10 Tips for Success in Building an Online Business with a Pre-Order System

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We often encounter the term Pre-Order (PO) in the online business world. PO means a business model where you agree with consumers that they have to pay a certain amount of money in advance, then the goods will arrive after some time later according to the initial agreement.

This pre-order business system is in great demand by novice online businesses because this business does not require a lot of capital or even without capital.

Simply by designing products, making attractive copywriting, and a good Internet connection, you can start an online business. However, there are a number of things that you should pay attention to if you want to be successful in building an online business with a pre-order system.

What is Pre-Order?

10 Tips for Success in Building an Online Business with a Pre-Order System

The meaning of Pre Order (often abbreviated as PO) is a purchasing system that is carried out by many sellers before the goods are actually available. On the other hand, preorder also has a general meaning. In general, the definition of pre-order is a sale and purchase transaction that is carried out online, where the buyer places an order at the start of the sale, before the ordered goods are available.

This buyer must pay a certain amount in advance until the goods they buy arrive within a certain time after ordering. The amount of payment and the time interval for buying and selling transactions are flexible, depending on the agreement of the parties, the agreement between the buyer and the seller, as well as market conditions and the type of product being sold.

The concept of pre-order has been embedded in the minds of the public as a profitable buying and selling system. PO is when the seller wants to market goods that are not yet finished but will be ready for sale within a certain period of time.

So consumers can pre-order and pay a certain amount at the beginning of the purchase. The free pre-order payment system depends on the agreement between the owner and the product buyer. In addition, consumers receive ordered goods after the product has been produced or is already available in the hands of the seller.

Pre-order goals

The definition of pre-order comes from the time span between ordering and sending goods to consumers. The amount of time that a seller can set varies by product type.

For food products, because they usually only last a few days. Meanwhile for non-food products, the time between ordering and sending goods to consumers can be 2-3 weeks.

The reason this pre-order is considered very profitable is because of the practicality and efficiency of its implementation. The implementation of this ordering system allows sellers to offer several products according to the quantity ordered by consumers. So that cases of unsold products will not happen again.

Buyers or consumers can use this system to order products with the criteria they want. Buyers voluntarily ask sellers to make certain products according to the wishes of buyers.

Advantages of Pre-Order

When you decide to start a business, the PO method is worth trying to minimize your business losses. Why? because the advantages of the PO system are very effective and give an effective impression on the products you sell.

The following are the advantages offered by pre-order:

1. Sellers can offer a large selection of products

For the first point, the advantage of pre-ordering is that there are many product choices that sellers can offer to potential customers. Through the variety of product variants that sellers offer, it will really help potential buyers have many options for the products they want to have.

The advantage of the pre-order system is that it is not the same as the ready stock system. Even though there are many product variants that can be offered, the seller will avoid feeling worried because the goods are not sold out

2. Products sold almost 100%

Anyone who uses a PO selling system need not be afraid if the merchandise doesn't sell out. The advantage of pre-orders is that whatever you offer to potential buyers is sure to sell and not be left over.

This is because in the PO system the seller will only provide products that the prospective buyer has ordered beforehand. So there is no longer a redundant product term from a business system like this. If all your products sell well, your business profits will also be clearer.

3. No buildup of stock

Then, using pre-orders makes sellers not have to stack merchandise. As previously explained, pre-orders give a 100% chance of being sold out.

That way, you as an entrepreneur no longer need to bother dealing with the buildup of selling goods.

4. No need big capital

The next advantage is that you don't need big capital. You can even trade without a penny of capital because the capital you distribute comes from the initial payment of buyers who make POs.

Through this you as a seller will certainly benefit greatly as a new pioneer. Therefore, things that need to be carefully prepared in the business of using pre-orders are strong intentions and determination.

5. The risk of loss is almost non-existent

The advantage of pre-order is that it does not require large capital and all stocks are likely to be sold. This leads to minimal risk of loss that you will bear as a businessman.

6. Consumers can submit certain requests

Unlike a sales system that relies on warehouse stock, the advantage of PO is that consumers can make requests for certain products, especially when you are in the food business such as cakes without needing to be stuck with the available stock.

Lack of Pre-Orders

There is no ivory that is not cracked, even in the preorder business system which also has its drawbacks.

Here are the drawbacks that you must be prepared to face doing business with a preorder system:

1. Buyers have to wait for the product to become available

The first disadvantage of pre-orders is that buyers need to be patient and wait for the goods to reach them after placing an order.

2. There is a possibility of out of stock

Sometimes, the annoying thing about buying goods with the PO system is the news that our order turns out to be out of stock. This stock shortage occurs from the supplier. If this is the case, the seller must find another supplier or, worse, return the consumer's money.

3. There is potential for disappointment with the original product

The next drawback is the potential for disappointment after the product reaches us. As long as ordering maybe as a reseller we also have high expectations for the goods we offer.

However, because perhaps they have not directly examined the feasibility of the product, consumers who come to us are disappointed. This shortage of pre-orders is almost similar to the incident of online shopping.

Tips for Success in Building an Online Business with a Pre-Order System

Tips for Success in Building an Online Business with a Pre-Order System

1. Pay attention to product quality before opening a PO

The pre-order business system requires consumers to patiently wait to get the desired product. Therefore, you must ensure that you sell products of good quality so that they do not disappoint consumers.

With a quality product, of course you will also be confident to offer your product. Remember, consumer trust is very important. Because it is possible that your consumers will become loyal and loyal customers to your business.

2. Selection of Vendors

Cooperate with credible and quality-tested vendors, so you can be sure they can work professionally to produce the products you order.

In addition, make observations first, compare with other vendors, and consider the strengths and weaknesses of each vendor. Choose a vendor that can provide cheap but high-quality production prices, so you can determine competitive selling prices.

3. Determine Sales Targets before Opening a PO

Determining sales targets is very necessary to set your product sales strategy. The bigger the target you are aiming at, of course you will need extra effort and strategy. Your sales target must correlate with the capacity you currently have. Whether it's capital, human resources, and others.

Don't push the target too high, it's better to walk slowly but the target is reached. That way, you can increase your sales target with the capacity you have.

4. Pay Attention to Human Resources

The pre-order business system requires strong human resources. If you are targeting large sales, you must have HR consisting of several teams such as the production team, social media admin team, and customer service team.

You also have to be able to build a solid team to achieve the desired goals.

5. Determine the PO Schedule

Make a PO at the end of each month to the beginning of the month, this is a trick in starting a PO business. At that vulnerable time, people have started to get paid and usually start looking for the things they want. That way, it will be easier for you to attract the attention of consumers.

6. Pay attention to the number of orders

This is another factor that needs to be considered when starting a business with a pre-order system. Pay attention to your production capabilities and don't get too obsessed with a large number of orders, even though you don't have the ability to produce them. Don't let consumer trust be at stake.

7. Ways of Communication with Consumers

Trust is the key to this business, good communication is your top priority. Respond to consumer questions and complaints as best you can.

Explain the flow that they have to go through in following the pre-order. Take advantage of existing communication media, such as social media, email, telephone, SMS, WhatsApp, or Line to respond to consumers who contact you later.

8. Record Orders

Recording orders must be done correctly, lest you record the wrong order and end up with an error. This, can make consumers complain and disappointed.

So, try to record in detail, starting from the consumer's name, address, telephone number, order details, type, size, color, and so on.

9. Create Reasons for Consumers to Follow PO

You have to give a strong reason why consumers should pre-order, make a reason that catches their attention.

Maybe you can give bonuses, limited product stock conditions, and product discounts. You can make one of these 3 things a strong reason to attract consumers to join the PO of the product you offer.

10. Provide a Clear Order Flow

Making an order flow and informing consumers about the order flow is important. Besides making it easier for consumers to understand and understand the pre-order system, you can also gain trust

Consumer. Some of the procedures that you have to make include opening and closing schedules for pre-orders, minimum order quantities, production time, delivery of goods, payment systems, and so on.


After you do the 10 tips above, you also have to keep good financial records. Without financial records, you cannot know whether your business is running well or not.

Journal is an online accounting program that can help you record all expenses and income to become a complete financial report. With online bookkeeping from Journal, you can also create invoices professionally and send them directly anytime and anywhere.

Those are some things you should know about the pre-order system. You have the right to make this method your business system. to minimize failure, make sure directly the product you are going to offer!

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