Selling on a per order basis

[Alexandoy]

When I had my retailing business of computer supplies I never cared to have a store. Our office is our home. That way, I can save from the rent of the store space and I also save on the transportation. With my employees I only hired those who live in our city so the transportation expenses will be minimal.

One big advantage of our business style is that we do not need to have a large stock of products. Stores need to have a display and that saved us a lot of capital. When there is an order, we verify with our supplier and if available then we instantly buy for pick up and sometimes it is delivered to us. But don’t get me wrong. Our business was registered with the government agencies and we pay taxes as well. The overhead is not much since we operate on a small scale. The only disadvantage is if we would go on large scale then we need to have a real store or a real office with a higher overhead expense.

 

[Briangsam]

A pre-order strategy works by allowing customers to place an order for an item that is not yet released. For ecommerce pre-orders, retailers will either charge the customer when the order is placed or once the item is shipped to the customer. It is a great way to mitigate against the risk of having goods in stock with no assured purchase.

 

[Samuel72]

Pre-order business have a lot of advantages, this kind of business requires little or no capital for start up and with incoming flow of profit the business can be enlarged. The only disadvantage which you stated out about not having enough space for large orders can be manage at least it doesn't hurt the business.