How Partial Payments for Pre-Orders Work: Flexible Billing for Your Customers

Our new Pre-Orders feature gives you the flexibility to choose how much customers pay upfront when placing a pre-order. This is controlled by your "Billing policy" setting. You can require full payment at checkout, or allow partial payment with the remaining balance collected later.

Understanding the Billing Policy Options:

You'll find this setting in your Back In Stock app under Pre-orders > Configuration. You have two main options:

1. "Full payment"
   • What it means: When you select this option, customers will be required to pay the entire price of the pre-ordered item at the time they complete their checkout.
   • When to use this: This is the standard payment method, ideal when you want to secure the full revenue upfront and prefer a simpler payment process without follow-ups.
2. "Partial payment"

   • What it means: This option allows customers to pay only a percentage of the pre-order's total price at checkout. The remaining balance will be collected at a later date, closer to when the product is ready to ship.

     When to use this: This is great for:

     • High-value items: Makes expensive pre-orders more accessible to customers.
     • Long pre-order windows: Reduces the immediate financial commitment for customers who have to wait a long time.
     • Building trust: Offers flexibility to your customers.

Setting Up "Partial Payment":

If you choose "Partial payment," you'll define two crucial aspects:

1. Percentage paid at checkout (1-100%):
   • How to set it: Enter the percentage of the total order value that the customer must pay immediately at checkout.

   • Example: If you set this to 20 , the customer will pay 20% of the pre-order total upfront.

     Remaining amount collected:

   • How to set it: This determines when the rest of the payment will be collected. You'll specify this in the settings by choosing a relative timeframe or a specific date:
     • "Days after checkout": Enter the number of days after the initial partial payment is made. For example, if you set it to 7 days, the remaining balance will be automatically collected 7 days after the customer initially placed their pre-order.
     • "Weeks after checkout": Similar to "Days after checkout," but you specify the number of weeks.
     • "On a specific date": Select an exact calendar date for the remaining balance to be collected.
       • Note if this date set has already past then the system automatically defaults to collecting 100% of the price upfront.

What Your Customers See and What You Track:

When the partial payment option is enabled:

• Clear Checkout Details: During checkout, customers will clearly see:
  • The upfront payment amount they need to pay.
  • The remaining balance amount and its due date.
• Easy Identification in Shopify: Orders placed with partial payments will be automatically tagged as "preorders" in your Shopify dashboard, making them easy to identify for follow-up and management.
• Automated Collections: Our system will automatically attempt to collect the remaining balance at the specified time using the payment method on file.

Important Considerations:

• Communicate Clearly: Always ensure your store's payment policies and pre-order terms and conditions are clearly stated to avoid any misunderstandings with customers. This can be done in your product descriptions, FAQs, or a dedicated policy page.
• Compliance: It's essential to comply with all relevant laws and regulations regarding pre-orders and partial payments in your region.
• Plan Fulfillment: Effectively manage outstanding balances and plan your fulfillment schedule based on when you expect the remaining payments to be collected and stock to arrive.

By offering partial payments, you can lower the upfront barrier for your customers, potentially increasing your pre-order conversion rates and overall sales for out-of-stock items! If you have any questions, our support team is here to help!