What is Backorder?
A backorder is an order for an out-of-stock item expected to restock soon. Customers can buy now, and the business ships once it's available.
Explanation
Backorder refers to a situation where a customer places an order for a product that is currently out of stock but will be replenished in the future. Shopify stores can set up backordering systems, allowing customers to continue purchasing these items, with the expectation that the products will be shipped once they are restocked. This system helps businesses continue generating sales even during stockouts and provides customers with a clear understanding of product availability.
Importance
- Sales Continuity: Ensures that sales are not lost during out-of-stock situations, allowing customers to place orders while waiting for restocks.
- Customer Satisfaction: Helps manage customer expectations by providing a clear timeline for when backordered items will ship.
- Inventory Management: Allows businesses to effectively track inventory levels and manage demand during stockouts.
- Increased Revenue Opportunities: Even when products are out of stock, backorders allow businesses to maintain revenue flow by selling unavailable products in advance.
How It Works
- Pre-order Setup: Merchants enable backordering through apps or Shopify's pre-order options, allowing customers to purchase items that are out of stock.
- Order Processing: Customers place their orders and receive a notification that the item will be shipped once restocked.
- Stock Update: Once the product is available, the business fulfills the backorder, shipping the product to the customer.
- Communication: Customers are notified about expected restock dates and receive updates on their order status until the product ships.
Benefits
- Prevents Lost Sales: Merchants can continue selling products even when they are temporarily unavailable.
- Better Cash Flow: Collecting payment upfront for backorders helps improve cash flow, as customers pay before the product is available.
- Customer Engagement: Offering backorder options can increase customer loyalty, as they are more likely to return when the product becomes available.
- Inventory Flexibility: Helps businesses manage their stock levels more efficiently by accommodating demand for out-of-stock items.
Top Backorder Apps for Shopify:
Pre‑order Manager Pro
- Allows merchants to manage and display pre-order options for out-of-stock products.
- Customizable settings to display pre-order buttons and manage customer notifications.
PreOrder Now & Pre order | PQ
- Offers a simple way to enable pre-orders for products with out-of-stock statuses.
- Provides flexible options for managing pre-order messages and expected shipping dates.
Amai PreOrder Manager + Notify
- Enables customers to place orders for out-of-stock items with notifications on estimated shipping dates.
- Provides control over which products are available for backordering and when.