Reservation Deposit and Obligations.
What is the Reservation Deposit?
In exchange for reserving the right to buy your product at a discount, Prelaunch users leave a small deposit (1-5% of your product’s price). This is a real online transaction that users will transfer by card to Prelaunch.com.
This Reservation Deposit on Prelaunch.com, is a binding agreement between you and each reservee – if you launch your product, they will be able to purchase it for the discounted price you offered them.
Upon successful delivery and completion of the below conditions, you will receive each Reservation Deposit minus the processing fees.
What rights and obligations do you have to people placing a Reservation Deposit?
Before launching the product on e-commerce or crowdfunding:
- The reservee has the right to cancel their reservation and receive a full refund at any time, for any reason.
- You are required to notify every reservee 24 hours before you launch and offer them a last chance to cancel their reservation and receive a full refund. If you fail to notify them, they will be allowed to cancel their reservation even after you launch.
After launching your product on e-commerce or crowdfunding:
- The reservee will no longer be able to cancel their reservation.
- The reservee has the right to buy your product at the agreed discounted price. This discounted price will be available to them for a minimum of 30 days after your launch.
- You must provide every reservee with a personalized link to – or other easy method to claim – their discounted price.
- You must deliver the product to every reservee who purchased your product. Failure to do so will result in their Reservation Deposit being refunded.
- Every reservee’s Reservation Deposit is automatically refunded if they have not received your product within 2 years of their reservation date.
If you do not launch your product on e-commerce or crowdfunding:
- When you choose to cancel your launch via the Prelaunch.com platform, all Reservation Deposits are automatically refunded.
- If you fail to notify Prelaunch.com or your reservees of your plans, every reservee’s Reservation Deposit is automatically refunded if they have not received your product within 2 years of their reservation date.
When will I receive the Reservation Deposits?
Once you start shipping, you can apply to receive each Reservation Deposit.
In order to increase the odds of your application getting accepted, provide proof of meeting the following conditions:
- You launched your product.
- You notified the reservee of their last chance to refund, 24 hours before launching your product.
- You provided the reservee with a personalized link to – or other easy method to claim – their discounted price.
- You made this discounted price available to them for a minimum of 30 days after launch.
- You delivered your product to at least 50% of the reservees that purchased
- You delivered it to them within 2 years of them reserving.
These cases must be met for each reservee for their Reservation Deposit to be released to you.
Where are your Reservation Deposits held?
Your reservation deposits are kept in an escrow account under management of Prelaunch.com. This ensures the smooth management of refunds via the Prelaunch.com platform.