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.
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:
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.
Optimizing stock levels:
Efficient inventory management allows brands to optimize stock levels. Maintaining the right amount of inventory helps prevent overstocking and under stocking.
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 (using an app like Adoric) during a limited edition drop can be very potent and 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. You can even use a combined listings app like LinkedOption to offer many Products from the same page without bundling them.
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.
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:
Choose a waitlist app from the app store.
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.
Configure the app: access the app from your Shopify admin. Configure the app settings, including appearance, notification preferences, and integration with your store.
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.
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.
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.
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.
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.
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.
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.
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).
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-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!) .
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 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?
The below is just a set of rough guidelines from what I’ve seen running a pre-order solution over the years.
Charge upfrontpre-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).
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:
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.
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.
Shopify pre-orders let stores capture demand before inventory arrives. Whether you’re launching a new product, managing out-of-stock items, or building hype for an upcoming release, pre-orders can help you take orders and revenue sooner while validating market interest.
This guide walks through everything you need to know about setting up pre-orders on Shopify, from choosing the right payment model to marketing your pre-launch campaign and measuring success.
What Are Pre-orders and Why Use Them?
A pre-order allows customers to purchase products before they’re available for general sale or when inventory is temporarily out of stock. Instead of waiting until products hit your warehouse, you can start taking orders immediately.
Business Benefits of Pre-orders
Validate Demand Before Committing to Inventory Pre-orders help you gauge genuine customer interest before investing in large production runs. By tracking pre-order volume, you can adjust inventory levels to match actual demand, reducing the risk of overstocking or having to discount unsold products.
Improve Cash Flow and Take Revenue Sooner Pre-orders powered through PreProduct have generated over $85.3 million USD, and that’s just our app alone. Taking payment upfront or capturing payment details earlier gives you working capital before products ship, particularly valuable for small businesses and startups managing tight cash flow.
Build Hype and Marketing Momentum Pre-orders create anticipation around product launches. You effectively launch twice: once when you announce the pre-order and again when the product becomes available. This dual-launch approach generates sustained buzz and gives you multiple marketing touchpoints.
Secure Committed Customers Customers who pre-order demonstrate higher commitment than those who add items to wishlists. Pre-order customers have already made a purchase decision, reducing the risk they’ll buy from a competitor when your product finally launches.
Customer Benefits
Guaranteed Access to New or Limited Products Pre-orders ensure customers secure their spot for highly anticipated releases or limited-edition items that might sell out quickly.
Early-Bird Incentives Many brands offer exclusive discounts, bonus content, or limited-edition packaging to reward customers who commit early.
First Access to Innovation For customers who value being first to try new products, pre-orders provide that exclusive early-adopter experience.
How Pre-orders Work: The Customer Journey
Understanding the pre-order flow helps you design a better customer experience.
Step 1: Announcement
Announce your upcoming product with details about features, benefits, release date, and pricing. This announcement typically happens through email campaigns, social media, and on-site banners.
Step 2: Pre-order Period Opens
A designated timeframe begins when customers can place pre-orders. This period typically opens well before the official launch, ranging from a few weeks to several months depending on your product and lead time.
Step 3: Customer Places Order
Interested customers place orders through your Shopify store. The checkout experience differs slightly from regular purchases, with clear messaging about estimated delivery dates and when payment will be processed.
Step 4: Payment Processing
Depending on your pre-order model (covered below), customers either pay immediately, accept a future charge, pay a deposit, or receive a payment link when you’re ready to charge.
Step 5: Order Confirmation
Customers receive confirmation via email detailing their pre-order, estimated delivery date, and what to expect next.
Step 6: Fulfillment Communication
Throughout the pre-order period, you keep customers updated on production progress, shipping timelines, and any relevant changes. That can be done passively via a customer portal, or actively via email/SMS.
Step 7: Product Ships
On or near the estimated delivery date, any charges are processed, and products ship to pre-order customers, completing the purchase cycle.
Types of Pre-orders on Shopify: Choosing Your Payment Model
Shopify supports multiple pre-order payment models. Your ideal approach depends on your product lead times, price point, and cash flow needs. Most models use card vaulting (secure card storage) rather than traditional authorization holds, giving you flexibility for longer lead times.
Charge Upfront Pre-orders
Customers pay 100% at the time of pre-order placement. This model works best when you need immediate working capital or when lead times are relatively short (under 60 days).
Best for:
Products with short lead times (under 60 days)
Lower-priced items where customers are comfortable paying in full
Brands with established trust and reputation
Situations requiring immediate cash flow for production
Considerations: According to our analysis of over one million pre-orders, charge-upfront accounts for a smaller percentage of listings compared to deferred payment models. Customers may hesitate to pay months in advance, especially for higher-priced items or brands they’re less familiar with.
Charge Later Pre-orders
Customers proceed through checkout and accept a future charge. Their card information is securely vaulted (stored) with your payment processor, and you trigger payment when inventory arrives and you’re ready to ship. No authorization hold is placed, so there’s no expiration window to worry about.
This is the most popular model: 43.8% of all pre-order listings on PreProduct use charge-later approaches, making it the dominant payment method for pre-orders.
Best for:
Products with longer lead times (60+ days or more)
Mid-high priced items where customers prefer not to pay months in advance
First-time purchase orders of a product or from a supplier, where having some wiggle room is important
Brands building trust with new customers
Any timeline where authorization holds would expire before you’re ready to charge
Considerations: The customer’s card details are stored with your payment processor (Shopify Payments or PayPal) through card vaulting. When you’re ready to ship, you trigger the charge. If the card has expired or been cancelled, the charge will fail and you’ll need to collect updated payment information manually or via a dunning flow.
Deposit Pre-orders
Customers pay a partial amount upfront (typically 10-50% of the total price), with the remaining balance charged later via deferred transaction when you’re ready to ship. Like charge-later orders, the customer’s card is vaulted with your payment processor for the future balance charge.
Best for:
Mid-high priced items ($50-200+)
Products with long lead times but requiring some upfront capital
Merchants who want assurance that buyers are committed
Balancing cash flow needs with customer comfort
Considerations: Deposits signal stronger commitment than charge-later-only models while being less intimidating than full upfront payment. Customers pay a portion now and the rest later, with their card securely stored for the balance charge. This middle-ground approach works well for premium products where you need some working capital but want to reduce purchase friction.
Capture-Only Pre-orders
This model captures customer information without taking any payment or storing payment details. You replace the standard purchase button with a pre-order button, and email a payment link later when ready to process orders.
Capture-only payment links account for 28.7% of PreProduct pre-order transactions, making it the second most popular model.
Best for:
Conservative markets where merchants are hesitant to exchange any payment details upfront (we see quite a few Japanese merchants using this model)
Products with highly uncertain timelines
Testing demand before committing to production
Customers wanting maximum flexibility
Situations where you want zero checkout friction upfront during the pre-order phase
Considerations: This approach has the lowest commitment level, which can lead to lower conversion rates when payment time comes. However, it’s excellent for demand validation since customers can opt in without any payment friction or card storage. It’s also one step above waitlists, as the order is already captured and can be prepopulated at checkout.
Authorization Period Pre-orders
The most basic approach is where customers go through checkout and you place a traditional authorization hold on their card. In Shopify, this is the “manual payment capture” method. You must capture payment within the authorization window (typically 7-30 days depending on the payment processor and card type) before the hold expires.
Best for:
Very short lead times (under 7-30 days)
Products arriving imminently where you know exact ship dates
Merchants who need guaranteed payment capture without card vaulting
Considerations: This model is limited by authorization hold expiration windows. For most products with longer lead times, charge-later with card vaulting is more practical. Authorization holds tie up customer credit limits during the hold period, which can cause friction for higher-priced items. The extended 30 day authorization period is currently only available to Shopify Plus merchants and adds a 1.75% fee if charged after day 7.
Planning Your Pre-order Strategy
Before launching pre-orders, strategic planning ensures better outcomes.
When to Use Pre-orders
Pre-orders work well for:
New product launches: Build anticipation and validate demand before committing to large production runs.
Seasonal or limited releases: Create urgency for products available only during specific periods.
Out-of-stock bestsellers: Continue taking orders when inventory temporarily runs out.
Custom or made-to-order products: Collect orders before beginning production.
High-ticket items: Gauge serious buyer interest before investing in expensive inventory.
Manufacturing or production time: Factor in supplier lead times plus buffers for delays if the stock has not yet been manufactured.
Shipping and freight: Expected shipping times from the supplier for the product, whether that’s sea or air freight.
Quality control: If this is a first run or the first time using a supplier, building in time for inspection and potential corrections.
Customs and import processing: For international products, adding 1-2 weeks can be sensible.
Buffer for unexpected delays: Add 10-20% padding to your estimated timeline
It’s good to be conservative with your customer-facing shipping statement. It’s better to over-deliver than create frustration by missing promised dates. However, you can always update your shipping statement along the way and send out updates to your customers.
Pricing Strategies
Products priced between $25-50 represent 42.7% of individual pre-orders, though the most common listing price range exceeds $250 (26.8% of listings).
Early-Bird Discounts: Consider limited-time discounts (typically 10-20% off) to reward customers who commit earliest. This creates urgency and helps you gauge initial demand quickly.
Pay Early and Save: Some pre-order solutions let you offer a discount to customers who want to pay off a deferred-charge pre-order early. This can be a good way to improve cashflow and incentivise customers to commit early, whilst giving them the option to pay later if they prefer.
Pay in Installments: Optional multi-step payment plans can be a great way to meet customers where they are and let them pay in installments. This can be a good way to improve conversion for price sensitive customers or high-ticket items.
Bundle Incentives: Include exclusive bonuses, free gifts, or exclusive perks for pre-order customers.
Inventory Planning Considerations
Use pre-order volume to inform production quantities. If you’re taking capture-only pre-orders (where no payment is collected upfront), build in an expected conversion rate (typically 70-85%) when planning inventory. Charge-later and deposit models typically have higher conversion since cards are vaulted.
Consider whether to limit pre-order quantities to create scarcity or leave them unlimited to maximize demand insights.
Setting Up Pre-orders on Shopify
Shopify Native Pre-orders vs. Apps
As of 2024, Shopify introduced native “Purchase Options” functionality that allows apps to facilitate deferred-charge pre-orders through your native Shopify checkout. Purchase options require a supporting app to use, however the “continue selling when out of stock” checkbox allows merchants to sell pre-orders without any third-party solutions. That said, most merchants running serious pre-order campaigns still use a dedicated app; so they can make use of enhanced features like communication and payment flexibility.
For smaller merchants running occasional, simple pre-orders that can be charged upfront, Shopify’s native option may suffice. For brands building pre-orders into their core strategy, dedicated apps provide significantly more control and better customer experience.
Payment Processor Requirements
Not all payment methods support pre-orders, particularly deferred charging models. Currently supported options include:
Cybersource potentially. As of late 2025, we’ve heard reports from merchants that Cybersource is supported for deferred charges as well.
Third-party gateways often don’t support deferred charging. Shop Pay, Apple Pay, and Google Pay also have limitations with charge-later pre-orders. Shopify automatically hides incompatible payment providers at checkout for pre-order products.
Installing a Pre-order App
We’ll use PreProduct as an example, though the general process can apply to other pre-order apps.
Step 1: Install from Shopify App Store Search “pre-order” in the Shopify App Store and install your chosen app. PreProduct offers a free trial and/or a commission-only plan to test functionality.
Step 2: Integration Based on Theme Version
For Shopify 2.0 Themes (Recommended): If your app doesn’t support auto-install, then you’ll need to add it’s ‘app block’ from the Shopify Customize editor:
Drag and drop the pre-order app block where you want it to appear (typically above the add-to-cart button)
Save changes
For Shopify 1.0 Themes: Again, if your app doesn’t support auto-install, then you’ll need to add it’s snippet code to your theme:
Access Theme Code Editor from the “Online store” section of your Shopify admin.
Locate your product template file (usually found in the snippets directory within a file like: product-template.liquid, add-to-cart-button.liquid or product-form.liquid)
Add the app’s snippet code above the buy button’s <button> tag.
Save changes
Most modern themes use Shopify 2.0, making integration significantly simpler. (PreProduct supports auto-install for most themes, but not all.)
Listing Your First Pre-order Product
After integration, you’ll need to configure your first pre-order listing. This can be done in an automation/rule type setup, or manually product by product.
Step 1: Select Product or Variant Choose which products or specific variants to list as pre-order. Advanced apps allow variant-specific pre-ordering, so you can pre-order only out-of-stock sizes or colors while keeping others available for immediate purchase.
Step 2: Choose Payment Model Select your preferred payment approach: charge upfront, charge later, deposit, or capture-only.
Step 3: Set Estimated Delivery Date Provide a realistic delivery timeframe. This date appears to customers and can be updated as circumstances change.
Step 4: Configure Pre-order Limits (Optional) Decide whether to limit quantity to create scarcity or leave unlimited to maximize demand insights.
Step 5: Add Early-Bird Discount (Optional) Set discount pricing to incentivize early commitment.
Step 6: Customize Messaging Once you’ve listed your first pre-order, check the front-end wording on your product, cart, and checkout screen. If it doesn’t match your brand voice oe clearly communicate the pre-order, change it via the apps’s “customise wording” screen.
Fulfillment Holds and Order Management
Pre-order apps automatically often place fulfillment holds on pre-order items, preventing them from flowing prematurely to your 3PL, ERP, or fulfillment system. This ensures pre-orders stay isolated until you’re ready to ship.
When inventory arrives and you’re ready to fulfill:
If using charge-later, capture-only or deposit pre-orders, trigger payment from your app
If using charge-upfront pre-orders, trigger fulfillment from your app.
Either of the above ways will release the fulfillment hold on the Shopify order, changing it from status: “On hold” to “Unfulfilled”.
Orders flow to your fulfillment system like regular orders
Strong marketing turns a product announcement into a successful pre-order campaign.
Building Anticipation Before Launch
Start marketing before your pre-order period opens:
Tease the Product: Share behind-the-scenes content, product development updates, or sneak peeks to build curiosity.
Build an Email Waitlist: Collect email addresses from interested customers, giving you a ready audience when pre-orders open.
Create Countdown Content: Use countdown timers on your website and social media to create urgency as the pre-order launch approaches.
Launch Day Strategies
When pre-orders open, maximize visibility:
Email Your Full List: Send dedicated announcement emails to your entire subscriber base, highlighting early-bird pricing and limited quantities if applicable.
Social Media Blitz: Post across all platforms simultaneously. Use Stories, Reels, and posts to reach different audience segments.
Influencer and Partner Outreach: Coordinate with influencers, affiliates, and partners to amplify your announcement.
Press and Media: For significant launches, reach out to relevant media outlets and bloggers in your niche.
Paid Advertising: Run targeted ads on Facebook, Instagram, Google Ads, or other platforms to reach beyond your existing audience.
Creating Urgency and Scarcity
Drive conversions by emphasizing time-sensitivity:
Early-Bird Pricing: Time-limited or quantity-limited discounts reward fast action.
Limited Quantities: If you’re capping pre-orders, display remaining spots to encourage immediate purchase.
Exclusive Bonuses: Offer pre-order-only bonuses that won’t be available at launch.
Tiered Pricing: Show how pricing increases over time, motivating customers to buy now rather than later.
Ongoing Campaign Management
Pre-order campaigns span weeks or months. Maintain momentum:
Regular Updates: Email your pre-order customers with production updates, shipping progress, and exciting milestones.
Social Proof: Share testimonials, unboxing videos, or endorsements from early customers or influencers.
Retargeting: Run retargeting ads to website visitors who viewed the pre-order product but didn’t purchase.
Referral Incentives: Encourage pre-order customers to refer friends in exchange for discounts or bonuses.
Customer Communication Best Practices
Clear communication throughout the pre-order period builds trust and reduces cancellations. Our data shows that approximately 5.4% of pre-orders get cancelled on average, with proper communication helping minimize this rate.
Front-End Messaging
Product Page: Clearly indicate this is a pre-order, not an immediately available product. Display estimated delivery dates prominently.
Cart and Checkout: Remind customers about pre-order status and delivery timelines during checkout. If you allow mixed carts (combining pre-order and ready-to-ship items), note that orders may ship in multiple shipments. Depending on your warehouse/3PL software and your Shopify split shipping settings.
From our data, 37.9% of stores permit mixed carts, with most merchants preferring isolated pre-order workflows to avoid complicated fulfilment workflows.
Email Communication Strategy
Order Confirmation: Send immediate confirmation with order details, estimated delivery date, and what customers can expect next.
Progress Updates: Send periodic emails (every 2-4 weeks for long lead times) with production updates, photos, or milestones reached.
Shipping Notifications: Alert customers when products ship, providing tracking information and estimated arrival dates.
Pre-Fulfillment Reminder: For charge-later or deposit-balance orders, consider setting up an upcoming charge email to give customers a 24 hour or so heads-up before their card is charged.
This self-service approach reduces support inquiries while giving customers transparency and control.
Legal Requirements and Compliance
Understanding legal obligations protects your business and builds customer trust. The below is a general guide, and you should always consult with a legal expert to ensure you’re compliant with your local laws and regulations.
Canada: Consumer Protection Acts (vary by province)
Different regions have varying rules about pre-order disclosures, refund rights, and delivery timeframes. We also have a brief guide on pre-order legal requirements for various countries.
Measuring Pre-order Success
Track these metrics to optimize your pre-order strategy over time.
Key Performance Indicators
Conversion Rate: Percentage of product page visitors who complete pre-orders. Compare to your regular product conversion rates to understand if pre-order messaging affects purchase decisions.
Pre-order Volume: Total number of pre-orders taken. This validates demand and informs inventory planning.
Average Order Value (AOV): Revenue per pre-order transaction. Pre-orders often have higher AOV due to early-bird bundles or customers committing to premium versions.
Cancellation Rate: Percentage of pre-orders cancelled before fulfillment. Rates above 8-10% may indicate overly long lead times, poor communication, or pricing issues.
Email Engagement: Open and click rates for pre-order update emails. High engagement indicates customers remain excited; declining engagement may signal need for more compelling updates.
Time to Sell Out: If you limit quantities, how quickly do pre-orders sell out? This measures demand intensity and can inform future launch strategies.
Analytics and Reporting
Use your pre-order app’s built-in analytics to track:
Factor in the value of early cash flow, which can be invested in production or growth while regular sales models require waiting for inventory.
Troubleshooting Common Pre-order Issues
Even well-planned campaigns encounter challenges. Here’s how to address common problems.
Payment Charge Failures
Problem: Customer’s vaulted card fails when you attempt to charge for charge-later or deposit balance pre-orders (card expired, cancelled, or insufficient funds).
Solutions:
Send automated email requesting updated payment information
Provide customer portal where buyers can update cards easily
Build in multiple retry attempts with updated payment details before cancellation
For deposit models, the upfront payment provides some revenue even if balance charge fails
Use payment recovery workflows to capture updated card details
Theme Compatibility Issues
Problem: Pre-order button doesn’t display correctly or conflicts with theme design.
Solutions:
Check that your theme supports Shopify 2.0 app blocks (most modern themes do)
Contact app support for theme-specific integration assistance. Whilst Shopify themes are standardized in lots of ways, there can still be big differences in how they work. Especially if you have a custom theme built especially for your store.
Test across devices and browsers to identify specific compatibility issues
Inventory Sync Problems
Problem: Pre-order availability doesn’t update correctly when stock levels change.
Solutions:
Verify app has proper permissions to access inventory data
Check if you’re using inventory management integrations that may conflict
In PreProduct, we don’t turn on automations autoamtically, so you will need to turn them on via the app’s “automations” screen.
Coordinate with 3PL or ERP provider to ensure inventory feeds are accurate
Customer Notification Delays
Problem: Automated emails aren’t sending or arrive late.
Solutions:
If sending from the pre-order app’s email domain, consider adding a custom sender so you can have emails sent from your own domain.
Verify email settings and SMTP configuration in app
Test email deliverability with test orders
Use transactional email services (Klaviyo, SendGrid) for improved delivery
Fulfillment Hold Confusion
Problem: Pre-order items accidentally ship early or fulfillment system attempts to process before ready.
Solutions:
Double-check fulfillment hold settings in app
Setup tag based workflows if your 3PL does not support fulfillment holds. A lot of pre-order apps will add a tag of “pre-order” on any order containing a pre-order item.
Train fulfillment staff to recognize pre-order indicators
Some ERPs and 3PLs will have ‘virtual warehouses’ which are designed to have pre-order stocked allocated to, as opposed to a real warehouse location.
Managing Delays
Problem: Production or shipping delays push delivery dates beyond original estimates.
Solutions:
Communicate proactively as soon as delays are known
Explain the reason honestly (supply chain, quality control, etc.)
Offer options: wait with bonus incentive, partial refund, or full cancellation
Update estimated delivery dates across all touchpoints
Over-communicate during delay periods to maintain trust
Frequently Asked Questions
Does Shopify have built-in pre-orders?
Yes, Shopify has a “continue selling when out of stock” checkbox that allows zero stock products to pass through checkout. However, it only supports charge-upfront models and lacks advanced features like automated customer communication, multiple payment models, and detailed analytics. Most serious pre-order campaigns benefit from dedicated apps.
What payment methods work with Shopify pre-orders?
Shopify Payments and PayPal support all pre-order payment models. Third-party payment gateways often don’t support deferred charging (charge-later models). Shop Pay, Apple Pay, and Google Pay have limitations with certain pre-order types. Shopify automatically hides incompatible payment options at checkout.
Can I offer partial payment or deposits?
Yes, with pre-order apps that support deposit models. Customers pay a percentage upfront (typically 10-50%), with the remaining balance charged when you’re ready to ship. This balances cash flow needs with customer comfort, especially for higher-priced items.
How do I handle pre-order cancellations?
Pre-orders can be cancelled through standard Shopify order cancellation procedures or via your pre-order app. Quality pre-order apps offer customer portals where buyers can request cancellations directly. Your refund policy is at your discretion.
What apps are best for Shopify pre-orders?
Popular options include PreProduct (comprehensive features and all of the pre-order types listed in this guide), Purple Dot, Amai PreOrder Manager, and PreOrder Globo. Choose based on required payment models, automation needs, and budget.
Are there legal requirements for pre-orders?
Yes. In the US, the FTC 30-day rule requires shipping within stated timeframes or within 30 days if no timeframe is specified. You must notify customers of delays and offer cancellation options. Other countries have similar consumer protection requirements. Always clearly disclose pre-order status, delivery estimates, and refund policies.
How long should a pre-order period be?
According to our data analyzing over one million pre-orders, 121-150 days represents the most common fulfillment window (28.1%), while 20.6% ship within 30 days. Your timeline should match production realities plus buffer for delays. Shorter is generally better for maintaining customer excitement and reducing cancellations.
Can I mix pre-order and regular products in the same cart?
Yes, although only 37.9% of stores in our dataset permit mixed carts. A lot of merchants prefer isolated pre-order workflows to avoid confusion with their fulfilment workflows. However, mixed carts are totally do-able and can be a great way to increase average order value. If you allow mixed carts, we reccomend placing some test pre-orders first to see if your 3PL and ERP handle fulilment holds, or whether a rule based workflow is needed.
How do pre-orders affect my Shopify inventory management?
Pre-order apps place fulfillment holds on pre-order items, preventing them from flowing to your 3PL or fulfillment system prematurely. This keeps pre-orders separate from regular orders. When ready to fulfill, you release holds and orders process normally. Advanced apps integrate with Shopify inventory systems to trigger automatic charging when stock arrives.
What’s the typical pre-order cancellation rate?
Across our platform, approximately 5.4% of pre-orders get cancelled on average, with 2023 seeing the highest rate at 7.1%. Cancellation rates increase with longer lead times and poor communication. Keep customers engaged with regular updates and realistic delivery estimates to minimize cancellations.
Should I offer early-bird discounts for pre-orders?
Early-bird discounts (typically 10-20% off) create urgency and reward early commitment. They help gauge initial demand quickly and can accelerate word-of-mouth marketing. Test different discount levels to find the sweet spot between incentivizing purchases and maintaining margins.
How do I prevent pre-order items from shipping early?
Pre-order apps automatically apply fulfillment holds to prevent premature shipping. These holds integrate with Shopify’s fulfillment system, blocking orders from flowing to 3PLs or ERPs until you’re ready. When inventory arrives, you release holds manually or through automated triggers based on inventory levels.
Conclusion
Pre-orders represent a powerful strategy for Shopify stores looking to validate demand, improve cash flow, and build marketing momentum around product launches. With over $85.3 million in pre-order revenue processed through PreProduct alone, it’s clear that merchants across industries are leveraging pre-orders successfully.
The key to successful pre-order campaigns comes down to:
Choosing the right payment model for your product and lead time
Setting realistic delivery timelines with buffer for delays
Communicating clearly and frequently with customers
Marketing strategically to build urgency and maintain momentum
Measuring performance to optimize future campaigns
Whether you’re launching your first product, managing out-of-stock bestsellers, or building hype for seasonal releases, pre-orders let you take orders and revenue sooner while keeping customers informed and engaged.
Ready to start taking pre-orders on Shopify? PreProduct offers comprehensive pre-order management with charge upfront, charge later, deposit, and capture-only payment models, plus automated customer communication, fulfillment controls, and detailed analytics. Start your free trial today and see how pre-orders can transform your product launches.
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