Inventory glossary

What is Pre-order?

Pre-order is when a store sells a product before it is physically in stock and ready to ship, usually to gauge demand or bridge a gap while waiting on a supplier shipment.

Pre-orders let you take payment or reserve demand before stock arrives. This helps cash flow and tells you how much to order, but it also means you owe the customer something you do not have yet, so timing matters.

Track pre-order quantities separately from your regular stock. If you mix them, your available-to-sell numbers get wrong and you risk promising stock twice.

Example

A candle shop lists a new scent for pre-order on March 1, with 40 units already sold before the restock arrives March 20. The supplier ships 100 units. On arrival, 40 go straight to pre-order customers and 60 are available for new orders.

Common mistakes

  • Treating pre-order units as available inventory and overselling the rest of stock.
  • Not setting a clear expected ship date, which leads to customer complaints.
  • Forgetting to adjust the next purchase order to account for units already promised.

Pre-order and SteadyShelf

SteadyShelf forecasts and order-by dates are based on sellable stock and lead times, so pre-order demand should be accounted for separately when deciding how much new stock to order.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Backorder · Committed inventory · Lead time · Incoming inventory · Overselling

Full inventory glossary

FAQ

Is a pre-order the same as a backorder?

No. A pre-order is sold before the product exists in your inventory at all, often before the first shipment arrives. A backorder happens when normal stock runs out but you keep accepting orders to fill once restocked.

How do pre-orders affect how much I should reorder?

Add pre-order quantities to your expected demand before placing a purchase order, so the incoming shipment covers both the pre-orders and your normal sellable stock.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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