The Differences Between Backlog vs Backorder

backlog vs backorder

The backlog represents your entire unfulfilled order history, including all unsatisfied customer orders. Backorders are customer orders of out-of-stock items. Understanding backlog vs backorder is crucial for effective inventory management. There can be backorders in your backlog, but stores can choose not to allow them on their websites. An accurate backlog will help with inventory management. Backorders are a viable sales tactic to rescue lost revenue. A staggering 55% of eCommerce businesses don’t give attention or importance to their supply chains. Knowing the differences between backlog vs backorders can give you a competitive edge on inventory management for your eCommerce store. Backlog vs backorder are an inevitable part of running an eCommerce business. Believe it or not, having backorders could actually be a sign of a spike in revenue and growth for your store. Sometimes, it’s actually not always beneficial for an eCommerce store to fulfill every order as soon as possible. So, if you’re wondering basic questions like: What are the differences between backlog vs backorder? Or how are backlogs created? Even how long to wait for backorder on average? This article breaks down the basics of backlog and backorders for eCommerce and other industries. What is a backlog? In eCommerce, a backlog represents the total number of orders a customer sent which haven’t been shipped yet. Usually, it comprises many customers since many customers have given orders for you to ship the product. For instance, a customer orders a particular item on January 24, requesting the order be shipped on January 30. This order becomes part of your backlog from January 24 until January 29. Ecommerce stores often use many tools in conjunction to track their backlogs accurately: What is Backorder? Backorders are orders placed when an item has zero available inventory. In the context of BigCommerce inventory management, it’s important to note that backorders can be a part of your backlog, but your backlog is not solely composed of backorders! Stores sometimes encourage backorder purchases, seeing exceptional returns on investment simply by allowing customers to purchase out-of-stock items. However, stores must consider many factors before allowing for backorders. If you’ve done an excellent job of building an accurate and clear understanding of your backlog, backorders can be a powerful sales tactic to increase your store’s revenue. Backlog vs backorder People tend to confuse the two terms (backlog vs backorder) because of how similar they are. All eCommerce stores have a backlog: a list of unfulfilled orders. But not all stores support backorders, so their customers cannot buy out-of-stock items Is Backlog Bad in eCommerce? While many see backlog as negative, it simply represents the total number of unfulfilled orders. Stores must have a system to accurately track their backlog and ensure their customers’ experiences are up to standard. Optimizing your backlog takes work from every department, so cross-app integration and up-to-date data streams are essential to managing backlogs and inventory in eCommerce. Effective BigCommerce order management can help streamline this process, ensuring that your store runs smoothly and efficiently. What are the most common types of backlog in eCommerce? The three most common reasons for unfulfilled orders in a backlog are: Is BackOrder Bad in Ecommerce? Having backorders awaiting delivery can be a sign of a successful business. With tools like BigCommerce BackOrder from Gritglobal, eCommerce stores like Chilly Dogs can take full advantage of sales seasons by allowing purchases beyond their inventory estimation. While backorders can be beneficial, they can also backfire. Without clear and accurate information on expected shipping time, backorders can create friction in customer relations. The customer’s patience may run out before the shipping date, leading to potential cancellation. So, think ahead about your backorder threshold and supply capabilities before implementing backorders for your store. How long should you wait for a backorder? The time you should set for your expected ship date depends on various factors. Shipping location, item weight, or transportation can all factor into how long to wait for a backorder to arrive. As an eCommerce store, you should estimate your backorder ETA to ensure customer satisfaction and real order fulfillment time. It’s a good benchmark to know that the average backorder time to wait among eCommerce stores is: Understanding Backlog vs Backorder Whether you run a small or big eCommerce online store, you need to fully understand the differences between backlog vs backorder. A backlog can give you incredible insight into your store’s strengths and weaknesses, so setting up an accurate backlog should be every store owner’s top concern. On the other hand, backorders are a viable sales tactic for some eCommerce stores. Tools like BackOrder for BigCommerce generate additional revenue for many eCommerce stores with a niche feature. Contact us to have the best services with BigCommerce BackOrder!

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