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What are Back Orders?

A
Written by Austin Kreinz
Updated over a week ago

A backorder refers to a product that is temporarily out of stock but is expected to be restocked in the future. Unlike a permanently discontinued or unavailable SKU, a backordered item is still active, in production, or in transit, and is eligible for future fulfillment once inventory becomes available.


Backordering is a strategic inventory practice used by many high-growth brands to continue capturing sales even when inventory is delayed due to manufacturing, shipping, or supply chain challenges.

Backorder vs. Out-of-Stock: What's the Difference?

What Causes a Backorder?


Backorders may occur for several reasons:

  • :chains:

    Delayed inbound freight or manufacturing

  • :abacus:

    Inventory sync errors across systems or platforms

  • :arrows_counterclockwise:

    Unexpected demand surges (e.g. viral product moment)

  • :package:

    Production hold-ups from suppliers

  • :woman_standing:

    Human error during receiving or forecasting

At Atomix, we work closely with your team to identify root causes of stockouts and improve accuracy via proactive data tracking, transparent communication, and real-time visibility in our App.

How Does Atomix Handle Backorders?


If your store allows customers to purchase items that are on backorder, Atomix will treat those orders as active but paused until inventory is received.
Our process includes:

  1. :white_check_mark:

    Order pulled into Atomix system from Shopify or your eCommerce platform

  2. :arrows_counterclockwise:

    Order enters “Needs Review” status in the Atomix App (flagged as Out of Stock)

  3. :octagonal_sign:

    Order is automatically held until inventory is replenished

  4. :package:

    Once restocked, the order automatically resumes in the fulfillment flow

  5. :technologist:

    Pod Managers and CX team maintain visibility of held orders and proactively monitor progress

Orders with backordered items will not ship until all items in the order are available (unless you manually split the order—see our [Order Splitting FAQ]).

Client Communication & SLA


Atomix provides real-time visibility and communication around backordered SKUs through:

  • The Atomix App “Needs Review” dashboard

  • Slack updates from your Pod Manager

  • Email notifications or alerts (if configured)

:warning:

SLA Note: Orders on backorder are excluded from Atomix’s same-day or next-day SLA guarantee until all inventory is received and reconciled.

How to Minimize Backorders


We recommend the following best practices:

  • Use Atomix App’s “Average Units Sold Per Day” and stock-out forecasting to set alerts

  • Maintain accurate weight/dimensions and lead times in your product catalog

  • Notify Atomix of any forecasted demand surge 2–4 weeks in advance

  • Consider splitting fulfillment between locations if using multi-warehouse distribution

Can Atomix Split Orders if Some Items Are In Stock?


Yes. If you'd like us to partially fulfill orders with available items and ship the rest later, simply:

  • Contact your Pod Manager via Slack or Intercom

  • Request a manual or rules-based split order configuration

We’ll ensure your customer receives what’s ready to ship, while remaining items are held in “Needs Review” until inventory is replenished.

:speech_balloon:

Still Have Questions?


Reach out to your Pod Manager or Customer Experience Team for help reviewing your backorder strategy, configuring split shipments, or automating alerts for low-inventory SKUs.

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