Tactics To Handle Items On Backorder In BigCommerce
Managing backorders can be challenging for running an online store, especially when using platforms like BigCommerce. As customer expectations rise and competition intensifies, effective strategies for handling backordered items are essential for maintaining customer satisfaction and optimizing sales. In this blog post, we’ll explore practical tactics to manage items on backorder in BigCommerce, ensuring your business remains agile and responsive while keeping your customers informed and engaged. What are Items on Backorder? Items on backorder are temporarily out of stock but still available for customers to order. When customers order a backordered item, they agree to wait until the product is restocked and shipped. This system allows businesses to continue selling popular items even when inventory runs low, helping to maintain sales and customer engagement. Backorders can occur for various reasons, such as high demand or supply chain disruptions, but they also allow retailers to manage inventory effectively while meeting customer needs. Tactics to Handle Items on Backorder in BigCommerce To prevent customer loss, it’s essential to develop a robust strategy for effectively managing backordered items. Here are some ways to handle these orders efficiently. Determine Which Products to Offer for Backorders The initial step in managing backorders is to assess whether a sold-out product is suitable for backorder. To make this decision, consider the following: Anticipate Order Demand Sometimes, it’s simpler to anticipate when certain items will experience heightened demand. For example, swimwear tends to be popular during the summer, while stationery and school supplies rise in demand at the end of the summer season. To prepare for these trends, ensure you have additional warehouse stock. When faced with unexpected surges in demand, your backordering process should be streamlined to handle it effectively. Refresh Your Listings It’s important to clearly communicate a product’s backorder status to all visitors to your listings with items on backorder. Consider adding a label or tag such as “available on backorder” along with the estimated delivery date. This will help set realistic customer expectations regarding product arrival and minimize the chances of accidental backorder placements. Likewise, if you are no longer accepting backorders for a product, ensure that this information is also prominently displayed. Collaborate with Multiple Suppliers To effectively manage backorders, consider partnering with multiple suppliers. You can decrease customer wait times by working with two to three suppliers who offer similar products. You can source the same item from another warehouse if one supplier runs out of stock. This strategy allows you to handle backorders efficiently while keeping your customers satisfied. Keep Your Customers Updated To retain customers during backorders, it’s crucial to keep them informed. Send a confirmation email that verifies their order and reiterates the estimated delivery date. Some customers may accidentally place a backorder or misunderstand what it entails. In these situations, provide options for them to cancel their orders or join a waiting list. Maintain a Record Maintaining a history is vital for efficient backorder management. It’s important to keep track of customers who place backorders, including the date of their order and the quantity of the product ordered. A well-organized record offers valuable insights into: Tips for Minimising Backorders Implementing the following strategies, businesses can effectively manage items on backorder, reduce order backlogs, and enhance the customer experience. An efficient inventory management system is crucial for online stores to track stock levels and prevent customer disappointment. By forecasting demand and establishing appropriate safety stock levels, companies can buffer against unexpected surges or supplier issues. Analyzing order backlog rates allows businesses to adjust stock levels to meet demand without overstocking. Utilizing effective BigCommerce inventory management software is key to seamless order processing and reducing the likelihood of delivery delays. Defining reorder points for each SKU is essential for maintaining product flow and avoiding stockouts. This involves calculating lead time demand plus safety stock and adjusting for potential sales spikes during promotions or product launches. Leveraging historical data helps accurately set reorder quantities, particularly during peak sales periods like Cyber Monday. In the unpredictable eCommerce landscape, continuous monitoring of stock levels is vital for informed purchasing decisions. While ordering large quantities of high-demand products can prevent stockouts, it may also lead to increased storage costs and inventory carrying expenses. Regularly reviewing stock availability allows stores to effectively respond to shortages, ensuring popular items remain in stock without incurring unnecessary costs. Working with multiple suppliers provides a safety net and alternative sourcing options in case the primary supplier faces production delays. This strategy not only reduces the risk of delayed orders but also strengthens supply chain resilience, ensuring a steady supply of products even during unforeseen challenges. While maintaining high safety stock levels can help prevent stockouts, it’s essential to balance this with the costs associated with excess inventory, such as increased storage and carrying costs. Online stores should evaluate their storage capacity, turnover rates, and the financial implications of holding additional stock. Build Trust With Your Customers When You Have Backorder with BackOrder When managing items on backorder, transparency is key to building trust with your customers. By clearly communicating expected delivery dates and providing regular updates, you can alleviate concerns and enhance customer confidence. With BigCommerce BackOrder feature, you can easily sell out-of-stock items through a seamless setup. This 1-click solution allows you to list thousands of stock-out items, enabling you to capture sales even when inventory is low. Customers appreciate knowing they can still order their desired products, which not only boosts your sales but also fosters loyalty. Start leveraging BackOrder from GritGlobal today to turn stockouts into opportunities, ensuring you maintain a positive relationship with your customers while effectively managing your inventory. Final Thoughts Effectively managing items on backorder in BigCommerce is essential for maintaining customer satisfaction and optimizing sales. By implementing the tactics discussed, you can navigate the challenges of backordered items with confidence. Remember, a proactive approach minimizes order backlogs and strengthens customer trust. If you have questions or need assistance with your BigCommerce setup, don’t hesitate to reach out! Contact us today
