Purple Dot gets $10M in funding to manage your pre-orders for you

Pre-ordering allows you to snag an item before it's even in stock (where you usually pay for it upfront or when it ships).

• This lets stores measure demand early on, while loyal customers don't miss out on new products.

But managing pre-orders can be a logistical nightmare. Purple Dot aims to solve this by making the entire process simpler to manage both for customers and stores.

The Problem: The traditional model forces businesses to wait for stock before making sales. This can lead to missed sales and too many unsold items.

Purple Dot's Solution: Why wait for stock? Their platform lets stores start selling items even before they physically arrive.

• This reduces inventory risk and storage costs, freeing up the manpower to do other tasks

Here's how Purple Dot does it:

• Purple Dot keeps pre-orders separate from existing inventory, making sure everything runs smoothly once the actual stock arrives.

• They can handle complex orders that have different shipping dates for different items.

• Keeping customers informed is key. Purple Dot automates post-purchase emails and has a self-service portal where customers can track and even modify their pre-orders.

• They also keep clear communication about pre-order policies and cancellation rights, especially when upfront payment is involved (this is done to build trust with buyers)

Purple Dot's recent $10 million funding round, led by OpenOcean, shows the potential of their idea: To eliminate the problem of unsold inventory.