The most common back ordering cost and challenges and how to overcome them?

Backordering is no longer a strange concept for many modern eCommerce businesses today. However, not all the stores can adopt backorder effectively and achieve expected results, especially the first time. Therefore, besides having a basic understanding of BigCommerce backorder and bigcommerce inventory management, eCommerce merchants need to pay attention to backordering costs, challenges, and approaches to deal with them. Our article today will give your useful information about those issues. 

Popular Backordering Cost And Challenges And Solutions

BackOrdering Bottlenecks

Small Warehouse

The first backordering challenge is small storage. The capacity of the warehouse is the main factor in deciding the levels of stocks your store can hold. Your business is expanding, and you may face a good shortage if your warehouse space is still small. Low inventory space limits the number of products supplied and thus reduces chances for customers to buy the expected items and make the fulfilling time of backorder longer.

Pandemic And Uncertainties

We have witnessed a serious outbreak of Covid-19 around the world. It is undeniable that the pandemic is one of the uncertainties we did not foresee, and it has procrastinated the global supply chain process and your BigCommerce inventory management. Pandemic and other natural disasters can negatively affect the backorder process and BigCommerce orders management and make the customers wait longer for their shipments.

Peak Seasons

Some kinds of products, especially seasonal ones, need to deal with the high demand occasionally. While you can plan for the season, you can not foresee some sudden events on social media which can suddenly boost customer demand. BigCommerce backorder is a useful measure to rescue your store from that situation. However, in the hot season, the quantities of back-ordered items will go up sharply, so you need to conduct an effective backordering process to avoid delays.

Low Safety Stock

To plan for uncertainties and effective BigCommece order management, your store may have a certain safety stock level to avoid the out-of-stock situation. As we mentioned, the demand will suddenly climb in those cases, but if your safety stocks are not enough, out-of-stock status still occurs, and you may need a lot of support for backorders.

Solutions For Your Business

Integrate Automation

Keeping track of inventory status and fulfillment process, simple sheets, or hand-writing documents is insufficient. We may encounter mistakes that can affect the whole selling activity with traditional approaches. Therefore, you may feel it easier when using an automation application to streamline the process and then visualize and display data on a spreadsheet. Then, you can realize which kinds of products can be out of stock in peak seasons and set them as backorder in the BackOrder app.  

Set Items As BackOrdered

If your store is on BigCommerce, you can try the BackOrder app, which is an effective solution for your backorder and backordering cost. All steps you can do to get started with backorder is to pre-set all items considered high-demanded. Then when they run out of stock, the customers still can buy them as backorders. 

Conclusion

Undeniably, we have to deal with many issues related to backordering costs and challenges. We also mentioned some alternatives, and we hope you can find your approaches from our suggestions.