When an item or service is out of stock due to lack of availability, it is referred to as a back order. This is different from an item being out of stock. Once an item is out of stock, it’s gone, and no more are being manufactured or made available for purchase. On the other hand, items on backorder are unavailable for the moment, but production is not done and more are being made. Customers can order items on backorder with the expectation that they have to wait for the product to be available.
Not all ecommerce brands offer backorder items for sale. There are many factors to consider when deciding if an item should be available for backorder, including
Many things can lead to an item being backordered, including data disparities, atypical demands, manufacturer and/or supplier issues, and human error. It is important for any 3PL handling backorders to follow through using state of the art management software to keep track of backorders.
At Atomix, we stay in constant communication via Slack with our customers when issues with back orders arise.