A backorder happens more often than most sellers realize, and it’s rarely just a supply chain footnote. The average ecommerce backorder rate sits at roughly 8%, rising to around 10% for promotional items, and spiking by as much as 30% during holiday and back-to-school periods, according to Opensend’s 2026 backorder rate analysis. Understanding exactly what a backorder is, and how to prevent one, is one of the highest-leverage things a growing ecommerce seller can get right.
What does it mean to be on backorder?
An order is on backorder when a customer has purchased a product that isn’t currently in physical stock, but the seller has committed to fulfilling it once new inventory arrives. Unlike an “out of stock” listing, a backordered item can still be ordered, it’s a confirmed sale with a delayed ship date, not a closed door.
Key Takeaways
- A backorder is a confirmed order for an item that isn’t currently in stock but will be fulfilled once new stock arrives
- Backorders differ from “out of stock” (no purchase possible) and “pre-order” (item hasn’t been produced yet)
- The global cost of stockouts and overstocking combined is estimated at over $1.7 trillion annually, according to IHL Group’s 2026 retail inventory distortion report
- 40% of customers who hit a stockout complete their purchase elsewhere entirely, per Opensend’s 2025 out-of-stock research
- Backorders can be managed and minimized through accurate demand forecasting, safety stock, and real-time multichannel inventory sync.
Backorder vs. Out of Stock vs. Pre-Order
These three terms get used interchangeably, but they describe fundamentally different inventory states. Confusing them in customer-facing copy is a common, avoidable mistake.
| Status | Can Customer Still Order? | Item Exists Yet? | Typical Timeframe | Customer Commitment |
|---|---|---|---|---|
| Backorder | Yes | Yes, in production or transit | Days to a few weeks | Confirmed sale, delayed shipment |
| Out of Stock | No | Yes, but unavailable | Unknown | None, purchase is blocked entirely |
| Pre-Order | Yes | No, not yet manufactured/released | Weeks to months | Confirmed sale, future release date |
Does backorder mean sold out?
Not exactly. “Sold out” usually implies an item is unavailable with no clear return date, closer to “out of stock.” A backorder means the item is sold out temporarily but still purchasable, with a committed restock and ship date attached to the order.
What Is an Example of a Backorder?
A useful illustration: a homeware seller lists a popular ceramic mug set across Amazon, Shopify, and their own website. A viral social post drives a sudden spike in orders, selling through the entire available stock within hours. Rather than marking the listing “out of stock” and losing the sale entirely, the seller keeps it available for purchase, clearly labeled “Ships in 10-14 days, backordered,” while a new shipment is already in transit from the supplier. Customers who order during this window are on backorder, not shut out.
What is an example of a backorder?
A common backorder example is an ecommerce seller who sells through all available stock of a trending item due to a demand spike, but continues accepting orders with a clearly stated delayed ship date, rather than closing the listing entirely, while new inventory is already in transit from the supplier.
What Causes Backorders?
Backorders happen for a range of operational reasons. The most common causes, drawn from patterns across ecommerce and fulfillment operations, fall into four categories:
Sudden Demand Spikes
A viral moment, a seasonal surge, or unexpected media coverage can push demand far beyond what historical sales data predicted. 43% of online shoppers cite in-stock availability as one of the two most important factors in their shopping experience, meaning demand spikes that outpace stock have an outsized impact on customer perception.
Supply Chain Disruptions
Delays from manufacturers, customs, or shipping carriers can push expected inventory arrival dates back with little warning, particularly for imported goods or products with complex multi-supplier assembly.
Inventory Management Errors
Miscounted stock, unrecorded returns, or inaccurate reorder points can create a false sense of available inventory, only surfacing as a problem once orders start coming in against stock that doesn’t actually exist.
Overselling Across Multiple Sales Channels
This is the cause most often missed in general backorder guides, but it’s one of the most common in practice for multichannel sellers. When the same SKU is listed on Amazon, eBay, Shopify, and a physical POS system without real-time sync between them, each channel can independently sell the last few units of the same physical stock, resulting in confirmed orders that collectively exceed what’s actually available. This is functionally identical to a backorder-inducing event, just caused by fragmented systems rather than genuine demand. For the mechanics of how this happens, see our guide on how to avoid overselling across multiple platforms.
This is precisely the gap StockKonnect’s SaaS platform was built to close. Rather than each sales channel maintaining its own separate stock count, StockKonnect keeps one unified inventory figure updating in real time the moment a sale happens anywhere, so a backorder never gets triggered simply because two channels didn’t know about each other’s sales. It’s a software problem with a software fix, not something forecasting or safety stock alone can solve once a seller is active on more than one channel.
What happens when a backorder occurs?
When a backorder occurs, the seller typically continues accepting the order, communicates an estimated ship date to the customer, and prioritizes fulfillment once new stock arrives, restocked items are usually allocated to backordered orders before being made available to new buyers.
Why do companies use backorders?
Companies use backorders because they keep a sale moving rather than losing it entirely to a hard “out of stock” notice. A backorder preserves conversion rate, protects search ranking signals tied to product availability, and in some cases lets a brand gauge real demand for a product before committing to a larger manufacturing run.
How Backorders Impact Your Business
Customer Satisfaction and Retention Risk
The cost of a poorly handled backorder is measurable. 24% of online shoppers immediately switch to a competitor when they encounter unavailable stock, rising to 38% for high-intent or urgent purchases. Notably, that defection rate drops to just 16% for loyal customers with five or more previous purchases, existing trust genuinely buffers against backorder frustration, but it isn’t unlimited.
Increased Operational Costs
Managing backordered inventory means additional customer service volume, manual order tracking, and in some cases expedited shipping costs to make up for lost time, all of which erode margin on an order that hasn’t even shipped yet.
Revenue and Cash Flow Disruption
Every backordered unit represents revenue that’s booked but not yet realized. At scale, this creates a cash flow gap between confirmed sales and actual fulfillment, particularly disruptive for sellers operating on thin working capital margins.
Are Backorders Good or Bad for Business? (Advantages & Disadvantages)
| Advantages | Disadvantages |
|---|---|
| Captures sales that would otherwise be lost to a stockout | Can frustrate customers if communication is unclear |
| Signals product popularity and demand | Risk of order cancellation if delays extend too long |
| Improves cash flow versus a fully lost sale | Adds customer service and order-tracking overhead |
| Useful for gauging real demand before a full production run | Repeated backorders can damage brand trust if mismanaged |
Are backorders guaranteed?
No. A backorder is a commitment based on expected restock timing, not a guarantee. Supplier delays, transit issues, or further demand spikes can push the actual ship date later than originally communicated, which is why clear, ongoing customer communication matters throughout the backorder period.
What are the risks of backordering?
Backordering risks dissatisfying customers if you miss timelines, driving up order cancellations the longer the backorder period drags on, adding to your customer service workload, and damaging repeat-purchase trust if backorders happen frequently without clear communication.
How Long Does a Backorder Take?
There’s no fixed industry-standard backorder timeline, it depends entirely on the underlying cause. Most ecommerce sellers aim for a window of 7 to 14 days for a typical restock-driven backorder, according to Speedcommerce’s 2026 backorder management guide. Timelines vary meaningfully by cause:
- Minor logistics delays (a slow warehouse dock-to-stock process): typically the shortest delays
- Domestic manufacturing lead times: often in the 1-3 week range
- International shipping or custom production runs: can extend to 30+ days
If a backorder is expected to exceed 30 days, many payment processors and consumer protection regulations require sellers to offer a clear refund or cancellation option, worth confirming against the specific regulations in your selling region.
How long does backorder usually take?
Most ecommerce backorders resolve within 7 to 14 days for standard restocks, though international shipping or custom production runs can extend this to 30 days or more. The exact timeframe depends on the underlying cause of the delay.
What is the backorder period?
The backorder period is the time between when a customer places a backordered order and when that order actually ships. It’s typically communicated to the customer at checkout as an estimated ship date, and should be updated proactively if the timeline changes.
Can a Backorder Be Cancelled?
Yes, in most cases. Backorder cancellation policies vary by seller, but customers can typically request a cancellation and refund at any point before the item ships, particularly if the backorder period extends significantly beyond the originally communicated timeframe. Clear cancellation terms, stated upfront at checkout, reduce disputes and support requests later.
Can backorders be cancelled?
Yes, most sellers allow backorder cancellations before the item ships, especially if the delay extends beyond the original estimated timeframe. Policy specifics vary, so it’s worth stating cancellation terms clearly at the point of purchase.
Backorder vs. Backlog: What’s the Difference
These two terms are often confused but describe different things entirely:
| Term | What It Refers To |
|---|---|
| Backorder | A specific customer order for a product not currently in stock |
| Backlog | The broader, accumulated volume of unfulfilled work or orders a business hasn’t yet processed, which may include backorders alongside other pending tasks |
A backlog is the umbrella term for accumulated pending work generally, a backorder is one specific type of item that can end up inside that backlog if fulfillment falls behind.
What is backlog vs backorder?
A backorder is a specific unfulfilled customer order for an out-of-stock item. A backlog is the broader accumulation of pending, unprocessed work or orders across a business, a backorder can become part of a backlog if it isn’t resolved promptly, but the two terms aren’t interchangeable.
Backorder Accounting: How It’s Recorded
Backorders affect financial reporting in a specific way. The sale itself is typically recorded on the company’s books once the order is placed and confirmed, not once the item actually ships, since the transaction has been agreed upon even though fulfillment is delayed. Businesses generally keep the order flagged internally as backordered until fulfillment is complete, so that inventory records and revenue recognition stay accurate and auditable. Once the shipment goes out, the sale is reconciled and checked off as complete.
This distinction matters for cash flow forecasting specifically, revenue recorded against a backorder isn’t yet cash in hand, and treating it as fully realized before fulfillment can distort short-term financial planning.
How to Communicate a Backorder to Customers
Clear, proactive communication is what separates a backorder that preserves customer trust from one that damages it. A simple, effective backorder notice includes:
“Thanks for your order! This item is currently in high demand and is on backorder. Your order is confirmed, and we expect to ship it within 10-14 days. We’ll email you the moment it’s on its way. Questions in the meantime? Reach out to our support team anytime.”
The key elements: confirm the order is genuinely secured, give a realistic timeframe rather than an overly optimistic one, and make it easy to get updates or cancel if needed.
How to Avoid Backorders
Maintain Accurate Safety Stock
Safety stock is a buffer held above expected demand specifically to absorb forecasting errors or unexpected demand spikes without triggering a backorder.
Improve Demand Forecasting
Using historical sales data, seasonal patterns, and real-time trend signals to predict demand more accurately reduces the frequency of demand-driven backorders significantly.
Diversify Suppliers
Businesses with multiple supplier relationships experience 27% fewer stockouts compared to those relying on a single source, according to Opensend’s 2026 backorder data, since a single supplier’s delay doesn’t halt fulfillment entirely.
A Worked Example: Calculating a Reorder Point to Prevent Backorders
Reorder point = (Average Daily Sales × Supplier Lead Time) + Safety Stock.
For example, a seller averaging 20 units sold per day, with a supplier lead time of 10 days, and a safety stock buffer of 50 units, should trigger a new purchase order once stock hits 250 units (20 × 10 = 200, plus 50 safety stock), not when stock hits zero. Waiting until stock physically runs out before reordering is one of the most common, entirely preventable causes of a backorder. For the full calculation walkthrough, see our complete guide to ecommerce inventory management.
Real-Time Multichannel Inventory Sync
For sellers on more than one sales channel, the reorder point above is only accurate if it reflects combined demand across every channel at once, not just one platform in isolation. This is exactly the gap that causes multichannel-specific backorders and overselling. As a cloud-based SaaS platform built specifically for multichannel ecommerce, StockKonnect’s inventory management software keeps stock synced in real time across Amazon, eBay, Shopify, Walmart Marketplace, Etsy, and WooCommerce, so a sale on one channel updates availability everywhere else instantly, closing the exact gap that causes fragmented, avoidable backorders. For sellers who’ve outgrown spreadsheets and manual channel-by-channel stock checks, this is the point where dedicated software stops being optional.
How can I avoid backorders?
To avoid backorders, maintain adequate safety stock, improve demand forecasting accuracy, diversify suppliers, calculate reorder points using real lead time and demand data rather than guesswork, and, if you sell on multiple channels, sync inventory in real time across every channel so it always reflects combined demand accurately.
Frequently Asked Questions
Is a backorder a good or bad sign for a business?
It can be either. A backorder driven by strong, unexpected demand is generally a positive signal about product popularity. Frequent, poorly managed backorders, however, usually indicate a deeper problem with demand forecasting, supplier reliability, or inventory synchronization across sales channels.
Key Takeaways / Summary
A backorder is a confirmed sale for an item that’s temporarily out of physical stock, distinct from a hard “out of stock” status or a pre-order for an unreleased product. Handled well, with realistic timelines and proactive communication, backorders preserve revenue that would otherwise be lost entirely. Handled poorly, they risk the kind of customer defection the data above makes clear, up to 40% of shoppers hit by a stockout buy elsewhere entirely.
The most reliable long-term fix isn’t managing backorders after they happen, it’s preventing them at the source. For single-channel sellers, that means better forecasting and safety stock. Any seller active on more than one platform, it means closing the multichannel sync gap that spreadsheets and manual stock checks simply can’t keep up with once order volume grows, which is exactly the problem StockKonnect’s SaaS platform was built to solve. For a broader look at how this fits into full inventory operations, see our guide to order management system and order fulfillment software.
References
- Opensend — Backorder Rate Statistics for Ecommerce Stores (2026)
- Opensend — Out-of-Stock Rate Statistics for Ecommerce Stores (2025)
- IHL Group, via Xorosoft — Ecommerce Inventory Statistics: Data and Trends for 2026
- Speedcommerce — What Is a Backorder? Backorder vs. Out of Stock Guide 2026
- Drip — 19 New Ecommerce Statistics You Need to Know
Figures above reflect industry-wide data at time of publication and should be reverified periodically as ecommerce statistics update.