Understanding Preorders

Preorders let customers purchase out-of-stock items now and receive them later when inventory arrives. This captures revenue immediately instead of just collecting email subscriptions.

What you'll accomplish

• Understand how preorders work for customers and merchants
• Learn when to use preorders versus back-in-stock subscriptions
• Set up, manage, and fulfill preorder products
• Apply pricing strategies and best practices for preorder success

Requirements

• DemandLoop app installed on your Shopify store
• Products with inventory tracking enabled in Shopify
• Growth plan (preorders are a Growth plan feature)

How Preorders Work

For Customers

Instead of seeing "Out of Stock" or "Notify Me," customers see "Preorder Now" button with expected delivery date.

The purchase flow:

1. Customer clicks "Preorder Now"
2. Adds to cart like a normal product
3. Completes checkout immediately
4. Receives order confirmation with expected ship date
5. Gets notified when item ships

What they pay: Full product price (or discounted preorder price, if you set one)

For Merchants

Revenue capture:

• Money collected immediately via Shopify checkout
• Order appears in Shopify Orders as "unfulfilled"
• DemandLoop tracks preorder status

When inventory arrives:

1. Fulfill preorder orders from Shopify Orders
2. DemandLoop marks orders as fulfilled
3. Customers receive tracking info

Key difference vs subscriptions:

• Preorder: Customer pays NOW, you fulfill LATER
• Subscription: Customer gets notified, pays LATER (if they return)

Why Use Preorders

Guaranteed Revenue

Problem with subscriptions:

100 customers subscribed → You notify → 20 return and buy = 20% conversion

Advantage with preorders:

50 customers preorder → 50 guaranteed sales = 100% conversion

Cash Flow Management

Preorders provide upfront capital to:

• Purchase inventory
• Fund production runs
• Reduce financial risk

Demand Validation

Before ordering 1,000 units, let customers preorder:

• 200 preorders = strong demand, order more
• 20 preorders = weak demand, order less

Customer Commitment

Customers who preorder are highly committed:

• Already paid (no cold feet)
• Actively waiting (engaged)
• Less likely to cancel

Setting Up Preorders

1. Enable Preorder on Products

Go to: Preorders → Products

For each product:

1. Toggle "Enable Preorder"
2. Set expected ship date
3. Set preorder quantity limit (optional)
4. Set preorder price (optional discount)
5. Customize preorder button text

Example:

Product: Premium Sneakers
Status: Out of Stock
Preorder: Enabled
Expected Ship: March 15, 2025
Preorder Limit: 100 units
Preorder Price: $120 (regular $140)
Button Text: "Preorder - Ships March 15"

2. Configure Display Settings

Preorder badge: Shows "Preorder" badge on product cards
Expected date display: Shows ship date on product page
Quantity limits: Stop preorders at specific quantity

3. Set Notification Preferences

Customer emails:

• Order confirmation (with expected date)
• Shipping notification (when fulfilled)
• Delay notification (if ship date changes)

Managing Preorder Orders

Viewing Orders

Go to: Preorders → Orders

What you'll see:

• Customer name and email
• Product + variant
• Order date
• Expected ship date
• Order status
• Shopify order number

Order Statuses

Pending - Awaiting fulfillment
Processing - Being prepared for shipment
Fulfilled - Shipped to customer
Cancelled - Order cancelled (refund issued)

Fulfilling Preorders

When inventory arrives:

1. Go to Shopify Orders
2. Find preorder orders (tagged "preorder")
3. Fulfill orders normally
4. DemandLoop auto-updates status

Or bulk fulfill from DemandLoop:

1. Preorders → Orders
2. Filter by product
3. Select orders to fulfill
4. Click "Mark as Fulfilled"
5. Customers receive shipping notification

Updating Ship Dates

If delivery is delayed:

1. Preorders → Products
2. Update expected ship date
3. Save changes
4. Customers automatically notified of delay

Pricing Strategies

Full Price Preorder

Strategy: Charge regular price for preorder

When to use:

• High-demand items
• Limited editions
• Established products

Example: iPhone launches, limited sneakers

Discounted Preorder

Strategy: Offer 10-20% discount for preorders

When to use:

• New product launches
• Uncertainty about demand
• Incentivize early commitment

Example:

Regular Price: $100
Preorder Price: $85 (15% off)
Message: "Save 15% when you preorder!"

Tiered Pricing

Strategy: Price increases as inventory nears

When to use:

• Crowdfunding-style launches
• Building urgency

Example:

First 50 preorders: $80 (20% off)
Next 100 preorders: $90 (10% off)
Final 50 preorders: $100 (regular price)

Best Practices

Set Realistic Ship Dates

Don't overpromise:

• Add buffer time (ship dates often slip)
• Under-promise, over-deliver
• Better to ship early than late

Example:

Bad:  Inventory arrives March 1 → Set ship date March 1
Good: Inventory arrives March 1 → Set ship date March 15

Communicate Proactively

Keep customers updated:

• Order confirmation: "Expected ship date: March 15"
• Weekly updates: "Your order is on track!"
• Delay notifications: "New expected date: March 22"

Set Quantity Limits

Prevent overselling:

Expected inventory: 200 units
Preorder limit: 150 units (75% of expected)
Safety margin: 50 units buffer

This prevents situations where you have 200 preorders but only 180 units arrive.

Offer Easy Cancellation

Build trust with flexible policy:

• Allow cancellations anytime before ship
• Full refund, no questions asked
• Better to lose one sale than one customer

Use Preorder Data

Inform inventory decisions:

• High preorders = order more inventory
• Low preorders = reduce order size
• Variant distribution = which sizes/colors to order

FAQ

Q: What if customer wants to cancel preorder?
Process refund through Shopify Orders. DemandLoop automatically updates status when order is cancelled.

Q: Can I offer both preorder and notify me?
No. When preorder is enabled, "Notify Me" is replaced with "Preorder Now." Choose one strategy per product.

Q: What if inventory arrives earlier than expected?
Update ship date and notify customers of good news! Customers love early delivery.

Q: How do preorders work with Shopify inventory?
Preorder products have inventory = 0 in Shopify but are purchasable. DemandLoop overrides "Add to Cart" button to allow purchase despite zero inventory.

Q: What happens if inventory never arrives?
Cancel all preorders through Shopify and issue refunds. Send apology email with explanation. Consider offering discount on future purchase.

Q: Can I partially fulfill preorders?
Yes. If 100 preorders but only 80 units arrive, fulfill 80 orders and update remaining 20 customers with new ship date.

Q: Do preorders count toward my order limits?
Yes. Preorders are real Shopify orders and count toward your plan limits and Shopify transaction fees.

Preorder vs Subscription

When to use Preorders

• High-confidence in delivery date
• Want guaranteed revenue now
• Limited edition or hyped products
• Need cash flow for production
• Product has proven demand

When to use Subscriptions

• Uncertain delivery timeline
• Regular restocking cycles
• Lower customer commitment needed
• Testing demand first
• Commodity products

Can you use both?

Yes! Use for different products:

• Preorder: New iPhone case (launching next month)
• Subscription: Classic t-shirt (restocks weekly)

Real-World Example

Product: Limited Edition Hoodie
Regular Price: $85
Strategy: Preorder with early bird discount

Timeline:

Jan 5: Announce preorder launch
Jan 10: Open preorders at $70 (early bird)
Jan 15: Price increases to $75
Jan 20: Final price $80
Jan 25: Preorders close
Jan 30: Order inventory (based on preorder count)
Mar 1: Inventory arrives
Mar 5: Start fulfilling preorders
Mar 10: All preorders shipped

Results:

• 247 preorders captured
• $18,765 revenue collected upfront
• Used revenue to order 300 units (247 preorders + 53 extras)
• 100% fulfillment rate
• Zero risk of overstock

Troubleshooting

Problem: Customers can't complete preorder checkout
Check: Preorder limit reached? Product still enabled? Shopify accepting orders?

Problem: Ship date passed but inventory not arrived
Action: Update ship date immediately, send delay notification to customers

Problem: Too many preorders, not enough inventory
Action: Fulfill in order received, update remaining customers with new timeline

Problem: Low preorder conversion
Check: Price too high? Ship date too far out? Poor product description? Add preorder discount?

Verify

After setting up preorders, confirm:

• "Preorder Now" button appears on the product page for out-of-stock items with preorder enabled
• Customers can complete checkout and the order appears in Shopify Orders as "unfulfilled"
• Expected ship date displays correctly on the product page and in order confirmation
• Preorder quantity limit stops new orders when the cap is reached

Next Steps

• Quick Start Guide - Get started with DemandLoop setup
• Managing Subscriptions - View and manage customer subscriptions
• Understanding Plans & Pricing - Compare plans and features