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In the trend report section of my “Rounding up Streetwear in 2023 video”, I predicted how the pre-order method may be on a steady decline. Let me explain.

The pre order method is essentially a model where brands don't produce a product until AFTER it’s been ordered meaning the brand holds no stock in hand but instead produce that stock based on the number of orders made within a given time period. This can be a lucrative model for brands as it minimises risk of a drop flopping and money being wasted resulting in higher profits. On the other hand, customers will have to wait for it to be produced with the additional shipping time on top.

But the biggest issue lies with consumers. Customers want their stuff asap, they're impatient, and expect brands to have Amazon Prime shipping times. They also don't take time to read properly and find out when they'll receive their order., which is why in some cases you see customers complain about shipping times even though the brand may have stated how long that might be. These aspects drastically can affect your sales performance and I've seen a lot of brands fail with this method because they may not even get enough orders in.

The risk is also huge, yes with great risk comes great rewards but aspiring brand owners should keep in mind scamming manufacturers and things that can go wrong. I've heard my fair share of L’s taken with manufacturers and how they're not always the easiest to work with. What if they produce the pre-orders incorrectly or worse they don't produce them at all?

The brands that will win are those with good and clean brand images/reputations backed by demand from their loyal customer bases. If you're thinking of using this method, just consider time frames for your customer to receive their order, as well as how that will be made clear to them. Another thing I've seen brands do is a combination of having bulk ready while adding pre-orders on top. That way you don't have to worry about MOQ’s and your most loyal customers can get their hands on their products asap.

But what do you think about the pre-order methods longevity? Is it here to stay is it a method soon to be overlooked? Join the conversation on Instagram


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