Pre-orders for Sustainability: Mastering Made-to-Order Sales Through Shopify



Introduction

Before we get into pre-orders for sustainability, some quick stats: Did you know that the fashion industry is responsible for approximately 10% of the world’s carbon emissions? That’s a significant chunk, considering it includes everything from making clothes to shipping them and eventually getting rid of them. The quick and constant turnover of trendy items in the fast fashion world is a big part of the problem, leading to more waste and environmental harm. This is effecting buyer behaviour; According to a survey from McKinsey & Co., 66% of all respondents and 75% of millennial respondents say that they consider sustainability when they make a purchase.

The concept of sustainability in fashion and online retail revolves around adopting practices that prioritize environmental, social, and ethical considerations throughout the entire supply chain and product life cycle.

I am Eliza, a co-founder at PreProduct, which is a pre-order app for ecommerce brands where I work on many fashion and made-to-order pre-order campaigns.



Made-to-order production provides a more responsive and sustainable approach to fashion manufacturing, addressing issues related to overstocking, heavy discounting, and the disposal of excess stock into landfills. It aligns production with actual demand, reduces waste, and promotes a more environmentally and economically viable business model.

Pre-orders serve as a mechanism in e-commerce to effectively implement a made-to-order model. Pre-orders allow for demand forecasting, customization options, cash flow management, and production efficiency, as they allow you to take order interest upfront reducing the risk of over or under supply, along with reducing wastage.

Shopify is one of the leading e-commerce platforms that enables individuals and businesses to create and manage online stores. I will be focusing on it for the article, as it’s the go-to solution for online fashion brands today.

The Rise of Sustainable Fashion

Consumers

Sustainable fashion is about creating, making, and wearing clothes in a way that thinks about how it impacts the planet, people, and communities at every step of the process. The goal of sustainable fashion is to minimize the negative effects associated with the fashion industry, which traditionally has been resource-intensive, environmentally damaging, and sometimes associated with poor labor practices.

A survey of 10,281 global consumers showed that 78% of consumers feel that sustainability is important and that 55% of consumers are willing to pay more for eco-friendly brands

Consumer trends towards sustainability and ethical consumption have become increasingly prominent, reflecting a growing awareness and concern about the environmental and social impact of products. This shift in consumer behavior is noticeable at various levels, including individual purchasing decisions, industry practices, and global business strategies.

Consumers are more informed about environmental and social issues related to the products they buy. This awareness is being driven by social media, online platforms, and awareness campaigns by environmental and ethical organizations.



Industry

There is also a rising demand for transparency in supply chains. Consumers want to know where and how products are made, whether fair labor practices are followed, and the environmental impact of the production process. This has led to an increase in companies providing detailed information about their sourcing and manufacturing practices.

Whilst this has been going for quick a while already, it shows signs of growing to even more front-of-mind. This rundown on Gartner’s top trends for 2023 describes sustainability as one of the technologies that will drive disruption and opportunity over the next five to 10 years.

The popularity of brands with a strong commitment to sustainability and ethical practices has grown. Consumers are actively seeking out and supporting companies that prioritize these values, leading to the rise of eco-friendly and socially responsible brands.



Some examples of exciting sustainable focussed fashion brands include; Alohas (the Spanish footwear brand that works to an on-demand business model meaning they never over-produce and only make what is actually needed, Aligne (a womenswear brand that focused on using conscious materials and using ethical factories) & Riley Studio (Gender-neutral clothing made from waste materials and natural fibres. On a mission to change mindsets and make conscious consumerism the norm).

https://www.alohas.io/products/manhattan-black-sandal?variant=37680289546433

Pre orders for sustainability

Pre-orders work by allowing customers to reserve and purchase or commit to purchase a product before it is officially available.

Stages of pre-orders

  1. Customer clicks a pre-order button
  2. Customer chooses variant/quantity and is redirected to cart/checkout where they are charged or accept a future charge (depending on the pre-order type)
  3. Customer receives optional confirmation email.
  4. Time…
  5. If …
    • Charging upfront, brand releases fulfilment. Customer receives an optional shipping email, and brand ships the pre-order item.
    • Charging later, brand triggers deferred charge. Customer receives optional upcoming charge email, after a delay the customer’s card is charged.
  6. Campaign cycle
    • If you’re a made-to-order brand, you might operate a perpetual pre-order campaign. Which is to say; constantly taking new pre-orders and fulfilling existing ones.
    • For a more standard model fashion brand that plans to pre-sell ahead of time and have a limited quantity or order might be more of a one-off campaign. i.e. taking pre-orders for a set amount of time before stock arrives, then fulfilling all pre-orders together.

Whether you’re an independent merchant, boutique or larger fashion brand, made-to-order can dramatically reduce your excess stock. Meaning zero (or close to it) stock has to go to landfill.



Benefits of pre-orders for both consumers and businesses

Benefits to merchants

  • This strategy for sustainability doesn’t impact how your products are designed, made or sourced; meaning it can be one of the easier ways to increase your brands sustainability.
  • Leading on from the above point, sustainability via pre-orders is a lot cheaper than a product audit and overhaul. It can also be better for cashflow, due to receiving purchases upfront or when you’re ready to ship.
  • A low risk tactic for reaching your sustainability targets. We recommend experimenting with a pre-order campaign for an upcoming product first. Once you’ve iterated on your pre-order setup and standard-operating-procedure, you can then roll pre-orders out on a larger scale.

Benefits to consumers

  • Customers can buy from one of their favourite brands (you!), whilst feeling good about their purchasing decision.
  • By purchasing from a business who is using pre-orders to be more sustainable there will be a reduction on the environmental impact associated with unnecessary production, as well as a lower carbon footprint.
  • Modern pre-order technology like PreProduct allows for more flexible types of pre-orders, for example charge-later pre-orders, where the customers card is ‘vaulted’, meaning they’re only charged when you’re ready to ship.
  • Being able to participate on a less abrupt buying journey. Emailing pre-order customers to keep them in the loop and communicate how their purchase is coming along is a great way to build brand affinity. You can see this dynamic with Kickstarter campaigns; backers love following along with the journey.


Integrating & setting up Pre-orders with Shopify

Step-by-step guide on setting up a pre-orders on Shopify

  1. To get started and set up pre-orders on Shopify, visit the Shopify App Store and search for “pre-order”, then select the app you wish to install (surprisingly, we recommend PreProduct).
  2. Once you have located the app, click on it to access the app listing page, and then select the “Add app” option.
  3. To grant the app access to your Shopify admin account, click “Install app” and authorize its use.
  4. Integrating the App with Your Storefront: We have an in-depth guide on the installing a pre-order app here and would absolutely recommend reaching out to customer support if you’re at all uncomfortable with HTML/Liquid coding.
  5. If you have a Shopify “store 1.0” theme, then you’ll need to add a snippet to your online store’s product page theme file. For themes from 2022 onwards, the introduction of Shopify 2.0 themes means that app blocks can now seamlessly integrate into the Shopify admin’s drag-and-drop theme customizer.

Listing Pre-orders on Shopify

Once you’ve completed the above steps to integrate the app with your Shopify storefront, you can now start listing products for pre-orders. Begin by listing a product in your selected pre-order app. Most if not all pre-order apps sit on top of your existing Shopify product listings. Once listed in the app, the pre-order product page’s cart button text should be replaced with a pre-order version, accompanied by any other front-end additional information, i.e. special pre-order messaging.

You will need to decide which type of pre-order to use (as explained below), along with the shipping time frame and whether to offer any discount. The general pre-order types are:

  • Charge upfront pre-order – 100% charged upfront (Most apps will offer this).
  • Charge Later pre-orders – 100% charged later when you trigger the charge.
  • Deposit-based pre-orders – A percentage paid upfront, with the outstanding charged later.
  • Capture-only pre-orders – A payment link is sent once you’re ready to send customers through your payment gateway.

Besides the terms of payment for your pre-order listing, there are many other other useful features available that are worth considering before you choose an app to go forwards with.

  • Listing specific variants
  • Setting max pre-order limits for variants
  • Early bird discounts that are exclusive to pre-orders
  • Custom text in and around the pre-order button
  • Email campaigns to keep customers in the loop with their pre-order
  • Isolating pre-order items from buy-nows in orders
  • Fulfilment holds so items aren’t prematurely pushed to your shipping/ERP platform
  • Automatic listing of out of stock products for pre-order
  • Automatic charging of pre-orders as stock comes in
  • And many more!

Marketing Your Made-to-Order Products



When marketing made-to-order products, ensure you highlight the unique aspects of customization, personalization, and the tailored experience. Below are some of the strategies to consider including;

  • Emphasize Customization: Highlight the ability for customers to customize their products according to their preferences. Showcase the range of options available, whether it’s color choices, materials, sizes, or features.
  • Tell a Unique Story: Craft a compelling narrative around the made-to-order process. Explain the craftsmanship, attention to detail, and the personalized journey each customer undergoes when ordering a product.
  • Educate on the Process: Provide transparent information about how the made-to-order process works. Explain the steps involved, the craftsmanship behind it, and the benefits of choosing a personalized item over mass-produced alternatives.
  • Limited Edition Releases: Create a sense of exclusivity by framing made-to-order products as limited edition releases. This can evoke a feeling of uniqueness and urgency, encouraging customers to place orders promptly.
  • Social Media Engagement: Leverage social media platforms to showcase the customization process, share behind-the-scenes glimpses of craftsmanship, and engage with your audience through polls, Q&A sessions, or live videos.
  • Utilize Email Marketing: Build an email marketing campaign to nurture leads and inform customers about the benefits of made-to-order products. Include visuals, success stories, and exclusive offers to encourage conversions.

Pre-order and made-to-order product launches can unlock a whole new set of strategies for marketing:

  • Launching your product more than once. Once when you open pre-sales, then once when it’s in stock.
  • Having multiple sales pushes for your made-to-order products as sales/stock goes up and down. There are many artists that are really effective with this approach, for example Kimmy Hogan an Australian print and ceramic designer will often post multiple times a week as new editions become available or are pre-released.

Case Study: Frahm Jackets

  • Frahm is a UK men’s jacket company, that focuses on high quality and timeless style.
  • Frahm uses a pre-order process, to ensure they are not left with excess stock, as over buying impacts the quality they can product. Each jacket design is only made once a year, every year, so if you place a pre-order with them before they have placed their order with the factory then you are guaranteed your choice of size and colour.

https://frahmjacket.com/collections/jackets/products/ripstop-puffer-jacket-2024

Overcoming Challenges in Pre-order and Made-to-Order Models

Potential challenges you may experiences when using pre-order and made-to-order models include;

  • Production timing issues – if you experience any production delays or inventory management issues, ensure you keep customers up to date. This can be done by email, as well utilising the customer portal both should be available in the pre-order app you choose to use. Clear communication about expected delivery dates is crucial to managing customer expectations, as is setting realistic delivery timelines to avoid over-promising and under-delivering.


  • Quality control – is crucial as products are often produced based on individual customer specifications. Consistency is key. Similar to product timing issues, ensure customers are kept informed of any changes.


  • Cancellation and returns – customers might cancel orders, leading to revenue fluctuations and potential inventory management challenges. Ensure you have a refund/cancellation policy that you are happy with and works for your business.
  • Cash Flow Management – the production process often requires upfront costs, therefore managing cash flow becomes crucial as expenses may need to be covered before revenue is generated. Therefore is very important to choose the type of pre-order that will work for your business.

If it is your first time using pre-orders, and you feel apprehensive about the process, and have any doubts on production timings/fulfilment, we would recommend starting with charge-later pre-orders to begin with so that you’re not charging any money upfront; generally customers will be much more tolerant of delays when they haven’t paid anything yet.

Conclusion

This article has highlighted that there are many benefits of using pre-orders for sustainability, including;

Reduced Overproduction:

  • Pre-orders allow you to gauge customer demand accurately. By producing items based on confirmed orders, the risk of overproduction is significantly reduced. This helps in minimizing excess inventory, which can be wasteful and environmentally harmful.

Resource Efficiency:

  • With pre-orders, resources such as raw materials and energy are used more efficiently. Manufacturers can plan production based on actual demand, optimizing the use of resources and reducing the environmental impact associated with unnecessary production, this will also contribute to a lower carbon footprint.

Extended Product Lifecycles:

  • Pre-orders can contribute to the creation of products that are more timeless and have longer lifecycles. Instead of following fast fashion or other trends that lead to rapid product turnover, pre-orders can encourage the production of durable and lasting goods, reducing overall waste.

Financial Stability for Sustainable Investments:

  • The cash flow generated through pre-orders can provide financial stability for your business, allowing you to make long-term investments in sustainable practices.

We strongly encourage businesses to look into and adopting these practices for a more sustainable future in retail. If you find pre-orders intimidating, we recommend merchants start with a single product as an experiment and use a ‘charge-later’ strategy so that you’re not charging customers until you’re comfortable.

Pre-orders for Sustainability FAQ

Pre-orders help in reducing overproduction, which is a major issue in the fashion industry. By producing only what is pre-ordered, brands can minimize waste and reduce their environmental footprint. This approach ensures resources are used more efficiently, leading to a more sustainable production process.

How do pre-orders actually contribute to sustainability in fashion?

Absolutely! Shopify’s platform is user-friendly and scalable, making it ideal for brands of all sizes. Pre-orders can help small or emerging brands manage inventory more effectively, reduce upfront costs, and build a customer base interested in sustainable fashion.

Can implementing pre-orders on Shopify be beneficial for small or emerging fashion brands?

Common challenges include managing production timelines, setting realistic delivery dates, and maintaining customer communication. To overcome these, plan your production schedule carefully, set clear and transparent communication channels with your customers, and use Shopify’s tools to keep track of orders and inventory efficiently.

What are the key challenges I might face when setting up pre-orders on Shopify, and how can I overcome them?

Leveraging social media, creating email marketing campaigns, and engaging in storytelling about your brand’s commitment to sustainability are effective strategies. Also, consider offering exclusive perks for pre-order customers, like early access to new products or special discounts.

Are there any specific marketing strategies that work best for promoting pre-order campaigns on Shopify?

Transparency is key. Keep your customers informed about the status of their orders. If delays occur, communicate them promptly and offer options like order modifications or cancellations if needed. Building trust through clear communication can turn a potential negative experience into a positive one.

How can I ensure a positive customer experience with pre-orders, especially when there are delays?

Pre-sell With PreProduct

7 day free trial with all plans

Best practises for pre-selling a limited edition on Shopify



Introduction

Pre selling a limited edition on shopify refers to the release of products/variants in a restricted quantity, for a specified period or both. A limited drop can be used in many situations, such as for highly collectable item/s, for coveted items, for items that have only a small supply, and for products that have a large lead time.

There are many benefits that a company can see by offering limited drops of a product on Shopify, such as increased sales, creating brand loyalty, fostering growth and community as well as reducing financial risk and assisting overall business success.

The below article will discuss pre-selling a limited edition on Shopify, and the best practises for a successful campaign.


Limited edition shoe drop

Preparing for a limited edition drop

Building hype and anticipation

  • Marketing and promotion of your limited edition product is imperative for success. Companies often use limited edition drops as a marketing strategy to generate buzz, build anticipation, and drive sales.
  • Limited Editions in e-commerce offer several appealing aspects that can attract and engage customers. Limited editions imply scarcity, which can create a sense of urgency. The fear of missing out can drive people to make a purchase sooner rather than later, increasing the likelihood of a sale.
  • Limited editions are also often designed to be unique or exclusive, providing customers with a product that not everyone can have. This exclusivity can make customers feel special and privileged, enhancing their perception of the product. Offering limited edition via pre-order, can allow your customers to place their order and secure the product before it is available.
  • The use of weekly drops or monthly drops in small batches can also help with the buzz around your ecommerce brand.


Optimizing your Shopify store for limited edition drops

  • There are a few technical and strategic tips we recommend when setting up your Shopify store for limited edition releases.
  • One product page optimization that can be really effective is the use of a countdown timer. This is an app/widget that allows you to set a specific amount of time and counts down towards the moment your drop goes live (or is available for sale). The countdown timer typically displays the remaining time in hours, minutes, and seconds.
  • Another product page optimization is the use of a waitlist. Waitlist software can manage and automate the process of creating and managing customers who sign up to hear about new release or out of stock products. It will allow you to embed a section on your website to collect potential customers email and other details, which you can then use to advise customers when the product is released.
  • Using a pre-order app can be a good way to go and will also allow you to collect pre-orders in advance before the product is available, allowing you to manage customer expectations and charge on your terms (whether that be charging upfront when the pre-order is placed, collecting a deposit, or charging the full amount at a later date when you are ready).
  • Email newsletters/SMS broadcasts as well as updating information on your website can all be helpful to promote and communicate to customers when the limited drop will be released. Here you can also explain why the new drop is special/unique and create a buzz around the new product.
  • One trick for SEO and Google ranking is to launch the landing page in a ‘placeholder’ state weeks/months before the drop goes live. This is a way to give Google a chance to rank the page ahead of you promoting it and starting to take sales.


Leveraging social proof and scarcity

  • Both the psychology of scarcity and social proof plays a significant role in influencing consumer behavior and can be powerful tools to boost sales. Limited drops are a perfect situation to put some of these dynamics to work.

Scarcity:

Scarcity is the principle that limited availability increases perceived value. When something is perceived as scarce or in short supply, people tend to assign it higher value and are more motivated to acquire it. Here’s how scarcity influences consumer behavior:

  • Urgency and FOMO (Fear Of Missing Out): Scarcity creates a sense of urgency, triggering the fear of missing out. Consumers are more likely to make a purchase when they believe the opportunity is time sensitive, leading to quicker decision-making.
  • Perceived value: Limited availability often increases the perceived value of a product or service. Customers may feel that they are getting something exclusive or special, which justifies a higher price point.
  • Competitive advantage: Brands can gain a competitive advantage by strategically employing scarcity. Limited editions, time-limited promotions, and low stock notifications are common tactics.

Social proof:

Social proof is a phenomenon in which individuals observe and consider the actions and behaviors of others as a guiding influence on their own decision-making processes. When individuals see that others are engaging with a product in a positive manner, they are more likely to purchase said product. Here’s how social proof contributes to boosting sales:

  • Trust and credibility: Positive reviews, testimonials, and user-generated content create a sense of trust and credibility. When potential customers see that others have had a positive experience, they are more likely to trust the brand and make a purchase.
  • Influence on decision-making: Our decisions are often influenced by the behavior of those around us. If a product is popular or endorsed by either someone the potential customers trust or a significant number of people it signals to potential customers that it’s a worthwhile choice.
  • Reducing uncertainty: Social proof helps reduce the perceived risk of making a purchase. When individuals see that others have successfully used a product, it minimizes uncertainty and increases confidence in their own decision.
  • Word-of-Mouth marketing: Positive experiences shared by customers through word-of-mouth or online reviews can serve as powerful marketing tools. Recommendations from friends, family, or online communities carry significant weight.


Integrating scarcity and social proof into sales strategies can be highly effective. For instance, presenting a product with limited availability and emphasizing its positive reviews not only creates a sense of urgency but also strengthens trust and credibility.


Capturing pre-orders

Pre-orders are where a store allows customers to reserve and purchase a product before it is officially in stock or available for general sale. This approach serves multiple purposes, including gauging interest, and generating buzz.

Here’s how pre-orders can achieve these objectives:

Gauging demand:

  • Early interest measurement: Pre-orders provide a tangible way to measure initial interest and demand for a product.
  • Market validation: A high number of pre-orders can validate the market appeal of a product. It helps brands ascertain whether there is a sufficient customer base willing to commit to a purchase before the product is physically available.
  • Inventory planning: By gauging interest through pre-orders, brands can also make more informed decisions about how much inventory to produce for future releases to limit waste and optimize supply chain management.

Generating excitement:

  • Anticipation and buzz: The concept of pre-orders creates anticipation and buzz around a product. It allows businesses to build excitement by highlighting features, benefits, or exclusive offerings associated with pre-orders.
  • Exclusive incentives: Offering exclusive incentives for pre-orders, such as early access, special pricing, or limited-edition bonuses, adds a feeling of excitement. Customers feel a sense of privilege and exclusivity by being among the first to acquire the product.
  • Marketing opportunities: Pre-orders provide a natural opportunity for marketing campaigns. Brands can utilise the period leading up to the official release to engage with their audience, share teasers, and create a narrative around the product. They also let you effectively launch twice; once when pre-sales go live and once when buy-now sales do.
  • Customer engagement: The pre-order phase encourages customer engagement as potential buyers express their interest and commitment. This engagement can extend to social media, reviews, and discussions, further increasing the product’s visibility.
  • Building brand loyalty: Customers who participate in pre-orders may develop a stronger connection with the brand. Their early commitment reflects a level of trust and loyalty, especially if the pre-order experience is positive and seamless.


Implementing a limited drop on Shopify

Setting up product listings in Shopify (step by step guide)

  • Step 1: Go to the Products section on your Shopify Admin.
  • Step 2: From the Products page, click Add product.
  • Step 3: Add a Title (include limited edition statement)
  • Step 4: Include a Description (ensure you include further information about the limited edition drop)
  • Step 5: Add Images.
  • Step 6: Include Pricing.
  • Step 7: Enter your Inventory.
  • Step 8: Add Shipping Details.
  • Step 9: Enter Variants.

Using a pre-order app to run limited edition drops

As mentioned previously using a Pre-order app can be beneficial when running limited edition campaigns.

To initiate the process of setting up pre-orders on Shopify, begin by navigating to the Shopify App Store. Perform a search for “pre-order” and choose the desired app for installation.

After identifying the app, click on it to access its listing page, and opt for the “Add app” selection.

Grant the app permission to access your Shopify admin account by clicking “Install app” and providing authorization for its use.

Next you will need to integrate the app with your theme, the app you choose should provide step-by-step instructions.

Once the app is integrated, you will be able to now list the limited edition product/s for preorder in your chosen app. You will be able to choose what kind of preorder to offer based on what will best suit your specific online shop. Options include; Charge later, Charge up-front or Deposit based. You will be also able to add additional information/messaging regarding the product being a limited edition drop etc.

After listing the product in the app, the pre-order product page’s cart button text should be replaced with a pre-order button.



Managing inventory

  • Accurate inventory management is crucial for the overall success and efficiency of a business. Here are several reasons highlighting the importance of maintaining accurate inventory:
    1. Meeting customer demand:
      • Accurate inventory levels ensure that products are available to meet customer demand. This helps prevent product being out of stock, backorders, and unhappy customers who might turn to your competitors if the desired products are not available.
    2. Optimizing stock levels:
      • Efficient inventory management allows brands to optimize stock levels. Maintaining the right amount of inventory helps prevent overstocking and under stocking.
    3. Cost control:
      • Accurate inventory management contributes to cost control. Overstocking ties up funds in unsold goods, while understocking can result in a reduction in sales/revenue.

Who does it best? Learning from past successful limited edition drops

Case studies

Below are some examples of brands who have successfully used limited edition drops to sell more, and increase revenue.

Supreme

  • Supreme, a streetwear brand, regularly releases limited edition clothing items. The scarcity of these products, combined with strategic collaborations and unique designs, has made Supreme a highly sought-after brand. Their limited drops generate significant hype and often sell out quickly.

Air Jordan

  • Nike and its subsidiary, Jordan Brand, are well-known for their limited edition sneaker releases. The Air Jordan line often features exclusive colorways, collaborations with artists and designers, and limited quantities. This strategy has helped create a devoted sneakerhead community and maintain high interest for their products.


Fenty Beauty

  • Rihanna’s Fenty Beauty brand has achieved considerable success through the strategic use of limited edition drops. The brand consistently releases distinctive collections and engages in collaborations with influencers and celebrities, cultivating an aura of exclusivity that captures consumer attention.


Maximizing revenue with limited edition drops

Pricing strategies

Pricing plays a crucial role in creating perceived value and exclusivity for products and services. The way a product is priced can significantly influence consumer perceptions, shaping their opinions about the quality, exclusivity, and overall value of what is being offered.

Here are key aspects of the role of pricing in establishing perceived value and exclusivity:

  • Limited edition pricing:
    • Products released as limited editions often come with a premium price. The scarcity of these items, coupled with the notion that they are unique and exclusive, justifies a higher cost. If utilising limited edition drops, then it makes sense to also implement limited edition pricing as this contributes to the perception that the product is a rare and highly desired possession.
  • Premium pricing for exclusivity:
    • Setting your prices at a higher rate can assist in creating a the feeling of exclusivity and high quality. Consumers often associate a higher price with better craftsmanship, materials, and overall product excellence.
  • Pricing tiers and tiered offerings:
    • Offering different pricing tiers allows brands to more efficiently capture value from their various customer segments. By providing more premium or exclusive versions of a product at a higher price, companies can appeal to consumers seeking a more elevated experience or additional features.


Upselling and cross-selling

Utilising upselling and cross-selling correctly during a limited edition drop can be very beneficial and can result in increased purchases and revenue. Below are some steps to ensure you effectively utilise upselling and cross-selling;

  • Create bundles or sets:
    • Bundle the limited edition item with related items, creating sets that offer additional value. For example, if the limited edition product is a clothing item, offer a bundle with matching accessories or complementary items. Clearly communicate the value of purchasing the set.


  • Strategic product placement:
    • Display related items prominently on the product page of the limited edition item. Use visually appealing layouts and compelling copy to draw attention to the complementary items. Highlight the benefits of purchasing the additional items alongside the limited edition product.
  • Limited-time promotions:
    • Introduce time-sensitive promotions for related products during the limited edition drop. For example, offer a discount on a second item if purchased within a specific timeframe. This creates a sense of urgency and encourages customers to make additional purchases.
  • Personalized recommendations:
    • Leverage customer data and artificial intelligence to provide personalized recommendations. Tailor product suggestions based on the customer’s purchase history, preferences, and browsing behavior. This enhances the relevance of upsell and cross-sell offers.


Summary

Limited edition drops can be a very effective strategy for Shopify store owners. They can be used for many different types of products, allowing merchants to create hype, boost revenue and launch with a splash.
In this article, we explored proven strategies that can elevate the success of your upcoming limited edition launch. If there’s any we’ve missed, please reach out as we’d love to hear them.

Limited edition FAQ

Yes you can use Shopify for limited edition clothing drops, you can either run these normally via your usual product template, or you can choose to use a pre-order app to assist you in running the campaign.

Can you use Shopify for limited edition clothing drops?

Limited editions tend to have a higher demand, due to their perceived exclusivity and the fear of missing out.

Do limited editions sell more?

Yes we highly recommend the use of pre-orders for a limited edition release, in particular the utilisation of a pre-order app.

Can I use pre-orders for a limited edition?

Yes limited editions work, by leveraging scarcity and social proof they can build hype and excitement.

Do limited editions work?

Limited editions can increase sales, establish brand loyalty, foster growth and community as well as reducing financial risk and assisting overall business success.

What are the benefits of limited editions?

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Boosting Your Sales with a Shopify Waitlist App



Shopify waitlists are software applications or platforms that are designed to help merchants handle product and variant waitlists, and send stock alerts to customers when items are back in stock. They can also be used for pre launch, to generate buzz, grow demand and capture potential leads.

You can improve inventory management as well as boost sales by collecting a list of interested customers prior to receiving stock.

This guide will explain the reasons you might implement a Shopify waitlist, as well as how to make sure it’s successful. We’ll also touch on how to choose an app and how to set it up.



Key Takeaways

  • A Shopify Waitlist can help Shopify stores grow their customer base, increase customer loyalty, manage inventory and drive sales growth. It can also be a useful technique for a new product launch.
  • Selecting the right app is essential.
  • Implement a waitlist strategy that can be improved and optimised over time. To do this you’ll need to setup integrations with your main email marketing tool, so you can leverage segmentation and personalization strategies.

The Power of Waitlists for Your Shopify Store

Waitlists can be a win-win addition to your Shopify store, if you’ve currently got live out-of-stock product pages on your storefront. By letting customers know when their chosen products come back in stock, you’re marketing to the ‘converted’, and this can encourage customers to complete a purchase.

Customer Retention and Loyalty

Waitlists are a great way to nurture loyal customers, increase customer satisfaction and retention. When products are unavailable, customers can join the product waitlists in order to get early access when it returns into stock. This sense of special treatment from early access, can help sales increase and by streamlining the waitlist experience, casual shoppers may be more inclined to purchase.

Inventory Management

Waitlists can be great tool by providing valuable data on your Shopify store products which aids in making informed choices for inventory management as well as product selection.

By reviewing this valuable data, you will be able to understand highly requested products better so they can be properly stocked according to demand.

This ensures there won’t be any overselling issues as well as preventing frustrating shopping experiences for buyers or inadvertently training shoppers to look elsewhere. Having a soundly-managed stock flow has the power to heighten customer commitment plus increase overall profits too.

Through more advanced techniques like referral marketing you can motivate individuals to recommend products to their friends, by offering them an exclusive incentive, such as securing a prime spot at the head of the waiting lists.

Sales optimisation and capturing intent

Waitlisting can be an important factor to help increase sales. Allowing customers to join waiting lists for out-of-stock items, as well as for new products pre-launch, is a huge buying signal. And one that you can and should take advantage of. Collecting customer interest will allow you to specifically market towards these potential customers, growing hype and converting this interest into sales, as well as assisting you to grow your customer base.


Choosing the Right Shopify Waitlist App

The Shopify app store has many different Shopify waitlist apps available for Shopify store owners. So when deciding which app to utilise for your Shopify store, it’s important to look into features, pricing and user reviews.

Essential Features

When you analyze a Shopify waitlist app, it is vital to ensure it has the following essential features:

  • Customer registration – Easy registration process for customers to join the waitlist, that captures all the details you need.
  • Notifications – Automated notifications via the method you choose (email, sms etc).
  • Customer engagement – Marketing features to allow you to engage with customers, and generate excitement.
  • Analytics and reporting – Insights into customer behaviour and preferences for better decision-making regarding future product selection.
  • Customization options – Important to allow you to customize the join waiting list button as well as the notifications/emails sent to customers.

Pricing and Reviews

When selecting a Shopify waitlist application, cost is an an important factor and one that can indicate to you the the level of support and extent of the features the app may offer.

App reviews also offer insight on the quality of service and other stores experiences using the app as well as positive and negative aspects of the app, so you can make an educated decision about which waitlist app best suits your Shopify store.


Top Shopify Waitlist Apps to Boost Sales

For merchants seeking to boost sales and improve inventory management, we’ve compiled a short list of some of the top waitlist apps in the Shopify app store that you can utilise in your online store.

Each application provides their own exclusive set of capabilities and benefits – from tracking who’s on your waiting list to automated emails when products become available – meaning it’s really important that stores find which suits them best before investing in any platform.

Appikon ‑ Back In Stock: Overview and Benefits

Appikon ‑ Back In Stock app states that it helps you automatically notify customers when previously out of stock products become available. Highlights of this app includes; Automatic back in stock notifications & back order reminders via email and 100% customizable SMS and Signup form is compatible with all themes.

Krtbite: Back in Stock|Restock

Krtbite: Back in Stock|Restock app states that it creates the out-of-stock & price drop waitlists to see products in demand. Highlights of this app are that they allow alerts/notifications for back-in-stock alerts, price drop alerts, abandoned cart alerts and is also fully customisable.



Setting Up Your Waitlist

Below is a step by step guide for setting up a waitlist app on your Shopify store:

  1. Choose a waitlist app from the app store.
  2. Install your chosen waitlist app: click the “Add app” button on the app’s page in the Shopify App Store. Follow the prompts to install the app on your Shopify store.
  3. Configure the app: access the app from your Shopify admin. Configure the app settings, including appearance, notification preferences, and integration with your store.
  4. Enable product waitlists, in the app settings, specify which products or variants should have waitlist functionality enabled. This is typically done by selecting products in your Shopify product catalogue.
  5. Customize the waitlist: customize the appearance and functionality of the waitlist to match your Shopify store’s branding and design. You can typically adjust colours, text, and notification templates.
  6. Customer sign up and notifications: set up the customer sign-up process. Ensure customers can easily join the waitlist by clicking a button or filling out a form. Configure the notification system to send alerts to customers when waitlisted items become available.
  7. Testing: Thoroughly test the waitlist functionality to ensure it’s working as intended. Place test orders and have friends/family join the waitlist to experience the process from a customer’s perspective.
  8. Promotion and communication: Promote the waitlist feature to your Shopify customers. Use various marketing channels, such as email, social media, and on-site banners, to inform them about the benefits of joining the waitlist.
  9. Monitor and optimize: Keep a close eye on the performance of your waitlist. Monitor customers engagement, conversion rates, and the impact on your sales. Make adjustments based on data and customer feedback.

Managing and Analyzing Shopify Waitlist Data



Monitoring waitlist sign-ups, conversions and engagement with the collected data enables businesses to make informed decisions when it comes to inventory management, product offerings and marketing.

The analysis of this info allows one to identify trends regarding high demand products, enabling companies to adjust their stock levels as well as sales approaches accordingly.

The usage of said data can facilitate more personalized email campaigns designed for particular audiences. This is really powerful when putting together a successful strategy to boost both user interaction and commercial transactions rates.


Leveraging Referral Waitlists

Referral-based waiting lists are an effective way to boost customer loyalty and engagement, while generating new leads.

By incentivizing customers for sharing your products and to invite friends to join the list, you can generate a buzz that attracts potential customers interested in what you offer.

To ensure success of this approach, strategies should be employed to motivate referrals as well as promote the referral program itself.



Integrating Waitlists with Email Marketing Campaigns

One way to engage and encourage customers which will result in more sales is by combining waitlist data with email marketing. Segmenting the subscriber list based on this information gives you an opportunity to personalize emails for your audience, using promotions or updates that are specific and relevant.

Below some of the techniques of segmentation are highlighted and how it can be used in personalized campaigns as well as providing helpful tips on best practices when connecting waitlists with email marketing initiatives, to assist with a seamless integration.



Segmentation and Personalization

Using waitlist information to segment and customize email marketing efforts is an effective way of heightening customer engagement as well as boosting sales.

By distinguishing your customers into smaller categories on the basis of their past activity, interests or place in the queue, you can refine what content reaches each group for maximum resonance. Including details such as a person’s name or favorite product preferences (based on past purchases) enhances engagement with emails resulting in great rewards.

We recommend using an email marketing software (such as Klaviyo) to collate and store all of your waitlist data. Centralized email marketing will allow you to gather and store all subscriber data in one place making it easier to analyze, segment, and use the data to tailor your email campaigns and marketing strategies effectively.

When subscribers are centralized, you can segment your email lists more accurately. This enables you to send targeted and relevant content to specific groups of subscribers, increasing engagement and conversion rates.

Centralized email marketing services often provide comprehensive analytics and reporting, giving you a unified view of email campaign performance. This can be beneficial for making data-driven decisions.

Best Practices for Email Marketing with Waitlists

For successful email marketing with waitlists, it’s essential to comply with relevant regulations such as CAN-SPAM Act and GDPR.

To help maximise sales conversions from your waiting lists, you should take steps like:

  • Sending emails/SMS about product availability or possible alternatives (if not planning to re-stock).
  • Extending promotional offers based on the data from waitlist customers’ preferences.
  • Creating personalized content that develops customer relationships.
  • A/B testing your waiting list front-end and email campaign wording for better conversion rates.

By using these best practices in conjunction with law compliance measures, you can put yourself in better stead for a successful Shopify waiting list setup.


Why you might opt for offering pre-order over using a waiting list app

What level of order intent do you want to capture?

While waiting list apps offer an avenue to notify customers when a product becomes available, the level of commitment from the customer tends to be relatively low. Enter pre-orders.

If your goal is to capture more genuine interest and initiate a transaction that remains flexible without charging upfront, offering pre-orders might be the best way forward.

How pre-orders are different?

By embracing a pre-order system that supports pay-later pre-orders, you can gauge a customer’s true intention to purchase even before a product becomes available.

This approach provides a more accurate measure of product demand compared to simple waiting list notifications. …and maybe more importantly, you’ve got everything ready to charge customers once you’re ready.

Benefits of offering pay later pre-orders

-High customer commitment; as the customer commits to the pre-order and enters their card details, they are less likely to cancel their order.

-Less risk; as customers have committed to the pre-order.

-Flexibility; as you choose when to trigger the charge.

How pre-orders work

Pay-later pre-orders allow customers to pre-order your out of stock, soon to launch, and limited availability products.

The customers pre-order and provides their personal details, and then at check-out they provide their card payment details and agree to be charged at a later date. Shopify then vaults these card details, and then at a later stage when you the store owner are ready you can trigger these deferred charges.

Notifying customers of any updates (such as shipping delays or when there card will be charged) is easy via fully customizable email campaigns offered by most apps.


Summary

In summary, a waitlist app can be an invaluable asset for Shopify store owners who are looking to collect customer feedback on out-of-stock products to improve inventory management while increasing the number of sales opportunities.

Before committing Shopify waitlist app it is important to consider the features, and ensure it will work well with your online store. You may also want to consider whether Shopify pre-orders may instead work better for your business.


Shopify Waitlist FAQs

Shopify offers many waitlist apps in the Shopify App Store that allow customers to create an alert for out-of-stock items and receive notifications when the app has replenished their favoured products. As of this writing, there isn’t a native way to do it.

Is there a waitlist option on Shopify?

To create a waiting list you will need to download a waiting list app from the app store. You will then need to setup and configure the app to start collecting data.

How do I create a waiting list?

When products are out of stock, customers can join a waitlist to be notified when they become available again. This helps the store build loyalty and satisfaction from customers.

Keeping track of demand for these particular goods also lets the retailer stock up on the right products, as they’re getting real market feedback on demand.

How can waitlists improve customer satisfaction and loyalty?

There are many factors to consider when choosing an app, some of the most factors include; customer registration, customization options, and analytics and reporti

What factors should I consider when choosing a Shopify waitlist app?

Customers join waitlists by clicking on the waitlist button and providing their details.

How can customers join waiting lists

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How Merchants Can Leverage Shopify Deferred Payment and Vaulted Card Tech



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?

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How to set up pre-orders on Shopify



1. Introduction

Pre-orders can be a great tool for your online store, with potential to increase hype around new releases whilst solving your cash flow problems. It’s beneficial to understand how to set up Shopify pre-orders.

What is a pre-order?

A pre-order is where customers can place orders for products or services before they become available for general sale. Essentially, customers are buying an item before it is physically in stock or released.

There are several benefits to setting up pre-orders:

Pre-orders can provide insight for Shopify stores about the demand for their products.

By seeing how many people are pre-ordering an item, stores can adjust their production and inventory management to meet demand. This can help them avoid overproduction, which can lead to excess inventory and financial losses. If you plan to use pre-orders for probing future demand, we recommend capture-only or charge-later pre-orders, that way customers aren’t being charged anything until you’re comfortable moving forwards.

Pre-orders can generate buzz and excitement for a product before its release.

By allowing customers to pre-order, store owners can boost hype and create a sense of exclusivity around new releases. It also gives you an opportunity to launch twice in a way, once for the pre-order release and once again when the product arrives and you start taking regular buy-now orders.

Pre-orders can boost your online store cashflow, as they can capture revenue upfront.

When customers pre-order products, they typically pay the full price or a deposit at the time of the order, which provides stores with a cash flow boost before the product is even released. This can be especially helpful for small businesses or startups that may not have access to significant capital or financing (although financing options for small e-comm brands is in improving!) .



2. Set up pre-orders on Shopify

Does my Shopify store support pre-orders?

All Shopify stores are capable of supporting pre-orders, however not all payment processors support deferred-charge pre-orders. Currently both Shopify Payments and PaPal are supported, however you will run into issues when using an unsupported third party payment gateway or even Shop Pay.

That said, Shopify will automatically hide any unsupported payment providers from your checkout. So, as long as you have Shopify Payments or PayPal enabled, you’re good to go and move forward to set up pre-orders on Shopify.

Installing a Pre-order App

To get started and set up pre-orders on Shopify, visit the Shopify App Store and search for “pre-order”, then select the app you wish to install.

Once you have located the app, click on it to access the app listing page, and then select the “Add app” option.

To grant the app access to your Shopify admin account, click “Install app” and authorize its use.

Integrating the App with Your Storefront

Shopify 1.0

If your Shopify theme is Shopify “store 1.0” and you’re not comfortable with customising the code of your product template, then I’d recommend contacting the app developer, as they’ll need to edit code to add their snippet to your online store.

Generally the process is to locate the Shopify theme file containing the “buy” button and insert the app’s customized code beneath the {% endform %} liquid tag. This will let the app’s script determine which product the pre-order button should apply for (if any) when running on that page.

Keep in mind that the file name may differ, but commonly it will be one of: product-template.liquid, product-form.liquid, or product-main.liquid, among others. (Typically in your ‘sections’ or ‘snippets’ folder)

*We also recommend saving your theme file locally first, incase of any mistakes. That way you have a backup if anything goes wrong, as well as being able to take advantage of powerful code editor ‘file find’ tools like ‘find in project’.

Shopify 2.0

With the introduction of Shopify 2.0, app blocks can now seamlessly integrate into the Shopify admin’s drag-and-drop theme customizer, making it much easier to set up pre-orders on Shopify. (‘app block’ is effectively the same as a ‘snippet’ in this context)

App blocks streamline the product pre-order template installation process, as well as automatically removing themselves if you uninstall the app.

Listing Pre-orders on Shopify

Once you’ve completed the above steps to integrate the app with your Shopify storefront, you can now start pre-selling!

Begin by listing a product in your selected pre-order app. Most if not all pre-order apps sit on top of your existing Shopify product listings. Once listed in the app, the pre-order product page’s cart button text should be replaced with a pre-order version, accompanied by any other front-end additional information, i.e. special pre-order messaging.



You will need to decide which type of pre-order to use, generally depending on the payment settings they use. The general pre-order types are:

  • Charge upfront pre-order – 100% charged upfront (Most apps will offer this).
  • Charge Later pre-orders – 100% charged later when you trigger the charge.
  • Deposit-based pre-orders – A percentage paid upfront, with the outstanding charged later.
  • Capture-only pre-orders – A payment link is sent once you’re ready to send customers through your payment gateway.

Different apps may support or not support any of the above, so it’s important to research this ahead of installing (for example, PreProduct’s list is here).

What kind of pre-order should you use?

pros, and, cons

The below is just a set of rough guidelines from what I’ve seen running a pre-order solution over the years.

Charge upfront pre-orders are useful if you need the cash flow upfront, and appropriate if you have a good idea of when the pre-order items will be ready for shipping. Charging upfront also comes with a higher commitment from customers, over something like capture-only or notify-me-when-in-stock.

Charge upfront may not be the best type of pre-order if you’re worried about manufacturing delays or freight issues. Customers could become frustrated if they’ve fully paid, but then have unexpected delays receiving the product.



Charge later pre-orders can be one of the better choices when you’re not sure how long manufacturing may take, or when there is some uncertainty around production and supply chain. As customers will be less inclined to be annoyed by delays when they haven’t parted with any money yet. It’s still important to keep customers informed of delays though.

Charge later is also convenient if customers have a change of mind, whilst waiting for the out of stock product to come in; because no refund is needed, the pre-order can just be cancelled (without any bank transaction started/cancellation needed).

Deposit-based pre-orders is a good alternative that sits between charge upfront pre-order and charge later pre-order. This type of pre-order shows commitment from customers, but also means customers do not need to pay for the full product upfront, which can help increase pre-order sales by lowering the price to buy for customers.

Capture-only pre-orders can be a great pre-order option when you need to gauge interest. They require the least amount of commitment from both the buyers and shop owners. Similar to a back-in-stock flow, customer’s only go through checkout once the product’s available and can be imminently shipped.


Deciding on a pre-order shipping statment

When creating a pre-order listing, you will also need to set a shipping statement. This could be in a period of days or fixed phrase (ie ‘Next Summer’). The balance here is that a pre-order listing with too vague a shipping statement can deter potential buyers, however an exact shipping statement with a much longer duration can also detract from the willingness to buy.

At PreProduct, generally we advise merchants to keep it specific when they can. With the caveat that you should go with what’s comfortable and if that’s not committing to an exact date, then that’s a completely sensible decision. You should also bear in mind that the communicated shipping statement can be changed at any point (well in a lot of apps at least).


Choosing an exact pre-order shipping statement

Using a less specific pre-order shipping statement

Shopify product settings

The product/variant section of the Shopify admin dashboard contains an option to enable the ‘continue selling when out of stock’ feature. This setting is crucial when utilising pre-orders and has two important purposes:

  1. If a product has zero stock and the box is unchecked, customers will not be able to purchase it. However, if the box is checked, the product can still pass through the checkout, whatever the inventory level. Some apps (eg PreProduct) automatically manage this box, when creating/finishing a pre-order listing.
  2. Furthermore, most Shopify themes display an ‘out of stock’ message when a product/variant has zero stock and the box is un-ticked. Ensuring the ‘continue selling when out of stock’ box is ticked will prevent this message from being displayed.


3. Offering Discounts on Pre-orders



Basic Discount Setup

If you’re not using a pre-order app, you can set up a discount in any theme by altering the ‘Price’ and ‘Compare at Price’ in the Shopify product admin. The ‘Compare at Price’ is the original price and the ‘Price’ is the discounted price. This means the Shopify will know that there is a discount and your theme will most likely reflect this on your front-end. 



Purchase Options Discounts

For pre-order listings that use purchase options (in PreProduct’s case, this is every kind apart from capture-only listings), rather than altering the price of the product directly on Shopify, the discount is applied at the pre-order listing and order level.

This means that the discount is fixed for any pre-orders already captured, but if you decide to change the discount for future pre-orders, they’ll have the updated subtraction applied. This is great, as you don’t need to worry about the price change; and furthermore, can even change the Shopify product price without impacting previous pre-orders.

With early bird discounts, you can enable customers to commit to a purchase early on and capture more sales, this is due to a created sense of exclusivity and urgency. Tapping into the classic psychology of ‘wanting more for less’ and FOMO.

Letting early adopters get in early can boost customer loyalty, and rewarding these customers with a discount can boost this dynamic even more so.



4. Setting up pre-orders on Shopify to use deposits

Creating Deposit-based pre-orders

When you set up pre-orders on Shopify and create a listing, there should be an option to choose whether to capture deposits/partial payments for pre-order listings in supporting deposit pre-order apps.

When creating a pre-order listing, you will just need to select the deposit type: fixed amount or percentage. This will be communicated on the product and cart pages, as well as next to the payment authorization section of the checkout.



How do deposit pre-orders work?

Pre-order listings that use deposits will communicate to customers the price and terms of the order before they click the pre-order cart button. They’ll then be directed through your usual checkout process, however there will be details of the deposit price, the outstanding price, as well as when the merchant plans to charge it. Then once you’re ready to trigger the outstanding payment, you can trigger the charge via your pre-order app. Usually this is is powered by vaulted credit card technology so no further action is needed from the customer.

Using deposits can be beneficial as they require customers to commit a portion of the pre-order payments upfront, demonstrating a genuine interest and commitment to purchasing the product.

Deposits provide an immediate influx of cash for the business, which can be crucial for covering production costs, marketing efforts, or other expenses related to fulfilling pre-orders. It’s completely up to you whether you implement a non-refundable deposit policy.

Charging Tax and Shipping Fees

When using deposit based pre-orders, both shipping and taxes will be charged in the final outstanding amount, not in the deposit amount. Your existing tax and shipping profiles will be respected.

5. Summary and Conclusion

In summary, to use and set up pre-orders on Shopify offers several powerful advantages for ecommerce stores.

  • They provide valuable insight into product demand for pre-order products, enabling stores to predict inventory amount and avoid overproduction.
  • Pre-orders generate anticipation for a product, improving hype for your future releases.
  • Lastly, pre-orders can generate upfront revenue, providing cash flow before product release, something that ecommerce companies of all sizes can get excited about.

If you are interested in giving pre-orders on Shopify a go and experiencing some of these benefits I mentioned above, we’d love you to start a free trial of PreProduct today.

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Eliza Wegener

Co-founder @PreProduct

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