the reasons for non-delivery to attempting delivery again, ithinklogistics covers it all.
From listing the products online to ecommerce shipping, if you’re in the business of online retail, pre-order is something you definitely try. It is preferable to do so on a product that is backed by a popular brand/celebrity or its predecessors have good brand value in the market. From phones to smart watches to books, every industry has room for a pre-ordering campaign. All you need is the right product and the right shipping partner. Choose your ideal shipping partner by contacting us at ithinklogistics.