E-Commerce Dictionary
Backorder
Definition
An order for a product that is temporarily out of stock but is expected to be shipped once available.
Deep Dive
A backorder occurs when a customer places an order for a product that is currently out of stock but is expected to be available and shipped at a later date. Rather than canceling the order, the business accepts it with the understanding that fulfillment will be delayed until new inventory arrives. This situation commonly arises due to unexpected demand, supply chain disruptions, or strategic planning for popular upcoming products, allowing businesses to capture sales even when immediate stock is unavailable.
Examples & Use Cases
- 1A customer pre-ordering a highly anticipated new video game console before its release, which is then backordered until launch day
- 2A popular book temporarily running out of stock due to unexpected demand, but customers can still place orders to be fulfilled when new copies arrive
- 3A component shortage delaying the production of a new tech gadget, leading to backorders for initial sales
Related Terms
Out of StockInventory ManagementPre-order