Backorder
Accepting orders for out-of-stock items with extended fulfillment timelines.
1 min readLast updated Apr 2026
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)