Building a product is expensive—and for a lot of small businesses, the biggest expense is just getting started. Say you finally designed something you think people will want, but the manufacturer wants the money upfront. That’s where preorders come in. Preorders aren’t a magic solution, but they’re a real strategy, especially for funding that difficult first production run.
What Preorders Mean for Businesses
A preorder is pretty much what it sounds like: customers pay for a product before it officially exists. In exchange, they usually get early access or some other reward when the product ships. For a business, it means you don’t have to pay out of pocket and take on all the risk yourself for a giant production run.
Preorders help you skip the horror of putting all your savings on the line. If enough people want your product, their payments help you pay for manufacturing. That’s the key difference between preorders and just guessing that people will buy later.
How Preorders Help Fund Production
The main reason businesses use preorders is simple: cash flow. Most manufacturers don’t make things “just in case.” They want guarantees—sometimes half, sometimes the whole amount—before they start. Preorders let businesses raise that money without getting a loan or handing off big chunks of ownership to investors.
But there’s another perk: preorders are like a live market test. If people buy in, it’s proof there’s real interest. You can avoid making a thousand units only to realize no one wants what you’re selling.
A lot of famous products started this way. In tech, the Pebble smartwatch used preorders on Kickstarter to raise millions long before their first watches shipped. Indie board games, specialty gadgets, even clothing brands have all done this. Sometimes the preorder push brings in more sales than an average new product launch.
Getting Clear on Your Preorder Goals
Before you start taking orders, you need a plan. Figure out who actually wants your product. That means drilling down into your target audience—age, interests, and what problems your product solves for them.
Then, set goals that actually fit the scale of your project. If manufacturing 500 units is the breakeven point, your preorder campaign needs to at least hit that number. Otherwise, you’re at risk of not delivering or digging yourself into debt.
Choosing the right platform for your preorders matters too. Some brands use crowdfunding platforms like Kickstarter or Indiegogo. Others set up their own site. The big platforms come with built-in audiences and trust, but doing it yourself can mean lower fees and more control.
Prepping for a Strong Preorder Launch
If you’re asking people to pay upfront, they need to feel confident. Before launch, you should have a marketing plan in place—even if it’s simple.
Social media, email newsletters, and maybe a casual behind-the-scenes video go a long way. Show people what the product is, why it’s different, and why you made it.
Good visuals matter. Smartphone photos are fine if they’re clear, but professional photos or clean graphics will help your product look more real. And product descriptions should answer practical questions—a sample use case, size and weight, and when people can expect delivery.
Incentives work, but keep them simple. Early bird pricing, small freebies, or getting your name featured as an early supporter can make customers feel special.
Making Your Preorders Happen
When it’s time to launch, clarity is your friend. Make the preorder button obvious. Break down what buyers can expect, how they’ll get updates, and your best estimate for delivery. It’s also smart to spell out what happens if there are delays.
Interact with potential customers like actual humans. Answer questions on social media and emails quickly. If someone seems on the fence, provide details, not just hype. Online communities—whether it’s Instagram, Discord, or Reddit—can be a huge help for building trust and excitement.
Every message, post, or campaign update is part of your brand. You want customers to feel included and confident, not just like a number.
Handling the Money, and Your First Production Run
Once the first preorder money lands, it can feel tempting to celebrate. But this is where you need structure. Most businesses put at least half the funds aside for manufacturing. Other costs—shipping, packaging, payment processing fees—add up fast too.
Have the manufacturer lined up before you collect money. Get your production quote in writing, with expected delivery times. If possible, pad your promised delivery date by a month or so to allow for delays.
Stay transparent with your supporters. If production hits a snag, people understand, but they want news directly from you. Missed updates hurt trust more than missed deadlines.
Delivering After Your Campaign
After the preorder window closes, you’ll want to keep buyers up to date. Short updates are fine—a note about the production stage, photos of the first run, or even a video from the factory.
Shipping is usually where things get real. If you’ve never done it, work out the fulfillment process early. Will you pack boxes yourself, or use a warehouse or third-party provider? Either way, clear communication about shipping dates and tracking numbers cuts down on customer stress.
When the products finally arrive, deliver them as promised. Then, reward those first customers—discount codes for future orders, thank-you notes, or priority access to your next launch. These early supporters are often your best long-term fans.
After a campaign, gathering feedback is smart. Run a survey by email, or request reviews on your store. See what people liked, what didn’t meet their expectations, and how you might tweak your next run.
One Brand’s Story: What Success Can Look Like
Let’s look at a real example. Babyerina, a baby product company, used a preorder model to fund their first big run of infant carriers. By offering a short window for early supporters to get a discount, they raised enough cash to place a big order with their manufacturer.
Their audience responded well because every question was answered up front—shipping estimates, returns policy, and photos of prototypes in the field. Updates went out weekly. Supporters were invited to join a private Facebook group so they could see progress and share feedback.
Once production was underway, Babyerina didn’t disappear. They kept their community looped in and transparent about the bumps in the process. For details on how they built repeat business out of preorder supporters, check out Babyerina’s website.
Should You Use Preorders for Your Own Product?
Preorders aren’t for every business, but they remain one of the most straightforward ways to fund your first production run. If you’re bootstrapping, unsure of demand, or want to stay in control, preorders have some big upsides.
You’ll still need to prepare thoroughly, communicate consistently, and treat your early adopters like the VIPs they are. But for a lot of brands, preorders offer a mix of funding, feedback, and customer loyalty that’s tough to match with other models.
Right now, more small businesses and independent creators are considering preorders as their go-to approach. The tools are easier than they used to be, and customers increasingly understand how the model works. As long as you stay transparent and realistic with your promises, preorders can be a solid way to launch—and grow—your business, one production run at a time.