Posted October 2023
2 min read
Presales, often referred to as ‘preorders’, is the game changing strategy that more and more merchants are taking advantage of in 2023. They allow customers to order not-of-stock items and have them delivered once they hit the warehouse. If executed well, a great presale strategy can enhance your inventory management and ecommerce operational efficiency in five ways:
Understand your inventory requirements
Even with years of data and impressive demand forecasting, it’s still difficult to know if your product is going to perform well. There’s a very fine line between being conservative with inventory to avoid overstock, or ordering extra units to avoid missing out on potential sales. Let’s face it, we’ve all wished we had a crystal ball after realising an item we didn’t back is a top seller. Tracking inventory during a online presale provides invaluable insight into your product's demand. It acts as your crystal ball allowing you to gauge the level of interest and demand for your product before you invest in large-scale production or ordering excessive inventory.
Reduce your risk
While the allure of discounts for placing large inventory orders might be tempting, inaccurate forecasts can lead to excess inventory, slashing prices. increasing costs and decreasing your profits.
According to inventory management software provider Unleashed, Australian fashion retailers are “dangerously” overstocked, holding an average of $248,685 in additional product or material. Presales provide a strategic edge, removing the guesswork and ensuring your inventory remains well-managed and reducing risk of being left with a warehouse full of stock that just won’t sell.
Instead, you’ll maintain a tight leash on your inventory strategically managing the volume of items stocked, reducing financial risks associated with excess inventory. Say goodbye to the days of guessing ecommerce demand.