What does BackOrder mean? BackOrder meaning and Definition

what is backorder

Back ordering has become a shining solution for many businesses in a world full of supply chain challenges. As beginners, a considerable number of eCommerce stores feel difficult to get started with BackOrder. Therefore, we are here today to give you trustworthy knowledge of backorder, including its definition, its roles in inventory management, and the most effective approaches to backorder.

What Does BackOrder Mean?

What does BackOrder mean? BackOrder meaning and Definition

Items on backorder are considered as products that are unavailable at that time but scheduled to be refilled on a certain date. Back ordering allows customers to place orders even though they are currently out of stock. The fulfillment process may take longer than normal, but the customers still receive the shipment on a scheduled date.

BackOrder’s Roles In Supply Chain And Inventory Management


Backorder appears when the logistics process faces some problems, which is a bad signal for eCommerce businesses. However, it helps the stores avoid losses when they do not have enough products to sell, for example, during peak seasons, sudden trends, and other uncertainties. Moreover, when the logistics freeze like in the pandemic, blockchain helps your companies operate like normal as the customers still place orders, make payments, and then wait for the shipment later. Moreover, this can alleviate the pressure on the warehouses, so the storage places do not need to handle too many stocks like normal.

When Your Business Needs BackOrder


Several times in a year, your businesses suddenly face high customer demand and serious shortages in stocks. They are when the eCommerce stores need more support from back-ordering. This can rescue your revenues from out-of-stock items in peak seasons when customers buy a certain product line. Ecommerce businesses may also encounter sudden sky-high demand due to temporary trends and natural disasters.

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Effective Approaches With BackOrder

What does BackOrder mean? BackOrder meaning and Definition

Ecommerce businesses should try to forecast customer demand and estimate levels of safety stocks to avoid shortages. You can use the data from previous years or quarters to make suitable predictions. Several tools to record and report selling activities can be used for another demand forecasting. If you are using BigCommerce or Shopify platforms, Atom 8 is the one that can meet your expectation. Moreover, a powerful backorder tool will help your business no longer struggle with the backorder. If you are operating on BigCommerce, choosing BackOrder from GritGlobal is ideal.

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We hope our sharing can help you feel easier to adopt backorder into your businesses.


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