How to Run an Effective Preorder Strategy

Did you ever feel the sting of telling a customer, “Sorry, we’re out of stock”? Or have you wondered how to create hype for a new product launch? In this article, we’ll talk about a savvy marketing tactic that will create hype around your products by offering them on preorder.

Preorders have become a powerful tool for businesses to generate hype, navigate the demand, and generate revenue with early sales. When executed properly, a preorder strategy can significantly boost your product launch success. This blog post will guide you through the process of running an effective preorder campaign from start to finish.

Preorders can be a game-changer for your Shopify store in four key situations:

1. When you’re launching a new product line, preorders help you create interest and secure early sales. 

2. For out-of-stock items, they keep customers engaged rather than losing sales.

3. Preorders let you test demand for the specific product before going all-in on production. 

4. Finally, when supply chains are unpredictable, preorders help match production to actual demand. Using preorders smartly reduces risks, improves inventory management, and keeps customers happy. 

Preorders save you money and reduce risks by coordinating the waters of supply and demand and revealing product demand in advance.

“Insights from ScaleFast revealed that 28% of all preorders for a product are placed the first day of preorder availability, which is usually set between 4-6 months before the actual release.” 

Say yes to your customers even when your shelves are empty. How cool is that?

From your customer’s side, there isn’t a bigger feeling than getting that “I got it first!” thrill. It is like a “save my spot” button to never miss out on must-have items and the opportunity to feel like VIPs with early access. To name just a few benefits:

1. Guaranteed access and early adopter status are in the first place as the customer gets the badge of being among the first to own a new product.

2. Often customers enjoy special perks during the preorders phase such as discounts and special bonuses – and this often adds an extra value to the purchase.

3. Most importantly, the customer doesn’t have to remember to check back when an item is in stock anymore—the purchase is secured in advance. 

It is important to develop a strategy before, during, and after a preorder campaign to run an effective and smart preorder strategy.

By targeting these specific flows, you can seamlessly start your preorder campaign:

1. Build anticipation through teasers and sneak peeks on social media and email.

2. Sending automated emails to keep your customers updated

3. Set clear goals for your preorder campaign (e.g. sales targets, inventory planning)

4. Prepare your website and ensure your preorder system is working smoothly.

5. Plan for fulfillment and coordinating shipping partner 

The first step in a successful preorder strategy is building anticipation. Here’s how to create hype:

1. Tease the product – Start with mysterious social media posts or email teasers that hint at something exciting coming soon.

2. Share detailed descriptions, high-quality images, or even behind-the-scenes content of the product development process.

3. Reveal key features– Gradually unveil product features to keep your audience engaged.

4. Consider a tiered preorder system where early birds get special perks.

5. Countdown timer – Use a countdown on your website to create a sense of urgency.

Popular products such as Apple’s iPhone, Microsoft’s Windows 7, Nintendo’s Wii, and Sony’s PlayStation 3 are available for preorder and are using a preorder strategy for new product-launch tactics that allow consumers to purchase new products prior to their release.

Take, for example, Sony’s preorder stats for the PlayStation 5: Sony pre-sold as many PS5s in the first 12 hours of preorders in the United States as were sold in the first 12 weeks of preorders for the PlayStation 4. With each new release, companies like Sony build a larger, more loyal group of fans eager for the latest technology. And this dramatic increase isn’t just about the product, but also the growing fan base.

PlayStation 4 preorder

At the same time, preorders are very popular in the gaming industry. When those who do preorder games are asked why, the most popular motivations include brand loyalty – i.e. that the game is part of a franchise that they enjoy (35%), in-game content that offers a gameplay advantage such as unique weapons or extra ammo (33%), or cosmetics (33%). Discounts are also up there (32%), as is positive pre-release buzz (31%).

PlayStation 5 pre-order

Sending Effective Email is one of the most powerful tools for preorder campaigns. Nobody likes being left in the dark. Sending automated emails to keep your customers updated is crucial. When’s it shipping? Has there been a delay? Here are a few tips for an email communication approach: 

1. Create specific segments for loyal customers, first-time buyers, and those interested in product categories.

2. Plan a sequence of 3- 5 emails leading up to the preorder launch

3. Start with a teaser email to build curiosity and then follow up with more detailed product information and benefits

4. Send a “coming soon” email a day or two before the launch to build anticipation

5. Send a “now available for preorder” email with a clear call-to-action on launch day.

Remember to highlight the benefits of preordering. These could include early bird discounts, limited edition versions that are only available for preorders, free shipping, or other perks.

One of the tips to make your email campaign effective is to use scarcity and mention limited quantities or show real-time stock levels.

“Personalized email campaigns can increase conversion rates by 10-14% and click-through rates by 14%. “(Aberdeen Group).

iPhone preorder example

Clear goals for your preorder campaign help you stay on track, measure success, and make smart decisions about your product launch. Here are a few of them to keep an eye on:

1. Sales targets – Set realistic sales goals for your campaign

2. Inventory Planning – use the campaign to feel the demand and plan your inventory

3. Cash Flow Objectives – set up a preorder goal that will cover your initial costs

4. Shipping dates– communicate realistic shipping dates is crucial for maintaining trust

Remember, you’re making a promise to your customers. Can you deliver on time? Setting realistic timelines is crucial.

On the day your preorder campaign kicks off, maximizing visibility and excitement is crucial. Here are key activities to focus on:

1. Activate your Social Media

• • • • Post announcements across all social media platforms
      • Use eye-catching visuals and compelling copy
      • The live streaming on TikTok is potentially your best social media campaign for creating FOMO during the preorder. You should Schedule the event when your audience is most active and promote it in advance. A few tips to get the most out of it are to show your Shopify dashboard with incoming orders, react to sales milestones, and engage with viewers. This way, you can turn your launch into an interactive and exciting event. Or even display a live count of remaining inventory and announce when a certain size is sold out.
      • Host a YouTube Live stream for your preorder launch, similar to the TikTok idea. Even create a product development process to build anticipation before creating a detailed video highlighting your product’s features and benefits. If this interests you, you can use YouTube ads to reach a wider audience interested in your product category.

2. Email newsletter send-out

• • • • Target your subscriber list with an offer.

3. Website update

• • • • Make sure your homepage is all about preorder
      • Check all links and payment processes

4. Customer support readiness

• • • • Make sure your team is briefed and prepared for potential questions
      • Set up a dedicated preorder FAQ page

5. Paid advertising 

• • • • Partner with influencers to promote the special offer
      • Or use any other marketing channel to boost awareness

6. Monitor and Adjust your strategies if needed

• • • • Track your sales volume
      • Number of customers and early adopters
      • Comments and social media shares

7. Maintain regular communication with customers

• • • • Update your customer about the order status

Understanding different preorder types can help you choose the best fit for your product and customers:

1. Full Payment Preorders – Customers pay the entire amount upfront

2. Partial Payment Preorders – Customers pay a deposit now and the remainder later

3. No Payment Preorders – This is a low commitment for customers but doesn’t guarantee sales.

Each option has pros and cons, affecting cash flow, customer commitment, and potential refund scenarios. You should make the best choice depending on your product, customer preferences, and strategy.

After your preorder campaign launches, it’s crucial to maintain momentum and nurture customer relationships. Here are key activities to focus on:

1. Follow-up communication

• • • • Send personalized thank-you emails to all preorder customers
      • Keep customers informed about the status of their orders
      • Maintain engagement with customers while they wait for their products

2. Plan for fulfillment

• • • • Coordinate with suppliers and shipping partners
      • Ensure your logistics are on track for timely delivery

3. Analyze the data

• • • • Analyzing data will be useful to inform future product launches

“80% of customers say they’re more likely to make a purchase when brands offer personalized experiences” (Epsilon).

By focusing on each of these stages, you create a comprehensive strategy that maximizes the benefits of preorders, from building hype and feeling the demand to ensuring customer satisfaction throughout the process.

With Timesact, you will never lose another sale due to a sold-out product. 

Visit us at Timesact to learn more, or book a 30-minute guided setup call to get you started immediately. 

“Having an apparel store, we have so many different products, and we operate with very low stock. Having a preorder allows us to keep the sales going.” – Fresh & Fit Attire

Preorders aren’t just about selling products before they’re in stock. They’re about building the hype, managing cash flow, and giving customers what they want. With the right tools (hello, Timesact!), you can turn preorders into a key part of your e-commerce strategy.

Remember, in the world of e-commerce, the early bird doesn’t just get the worm – it gets the sale. Happy preordering!