Backorder
An order for a product that is temporarily out of stock, to be fulfilled once it is replenished.
A backorder is a customer order for an item you do not currently have in stock but intend to fulfil once new stock arrives. Instead of cancelling the sale, you accept the order and ship it when the product is back.
Backorders let you keep a sale you would otherwise lose, but they carry risk: customers may cancel if the wait is too long, and managing partial shipments adds complexity. Clear communication about expected ship dates is essential.
A high backorder rate is usually a signal that reorder points or safety stock are set too low for that product's real demand.
Put it into practice
Related terms
- StockoutWhen a product is completely unavailable to sell because inventory has run to zero.
- Safety StockExtra inventory held as a buffer against demand spikes and supplier delays so you do not run out.
- Reorder PointThe stock level at which you should place a new order so it arrives before you run out.
Run it in one system
VNDLY tracks stock, orders, and suppliers together so terms like this stop being theory and start being automatic.