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Inventory Strategy: Stocked, On Demand (PoD), and iBuy Preorder

Creating a successful branded merchandise program requires the right mix of strategy and execution. This guide is designed to help you choose the right inventory method for your needs, whether you're trying to avoid waste, scale engagement, or control costs.

Product Fulfillment Options 

  • Stocked Inventory
  • Print on Demand
  • Preordering (iBuy)

1. Stocked Inventory

Best for:

  • Your go-to popular & core products
  • High-quality branded gear your people will love 
  • Fast, consistent delivery to end users

How it works:
You purchase a set quantity of product (e.g., 72 or more) upfront. We warehouse and fulfill these items same day (if placed before noon local time) from inventory as end users place orders 

Pros:

  • Incredible end user experience (ordering, shipping, delivery, returns/exchanges) 
  • Lower per-unit cost with bulk pricing
  • Fast fulfillment (orders placed by noon go out same day) 
  • Full creative freedom—any product, any decoration
  • Custom kitting and packaging options available
  • No stock issues 

Considerations:

  • Requires upfront investment

Pro Tip:
Most successful programs manage inventory in smaller batches (72–144 units). This allows for flexibility, frequent reorders, and ensures your store stays fresh without sitting on aging gear.

2. Print on Demand (PoD)

Best for:

  • Low-volume, low-risk items
  • Specific use cases (e.g., one-off designs, employee of the month) 
  • Trialing popularity of products or designs before ordering in bulk 

How it works:
Items are produced individually after an end user places an order. There’s no inventory held—only what is purchased gets made and shipped.

Pros:

  • No upfront inventory costs
  • No leftover gear

Considerations:

  • Poor end user experience (confusing, delays, multiple shipments, worse product) 
  • Slower delivery (usually 10–14 days)
  • Higher per-item cost (no bulk discount)
  • Limited product selection and decoration methods
    • 20 products max, selected product catalog here 
  • Having to manage stock issues when inventory is out 
  • Items will ship separately and from different locations
  • Shipping and packaging waste
  • No returns 

Important Note:
Print on Demand is a complementary option, not a core store strategy. If you expect 12+ redemptions for an item, it’s significantly more cost-effective to order a small bulk run.

3. Preordering (iBuy or Backorders on Portal) 

Best for:

  • Time specific launches  
  • Gauging interest before investing in inventory
  • Collecting sizes upfront then ordering bulk 

How it works:
We open a two-week max preorder window where users select their sizes/styles. Once the preorder closes, we produce all items in one run and fulfill directly to recipients.

Pros:

  • Eliminates guessing on sizes and quantities
  • No leftover inventory
  • Access to full product catalog and branding capabilities
  • Cost-effective: benefits from bulk pricing

Considerations:

  • End users are waiting on production - products ship after the campaign closes and production completes (typically 4-6 weeks from order placement to delivery)
  • Having to manage stock issues when inventory is out 
  • Higher likelihood of mis-ships 
  • No returns 

Quick Comparison

 

Bulk

On-Demand

iBuy (Preorder)

Upfront Cost

Yes (bulk buy)

No

No

Per-Item Cost

Low

High

Medium–Low

Fulfillment Time

2–3 days

10–14 days

4-6 weeks (after preorder closes)

Product Range

Full catalog, full decoration

Limited catalog, basic decoration, 20 products max 

Full catalog, full decoration, 20 products max 

Creative Options

High (custom kits, packaging)

Low

Medium 

Best Use Case

Core store items

Niche items, test designs

Seasonal or launch campaigns

When Does On-Demand Make Sense?

While it might sound appealing—no inventory, only pay when people order—there are serious trade-offs:

✅ Good for:

  • Small audience or unpredictable demand
  • Testing new products
  • Internal team-only items

❌ Not ideal for:

  • Core merchandise users expect to ship quickly
  • Large programs where experience matters
  • Custom branding or standout swag

Why?

  • End-user experience is weaker (slower shipping, less excitement)
  • Costs are higher
  • Product options are fewer and less premium
  • Creative is limited (basic decoration only)

Think of On-Demand as a great sidekick, but not the hero of your merch program.

Our Recommendation: Start Small, Reorder Smart

As one industry leader put it:

“If my gut says to buy 1,000, I buy 72 or 144. I make sure it works. Then I reorder fast. That way, nothing collects dust and every product gets better.”

That’s exactly how we approach store inventory.

By starting with small batches and reordering based on real-time usage, you:

  • Stay agile
  • Avoid waste
  • Keep things fresh
  • Improve end-user satisfaction

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