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Backorder refers to the status of an item that is temporarily out of stock but is still available for purchase, with delivery delayed until the product is restocked.
When a product is on backorder, it means that demand exceeds current inventory levels, but customers can still place orders, which will be fulfilled once stock is replenished. Backordering allows businesses to manage high demand without losing sales, keeping customers engaged with the promise of future delivery. While backorders can cause slight delays, they provide a way to maintain sales even when inventory runs low.
Backorders allow you to sell products even when they're temporarily out of stock by promising future delivery. This helps your business retain sales and meet customer demand without turning away potential buyers. It also enables better inventory management, increases revenue opportunities, and keeps customers engaged, even during stock shortages.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Backorders are important because they allow businesses to keep accepting orders and generate revenue even when stock levels are temporarily depleted. By offering backorders, companies can retain customer interest, meet demand, and avoid lost sales due to stock shortages. This flexibility ensures business continuity while managing inventory challenges.
For example, during a busy holiday season, a popular e-commerce store may sell out of high-demand products. By offering a backorder option, the store ensures customers can still place orders, with products delivered as soon as inventory is restocked, maintaining customer satisfaction and loyalty.
