November 30, 2024

What’s the Best Shopify Pre-order Strategy When You're Out of Stock?

Picture this: It's Black Friday and Cyber Monday, you're driving lots of traffic to your Shopify store, and you're selling much faster than you anticipated.

You're feeling good about selling out all the stock you have - until you realise you're watching potential revenue slip away... to your competitors.

A survey by the National Retail Federation (the world's largest retail trade association) found that 43% of consumers would switch to a competitor if the item they want is out of stock. This is particularly critical during peak shopping seasons like Black Friday and Cyber Monday, where it can significantly impact your sales and revenue.

Another survey by the eCommerce Foundation revealed that 70% of consumers are willing to wait for an item if they can secure it through a pre-order.

What do these insights mean for you as a Shopify merchant? Besides prevent losing sales to competitors, pre-orders is a massive opportunity for you to secure cash flow earlier and invest in other business aspects sooner. It'll also help you forecast inventory demand to avoid overstocking or understocking, and most important of all, to convert a customer into a sale at their highest purchase intent.

But how should you run your pre-orders? Check out the three strategic pre-order approaches below and see which one suits your Shopify store best.

1. Bulk Volume Pre-orders

If you have products with consistent demand and a clear understanding of how quickly they sell, bulk volume pre-orders could be the best approach to maximize your revenue potential.

After capturing enough pre-orders to meet higher minimum order quantities (MOQs), you can negotiate with your supplier to lower production costs and reduce cost per unit. You can generate more upfront cash flow to reinvest in marketing or product development sooner.

Shopify stores that should use this approach:

  • If you have consistent product demand
  • If you have a stable supply chain
  • If you have a predictable inventory turnover
  • If you can negotiate better pricing at higher volumes

2. Scarcity-Driven Pre-orders

If you sell items that can't be mass produced easily or naturally thrive on exclusivity, and you have a loyal, passionate customer base, scarcity-driven pre-orders could be a better approach for your business.

By limiting the available quantities, you're creating a sense of exclusivity that drives higher customer interest and perceived value. Which means you can encourage quick buying decisions to convert sales easier, while selling your products at a premium pricing.

Shopify stores that should use this approach:

  • If you sell products in limited quantities
  • If you sell high-end, luxury items
  • If you sell items with high perceived rarity
  • If you have a loyal customer base willing to wait for pre-orders

PS. You should read the 1000 True Fans article.

3. Automatic Backorder (Pre-order) Capture

If you have a large product catalogue of high-demand products and have a predictable inventory restocking cycle, capturing backorders automatically could be the ideal approach.

Your customers can secure their orders in advance with minimal friction, and you can set clear expectations for them on the restock timelines. This way you'll have consistency and efficiency in your Shopify store's operations.

Shopify stores that should use this approach:

  • If you sell high-demand items that are frequently selling out
  • If you have a large or complex product catalogue
  • If you would benefit from automation
  • If you have a predictable restocking schedule

Bonus: Back-in-Stock Notifications

If pre-orders don't align with the way you operate your Shopify store just yet, at the very least you should be offering your customers the opportunity to sign-up for back-in-stock notifications.

Capture your customer's contact info as an expression of interest, send them targeted marketing communications or simply a product restocked alert, and reduce your potential sales loss.

Shopify stores that should use this approach:

  • If you have unpredictable restocking timelines
  • If your product demand fluctuates monthly
  • If you want to avoid operational complexity (for pre-orders)
  • If you only want to capture an expression of interest (e.g. for first launch)

Final Thoughts: Practical Recommendations

Personally, I advocate for capturing pre-orders, because a sale is a much more reliable demand signal. If you're a new brand and not sure about running pre-orders just yet (whether it be for your first launch or for when you've sold out your first run), capturing back-in-stock sign ups would be better than having no way to avoid losing sales at all.

Keep in mind the key to prevent losing sales when you're out of stock is to set clear customer expectations. Communicate clear restock timelines, provide transparent updates along the way and most of your customers will be happy to wait for a product they want to have.

Check out our free resources below and feel free to connect with me on if you have any questions!

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