When a product is out of stock, a small store has two main ways to keep the customer: take a preorder, so they buy now and receive it later, or run a waitlist, so they get a message when it is back and buy then. Both keep demand from walking away. They differ in who carries the risk, when money changes hands and what you have promised.
This guide explains when each makes sense, the options for taking payment, how to communicate dates and delays, and the consumer protection rules you should check before selling anything you do not yet have.
Key takeaways
- A preorder is a sale with a delivery promise. Treat the ship date as a commitment, not a hopeful guess.
- Payment timing is a trade-off between cash flow, refund work and customer trust.
- Tell customers the expected ship date on the product page, in the cart, at checkout and in the confirmation.
- Delays need prompt notice and, in many places, a clear option to cancel for a full refund.
- A waitlist is the safer default when you do not know when, or whether, stock will arrive.
The core differences
| Back-in-stock waitlist | Preorder | |
|---|---|---|
| Customer commitment | None; they decide when alerted | They buy now |
| Payment | At purchase after restock | Now, later or in parts, depending on your setup |
| Your promise | To send a message if stock returns | To deliver the item, usually by a stated date |
| Risk if supply fails | Disappointment | Refunds, complaints, possible legal obligations |
| Demand signal | Signups (soft interest) | Orders (firm commitment) |
| Cash flow | No effect until restock | Can bring money in early, if you charge upfront |
| Operational work | Sending alerts | Tracking preorder quantities, split shipments, delay notices, refunds |
When a waitlist is the better choice
- The restock date is unknown. A supplier “hopes” to ship next month, or a component is backordered.
- The product may be discontinued or changed before it returns.
- You cannot guarantee quantities, for example handmade or vintage goods.
- You want to measure interest before committing to a production run.
- You do not want refund work if plans change.
Our back-in-stock notifications guide covers how to set a waitlist up well, including what to do when the restock is smaller than the list.
When preorders make sense
- The product has a confirmed production or arrival date, with a buffer you are comfortable with.
- You are launching something new and want to size the first production run from real orders.
- The item reliably sells out on arrival, and loyal customers would rather secure one now than race for it.
- You make to order, so every sale is effectively a preorder and customers expect a lead time.
- Funding matters: charging upfront can help pay for stock, although this raises the stakes if anything goes wrong.
A hybrid that often works
Many small stores run a waitlist first, then open preorders to the waitlist before anyone else once the supplier confirms a date. Subscribers get first access, you get firm orders based on a known date, and nobody is charged while the date is uncertain.
When to take payment
This is the decision with the most practical consequences. Your options depend on your platform and payment provider, so check what they support before promising anything.
| Option | How it works | Advantages | Drawbacks |
|---|---|---|---|
| Charge in full at order | The card is charged when the preorder is placed | Simple; cash arrives early; no failed payments later | Refunds needed if you cancel or the customer cancels; payment fees may not be returned on refunds, depending on your provider |
| Authorize now, capture later | The card is authorized at order and charged when you ship | The customer is not charged until you ship | Authorizations expire after a limited period set by the provider and card network, so this rarely suits long preorder windows |
| Deposit, then balance | Part paid now, the rest before shipping | Shares the risk; firmer commitment than a waitlist | More complex; the balance payment can fail |
| Save card, charge later | Payment details stored and charged at shipping | No charge until the item exists | Not every platform supports it; later charges can fail if cards change |
Rules of thumb for choosing
- Short, confident lead times: charging in full is the simplest for everyone.
- Long or uncertain lead times: consider charging at shipping or a deposit, or use a waitlist instead.
- Read your payment provider’s terms on authorization periods, refunds and fees for preorders. Some providers have specific rules for businesses that sell goods for future delivery.
Whichever option you use, say plainly at checkout when the customer will be charged.
Communication
Most preorder complaints come from unclear dates and silence, not from the wait itself.
Before the order
- Label the product as a preorder near the price and on the button: “Preorder: ships in March” rather than plain “Add to cart”.
- Give an expected ship date or window, not just “coming soon”. If you are not confident about the date, that is a sign to use a waitlist.
- Repeat the date in the cart and at checkout, so customers buying several items know what will arrive when.
- Explain mixed carts. If a customer orders a preorder item with in-stock items, say whether you will ship separately or hold everything until the preorder arrives.
- Link to your cancellation and refund terms.
After the order
- Confirmation email: the item, the expected ship date, when they will be charged and how to cancel.
- Progress updates for long waits, even if nothing has changed. A short “still on track for March” note prevents “where is my order?” emails.
- Shipping notice as usual once it leaves. Our guide to post-purchase emails covers the order messages that follow, from shipping updates to review requests.
When dates slip
- Tell customers as soon as you know, not on the original ship date.
- Give a new date you have a reasonable basis to expect, and explain briefly why.
- Offer a clear choice between waiting and cancelling for a full refund, and make cancelling easy.
- Update the product page so new customers see the revised date.
Consumer protection: check the rules where you sell
Selling goods you do not have yet is regulated in many countries. The details differ, so this section is a prompt to check, not a summary of the law.
- United States: the FTC’s Mail, Internet, or Telephone Order Merchandise Rule applies to many online sales. In general terms it expects sellers to have a reasonable basis for any shipping time they state, to notify customers of delays and give them the option to cancel, and to refund promptly when an order is cancelled. It also sets a default shipping period when no time is stated. Read the FTC’s own business guidance for the details and how they apply to you.
- European Union and United Kingdom: consumer rules for distance selling cover delivery timeframes, cancellation rights and refunds. Check the guidance for the countries you sell to.
- Other countries and states have their own consumer protection laws, and some products (for example food, cosmetics or electrical goods) may carry extra requirements.
Your payment provider’s terms and your platform’s policies may also have rules about preorders. If preorders are a large part of your business, get advice from a professional familiar with consumer law where your customers live. This guide is general information, not legal advice.
Operations checklist for preorders
- Set a preorder quantity limit that matches confirmed supply, not hoped-for supply. Do not let the platform sell unlimited units.
- Track preorders separately from regular stock so you know how many arriving units are already sold.
- Plan split shipments for mixed carts and decide who pays the extra postage.
- Decide how cancellations work before the first order, and make sure staff know.
- Check taxes and accounting: when revenue is recognized and when sales tax or VAT is due can depend on when you charge and ship. Ask your accountant.
- Keep a delay message template ready, including the cancel-or-wait choice. Our guide on telling customers about shipping delays includes example wording.
- Switch the product back to normal once stock arrives and preorders have shipped.
Quick decision guide
| Situation | Better fit |
|---|---|
| Supplier has given a firm date and you have a buffer | Preorder |
| Supplier date is vague or keeps moving | Waitlist |
| New product, want to size the first run | Preorder, possibly with a deposit |
| Popular item that sells out within hours of restocking | Waitlist with early access, or a preorder window for subscribers |
| One-off, vintage or handmade item that may not be repeated | Waitlist, or no promise at all |
| Made-to-order product with a known lead time | Preorder-style ordering with the lead time stated clearly |
| Item likely to be discontinued | Neither; see our guide to sold-out and discontinued product pages |
FAQ
Can I take preorders on any platform?
Most major platforms support preorders in some form, either built in, through settings that allow selling when inventory is at zero, or through apps. Check how your platform handles payment timing and inventory limits before you launch a preorder.
Is allowing “continue selling when out of stock” the same as a preorder?
Not quite. It lets orders through at zero stock, but customers may not know the item is not ready to ship. If you use it, add clear preorder labels and dates; otherwise you are taking orders without telling customers about the wait.
Should I offer a discount on preorders?
It is optional. Some stores reward early commitment, others keep full price because the product is in demand. Avoid discounts that make in-stock customers feel penalized.
What if I need to cancel a preorder entirely?
Tell customers quickly, refund in full and update the product page. Then decide whether a waitlist makes sense for a future run.
Bottom line
Use a waitlist when you are unsure about the date or the supply, and preorders when you can make, and keep, a clear delivery promise. If you take preorders, choose a payment option your provider supports, show the ship date everywhere, update customers before they have to ask, and check the consumer protection rules that apply where you sell.
