Understanding Orders in Online Shops: Definition and Types

Have you ever been interested in a product in an online shop, but instead you received "close order" information? 

Well, moments like this are sure to make you nervous, especially if you're ready to checkout. 

Even though the term "close order" is quite common in the world of online buying and selling. 

Many people don't understand the details, and often misinterpret them. Come on, discuss it thoroughly together! 

Because for those of you who are running a business or often shop online, it is very important to understand the meaning of close order, pre-order, to other types of orders.

Especially in the current digital era, various terms in online shops are increasingly used. One of the terms that appears most frequently is What does close order mean? Listen carefully, OK!

Meaning of Order in Online Shop

Source: Freepik

Before entering into the discussion of the question close order, let's discuss the basics first. 

Order means an order, yes! That's right, it's that simple. Order refers to the process when a buyer expresses his desire to buy a seller's product or service. 

Well, even though it sounds simple, in practice, there are many types of orders in the online shop world that you need to know. 

From there there are also terms, such as pre-order, open order, until What does closed pre order mean?

Read Also: Check out 5 Secrets & Ways to Make Your Restaurant Successful!

Types of Orders Often Used in Online Shops

Source: Freepik

In online buying and selling, there are several general terms that you must understand. 

Don't let yourself fail to understand when you're monitoring your subscription's Instagram stories!

1. For Order (PO)

Pre order is an order system where the goods are not yet available immediately. 

So you have to order first, pay, then wait a few days until the goods are ready to be sent.

Usually PO is used for handmade products or limited stock. Estimated delivery can be 3 to 14 days. 

Sometimes more, depending on the seller. So, because of this system, you can get exclusive items or low prices.

Therefore, if you see the words "open PO" or "close PO", it means that the pre-order session is currently open or closed. 

Well, now I'm starting to understand why the term close pre order means Very important for those of you who like shopping.

2. Open Order

Open order means the product is available and can be sent immediately. This usually applies to ready stock products. So you just order, pay, wait for delivery!

This type is the most common and is preferred by buyers because the process is faster. No need to wait for production or delivery. 

However, because there are so many fans, ready stock items also run out quickly, so you have to hurry to get your share.

3. Closed Order

Well, here it is, the one that most often makes you curious: Close order means the status when the seller has closed the order session. 

It could be because the stock has run out, the PO time has passed, or there are other reasons from the seller's side.

Usually the writing is like this: "CLOSE ORDER, open a new batch next week, okay?" Or “CLOSE ORDER - out of stock”. This means you can no longer order that item at this time. 

What if you are determined to transfer? It could be that your money is pending or returned. 

So, for those of you who often see this term in the marketplace, Instagram, even WhatsApp Business, make sure you know it well what does close order mean so you won't be disappointed.

Read Also: Important! Pay attention to these 5 things when opening a restaurant business

The Meaning of Close Orders for Online Business

For online shop owners, close order could be an order management strategy. Especially if you use a batch system for production. For example, open a PO every Friday, close on Sunday. 

This system makes it easy to manage stock, production schedules and deliveries. 

Apart from that, close orders can also help manage cash flow. Because all buyers pay up front, you can use the money for production. 

So you don't need a lot of capital first, win-win for sellers and buyers! 

But make no mistake, if you use this system in your shop, make sure buyers really understand what it means. 

Because I misunderstood the problem, what does close order mean? It can reduce customer trust, you know. You really have to pay attention, OK? 

So, for sellers, what are the benefits of this close order system?

Benefits of the Close Order System for Sellers

Source: Freepik

If you are a business owner, this close order system has several advantages:

1. Reducing Production Overload 

Not all businesses can send large quantities immediately. This system makes production more controlled.

2. Operational Cost Efficiency 

Can manage expenses based on the number of incoming orders.

3. Better Time Management

You can focus on promotions when opening orders and rest or production when closing orders.

But again, everything must be communicated well to consumers. Tell them what close pre order means, and when it's open.

Tips for Using the Close Order System in Your Online Store

If you want to start this system, let's first look at some important tips:

1. Use the Right Platform

Choose an online shop platform that can manage order schedules and stock status clearly. 

If you have a restaurant or FnB business, you can use a supporting system Order Management System so that all orders can be recorded automatically.

2. Clear Communication Across All Channels

Make sure you provide information on open and close order schedules in your Instagram bio, caption, and even WhatsApp autoreply. Let me know too what does close order mean? for new customers who don't understand yet.

3. Provide Reminder Notifications

You can use email, WA blast, or Instagram story countdown so your customers don't miss the ordering session.

4. Update Stock Info Regularly

Even though you use a PO system, it is still important to update raw material stock or delivery estimates. Don't let customers be disappointed because of delays.

Nowadays, you can no longer manage orders manually if you want your business to grow. POS and OMS systems can help you connect all sales channels on one platform. For example, with ESB POSLite, you can:

• Monitor incoming orders from GrabFood, GoFood, ShopeeFood
• Automatically set order status: open–on process–closed
• Get insight into sales and product performance.

Conclusion

Now you know the difference between open orders, pre orders and closed orders, right? 

So the next time you see the words "close order" on your favorite online shop account, you will really understand what it means.

The main thing is, close order means a condition where the order has been closed, either because stock runs out or because the PO session has finished.

Temporary close pre order means also similar, but specifically for items that are indeed PO systems.

For those of you who have a business, an order system like this can be an effective solution for managing production and financial flows. 

Especially if you use a sophisticated system like ESB POSLite and ESB POS which makes everything practical and efficient.

So, what are you waiting for? Come on, start managing your business order system in a more modern and integrated way.

Because the neater the order, the smoother the profit will flow.