Ecommerce

Backorder

Also called back order, pre-order against stock

An order accepted for an item that is not in stock yet, to be shipped when the incoming supply arrives.

Quick facts: Backorder

Category
Ecommerce
Also called
back order, pre-order against stock
Level
Beginner
Affects
Cash flow, refunds, customer trust, reported revenue
Where to see it
Shopify, WooCommerce, Google Merchant Center, your order management system
In this article4
  1. How a backorder works
  2. Why backorders matter
  3. Where backorders go wrong
  4. Getting it right

How a backorder works

The customer buys, pays or commits, and the shop promises to ship once the incoming consignment lands. The order sits in a queue attached to a purchase order rather than to stock on hand, and it releases automatically when the goods are received. Some shops take full payment up front, some take a deposit, and some authorise the card and only charge at dispatch.

Two things have to be true for it to work. The shop must know when the supply is genuinely arriving, and the customer must be told plainly that this is what they are agreeing to, on the product page and again in the confirmation. A backorder that reads like a normal purchase is not a backorder — it is a surprise waiting to be discovered.

Why backorders matter

They convert demand you have already paid to attract. When a campaign is running and an item empties, the alternative to a backorder is usually a lost sale plus a customer who has now found a competitor. Taking the order keeps the relationship and gives you a real signal of how much of the incoming shipment is already spoken for.

They also change what your data means. Revenue recorded at the moment of order is not revenue you have earned until the item ships, so a period with many backorders can look stronger than it is. Anyone reading the numbers to judge campaign performance needs to know which orders are still waiting on stock.

Where backorders go wrong

Vague promises cause most of the damage. Wording like “shipping soon” invites the customer to invent their own timeline and be disappointed by it. Repeated slippage is worse still: each new date the shop misses costs more goodwill than the original delay, and support time rises faster than the order value justifies.

The other common error is taking backorders on the wrong products. Low-value, easily substituted items are not worth waiting for, and the cancellations and refunds that follow can cost more than the margin. Advertising an item you cannot ship for a long period also puts the feed and the landing page out of step, which the ad platforms treat as an availability problem.

Getting it right

Use the correct availability value in the feed instead of leaving the item marked as in stock, and mirror that on the page: state that it is on backorder, give the date you are actually confident about, and confirm it again by email. Where payment is taken up front, make the refund terms visible before checkout, not afterwards.

Limit backorders to items with a known, short lead time and enough margin to survive a cancellation. Everything else is better served by a notify-me form, which captures the same interest without a promise attached. Treat the queue as a marketing asset too: a list of people who wanted the item enough to wait is one of the better email marketing audiences you will ever build, and it is worth watching how backorders affect your refund rate.

Do and do not

Do

  • State a date you are genuinely confident about
  • Set the feed availability to backorder, not in stock
  • Reserve backorders for items with known lead times

Do not

  • Promise "shipping soon" without a date
  • Take backorders on cheap, easily substituted products
  • Count backordered orders as shipped revenue

Questions people ask about this

Is a backorder better than showing the item as out of stock?

It is better when you know the arrival date and the customer is told clearly. It is worse when the date is a guess, because a missed promise costs more trust than an honest unavailable message. For cheap, easily substituted products a notify-me form usually serves everyone better than an order you may have to refund.

Should I charge the customer at the time of a backorder?

That depends on your cash position and your refund terms. Charging up front funds the purchase order but obliges you to refund quickly and gracefully if the supply fails. Authorising the card and charging at dispatch is gentler on the customer. Whichever you choose, state it before checkout rather than in the confirmation email.

How should backordered sales be reported?

Separate them from shipped revenue. An order accepted against future stock is a commitment, not a completed sale, and mixing the two makes a month look stronger than it was and hides cancellations later. Tag the orders so anyone reviewing campaign results can see how much of the total is still waiting on delivery.

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