How to Set Up Shopify Preorders and Backorders: A Complete Guide for E-Commerce Success

How to Set Up Shopify Preorders and Backorders: A Complete Guide for E-Commerce Success

Have you ever lost a sale because a product showed “out of stock”? You’re not alone. Research shows that 70% of online shoppers will abandon a brand after encountering an out-of-stock item, and 34% will immediately purchase from a competitor instead.

But here’s the good news: preorders and backorders transform stockouts from lost opportunities into secured revenue. Instead of watching potential customers disappear, you can capture their purchases today and fulfill them when inventory arrives.

In this comprehensive guide, we’ll walk you through everything you need to know about setting up preorders and backorders on Shopify—from understanding the differences to implementing them effectively in your store.

Understanding Preorders vs. Backorders: What’s the Difference?

Before diving into setup, let’s clarify these two powerful inventory strategies:

Preorders let customers purchase products before they’re officially released or available. Think of new product launches, seasonal collections, or upcoming inventory shipments. Customers know they’re buying something that doesn’t exist yet in your warehouse.

Backorders allow purchases of temporarily out-of-stock items that you plan to restock soon. The key difference? The product has been available before—you’re just between inventory cycles.

Both strategies accomplish the same goal: capturing sales when physical inventory isn’t available. The distinction matters primarily for customer communication and expectation management.

Key Takeaway: Choose preorders for new releases and backorders for restocking scenarios. Clear communication about fulfillment timelines is essential for both.

Why Your Shopify Store Needs Preorder and Backorder Capabilities

Protect Your Revenue During Stockouts

Running out of stock doesn’t just mean missed sales today—it means lost customers who may never return. When you enable preorders and backorders, you:

  • Maintain cash flow during inventory gaps
  • Prevent customer attrition to competitors
  • Gauge product demand before committing to large inventory purchases
  • Keep your product pages active for SEO purposes

Build Anticipation and Demand

Preorders create urgency and exclusivity. Customers feel they’re getting early access to something special, which can actually increase conversion rates compared to standard purchases.

Optimize Inventory Management

Instead of guessing how much stock to order, preorders and backorders provide real data about customer demand. This reduces overstock situations and minimizes capital tied up in unsold inventory.

Key Takeaway: Preorders and backorders aren’t just backup plans—they’re proactive strategies for smarter e-commerce operations.

Method 1: Setting Up Preorders and Backorders Using Shopify’s Native Features

Shopify doesn’t have built-in preorder functionality, but you can create a basic setup using inventory management settings and product variants.

Step-by-Step Setup Process

Step 1: Configure Inventory Settings

  1. Navigate to your Shopify admin panel
  2. Go to Settings > Products
  3. Under inventory policy, enable Continue selling when out of stock
  4. Save your changes

This setting allows customers to purchase products even when inventory reaches zero.

Step 2: Update Individual Product Settings

  1. Go to Products in your admin panel
  2. Select the product you want to enable for preorders/backorders
  3. Scroll to the Inventory section
  4. Uncheck Track quantity or check Continue selling when out of stock
  5. Save the product

Step 3: Communicate Clearly with Customers

This is crucial. Native Shopify settings don’t automatically notify customers that they’re purchasing a preorder or backorder. You must manually update:

  • Product titles: Add “[Preorder]” or “[Backorder]” tags
  • Product descriptions: Include expected shipping dates prominently
  • Variant names: Create specific variants for preorder items if mixing with in-stock inventory

Example description text:

**PREORDER ITEM** - Expected to ship by March 15, 2025. Orders containing preorder items will ship once all products are available. Questions? Contact us at support@yourstore.com

Step 4: Update Your Theme Code (Optional)

For a more professional approach, you can modify your theme to display custom messaging on product pages:

  1. Go to Online Store > Themes > Actions > Edit code
  2. Find your product template file (usually product-template.liquid or main-product.liquid)
  3. Add conditional logic to display preorder messaging when inventory is at or below zero

Limitations of the Native Approach:

  • Requires manual updates for each product
  • No automatic customer notifications about preorder status
  • Limited ability to manage mixed carts (in-stock + preorder items)
  • No separate inventory tracking for preorders
  • Risk of customer confusion without clear communication

Key Takeaway: Shopify’s native approach works for small-scale operations but lacks automation and sophistication needed for growing stores.

Method 2: Using Shopify Preorder Apps (Recommended Approach)

For most e-commerce businesses, using a dedicated preorder app provides better functionality, automation, and customer experience. Here are the top solutions:

Top Shopify Preorder and Backorder Apps

1. PreOrder Now

  • Best for: Small to medium stores seeking simplicity
  • Key features: Automatic “preorder” button replacement, customizable messaging, partial payments
  • Pricing: Free plan available; paid plans from $9.99/month
  • Setup time: 5-10 minutes

2. Purple Dot PreOrder

  • Best for: Stores with complex inventory needs
  • Key features: Mixed cart handling, inventory management, automatic notifications, analytics
  • Pricing: From $19.99/month
  • Setup time: 10-15 minutes

3. Back in Stock: Restock Alerts

  • Best for: Combining backorders with customer notifications
  • Key features: Customer notification lists, automatic emails when restocked, demand forecasting
  • Pricing: Free plan available; paid plans from $19/month
  • Setup time: 15-20 minutes

How to Set Up a Preorder App: Step-by-Step Walkthrough

We’ll use PreOrder Now as an example, but the process is similar across apps:

Step 1: Install the App

  1. Visit the Shopify App Store
  2. Search for your chosen preorder app
  3. Click Add app and grant necessary permissions
  4. Complete the installation process

Step 2: Configure Global Settings

  1. Open the app from your Shopify admin
  2. Set your default preorder button text (e.g., “Pre-order Now” or “Order on Backorder”)
  3. Configure email notification templates for customers
  4. Set default expected shipping dates or lead times
  5. Choose whether to display inventory countdown timers

Step 3: Enable Preorders for Specific Products

  1. Within the app dashboard, select Add Products
  2. Choose products or collections to enable for preorders
  3. Set specific shipping dates for each product
  4. Customize messaging for individual items if needed
  5. Activate preorder functionality

Step 4: Customize the Customer Experience

  • Product page messaging: Add banners or badges indicating preorder status
  • Cart notifications: Display messages reminding customers about preorder items
  • Checkout notes: Include expected fulfillment dates
  • Email confirmations: Ensure order confirmations clearly state preorder status

Step 5: Test the Complete Customer Journey

Before going live:

  1. Place a test preorder from your store
  2. Verify button displays correctly
  3. Check cart and checkout messaging
  4. Confirm email notifications contain accurate information
  5. Test on mobile devices

Key Takeaway: Investing in a preorder app saves time, reduces errors, and creates a professional customer experience that builds trust.

Best Practices for Successful Preorder and Backorder Campaigns

1. Set Realistic Expectations

Underpromise and overdeliver. If you expect inventory in 4 weeks, tell customers 5-6 weeks. Nothing damages trust faster than missed delivery dates.

2. Create Urgency Without Deception

Use authentic scarcity tactics:

  • “Limited preorder quantities available”
  • “First 100 preorders receive free shipping”
  • “Preorder pricing ends March 1st”

Avoid false urgency that could backfire when customers realize it’s manufactured.

3. Segment Your Email Marketing

Customers who place preorders deserve special treatment:

  • Send production updates every 2-3 weeks
  • Offer exclusive early access to future products
  • Provide special discount codes for their next purchase

4. Handle Mixed Carts Strategically

When customers order both in-stock and preorder items, you have two options:

Option A: Ship separately (faster delivery of in-stock items but higher shipping costs) Option B: Hold entire order until preorder items arrive (simpler logistics but delayed gratification)

Make your policy clear before checkout. Consider letting customers choose their preference.

5. Monitor and Respond to Customer Questions Quickly

Preorder customers need extra reassurance. Set up:

  • FAQ section specifically about preorders
  • Automated email responses acknowledging preorder inquiries
  • Regular status updates through your chosen communication channels

6. Use Analytics to Optimize Inventory Decisions

Track metrics like:

  • Preorder conversion rates vs. standard product conversions
  • Customer acquisition cost for preorder campaigns
  • Average order value for preorder purchases
  • Return/cancellation rates for preordered items

These insights help you determine which products benefit most from preorder strategies.

Key Takeaway: Success with preorders and backorders depends more on communication and customer service than technical setup.

Common Mistakes to Avoid

Mistake 1: Inadequate Communication

Displaying “Add to Cart” without mentioning it’s a preorder leads to disappointed customers and potential chargebacks. Always make preorder status obvious.

Mistake 2: Overpromising Delivery Dates

Supply chain disruptions happen. Buffer your estimates to account for unexpected delays.

Mistake 3: Neglecting Mobile Experience

Over 70% of Shopify traffic comes from mobile devices. Test your preorder messaging thoroughly on smartphones.

Mistake 4: Mixing Preorder and In-Stock Inventory Confusingly

If selling the same product with both immediate and preorder availability, use clear variant names: “Available Now” vs. “Preorder – Ships April 2025.”

Mistake 5: Ignoring Legal Considerations

Some jurisdictions have specific rules about preorder sales, including:

  • Disclosure requirements about shipping delays
  • Refund policies for preordered items
  • Restrictions on charging credit cards before shipping

Consult with a legal professional familiar with e-commerce regulations in your target markets.

Key Takeaway: Most preorder failures stem from communication breakdowns, not technical issues.

Advanced Strategies for Maximizing Preorder Revenue

Tiered Pricing Strategy

Offer early-bird pricing that increases as release dates approach:

  • First 50 preorders: $79.99
  • Next 100 preorders: $89.99
  • Standard price at launch: $99.99

This creates urgency while rewarding early supporters.

Bundle Preorders with In-Stock Items

Increase average order value by suggesting complementary products that ship immediately: “Preordering our new jacket? Add our bestselling beanie (ships today) for 20% off.”

Leverage Social Proof

Display preorder counters showing how many customers have already committed. Testimonials from previous preorder customers build confidence.

Create Exclusive Preorder Perks

Beyond pricing, offer:

  • Limited edition colors or features only for preorders
  • Free upgrades or accessories
  • Lifetime warranties for preorder customers
  • First access to customer loyalty programs

Key Takeaway: Preorders aren’t just about managing inventory—they’re marketing opportunities that can increase customer lifetime value.

When to Disable Preorders and Backorders

Not every situation calls for preorders. Avoid them when:

  • You can’t estimate delivery dates reliably – Vague “coming soon” creates frustration
  • Margins are too thin – Managing customer service for delayed orders costs money
  • Product quality is uncertain – Don’t take money for products you haven’t finalized
  • Your customer service capacity is limited – Preorders require more support resources

Key Takeaway: Preorders are powerful tools, but they’re not appropriate for every product or business situation.

Measuring Success: Key Metrics to Track

Conversion Rate Comparison

Track how preorder product pages convert compared to in-stock items. Lower conversion rates might indicate messaging problems or price sensitivity.

Cancellation Rate

Industry average for preorder cancellations is 5-15%. Higher rates suggest communication issues or unrealistic delivery timelines.

Customer Satisfaction Scores

Survey customers who receive preordered items. Their feedback helps refine your process.

Revenue Protection Rate

Calculate: (Preorder revenue ÷ Estimated lost sales from stockouts) × 100

This shows how effectively preorders protect your bottom line during inventory gaps.

Key Takeaway: Data-driven optimization turns preorders from a stopgap measure into a strategic revenue driver.

Final Thoughts: Turning Stockouts into Opportunities

Setting up preorders and backorders on Shopify isn’t just about preventing lost sales—it’s about building a more resilient, customer-centric e-commerce business. Whether you choose Shopify’s native features or invest in a dedicated app, the key to success lies in transparent communication, realistic expectations, and exceptional customer service.

Start small: implement preorders for your bestselling products or upcoming seasonal releases. Monitor results, gather customer feedback, and refine your approach. Over time, you’ll develop a preorder system that protects revenue, provides valuable demand data, and enhances your brand’s reputation for reliability.

Ready to optimize your Shopify store’s inventory management strategy? At MNBApps, we specialize in helping e-commerce businesses implement preorder systems, optimize conversion rates, and build scalable technical solutions. From custom Shopify app development to comprehensive CRO audits, we provide the expertise you need to maximize your store’s potential.

The question isn’t whether you can afford to implement preorders—it’s whether you can afford not to.

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