Get the Money Upfront

Are Backorders Your Own Private Kickstarter?

Crowdsourcing has become a hot topic. And a new e-commerce strategy in disguise. The term “backorder” is not a popular one, with connotations of bad inventory management. I think it’s a shame that a great opportunity has a bad rap.
Why can’t backorders become preorders? They can. Easily.

OLLOpk is a gangbuster Kickstarter success. Created by design veterans, these parkours sneakers are sought after within a famously fanatical population. So it follows that the second generation of shoes was met with wide and eager anticipation. Unfortunately, production delays made the promotion of the new models stutter.

cgk.ink worked with OLLOpk to turn a snafu to an advantage. Here’s how:

1. Plan. Keep in mind that you are dealing with a virtual product. Pre-sales (pre-orders) are, however, actual sales and, depending on local commercial law, a contract. Although the prospect of receiving funds in advance of outlays is tempting, a lack of planning can turn that particular scheme on its head and become an unruly beast. Quick tips include reserving a buffer percentage of funds, making sure your shipping and handling charges are within reason and creating contingencies should something not deliver as promised. 
2. An aviso: logistics can derail you pretty damn fast. Logistics, on a good day, are difficult. When creating a preorder strategy, it’s important to realize that you have to account for almost all eventualities. Once you’ve captured the preorder transaction, it’s near impossible to amend or change it. For example, if you are offering an item for preorder that requires shipping, you’ll need to do some advanced calculations — especially if shipping internationally. Your profit margin can evaporate rather quickly.
3. Communicate. Things will, always, go wrong. It’s part of the mix for startups and established businesses alike. One of the best uses of your e-commerce presence is a communication tool. Use the built-in pulpit of your site to speak directly to your customers. People have enormous patience when they’re spoken to as a respected audience. Silence is, on the other hand, deadly.
4. Promote. Pre-sales are, to a large part, an aspirational purchase. It is most definitely a huge vote of confidence from complete strangers. Nothing says “thank you” more than a reward. By offering tiered promotions, you can not only engender great customer relations, but you can build the customer base for your Next Great Idea. Think about offering discount codes or free shipping to early adopters. Give incentive to your top influencers with an affiliate program. You are only as limited as the sophistication of your CMS.

Think your ideas aren’t marketable to crowdsourcing audiences? Think again: YourKickstarterSucks.

Ready to jump in? Contact me!