First Steps to Starting a Business: Selling Pre-ordered Goods or Becoming a Stockist

When starting a new business, you will usually be faced with various choices. Starting from what type of product you will sell; where will you sell it; to what sales system you will implement. Regarding this sales system, you need to think about it carefully because it will determine the course of your business in the future. Choosing the right sales system will minimize potential losses and bring you closer to various profit opportunities.

Currently, there are two developing sales systems, namely the pre-order (PO) model and becoming a stockist or better known as the ready stock system. The pre-order system means that you as a seller are selling goods that have not yet been produced. In this case, you need to show a photo of the product along with information, such as price, materials, pre-order period, and when the product can be received by buyers. From there you will produce or get goods according to the number of orders received. Meanwhile, if you become a stockist, this means you already have stock of goods to sell.

As a beginner, which one should you choose? To find the answer, you need to analyze the advantages and disadvantages of the two systems.

Pre order

The pre-order system is usually used for items that are being launched for the first time. This aims to find out the extent of public interest in the product. Some products that are often sold using a pre-order system include music albums, clothing, food, and also various other custom products.

So, if explained further, here are the advantages and disadvantages of the pre-order system.

Excess

1. Do not spend capital upfront to produce goods.
2. The potential for goods not selling is very minimal because they are only produced after an order is placed.
3. Can sell goods with a greater variety.
4. Products can be customized according to the buyer's notes.

Lack

1. It takes longer for the goods to be received by buyers.
2. When you wait too long, buyers may give up their intention to buy your goods.
3. Production can be canceled if the order quantity does not meet the minimum quota. This will have an impact if you are a reseller of a particular product.

Stockist

This system is usually used for goods that have been proven to be in demand by the public so that sellers dare to provide stock. To better understand this system, here is the analysis.

Excess

1. Consumers will be more interested in buying because the goods are available.
2. The delivery process to buyers will be faster.
3. Buyers can see the quality of the goods directly so they can minimize complaints in the future.

Lack

1. Must spend capital at the start to produce or obtain goods.
2. The variety of goods is usually more limited.
3. The price of goods is generally more expensive than those sold by pre-order.
4. There is a potential for items not to sell.

These are the advantages and disadvantages of the pre-order system and if you become a stockist. Carefully consider the system you will use by adapting it to your circumstances. If you sell something truly new, you can use a pre-order system. Estimate the pre-order time and production process so that buyers don't hesitate to order your product.

Meanwhile, if you sell goods that are proven to be popular with the public, you can become a stockist. However, at this stage you also need to take into account the initial capital you have and the number of items you need to provide.

So, is it clear enough which one to choose? If you are still in doubt, you can ask the experts. You can also take classes aimed at beginner business people, both free and paid. Through this class you can ask questions and find solutions to many things that arise when you start a business.