I recently audited the waitlist system for a premium skincare brand. Their approach seemed fair enough—notify customers in the exact order they joined the waitlist.

The problem? This chronological system was costing them approximately $42,000 in potential revenue each quarter.

Here's why first-come, first-served waitlists often underperform:

1. Value Inequality

For one product restock, we traced the outcomes:

• 200 units became available
• First 200 waitlist subscribers were notified
• Only 86 converted to purchase (43%)
• Meanwhile, high-value customers later in the queue never received notifications

When we analyzed the missed opportunities, we found that high-value customers (those with 3+ previous purchases) converted at 71% when notified about restocks.

2. Inventory Inefficiency

Chronological systems tend to spread inventory too thinly across customer segments:

• Low-intent browsers who casually join waitlists
• One-time discount hunters
• Legitimate enthusiasts and brand loyalists

Each gets equal access, but not equal conversion probability.

3. Missed Marketing Opportunities

Pure chronological systems fail to leverage strategic moments:

• Product launches
• Seasonal campaigns
• Loyalty milestones

For another merchant, we implemented a hybrid system that reserved 30% of restocked inventory for their loyalty program members, regardless of waitlist timing. This simple change increased overall conversion rates by 18%.

The solution isn't abandoning fairness—it's redefining it. When we implemented a weighted waitlist system for the skincare brand (factoring in purchase history and engagement), overall customer satisfaction scores actually improved, despite some customers receiving notifications later.

Most customers understand and appreciate when brands recognize loyalty. The key is transparency—clearly communicating how your waitlist prioritization works.

Are you currently using a strict chronological approach to waitlist notifications? If so, there's likely significant untapped revenue in a more strategic system.