Choosing the right fulfillment method is one of the most important decisions you need to make as a fashion brand. Here’s a breakdown of the three main options and their pros and cons:

1. Pre-order

You collect customer orders and payments upfront before placing a larger production order with your supplier. This minimizes upfront costs but requires strong customer trust and accurate demand forecasting.

This method is especially great if you are a brand like Vasquiat with unique pieces and an active customer base.

Pros:

• Low Capital: You only invest in production after receiving orders, minimizing financial risk, and product wastage.

• Gauge Demand: Pre-orders allow you to test your product concepts and measure consumer demand before committing to large-scale production.

• Build Hype: You can also create excitement and anticipation for new product launches using limited-edition pre-orders.

Cons:

• Longer Lead Times: You are producing based on customers' requests, so they might need to wait longer for their orders.

• Cash Flow Management: You’ll need to manage production costs upfront, potentially impacting your cash flow.

• Risk of Overstock or Understock: If you inaccurately approximate product demand based on pre-orders it can lead to excess stock or insufficient, resulting in waste or disappointed customers.

While this method has significant potential downsides you can bypass them by building enough hype around your new product launches.

The Trikko brand executes the pre-order demand strategy so flawlessly: they only allow people with the new product launch password to access its latest collections, and there’s a waitlist for the password. This approach builds up high anticipation, creates a sense of exclusivity around the product, and almost guarantees a sold-out collection with each launch

2. Made-to-Ship

You purchase finished products upfront and store them in a warehouse, fulfilling orders as they come in. This gives you more control over your inventory and faster delivery.

This is a very common fulfillment method, especially for brands with a large customer base. Most popular fashion brands like Shein, Primark, Fashion Nova, Zara, and others use this method.

Pros:

• Higher quality control: You have direct control over the manufacturing process, allowing you to monitor and implement your desired quality standards.

• Faster Turnaround Times: This method allows you to process and deliver customer orders sooner, leading to higher satisfaction.

• Greater Inventory Control: You can manage stock levels more effectively based on sales trends.

Cons:

• Higher Upfront Costs: You would need to have significant capital to invest in inventory even before customers make their order

• Risk of Overstock: If sales fall short, you might be left with unsold inventory, leading to financial losses.

• Less Flexibility: You are not waiting for customer orders for production, so it might be difficult to adjust to changing demands.

3. Print-on-Demand (POD)

This is a great method if you are a brand like Gooten that sells customized products like t-shirts, hoodies, jackets, etc.

With this method, you already have your plain products then get a POD service that prints your designs on products only when a customer orders.

Pros:

• No Upfront Costs: You only pay for printing when an order is placed, reducing financial losses.

• Wide Product Range: You don’t have to offer different products, just customization options to make each product unique.

• Easy Scalability: You can also effortlessly scale production up or down based on demand.

Cons:

• Lower Profit Margins: POD services charge per print, often leading to lower profit per item.

• Limited Customization Options: Design options might be restricted compared to traditional production.

• Less Control Over Quality: You rely on the POD service’s quality standards.

How to Choose the Right Fulfillment Method:

There’s no “best fulfillment method”, it all depends on your budget, desired turnaround time, and quality standards. Also, you can experiment with different methods, and analyze your results to find the best fit for your brand.