Backorder

Accepting orders for out-of-stock items with extended fulfillment timelines.

1 min readLast updated Apr 2026

Reviewed by Golden Digital·Operator-reviewed ecommerce reference

Quick Reference

CategoryFulfillment & Operations

Related Terms1

Accepting orders for out-of-stock items with extended fulfillment timelines.

Why It Matters

Backorders capture sales you'd otherwise lose to stockouts. Customers willing to wait are often your most loyal. However, poor backorder communication leads to cancellations, chargebacks, and damaged trust. The key is transparency about timelines.

Practical Example

Scenario

A furniture brand implements backorder capability for popular items with long lead times.

Calculation

Previously: out-of-stock items showed 'Notify Me,' capturing 4% of interested visitors. With backorder: 18% convert at full price with 4-week wait.

Result

Backorder option captures 4.5x more sales than notify-me. With clear timeline communication, cancellation rate stays under 8%.

Pro Tips

1Be specific about delivery dates: 'Ships by May 15' not 'Ships in 4-6 weeks'
2Send order confirmation emphasizing the extended timeline
3Provide regular updates if timeline changes—silence creates anxiety
4Consider a small discount for willingness to wait (5-10%)

Common Mistakes to Avoid

Vague timelines that set wrong expectations

Not updating customers when delivery dates slip

Charging cards immediately then making customers wait (chargeback risk)

Frequently asked questions

Options: 1) Charge at order (simpler, but chargeback risk if delayed). 2) Authorize only, charge at ship (better for long waits). 3) Deposit now, balance at ship (for very high-value items). For 2-4 week waits, charging at order is usually fine with clear communication.

It depends on product uniqueness and brand relationship. Mass-market items: 1-2 weeks max. Unique/specialty items: 4-6 weeks acceptable. Made-to-order/custom: customers expect longer. Always underpromise and overdeliver—'ships by May 15' arriving May 10 delights.

Put it to work

Related Terms

Stockout

When inventory reaches zero and products become unavailable for purchase.

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