WHAT IS A BACKORDER?
A backorder is an order for an item that is not currently in stock. If a product is out of stock but still available for purchase, it is on backorder. Shoppers purchasing back-ordered products will have to wait longer to receive the product.
The shopper's wait time depends on where the shortcoming occurs in the supply chain. If the stock shortage stems from the manufacturer, the wait time for the consumer may be substantial, harming shopper satisfaction. Accurate inventory management and proactive communication can reduce the need for backorders and earn shopper loyalty.
Disadvantages of backorders
Longer shipping timelines come with some hurdles for businesses to consider before offering backorder products.
Order Cancellations - Impulse buying is a major factor in consumer purchasing decisions, especially in e-commerce. The longer the shoppers have to wait to receive the backorder product, the more likely it is that they will cancel the order.
Payment Processing Challenges - Depending on how your business processes payment for backorders, the credit card a shopper used to make the purchase may expire before the payment is fully processed. If you wait to process payment until the order is shipped and the card is expired, the shopper service will have to reach out to confirm the new payment information.
Shoppers Service Requirements - Backorders increase the workload on your shopper service department, with order cancellations and payment processing problems taking valuable time to resolve.
MANAGING BACKORDERS
Effectively managing backorders is a mixture of great shopper service, solid inventory management, and on-time order fulfillment.
Shopper Experience
Asking shoppers to pay upfront for something that may not arrive soon is a big ask. If you decide to make an e-commerce product available for backorder, the first step to creating a positive experience for the shoppers is managing their expectations.
Clearly communicating the shipping ETA for your back-ordered stock helps avoid misaligned expectations and prevents shopper disappointment, especially if you choose to require prepayment. Consider creating a unique order confirmation email that informs the shoppers of the timeline and follows up with tracking information when the order has been shipped.
Keep your shoppers happy...Communication is key!
In order to best serve our customers during these times, we have implemented the following back-order best practice policy:
Offer Page Messaging
Accurate communication: Always provide clear and accurate communication regarding the availability and estimated delivery date of back-ordered items.
Email Communication (after the order is placed) - backorder messaging once the shopper has placed the order. Keep customers informed every step of the way through automated email updates.
Cancel option - If a customer wishes to cancel a back-ordered item, we will honor their request promptly and issue a full refund.
Shipping Options
Partial delivery - If an order contains both in-stock and back-ordered items, we will ship the in-stock items immediately and the back-ordered items as soon as they become available, at no additional shipping cost to the customer.
Prioritization - We will prioritize fulfilling backorders in the order they were received, ensuring fairness and transparency for all customers.
Expedited shipping - In some cases, we may offer expedited shipping options for back-ordered items at an additional cost. This will be communicated clearly to the customer, and they will have the option to choose this method if desired.
Shopper Requests - Depending on the shopper base, backorders will create an influx in shopper support tickets from shoppers looking for an update on their order. It's best to have Macros or canned responses available for agents to use to cut down on ticket response time.
By implementing these best practices, we aim to provide a positive and stress-free experience for our customers during back-order situations.