Backorder

What Is a Backorder?

A backorder is an order a brand accepts even though the product is temporarily out of stock. Instead of losing the sale, the brand takes the order, often with the payment, and ships it once replenishment inventory is received.

Backorders differ from pre-orders. A backorder is for a product that already exists but has run out, while a pre-order is for a product that has not launched yet.

How It Works

When a SKU hits zero, the store can be set to continue selling. Orders for that item are held in the order management or warehouse system in a pending state. When the inbound shipment is received and put away, the held orders are released for picking, usually in the order they were placed.

For example, a swimwear brand sells out of a popular top in size small. A restock is due in three weeks, so the brand keeps selling, shows a clear message that the size ships in about three weeks and releases those orders as soon as the new stock lands.

• Show the expected ship date before checkout.
• Decide how to handle split orders in advance.
• Release backorders in the order they were placed.

Why It Matters for Ecommerce Brands

Backorders can protect revenue during stockouts, especially for bestsellers with loyal customers. However, they only work when expectations are clear. Shoppers should see that the item is backordered and roughly when it will ship before they check out.

Brands also need to manage mixed orders, where a customer buys one in-stock item and one backordered item. Options include shipping the available item now and the rest later, or holding the full order. Each choice has trade-offs in shipping cost and customer experience.