Backorder refers to orders placed for products currently out of stock, with delivery scheduled once inventory is replenished. Instead of losing the sale entirely, backorders allow customers to reserve items and receive them when available.
Industry Impact
The average backorder rate across ecommerce is approximately 8%. Well-managed operations target rates below 5%. High backorder rates signal inventory planning issues.
70% of customers will shop elsewhere when their preferred product is unavailable. However, offering backorder options can recover some of these potential lost sales by providing certainty of eventual fulfillment. Backorder acceptance varies by product type. Customers tolerate longer waits for specialty items, limited editions, or custom products compared to everyday commodities.
Backorders differ from pre-orders. Backorders are for products that should be in stock but temporarily are not. Pre-orders are for products not yet released or manufactured. Example backorder: Running shoes currently out of stock, restocking in 2 weeks. Example pre-order: New smartphone releasing next month.
Managing Backorders
Provide estimated restock dates and regular updates since uncertainty frustrates customers more than the wait itself. Show expected availability dates on product pages so customers make informed decisions before ordering. Process backorders in the sequence received and consider offering priority fulfillment for loyal customers.
Best Practices and Common Mistakes
Display clear expected shipping timeframes. Send proactive updates on backorder status. Allow easy cancellation before shipment. Consider offering discounts for backorder patience. Track backorder rates by product and supplier.
Common mistakes include accepting backorders without restock dates, poor communication during extended waits, charging payment before shipment, not offering cancellation options, and overpromising delivery timelines.
