A preorder is a purchase made before a product is in stock or ready to ship.
In practice, this means the customer pays upfront to reserve an item that will be produced, received, or released at a later date. The order is fulfilled once inventory becomes available.
Key characteristics of a preorder:
Payment is collected at the time of purchase
The product is not immediately shipped
A future estimated ship date is usually provided
Inventory is allocated or planned based on preorder demand
Why businesses use preorders:
Gauge demand before full production
Fund manufacturing or inbound inventory
Reduce inventory risk
Secure early customers for new or limited products
What customers should understand:
Delivery occurs after the stated fulfillment window
Delays can happen due to manufacturing or logistics
Preorders guarantee availability, not instant shipping
In short, a preorder is a commitment-based sale where the customer reserves a product in advance, with fulfillment happening once stock is ready.
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