What does it mean when an item is back ordered?

What Is a Backorder? A backorder is an order for a good or service that cannot be filled at the current time due to a lack of available supply. The item may not be held in the company’s available inventory but could still be in production, or the company may need to still manufacture more of the product.

What happens when you back order?

Backorder or back order refers to items that are not currently in stock but that are going to be soon. Customers can buy backordered items on a website, but they won’t be delivered until they are back in stock.

Can I get a refund on a backordered item?

Consumer Ed says: No, the company must honor your request for a refund. When you order something by mail, phone, fax or computer, federal law requires the company to: Ship the merchandise within the timeframe promised, or within 30 days if no delivery time was specified.

How long can a back order take?

How Long Do Backorders Usually Take? Though it depends on the company and product, backordered items generally take about 14 days. The customer pays for the item, and then the company or supplier is responsible for keeping them updated on the delivery timeline.

How should a back order be handled?

7 Tips for Online Retailers to Handle Backorders

  1. Don’t process payment until the order can be filled.
  2. Offer to partial ship a larger order.
  3. Update your website promptly.
  4. Consider a consolation offer.
  5. Encourage open conversation.
  6. Evaluate your inventory system.
  7. Evaluate the timeframe of the backorder.

Why are there so many backorders?

There are numerous reasons why backorders take place in retail. A new product might experience higher demand than expected. There might be a supply chain issue that delays a product from becoming available. It might even be a deliberate strategy to make a product more desirable (more on this later).

How do you avoid Backordering?

How to Avoid Backorders and Optimize Stock Levels

  1. Get Real-Time Data on Your Stock Levels.
  2. Get Real-Time Data on Item Velocity.
  3. Have the System Make Predictions.
  4. Create a System that Triggers Appropriate Actions.
  5. Keep All Order Channels Updated.
  6. Have a Back-Up Plan.

Are backorders guaranteed?

An item on backorder is an out of stock product that is expected to be delivered by a certain date once it is back in stock. Businesses will often still sell products on backorder with the guarantee to ship them to the buyer once their inventory has been replenished.