Glossary - Backorder

Backorder refers to a product that is available for purchase even though it is currently out of stock. Customers can place an order with the understanding that the item will ship at a later date once inventory is replenished.

How Backorders Work

When a product is placed on backorder, the retailer continues to accept orders despite having no immediate inventory available. Once new stock arrives, backordered items are fulfilled in the order they were received.

Businesses typically display estimated ship dates or fulfillment windows to set expectations upfront.

Why Backorders Matter

Backorders allow businesses to:

• Capture demand instead of losing sales during stockouts
• Maintain product visibility and momentum
• Improve inventory planning through demand signals

For customers, backorders provide access to high-demand or limited products that may otherwise sell out quickly.

Backorder Best Practices

To successfully manage backorders, brands should:

• Clearly communicate expected delivery timelines
• Send proactive email or SMS updates
• Offer order status tracking
• Provide easy cancellation or refund options

Poor communication around backorders can lead to frustration, chargebacks, and negative brand perception.