What is a backorder?
A backorder is an order you accept for an item you don’t currently have in stock but expect to receive soon. Instead of showing “sold out”, the shop keeps selling and the order is fulfilled when the next delivery arrives. In Shopify this is the “continue selling when out of stock” setting.
Backorders keep revenue coming in during stockouts, but they create a promise you must keep. Late or uncertain delivery dates lead to cancellations, complaints and chargebacks.
Core principle: Only accept backorders when you know when stock will arrive, and tell the customer that date before they pay.
Backorder vs pre-order vs out of stock
| Backorder | Pre-order | Out of stock | |
|---|---|---|---|
| Product | Existing product, temporarily sold out | New product not yet released | Not available |
| Can the customer buy? | Yes | Yes | No |
| Shipping date | When the next delivery arrives | On or after launch | – |
Running a launch or crowdfunding campaign? See pre-order and crowdfunding fulfilment.
Managing backorders well
Show the date
Display the expected shipping date on the product page and in the order confirmation.
Why it matters: In the EU, if no delivery time is agreed, goods must be delivered without undue delay and within 30 days of the order.
Limit the quantity
Cap backorders at the quantity on the incoming purchase order, so you don’t sell stock you won’t receive.
Split or hold mixed orders
Decide whether to ship available items now and the rest later (two shipments, two costs) or hold the whole order.
Watch out for: Split shipments double the delivery cost; agree the rule with your warehouse.
Prioritise on arrival
When stock arrives, ship backorders first, oldest first, before new orders.
Example: A skincare brand sells out of its bestseller three weeks before a container arrives. It switches the product to backorder with “ships from 12 November”, caps sales at 2,000 units (the quantity in transit), and asks its 3PL to ship all backorders on the day the stock is received.
How to avoid backorders
- Set a reorder point per product that covers the full lead time.
- Hold safety stock for bestsellers and before peak season.
- Track stock in real time across all channels, so marketplaces don’t oversell.
Frequently asked questions
What does backorder mean?
The product is temporarily out of stock, but you can still order it. It ships when new stock arrives.
Is a backorder the same as a pre-order?
No. A backorder is for an existing product that has sold out. A pre-order is for a new product that has not been released yet.
How long can a backorder take?
As long as the seller states. In the EU, if no date is agreed, the seller must deliver within 30 days of the order.
Should I charge customers for backorders straight away?
Many shops do, but charging only when the order ships reduces cancellations and refunds. Check what your payment provider allows.
