Best Practices For Managing Backordered Items
Managing backordered products can be a tricky challenge for BigCommerce merchants. When a customer places an order for an out-of-stock product, it’s important to have a clear process in place to communicate with the customer and fulfill the order once the item is back in stock. This blog post will provide an essential guide on how to effectively handle backordered items on your BigCommerce store to minimize disruptions and keep your customers satisfied. What are backordered items? Backorder items refer to an item that is currently out-of-stock but is planned to be restocked and delivered soon. When a product is on backorder, it means the manufacturer has already scheduled production, and the item will be next in line to be delivered once it’s back in stock. Backorders and out-of-stock products present distinct challenges for eCommerce merchants. Customers are able to place orders for backordered items on an online store, with the understanding that there will be a longer than normal shipping time until the product is available again. In contrast, when a product is marked “out of stock” on a website, customers cannot order that item at all. While both backordered and out-of-stock products are temporarily unavailable, the key difference is that backorders are guaranteed to be fulfilled in the near future, whereas out-of-stock items may or may not be restocked. Backordered items will have an extended shipping time frame, but they will ultimately be delivered once the inventory is replenished. What causes backorders? Backorders can arise for a variety of reasons, some of which are within a merchant’s control, while others are external factors beyond their direct influence. Unusual or unexpected spikes in demand This could be due to seasonal fluctuations, where certain items experience a surge in popularity during specific times of the year. It could also result from a product being featured in the media, such as an appearance on a popular TV show or a review in a high-profile publication. Inadequate safety stock Safety stock refers to the extra units merchants keep on hand to buffer against supply chain disruptions or fluctuations in regular demand. If a merchant underestimates the required safety stock levels based on historical sales patterns and forecasted demand, they may find themselves facing backorders when regular demand cannot be fulfilled from available inventory. Manufacturer or supplier problem Manufacturer and supplier issues also commonly contribute to backorders. Problems such as material shortages, production delays, or unexpected shutdowns at the manufacturing or distribution level can disrupt the supply of goods and result in backorders for the merchant’s customers. This is particularly problematic when the merchant has little control or visibility into their upstream supply chain operations. Human mistakes cause backordered items Mistakes can and do happen, even for the most diligent merchants running an eCommerce operation. Sometimes, backorders are simply the result of a misunderstanding or forgetfulness on the part of the business. For example, a merchant may forget to replenish a particular SKU until it’s too late, leading to an out-of-stock situation. They may also forget to properly delist a product from their website while it’s out of stock, continuing to allow customers to place orders for an item the merchant can’t fulfill. Inventory and warehouse management discrepancies With so many moving parts involved in a typical warehouse operation, it can be surprisingly easy for merchants to lose track of precise inventory counts. Items can go missing, become damaged, or expire during routine checks, organizational shuffling, or other warehouse activities. And if these issues go unnoticed, the merchant may end up selling inventory they don’t actually have in stock, resulting in backorders for their customers. Long lead times Even when merchants reorder inventory in a timely manner, long lead times from manufacturers or suppliers can still result in backorders for their customers. Lead times can be particularly volatile, especially during periods of supply chain disruption, and delays in replenishment shipments can force a business to burn through their safety stock before the next delivery arrives. This can leave the merchant with no choice but to place customers’ orders on backorder until the inventory is finally replenished. How to handling backordered items on BigCommerce using BackOrder When dealing with backordered items in your BigCommerce store, it’s crucial to set clear expectations and maintain open communication with your customers throughout the process. Set expectations Start by clearly indicating on your product pages which items are currently on backorder, including an estimated shipping time frame if possible. This upfront transparency can help prevent any unpleasant surprises for customers after they’ve placed their orders. Follow up with email communications to further keep customers informed. Let them know you’re working to fulfill the backorder, and provide updates as the item gets closer to shipping. Build excitement You can use the backorder period as an opportunity to build excitement and anticipation. Set up an automated email funnel to periodically touch base with waiting customers – tease the product features, introduce complementary items they may want, and countdown the days until shipment. These proactive communications can transform a potentially negative experience into a positive one, fostering stronger customer relationships. Maintain Open and Honest Communication Keeping customers informed every step of the way is critical when managing backorders. Regularly update them on the progress of their order, and don’t hesitate to report any bad news or further delays honestly. Being transparent will help build trust, as customers will appreciate the candor rather than being left in the dark. Consider implementing stock notification tools that allow customers to track the status of their backordered items as they move through the supply chain. Proactively sharing updates on the product page or through social media channels can also help create visibility and manage expectations. Consider BackOrder from GritGlobal to comprehensively handle backordered items For BigCommerce merchants looking for a practical solution to recover lost sales from backordered items, the BackOrder app from GritGlobal offers a comprehensive approach. Stores using BackOrder have generated over $20,000 in additional revenue on average, while boosting their annual
