Inventory how-to
How to handle backorders when you run out
Decide upfront whether you will sell on backorder or just mark items out of stock, then set clear rules for messaging, timing, and reordering so you do not leave customers guessing.
Short answer: Decide upfront whether you will sell on backorder or just mark items out of stock, then set clear rules for messaging, timing, and reordering so you do not leave customers guessing. SteadyShelf will not manage the backorder sale itself, but it will tell you when stock is about to run out and when the replacement order should already be placed.
Decide your backorder policy per product type
Not every item should be sold on backorder. Fast movers with reliable suppliers are good candidates because the wait is usually short. Slow movers or items with unreliable suppliers are riskier to sell on backorder because customers may wait weeks without a clear reason.
Write down the rule once, for example "allow backorders only if restock is confirmed within 14 days." This keeps staff consistent instead of deciding case by case.
Set clear expectations at the point of sale
If you allow backorders, say so on the product page and at checkout, with an estimated ship date. Vague language like "ships soon" causes more support emails than a specific date, even if that date sometimes slips.
Update the estimated date as soon as you know the real one, ideally as soon as the purchase order is sent to the supplier. Customers tolerate a wait much better than a surprise.
Reorder before you actually hit zero
The real fix for backorders is catching low stock early enough that you rarely need them. Calculate your reorder point as daily sales times the sum of lead time and safety days, and place the order when on-hand stock hits that number, not after it runs out.
If you are already out and selling on backorder, treat that SKU as urgent and place the replenishment order immediately rather than waiting for your normal review cycle.
Keep backorder quantities under control
Cap how many units you let go on backorder so you do not oversell against a shipment that might arrive short or late. A simple cap, like no more than your average weekly sales in backorders at once, stops one popular item from creating a long queue of unhappy customers.
When stock arrives, fulfill backorders in the order they were placed and confirm with each customer once their item has shipped.
Step by step
- Decide which products are allowed to sell on backorder and which should just go out of stock
- Write a one-line policy, such as maximum wait time before you stop offering backorder
- Show an estimated ship date on the product page and at checkout, and update it as soon as a purchase order is sent
- Calculate the reorder point for each SKU as daily sales times (lead time plus safety days) and reorder before hitting it
- If you are already at zero, place the replenishment order the same day rather than waiting for the normal cycle
- Cap the number of backorder units per SKU so you do not oversell against one shipment
- Fulfill backorders in order received and notify customers when their item ships
Worked example
Say a candle SKU sells 4 units a day, the supplier lead time is 10 days, and you keep 3 safety days. The reorder point is 4 x (10 + 3) = 52 units, so you should have placed the order when stock hit 52, not when it hit zero. If you are already at zero and selling 2 units a day on backorder while waiting 10 days for the new stock, you will have roughly 20 units on backorder by the time it arrives, so capping backorders at 15 units keeps the wait reasonable for everyone in the queue.
How SteadyShelf helps
SteadyShelf does not manage backorder sales, customer messaging, or order caps on your storefront, since that is a storefront and checkout question. What it does do is calculate the reorder point and order-by date per SKU from your sales pace and supplier lead time, so you get the purchase order out before you hit zero and need backorders in the first place, and it will flag the SKU again on the weekly reorder email if it stays low.
$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related guides
- How to handle carryover stock between seasons
- How to handle damaged goods from a supplier
- How to handle inventory shrinkage
- How to handle a supplier that ships late
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FAQ
Should I ever let a brand new product sell on backorder before it has arrived once?
It is riskier because you have no sales history to set expectations or confirm the supplier's real lead time. If you do it, use the supplier's quoted lead time plus a few extra buffer days when telling customers the ship date, since first shipments often run late.
How do I stop overselling a backorder item if multiple sales channels show the same stock number?
Set a hard cap on backorder quantity per SKU and stop accepting new backorders once you hit it, checking the number manually if you sell the same item in more than one place. SteadyShelf does not sync stock across multiple channels, so if that is a recurring problem you will need a manual check or a dedicated multichannel sync tool.
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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