Having a backorder cancellation isn’t a situation you want to experience as an eCommerce store owner. The process of nurturing a lead is quite a hectic one, and allowing such a lead to leave without making a purchase makes it even harder.
It is never a situation or event you want to experience for any eCommerce store. Having to wait for a product but getting disappointed in the end can be frustrating. How do you avoid backorder cancellation from your eCommerce store? Before we unveil our four tips to avoid backorder cancellation, you need to understand what backorder is all about.
What is Backorder?
A backorder is when an online store runs out of an item but promises to deliver the product once it is available. It is different from when an item is out of stock where there is no assurance that it will be available.
You will experience a backorder situation when a retailer requests an item that is currently unavailable from the manufacturer or supplier. It is a process that allows customers to order an item and get it whenever it is available.
Therefore, to avoid any order cancellation in your store, you can follow these tips.
How to avoid backorder cancellation
Prioritize transparency
It is imperative to be transparent when dealing with backorders. It would help if you communicated with your supply chain to know when to keep your stock level steady. Furthermore, when a customer makes an order, you need to inform them when the product will be delivered. This will enable them to determine if they can wait for the order or make another purchase. In terms of keeping in contact with your supplier, avoid any deflation or inflation in orders.
It is best practice to optimize your site when allowing backorders. For BigCommerce platform, you can use BackOrder app to customize buttons, messages, and packing slips. Then, product availability status and estimated delivery time will be clear to customers. Making backorder policy and return policy easily accessible is equally important to avoid cancellation and complaints. Check out BackOrder here:
BackOrder helps manage inventory amount and set back-in-stock dates.
Use capture payment upfront
You can avoid backorder cancellation if you use capture payment upfront. If you configured your capture payment to function manually, you might not automatically receive payment from orders. If you find yourself in this situation, ensure to reconfigure the capture payment after authorization. The authorization process differs from each credit card payment provider. For instance, Shopify Payments offers an authorization period of 7 days.
Offer discounts or gifts
Another essential tip you can implement to avoid backorder cancellation is to offer discounts or gifts for specific unavailable items. For instance, if you sell cosmetics, and a particular product isn’t available, you can offer a 20% discount if customers can order through backorder. If you have issues with the warehouse or where to stock your goods, these options will help improve your sales and revenue.
Gifts and discounts can help reduce your backorder cancellation. It is like going to a restaurant and being served a drink while you wait for the food to get ready.
Deliver products on time
After a customer orders a backorder product, you should endeavor to deliver it at the appointed time. Avoid the mistake of exceeding the delivery date, which is why you have to be transparent with your customers.
Further reading: Best eCommerce Delivery Strategies.
