Should Your Ecommerce Business Offer Backorders?

So many companies allow all their products to be backordered items. A Backordered product is an item that is not in stock now but is still able to be ordered because an already-ordered supply refresh arrives. When deciding if your business should allow all the products to be backordered, there are a few things to look at.

Even though not EVERY eCommerce brand offers backordered items, it doesn’t mean it’s bad. Whether they do or don’t really depends on what their business model is and what their product is. Knowing the product and how long it will take to get it, how unique it is, or what the quality of the product is, is all important variable to consider when deciding if you should let the item be backordered. Also paying attention to how well your logistic process, whether with a 3PL or on your own, has the correct capabilities to handle that.

The one that is essential to knowing if the product can be backordered is if your supplier or manufacturer can fulfill the demand in a timely manner. You don’t want to promise products to a customer without knowing that not only can you deliver but your supplier delivers as well.

Questions to Ask Your Supplier

There are a few questions you should ask your supplier before you promise your customers a backorder. You need to ask what they need from you in order to adjust to the demand shifts that happen as fast as possible. You will also need to ask how much time they require for a backorder to be filled. Something else to ask is how fast their facilities can adapt when additional runs need to be added when demand persists for more. The last one you absolutely need to ask is if they can make extra batches during seasonal shifts to make sure the spikes in sales can be accounted for.

Launch Fulfillment is here to help you decide if you want your products to be able to be backordered. We have systems in place to help you if you do and help you if you don’t. Feel free to contact us and ask us any questions you may have. We look forward to hearing from you.