What is the difference between preorders and coming soon products in eCommerce?

Preorders vs Coming Soon: What’s Right for Your Shopify Store? Both options let you build anticipation and get insights into demand before a product is ready to ship.

For eCom store owners like you, choosing between preorders and coming soon notifications can be a real head-scratcher. When should I use preorders, and when should I just mark a product as coming soon? This is a common question asked in the e-commerce world. 

Whether you choose preorders or coming soon, you’re giving your customers a way to show their interest and yourself a way to test the demand. 

Before you start using either one of the approaches, there are some key differences to understand. Let’s break it down so you can decide on the best approach for your business and customers.

Think of it this way: preorders are like putting down a deposit on a new car you know is arriving next month. Coming soon is more like joining a waitlist at a restaurant that hasn’t quite opened yet  – you’re interested in dining there, but there’s not an exact date in sight as to when you can make the visit happen.

Preorders let customers place an order for the item that is not yet available, and lock in their order, ensuring they’ll be among the first to receive the item once available. 

The coming soon option lets customers present the products that are not yet available. With this approach, you list the product in your store to build awareness and excitement, but customers can’t actually purchase it yet.

According to a recent study, stores offering preorders see an average 30% increase in their overall revenue.

Customers choose preorders for three main reasons: to avoid the disappointment of stock shortages (“I won’t miss out”), to snag exclusive preorder perks and bonuses, and to secure their purchase while they have the budget available right now rather than later.

When should you go with “preorder”?

The preorder approach works best when you have a confirmed production timeline, a solid launch date, want to gain insight into demand before full production, or just need to manage inventory costs by collecting part of the revenue prior to the product hitting the shelves (as a merchant, preorders give you funds upfront to cover manufacturing and inventory costs). 

Studies show that consumers are more willing to preorder products when they feel confident about the expected quality and delivery timeline.

Why use “coming soon” instead? This approach works differently. You’re building buzz without taking money upfront. Anticipation psychologically creates FOMO, and in eCom, sells more products. Products marked as “coming soon” with email signup options see a higher conversion rate once the product launches.

When should you go with “coming soon”?

Coming soon is best used when you’re still finalizing product details, the launch date isn’t set in stone, you want to test market interest, and you’re building anticipation for a new line. 

They are lower risk since no money changes hands, and you aren’t committing to a delivery date. It’s a good way to test interest early on while you’re still finalizing the product.

According to different studies, brands that use “coming soon” pages with email capture see higher day-one sales, better social media engagement, and lower marketing costs at launch. 

Products marketed as coming soon benefit from creating anticipation and can see boosts in traffic or social engagement. However, they may convert less directly than preorders, which capture immediate commitment. 

The tradeoff is that coming soon products don’t bring in revenue or confirmed orders like preorders do. Some of those initially interested customers may not end up converting to sales. You also lose out on the opportunity to incentivize early purchases with preorder discounts or bonuses.

How certain are you about your timeline? If you can promise a delivery date, preorders might be your best bet. If things are still up in the air, coming soon gives you more flexibility.

What does your cash flow look like? Need capital for production? Preorders can help. Have you got enough runway? The coming soon strategy might be the safer choice.

How well do you know your audience? Are they impulse buyers or careful planners? This can help you decide which approach will resonate better.

There’s no universally right answer, but thinking through these questions can help you determine the best fit. Many merchants end up using a combination, starting with a coming soon page while still in development and then switching to preorders ahead of the product launch.

Here’s a smart play – start with coming soon to build buzz, then switch to preorders when your timeline is locked in. This two-step approach creates a win-win solution; at first, it builds an email list and then converts that excitement into actual sales through preorders. Smart, right?

If you decide to use a preorder approach, be crystal clear about delivery dates, offer preorder bonuses or discounts, and keep customers updated on the progress. 

If preorders feel too complex, start with the coming soon approach and integrate back-in-stock notifications into your strategy. When customers sign up for launch updates, you’re also building a ready list of interested buyers for future restocks – two birds, one stone.

A must-read article on our website is “Back in Stock Alerts Are a Winning Formula to Retain Sales” so make sure you reserve the time to get to know this sales strategy to bring your customers into the store at the perfect time for shopping. 

Shopify apps like Timesact make managing both preorders and back-in-stock notifications a breeze. It integrates directly with your Shopify store, so you can start picking up those coveted sales right away. 

There is a free plan to get you started, and paid plans offering unlimited usage.

You can also book a 30-minute guided setup call to get you ready for your next product launch.