Pre-orders have been around since the early days of telemarketing and mail orders, but they’re taking on a new light in the digital age. Once an effective marketing tactic capable of generating hype among a loyal fanbase, they’re now emerging as a solution to another key area in retail – sustainability.
With the rise of eCommerce giants like Shopify, more online retailers are tolling to develop strategies that generate sales, reduce wasteful expenditure, and fulfill orders. These strategies need to achieve the dual purpose of satisfying customers while helping Shopify Stores scale efficiently. So how do pre-orders do this while creating hype and meeting sustainability standards?
1. Control production and meet demand
Matching supply and demand is at the heart of sustainable retail, especially for smaller online vendors. A made-to-order model reduces start-up costs by allowing manufacturers to plan their production cycles around known factors. This means the supply chain can operate with the confidence of knowing that they’re not under or overproducing – the sales are already established.
Pre-order programs can give Shopify brands weeks to generate pre-sales numbers, giving them ample time to match demand. More importantly, smaller fashion brands don’t have to put up as much capital to launch a new line, or worry about housing leftover stock.
2. Building momentum for secondary sales
By matching supply and demand in the initial launch, fashion brands can focus on meeting their numbers in the pre-order stage. In turn, this makes it easier to plan for the next wave of orders before the first batch gets sent out. The entire system becomes more resilient, and vendors have to do less guesswork when planning for long-term targets.
That said, pre-orders have a positive effect on initial marketing ROI too. By their nature, pre-orders target people who are already familiar with the brand, if not loyal customers.
Brand loyalty is key to generating hype among motivated leads who are more likely to convert, helping fashion houses spend less on advertising per sale.
3. Streamline logistics for more efficient shipping
Finally, we can’t talk about sustainable retail without touching on shipping. Dropshipping is especially big in the direct-to-consumer model followed by platforms like Shopify. As convenient as it is, dropshipping can be complicated when fulfilling one order at a time, especially for global audiences.
Pre-orders offer two solutions to the issue of shipping. One, they let fashion brands make bulk shipments to multiple customers in the same location when it’s time to ship products. Two, they simplify logistics in a way that helps carriers meet time and service delivery expectations. Doing this doesn’t just allow for more efficient shipping – it ensures customer satisfaction and builds brand loyalty via order fulfillment.
4. Grow your fashion brand with the right pre-order partner
Pre-orders aren’t a new model, but they’re becoming more important in a world more connected than it's ever been. Fashion brands that use them correctly stand to profit in the short, medium, and long term. They’re the perfect tool to build buzz before a new line, and they play a role when it's time to execute.
With a partner like Preorderly, creating hype for the perfect launch couldn’t be simpler. Let us help you engage customers and keep the sales flowing in!