A backorder is a sale you take for an item you cannot ship today because it is out of stock. The customer pays, or commits to pay, and you ship when the replenishment lands. The product is not new and not discontinued; it is simply between two deliveries.

It concerns every seller who runs out of stock on a product people still want, which is every seller with a good product. The question is not whether you will face a stockout but what your store does at that moment: hide the product, show "sold out," or keep taking orders with a clear date.

What is a backorder?

A backorder is an accepted order for a unit you do not have on hand. Stock for that SKU goes negative, or a separate "backordered" counter goes up, and the order sits in a waiting state until inbound stock arrives. Then it is fulfilled like any other order, usually first in the queue.

What a backorder is not:

  • It is not a pre-order. A pre-order is for a product that has never shipped yet: a new drop, a first production run. A backorder is for an existing product that has run out. The mechanics are similar; the customer's expectation is different. Pre-order buyers know they are early. Backorder buyers wanted it now.
  • It is not a waitlist. A waitlist collects emails and no money. A backorder is a real order with a real payment or authorization.
  • It is not dropshipping. In dropshipping you never hold stock by design. A backorder is a temporary gap in a stock you normally hold.

Related vocabulary: backorder rate (the share of orders you could not fill from stock), allocation (deciding which backorders get the first units when a partial delivery arrives), ETA (the date you tell the customer), and stockout (the moment stock hits zero, whether or not you allow backorders).

Why it matters

The moment a popular product hits zero, you make one of three choices, and each has a price.

Take a jewelry brand whose best seller, a $58 hoop earring, sells 12 pairs a day. The supplier is 18 days away and the last order was placed late. Stock hits zero with 18 days of demand ahead, about 216 pairs, roughly $12,500 in revenue.

  • Hide the product. Revenue for those 18 days: $0. Worse, the product page drops out of search results and the brand loses whatever ranking it had. Customers arriving from a saved link get a 404 or an unrelated page.
  • Show "sold out" with no date. Some visitors sign up for a restock alert, most leave. Typically 5 to 15% return when notified, so maybe 20 to 30 pairs recovered.
  • Allow backorders with a clear date. "Ships from 14 May, order now to reserve yours." A well-stated backorder typically converts at 40 to 70% of the normal rate for a product with strong demand. Say 50%: 108 pairs, $6,264 kept, and the customer relationship kept too.

The difference between option one and option three is over $6,000 on a single SKU in under three weeks. The cost of option three is the support load: a few "when will it ship" emails, and refunds if the date slips. That cost is real, which is why the date must be one you can meet.

How it works

Setting up backorders in a small store, step by step:

  • Confirm the replenishment is real. Only allow backorders when a purchase order is placed and the supplier has confirmed a ship date. A backorder against a hope is a refund in waiting.
  • Compute the ship date. Supplier's confirmed date plus transit plus 2 days of receiving and packing. Add a buffer of 3 to 5 days. This is the date you show.
  • Decide the cap. Do not backorder more than the incoming quantity. If 200 units are coming and 40 are already promised to wholesale, cap online backorders at 160.
  • Change the product page. Replace "Add to cart" with "Backorder, ships from [date]." State the date in the cart, at checkout and in the order confirmation email. Three times is not too many.
  • Choose when to charge. Charging at order is simpler and secures the sale, but it obliges you to refund if the date slips badly. Authorizing and capturing at shipment is gentler but authorizations expire after 7 days on most cards. For waits under a week, authorize; over that, charge and communicate.
  • Track backorders separately. A filter or tag on orders that are waiting, sorted by date. When stock arrives, these ship first, oldest first.
  • Update customers at every change. If the date moves, send the new date the day you learn it. Silence is what triggers chargebacks.

Benchmarks and examples

Rough numbers seen across small online stores:

  • Backorder conversion: 40 to 70% of the normal conversion rate when the date is under 3 weeks and clearly displayed; it drops toward 20% beyond 4 weeks.
  • Cancellation rate on backorders: 5 to 10% when the date holds; 30 to 50% if it slips twice.
  • Reasonable wait: up to 2 weeks for everyday items, up to 6 weeks for higher-priced or made-to-order goods.
  • Support load: about 1 email per 8 to 10 backorders if the date is communicated well, 1 per 2 if it is not.

Typical situations:

  • A creator's merch restock. The first run of 300 hoodies sold out in 4 days. The print shop confirms a second run in 15 days. Backorders keep the momentum of the launch instead of letting it die on a "sold out" badge.
  • A skincare brand waiting on glass jars. The product is made but cannot be filled. A dated backorder with a small gift for the wait keeps the customers who would otherwise buy from a competitor.
  • A boutique reselling a scarce item. The brand has confirmed an allocation of 50 units in 3 weeks. Cap backorders at 50, take them, and stop.

When not to allow backorders: when the supplier has not confirmed anything, when the wait exceeds 6 weeks for a low-priced item, or when a comparable product in stock could satisfy the same customer today.

Common mistakes

  • Backordering without a confirmed inbound date. The single biggest source of refunds and bad reviews. If you do not know when, do not sell.
  • Hiding the date in small print. A customer who discovers the delay in the confirmation email feels tricked. Put it next to the button.
  • Selling more than what is coming. Negative stock without a cap becomes a queue you cannot serve.
  • Shipping new orders before backorders. When the pallet arrives, the customers who waited go first. Anything else produces a very public complaint.
  • Leaving backorder status on after restock. Forgetting to switch the product back to normal sale leaves the slower "ships from" message on a product that is on the shelf.

Best practices

  • Set a safety stock so backorders stay rare. The best backorder is the one you never need. A buffer sized to your supplier's lead time avoids most of them.
  • Show the ship date, not a vague "soon." A date converts; "soon" does not. Add a buffer and then beat it.
  • Cap by inbound quantity. Tie the backorder limit to the purchase order so you never oversell the delivery.
  • Offer an in-stock alternative next to the backorder. Some customers prefer a different color today over the right color in 12 days. Let them choose.
  • Send one proactive update mid-wait. "Your order is on track to ship on the 14th." It cuts support emails in half and builds trust.
  • Ship backorders first, then thank them. A small extra, a handwritten note, a discount on the next order. The people who waited are your most patient customers.
  • Review your backorder rate monthly. If more than 5% of orders are backorders, the problem is upstream: reorder earlier or increase your buffer.

In Roctify

Stock in Roctify lives in the shared catalog, so when a product hits zero it shows as sold out on your link in bio and your online store at the same time, and you never oversell by accident across channels. For a product you want to keep selling during a restock, you can adjust the available quantity to match the confirmed inbound delivery and state the expected ship date in the product description, so the customer sees the date before they add to cart and again in their order.

Orders taken this way appear in the same order list as everything else. Tag or filter them, ship them first when the delivery lands, and email customers from the built-in inbox and email tools (Creator plan and up) when the date moves. Payments go through Stripe, PayPal or cash on delivery with 0% transaction fees on every plan, so a refund on a slipped date costs you the processor's fee, not a platform commission on top.

FAQ

What is the difference between a backorder and a pre-order?

A pre-order is for a product that has not shipped to anyone yet, like a new drop or a first production run. A backorder is for a product you normally have in stock and have temporarily run out of. Buyers of pre-orders expect to wait; buyers of backorders wanted the item now, so they need a clearer date and more frequent updates.

Should I charge the customer immediately for a backorder?

For waits under about a week, authorizing the card and capturing at shipment is the gentlest option. For longer waits, charge at order, because card authorizations expire and because a paid order is a firm commitment on both sides. Whatever you choose, state it on the product page and refund without argument if your date slips by more than a few days.

How long is too long for a backorder?

For everyday items under $50, more than 2 to 3 weeks loses most buyers. For higher-priced, distinctive or made-to-order products, customers accept 4 to 6 weeks if the date is clear and kept. Beyond that, a waitlist that collects emails without taking money is usually a better tool, and you can convert it into orders when the delivery is confirmed.