Category: pre-orders

How Merchants Can Leverage Shopify Deferred Payment and Vaulted Card Tech

Posted on by Eliza

Contents

What is a deferred payment order?

Understanding how you can leverage shopify deferred payment and vaulted card tech, can be very beneficial for business.

A deferred charge/payment method, allows a customer to place a pre-order, but instead of paying for the pre-order straight away, they accept a future charge and the associated payment terms. The card details are vaulted so it can be charged at a later stage.

Traditionally customers are charged for an order at the time of placing the order; whereas with deferred charge, the merchant can choose to either charge the full payment at a later time, or to take a deposit/partial payment at the time of the order, and then bill for the remaining amount later.

Using deferred payments can be really powerful when paired with pre-orders, especially when merchants are unsure how long manufacturing/freight may take.

Customers are less likely to be frustrated by delays as they have not yet paid for the item, this gives the merchant flexibility with which dates they choose to charge and fulfil the order.

Deferred payments are also convenient when customers have a change of mind, as no refund is needed.

How do deferred payments work on Shopify?

Shopify has the ability to set up a special ‘purchase option’ for selling products. When a product is purchased with this applied, the customer won’t be charged upfront. They’ll still go through checkout and enter their card details and review the order, but will accept a future deferred payment for the product, Shopify then vaults the card details with Stripe.

To use these special ‘purchase options’ and therefore offer deferred payments you will firstly need to install a Shopify app that offers and supports deferred payments.

Our app, PreProduct offers deferred payments and can be found here. The app will generate the purchase options (the technical name in Shopify’s APIs is ‘selling plan‘) on your behalf with any discounts/deposits/terms included, and communicate this to shoppers, with the approximate soonest due date shown. This can be edited as and when needed.

Then when you are ready to bill customers you have two options. You can either trigger the deferred charge in a one-by-one fashion from your Shopify admin in the orders section (like the screenshot below).

Or you can trigger the charges via the third party app you have installed. We recommend this option as it is a quicker and a simpler process, and can be done via the app without going into Shopify admin.

You can also keep customers updated on the payment schedule, and final payment due date via the fully customisable email campaign (as well as trigger dunning flows if cards fail)

Vaulted card VS card authorization periods VS invoice/draft-order

Vaulting card details is the process used by Shopify for deferred charges. The customers place a pre-order, and are taken to the store’s checkout. They will then enter their card details and accept a future charge. Then instead of being charged for the order, Shopify will vault and store the card details, so that they can be programatically run through checkout at a later date when the store is ready.

In comparison, the process of card ‘authorization’ is where the card issuer gives approval that the customer has sufficient funds available to meet the transaction and will accept the charge if it’s made in a certain window of time. Generally most authorisation periods will last for 5 -10 days and then expire, so the store will need to capture the charge in this time period or risk it expiring.

Vaulting is great as it’s not limited to the average 5-10 day window, as the details are recorded on file before triggering the payment.

Authorization is less flexible due to this limited window in which the payment can be charged, but does have the advantage that the credit card company will check that sufficient funds are available at checkout.

However, if the vaulted card has insufficient funds or is expired, supporting apps (like PreProduct) will show the reason for the error and let you deploy a dunning flow to try and rescue the order.

Another approach which is often used by wholesale stores is Shopify “draft orders”. These aren’t technically deferred charge as they work by sending out payment invoice emails. These invoice emails contain links which customers can use to check out.

Whilst it is technically a ‘pay later’ method (as the customer can lodge an order with you and then pay later) no future transaction is captured, it’s just a way of capturing the order intent, then starting the transaction later on.

Unless you have a specific use-case that requires draft orders, we recommend using the ‘vaulted card’ method as it allows you to send the customer through checkout once at the time of order, and then capture the payment in the future at your convenience.

When to offer deferred-charge as a customer’s payment method?

For pre-order campaigns

Deferred payments can be really helpful for pre-order campaigns, and can assist you to sell more products, as customers do not need to pay the full amount upfront, and instead pay at a later date. You can either choose to collect the full amount via deferred billing at a later date, or you can use deposits and bill a portion upfront (the deposit) and then the remaining at a later date.

pre-order
Made to order

When there is very high demand for a product, or the product requires extensive time to create/make, ‘made to order’ can be a great strategy; as it allows you to control the number of orders you accept and manage inventory. Deferred payments can be useful for this strategy, especially if customers may be waiting for an extended period to receive the product.

Try-before-you-buy

‘Try before you buy’ is a sales technique that lets customers try on or test a product before committing to purchasing. This is commonly used for larger price point products, as well as when the customer is deciding between multiple products, models or styles. Using deferred payments with this type of selling method would be be a great way to reduce risk and sell more. The customer accepts the future payment, but then is only billed if they choose to keep the item.

Which payment method is supported and what are the requirements?

Currently both Shopify payments and PayPal support deferred-charge for Shopify stores. Any type of credit card can be ‘vaulted’ as it is simply recording card details for when the payment’s due. If the card can go through checkout in a buy-now situation it should work for deferred payment (as long as you’re using Shopify payments/PayPal).

Payment methods

Shopify ‘pay later’ advantages

Shopify pay later offers many advantages for merchants as well as customers. For merchants the biggest advantage is that you can make the payment due request when it suits your business. You may have manufacturing delays, or shipping hold ups, and want to delay the payment due date.

Another advantage for merchants is that you are not limited to short 5/10/30 day periods like when using credit card authorization. As the card is instead vaulted with Shopify and the time period is not limited.

For consumers, there is a both a psychological and convenience factor, as they are able to commit to a purchase without having to give immediate payment.

Shopify ‘pay later’ disadvantages

The only real disadvantages of using Shopify ‘pay later’ is the potential for failed charges. This can happen because of expired cards or the customer not having sufficient funds in their account.

A supporting third party app (like PreProduct), should have the ability to send failed charge emails for failed deferred charge payments which will allow the buyer to rectify the payment or pay with another card.

Summary

Integrating Shopify’s Deferred Payment and Vaulted Card technology into your store offers a practical solution for managing pre-orders and cash flow, especially during uncertain manufacturing and shipping times.

By deferring payments, customers are more inclined to commit to a purchase, knowing they aren’t immediately out of pocket, particularly for items not instantly available. This method significantly reduces the administrative hassle of refunds should they change their mind. Offering a much more seamless experience than charge-upfront pre-orders.

Overall, Shopify deferred payment provides merchants increased flexibility in managing revenue streams while maintaining customer satisfaction and trust.

Shopify Deferred Payment Method FAQ

Yes if you use a 3rd party app (like PreProduct) with a payment provider (like PayPal or Shopify Payments) that supports deferred payments, you are able to delay charging until a later time.

Can you delay payment on Shopify?

To allow customers to pay later on Shopify, you can use deferred charge via a 3rd party app. The customer will place the pre-order, no money is exchanged immediately, and then when you are ready to charge, you will trigger the deferred charge.

How do I allow customers to pay later on Shopify?

Currently Shopify Payments and PayPal are supported on Shopify for deferred charge, so you could use PayPal instead.

What happens if I don’t use Shopify payments?

You trigger the deferred payment when you are ready to charge, Shopify will then use vaulted card details and charge the consumer for the remaining amount (if using a deposit) or the full amount (if 100% charge later).

How does pre-order payment work?

Yes. Subscriptions use periodically trigger deferred charges on the customers card; Typically right before the due item is set to be fulfilled.

Do subscriptions use deferred payments?

Some Shopify pre-orders apps (like PreProduct) generate a customer portal where shoppers can check the payment status of their pre-order’s deferred payments and when it is expected to ship.

How can customers check on their deferred payments?

Pre-sell With PreProduct

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Setting up Shopify back in stock notifications

Posted on by Eliza

Contents

Intro

Shopify back-in-stock notifications can play a crucial role in enhancing the customer experience and driving Shopify sales for eCommerce businesses.

The basic premise of back in stock notifications, is that customers who visit a product page displaying a sold out product or a product that is currently unavailable have the option to provide their email address to receive a back in stock alert.

Some of the benefits of setting up Shopify back in stock notifications includes; customer engagement and retention, increase customer satisfaction, maximise sales opportunities to recover lost sales, and improve inventory management.

How back-in-stock notifications work

Back-in-stock notifications are alerts/messages sent to customers who have expressed interest in a product that was previously out of stock or not yet available but has now become available on a Shopify store.

Below is how the basic process typically works:

-The store sets up a back in stock flow on their website

-A customer expresses interest; A customer visits a product page on a Shopify stores website and finds that the desired item is out of stock or currently not available.

-The customer can then choose to opt in for restock alerts, by providing their email address/phone number through an on-page widget. This is typically a ‘back in stock’ button that launches a pop-up modal to capture the customer details.

Opting in to back-in-stock notifications

-When the product is restocked and becomes available again, the Shopify store will automatically send a notification (via email, SMS, or app notification) to all the customers who signed up for back in stock alerts for that specific product.

-Once notified, the customer can click on the link provided which will take them directly to the product page to make a purchase. This simplifies the buying process for the customer and can lead to quicker sales.

Why a stock alert app brings customers back to your store

Customers who have signed up to be notified of restock alerts, have already expressed that they are interested in the product. You can imagine how much better qualified a back-in-stock email list would be when compared to most email campaigns.

Sending restock alerts to customers reignites their interest and as they have already previously missed out they will be even more driven to quickly purchase the product.

The back in stock notification not only drives sales but also directs traffic back to your eCommerce site. Customers receiving back-in-stock emails are likely to browse other products as well and potentially make additional purchases during their visit to your shop.

Setting up a back-in-stock Shopify app

Choosing a back-in-stock app

When choosing a back-in-stock app for your eCommerce website, there are several key factors to consider to ensure that the app you select best suits your business goals. Here are important aspects to look for:

Ease of Use and Integration:

The app should be relatively user-friendly to use and set up, you also want it to integrate seamlessly with your site theme, as well as have a great support team. An app that you can comfortably use and set up means you’ll actually use it. You can always look into more feature-rich apps, once you’re ready.

Customization and Branding:

Find an app that allows customization to match your brand’s look-and-feel. Use the app’s interface to customize notification templates, colors, etc to ensure a cohesive brand identity.

Notification Channels:

You will need to check the notification channels the app supports, such as email, SMS, push notifications, or other messaging apps and ensure that the app supports the channels preferred by your target audience for the most effective communication.

Adding the “notify me” button to your shopify theme

You’ll need to incorporate a code snippet/block into your Shopify theme that triggers the automatic display of a “Notify Me When Available” button whenever products are no longer in stock. Most apps will now use Store 2.0 block that you drag from the “Online Store -> “Shopify Customizer”. But if you are are not on a 2.0 Shopify theme, you will need to add a code snippet.

After you have added the code snippet/block, shoppers browsing an out-of-stock/unavailable a product will see a “Notify Me When Available” button appear directly next to, or below, the “Sold Out” button. It is important to ensure the correct placement and visibility of the “Notify Me When Available” button, as this will encourage customers to register their interest.

When shoppers clicks the “Notify Me” button, a pop up form will appear that allows shoppers to enter their email to be notified when the item is restocked or available.

Once this form is submitted by shoppers, a Subscribed to Back In Stock event will be tracked on the shoppers profile

Customising the back-in-stock button and form for your store

The “Notify Me When Available” button and form should allow a lot of customization, depending which app you choose. Klaviyo for examples allows you to change the colors, fonts, text, and other elements according to the style of your online store and your design preferences.

Setting up the back-in-stock notifications email/text flow

Creating effective back in stock alert email notifications is essential to captivate customers and motivate them to make a purchase. Services like Klaviyo can useful as they allow you to automate the email flows.

Below are some of the best practices to utilise when writing back in stock alert emails.

Clear and Compelling Subject Line:

Grab attention with a clear and engaging subject line that conveys the purpose of the email

Personalization:

Address the recipient by their name to create a sense of personal connection and make the email feel more tailored to their preferences.

Announce Product Availability:

Clearly state that the desired product is back in stock, setting the tone for the rest of the email.

Include a Clear Call-to-Action (CTA):

Use a prominent and compelling CTA, such as “Shop Now” or “Grab Yours Today,” that directs customers to the product page to make a purchase.

Offer Limited-Time Incentives:

Encourage immediate action by offering limited-time promotions, discounts, or free shipping to incentivize purchases.

Create a Sense of Urgency:

Use language that creates a sense of urgency, encouraging customers to act quickly before the product runs out of stock again or the pre-order discount stops being available.

monitoring analytics and reporting

Many Shopify apps that offer back-in-stock notifications, allow you to monitor the performance of your various flows and product pages. It’s best practise to monitor these analytics and optimise your front-end wording and email campaigns appropriately. Consider split tests with something like Klaviyo’s AB testing.

Why you might use a pre-order app instead

what level of order intent do you want to capture?

Sending a back in stock notification to customers is very much worthwhile, however a customer is giving quite a low level of commitment. There is another option however… pre-orders.

If you want to ensure you’re capturing genuine interest, as well as start a transaction in a way which is still flexible and without any money charged upfront. Pre-orders can be a great way to level up your back-in-stock alerts.

By using a pre-order system that supports pay-later pre-orders, you can tap into a customer’s willingness to commit to a purchase even before an item is restocked. This offers a clearer indication of product demand than mere stock notifications.

pre-orders that allow you to charge later

Shopify capture only pre-orders, allow you to capture a customer’s intent to pre-order. When you are ready to finalise the pre-order and collect payment, you send out payment links to customers, and this allows them to pay for their pre-order through your online store.

Shopify charge later pre-orders are similar to ‘capture only’ pre-orders in that the customer pays for the product at a later time (whenever suits the store owner). However, the customer goes through the Shopify checkout at the time of pre-order and enters their card details and agrees to a deferred charge. Shopify vaults these card details and charges when the store owner triggers the charge.

Setting up a pre-order app in the place of back in stock notifications

We’ll use PreProduct in this example, although other pre-sale apps may support similar functionality.

  1. Install PreProduct from the Shopify App Store
  2. Add PreProduct’s block to your theme’s product pages via the Shopify Customize editor
  3. Visit PreProduct’s “Templates” screen and set the eligibility conditions for which products should show be allowed to show the back-in-stock button. Make sure to choose capture-only or charge-later when specifying the pre-order listing settings.
  4. Finally, turn on the listing manager automation from PreProduct’s “Setup” -> “Automations” screen, so that eligible out of stock products will be pre-sold.

The Listing manager gets the chance to run every time a product has a change in Shopify (e.g. a change in stock level), but as soon as this first change happens, eligible products will stay in sync.

Back in stock app Shopify FAQ

Back-in-stock email subject lines should be; Clear and to the point so that customers immediately understand what the email is about, attention-grabbing so that customers want to open and read it and urgent so it is opened and customers act fast to purchase.

How to write back in stock email subject lines?

Yes, you should definitely customize your back-in-stock emails/messages. Personalized emails are more likely to be opened and clicked on than generic emails.

Should you customise back in stock emails?

Both back in stock notifications and pre-orders can both be beneficial for online stores. Back in stock notifications can be great when you have products that regularly go in and out of stock, so customers can be notified as soon as they are back in stock, and allow you to sell more items. Pre-orders allow you to take the order even when the product is out of stock and does not rely on the customer purchasing the product once back in stock after receiving the notification.

Should you set up back in stock notifications or use a pre-order app?

You will need to download a back in stock app from the Shopify app store, and then configure it in your Shopify store.

How do I set up back in stock alerts on Shopify?

“Back in stock” refers to a situation where a product that was previously out of stock or unavailable for purchase is once again available for purchase. It indicates that the product is available again and is ready for customers to buy.

What is the meaning of back in stock?

The “back in stock” strategy involves strategies used by businesses to effectively manage and capitalize on the restocking of products that were previously unavailable. This approach is crucial for maximizing sales.

What is the back in stock strategy?

It’s up to you to add and remove stock in the Shopify product admin. As customers purchase items, the stock level will naturally decrement. Once you have new stock arrive on premise, you can go into Shopify’s product admin and increase the inventory level.

How do you know if something is back in stock?

This is commonly referred to as a “back in stock alerts” or “stock notifications” app. There are many options available on the Shopify app store.

What is the app that tells you when something is in stock?

Eliza Wegener

Co-founder @PreProduct

Pre-sell With PreProduct

7 day free trial with all plans

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Are pre-orders legal?

Posted on by Eliza

Contents

Introduction

Quick Answer: Pre-orders are legal in most countries, including the US, UK, EU, Canada, and Australia. However, specific regulations require clear delivery dates, accurate product descriptions, and proper handling of customer funds. Keep reading for country-specific requirements and compliance tips.

Pre-order sales are a great way to gauge customer interest and generate revenue before launching a new product. However, before offering pre-orders, it’s essential to ensure that you’re complying with relevant laws and regulations in your country.

In this article, we’ll provide an overview of the legal requirements for offering pre-orders in various countries, so you can make an informed decision for your business.

Are pre-orders legal in my country?

Disclaimer: The opinions expressed in this article are solely those of the author and are not to be used for any legal decisions. This article is intended to provide guidance as to where you can find further information and should not be construed as professional advice or guidance

We strongly recommend doing your own research and seeking professional advice if needed.

⚖️ Key Pre-Order Legal Requirements.

  • Provide clear delivery timelines
  • Accurate product descriptions
  • Transparent refund policies
  • Secure payment handling
  • Regular customer updates

1.0 Are pre-orders legal in the United States

When businesses offer pre-orders in the United States, they typically enter into contractual agreements with customers. These agreements specify the terms and conditions of the pre-order, including the price, expected delivery date, cancellation policies, and any other relevant details.

The legal framework for pre-orders in the United States is primarily based on contract law. By placing a pre-order, customers are essentially entering into a contract with the seller. As with any contractual relationship, both parties have rights and obligations.

Key US Requirements:

  • Must provide specific delivery dates or clear estimates
  • Required to honor advertised prices and features
  • Need to notify customers of any delays
  • Clear refund policies must be stated – Compliance with both federal (FTC) guidelines and state consumer protection laws

1.1 Are pre-orders legal in the United Kingdom

Under UK law, the main law that governs consumer protection is the Consumer Rights Act 2015. The Act sets out the rights and obligations of both consumers and businesses in relation to pre-orders and other consumer transactions.

Businesses that take pre-orders in the UK are generally required to provide consumers with clear and accurate information about the goods or services being offered, the total price of the transaction, and the terms and conditions of the sale. Failure to provide this information or engaging in other unfair or deceptive business practices can result in legal and financial consequences.

In the UK, a deposit is generally considered to be a partial payment for a product or service, and the seller is legally required to deliver the product or service within the agreed-upon timeframe. If the seller fails to do so, the consumer is entitled to receive a refund of the deposit.

Key UK Requirements:

  • Must comply with Consumer Rights Act 2015
  • Mandatory 14-day cancellation right for online sales
  • Clear delivery timeframes must be provided
  • Full price transparency required before purchase
  • Deposit protection and refund rules apply
  • Terms and conditions must be clearly displayed

1.2 Are pre-orders legal in Germany

In Germany, pre-orders are subject to consumer protection laws, which are designed to protect customers from unfair or deceptive business practices. Here are some key consumer protection laws that may apply to pre-orders in Germany:

  1. The Civil Code (Bürgerliches Gesetzbuch, BGB): The BGB sets out the general rules that apply to pre-orders in Germany. According to the BGB, pre-order agreements are binding contracts between the consumer and the seller, and the seller is required to deliver the goods or services by the agreed-upon date.
  2. The Distance Selling Act (Fernabsatzgesetz): The Distance Selling Act applies to contracts for goods or services that are concluded over the phone, online, or by mail order. According to the act, customers who order goods or services online have a right of withdrawal, which means they can cancel the order within 14 days without giving a reason.

It is generally permissible to take deposits in Germany. However, there are certain legal requirements that must be met in order to take deposits in compliance with German law.

Key German Requirements:

  • Must comply with Civil Code (BGB) regulations
  • Online orders fall under Distance Selling Act
  • 14-day withdrawal right for customers
  • Clear contract terms required in German
  • Deposit regulations must be followed
  • Precise delivery dates must be specified

1.3 Are pre-orders legal in France

It is generally permissible to take pre-orders in France. However, like in many countries, pre-orders are subject to consumer protection laws that are designed to protect customers from unfair or deceptive business practices.

Under French law, pre-order agreements are considered to be binding contracts between the consumer and the seller, and the seller is required to deliver the goods or services by the agreed-upon date. Additionally, consumers have a right of withdrawal, which means they can cancel the pre-order within 14 days after receiving the goods or services, without giving a reason.

In France, the main law that governs consumer protection is the Consumer Code (Code de la consommation). The Consumer Code sets out the rights and obligations of both consumers and businesses in relation to pre-orders and other consumer transactions.

Businesses that take pre-orders in France are generally required to provide consumers with clear and accurate information about the goods or services being offered, the total price of the transaction, and the terms and conditions of the sale. Failure to provide this information or engaging in other unfair or deceptive business practices can result in legal and financial consequences.

Key French Requirements:

  • Must comply with Consumer Code (Code de la consommation)
  • 14-day withdrawal right after delivery
  • Clear pricing information must be provided upfront
  • Terms and conditions must be in French
  • Detailed product/service descriptions required
  • Specific delivery timeframes must be stated
  • Deposit protection measures must be followed

1.4 Are pre-orders legal in Australia

In Australia, there are several rules and laws that businesses need to follow when taking pre-orders for products or services.

Firstly, businesses must comply with the Australian Consumer Law (ACL), which is a national law that sets out consumer protection rights and obligations for businesses. The ACL requires businesses to provide consumers with accurate and truthful information about the products or services they are offering, including any terms and conditions that apply to pre-orders.

Under the ACL, businesses must not make false or misleading representations about the availability, quality, or nature of a product or service that is being pre-ordered. They must also provide consumers with a clear and accurate estimated time frame for the delivery of the product or service.

Businesses that take pre-orders must also comply with the rules and regulations set out by the Australian Competition and Consumer Commission (ACCC). The ACCC has published guidelines for businesses on pre-orders, which includes recommendations for businesses to clearly communicate any risks or uncertainties associated with pre-ordering a product, such as delays or changes to the product.

In addition, businesses must also comply with any specific state or territory laws that apply to pre-orders. For example, in New South Wales, businesses that take pre-orders must provide consumers with a written agreement that outlines the terms and conditions of the pre-order, including the estimated delivery date and any cancellation rights.

Key Australian Requirements:

  • Must comply with Australian Consumer Law (ACL)
  • ACCC guidelines must be followed
  • State-specific requirements must be met (e.g., NSW written agreement rules)
  • No misleading claims about product availability
  • Clear delivery timeframes required
  • Risk disclosures for potential delays
  • Accurate product descriptions mandatory
  • Transparent refund policies needed

1.5 Are pre-orders legal in Canada

In Canada, there are rules and laws that businesses must follow when taking pre-orders for products or services.

The Competition Bureau of Canada, which is responsible for enforcing Canada’s competition laws, has issued guidelines for businesses on the use of pre-sale activities, including pre-orders. These guidelines set out some general principles that businesses should follow when offering pre-orders, such as providing clear and accurate information about the product or service being offered, the delivery date, and any associated risks.

Additionally, the Consumer Protection Act (CPA) of each province and territory in Canada sets out specific rules that businesses must follow when taking pre-orders. For example, in Ontario, businesses that take pre-orders must provide consumers with a written agreement that includes the total cost of the product or service, the delivery date, and the terms and conditions of the pre-order.

Under the CPA, businesses must not make false or misleading representations about the product or service being pre-ordered, and must provide consumers with clear and accurate information about any risks or uncertainties associated with the pre-order.

However, it’s important to note that specific laws and regulations may vary across states and industries. Consumer protection laws, such as those related to advertising, unfair trade practices, and refunds, may apply to pre-orders. Therefore, businesses must comply with applicable federal and state laws, including the Federal Trade Commission (FTC) guidelines and relevant state consumer protection statutes.

Key Canadian Requirements:

  • Must follow Competition Bureau guidelines
  • Provincial Consumer Protection Acts apply (varies by province)
  • Federal CCPA guidelines must be followed
  • Written agreements required in many provinces
  • Clear delivery dates must be provided
  • No misleading product representations
  • Risk disclosures mandatory
  • Provincial-specific requirements must be met
  • Transparent refund and cancellation policies needed

Tips for Staying Legally Compliant When Offering Pre-Orders

When offering pre-orders for a product, it’s important to ensure that you stay legally compliant to protect both your business and your customers. Here are some general tips to consider:

  1. Transparency: Clearly communicate all relevant information about the pre-order, including the product/service description, expected delivery date, refund policy, and any risks or uncertainties associated with the pre-order.
  2. Accurate product representation: Provide accurate and detailed information about the product being offered for pre-order. Avoid misleading or false claims that may misrepresent the product’s features or availability.
  3. Terms and conditions: Create clear and comprehensive terms and conditions for the pre-order, including details about payment, cancellation, refunds, delivery, and any potential changes to the product/service before release. Ensure that customers explicitly agree to these terms before placing a pre-order.
  4. Payment processing: Use reputable and secure payment processors to handle pre-order payments. Clearly state the payment methods accepted, payment schedule (if applicable), and any fees or additional charges that may be incurred.
  5. Refund policy: Establish a fair and transparent refund policy for pre-orders, clearly stating the conditions under which refunds will be provided. Make sure customers understand their rights regarding cancellations and refunds.
  6. Delivery timeline: Provide a reasonable estimate of the expected delivery or release date for the pre-ordered product or service. Be cautious about making absolute guarantees or overly optimistic claims to avoid potential liability.
  7. Customer communication: Keep customers informed about the progress of their pre-order, including any shipping delays, changes in wait time or any other changes that may occur. Maintain open lines of communication to address customer inquiries or concerns promptly.
  8. Data protection: Comply with applicable data protection and privacy laws when collecting and storing customer information. Clearly state how customer data will be used and protected in your privacy policy.
  9. Compliance with consumer protection laws: Familiarise yourself with consumer protection laws specific to your jurisdiction, such as regulations related to distance selling, warranties, and consumer rights. Ensure that your pre-order practices align with these laws.
  10. Professional legal advice: Consult with a lawyer or legal professional experienced in consumer protection and e-commerce to review your pre-order process and terms. They can provide guidance tailored to your specific business and help ensure legal compliance.

Remember, these tips are general guidelines, and it’s important to consult with a legal professional who can provide advice based on your specific circumstances and jurisdiction to ensure full legal compliance.

Conclusion

Offering pre-orders can be a great way to generate revenue and gauge customer interest, but it’s important to ensure that you’re complying with relevant laws and regulations in your country.

By following the legal requirements outlined and linked to in this article and taking steps to stay compliant, you can offer pre-orders with confidence and avoid any potential legal issues down the line.

Eliza Wegener

Co-founder @PreProduct

Pre-sell With PreProduct

7 day free trial with all plans

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