What is a backorder?

Backorders are normal in wholesale and distribution. Demand moves faster than supply, and a supplier delay or a big order can empty a shelf overnight.

Backorder vs out of stock

The two are close, but they are not the same.

• Out of stock means the item is not available, and the seller may not take orders for it at all.
• Backorder means the seller still takes the order, because it expects stock soon, and ships when it lands.

So a backorder is a promise. That makes the communication around it matter as much as the stock.

Why backorders happen

• A supplier ships late or short.
• A large order uses up more stock than planned.
• Demand jumps, for example before a season.
• A production run is delayed.

How a backorder works

1. The customer places an order.
2. Part of it, or all of it, is not in stock.
3. The seller confirms what ships now, what is backordered and the date it expects to ship the rest.
4. The customer chooses to wait, take a substitute or cancel the backordered part.
5. When stock arrives, the seller ships the balance, usually as a second delivery.

An example from product sales

Say a packaging wholesaler gets an order for 500 boxes of one size. It has 300 in stock, and the next delivery from its supplier is due in two weeks.

It ships 300 boxes now and puts 200 on backorder. The rep tells the buyer the expected date, offers a close alternative size and records the choice on the sales order. When the 200 arrive, they ship and the order is complete.

If the rep says nothing, the buyer finds out when the boxes do not arrive. That is how backorders lose customers.

How to handle a backorder well

• Tell the customer as soon as you know, and give a date you can keep.
• Offer to ship what you have, or to wait and ship together.
• Offer a substitute if one exists.
• Keep every promised date on a task so it does not get lost.

The longer version is in how to manage backorders, and you can copy the wording from our backorder notification email templates.

Related terms

• Lead time: how long a restock takes, which sets the date you promise.
• Purchase order: the buyer's order that creates the backorder.
• Sales order: where you record what is shipped and what is waiting.

How PromptLab handles it

Keep stock levels in the system you already use for them, such as your ERP. PromptLab holds the sales side: the sales order on the account, tasks to chase each promised date, templates for the notice, and the buyer's email, WhatsApp and Telegram messages in one shared Inbox, so the next person on the account sees what was promised.

Frequently asked questions

What does backorder mean?

It means the item is out of stock now, but the seller has accepted your order and will ship it when new stock arrives. You are in a queue for the next delivery.

Is a backorder the same as a pre-order?

No. A pre-order is for a product not yet released. A backorder is for a product the seller normally stocks that has run out for the moment.

Can a customer cancel a backorder?

Usually yes, unless your terms say otherwise. Many sellers let the customer cancel the backordered part and keep the part that already shipped. State your policy on the order confirmation.

Should I ship a partial order or wait?

Ask the customer. Some want what you have straight away. Others want one delivery to save on freight or handling.

How do I keep customers happy during a backorder?

Tell them early, give a realistic date, offer a substitute and update them if the date moves. Silence does more harm than the delay.