Inventory glossary
What is Backorder?
A backorder is a customer order for a product that is out of stock, which the store commits to fulfill once new stock arrives.
Backorders let a small store keep selling a popular item even when the shelf is empty. Customers accept a wait if they are told a clear date, so the order is not lost outright.
The risk is that backorders pile up quietly. If an owner does not track how many units are promised against incoming stock, the next purchase order can be too small, and customers end up waiting again. Treat backorders as a claim on the next shipment, not as stock you still have to sell elsewhere.
Example
A candle store sells out of its "Vanilla Oak" jar candle but keeps the product page live with a note that orders ship in two weeks. In that window, 40 customers order it. When the next batch of 150 units arrives, 40 go straight to those backorders and only 110 are available for new sales.
Common mistakes
- Promising a ship date without checking the supplier's actual lead time.
- Forgetting to subtract backordered units from new incoming stock, so it looks like more is available than it is.
- Letting backorders sit for months without updating the customer, which leads to cancellations and refunds.
Backorder and SteadyShelf
SteadyShelf forecasts demand per variant and flags the order-by date per SKU, which helps an owner place the next purchase order early enough to cover backorders along with normal demand.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Stockout · Committed inventory · Lead time · Reorder point · Lost sales
FAQ
Is a backorder the same as a stockout?
No. A stockout means you have zero units on hand. A backorder is a sale you accept during that stockout, promising to deliver later.
Should a small store always allow backorders?
Not always. Backorders work well for popular items with a reliable supplier lead time. For items with unpredictable restocks, it is often safer to mark them out of stock instead.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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