What Is a Backorder? How to Never Run Out of Stock (And Keep Your Rankings)
Running out of stock on Amazon or bol.com isn't just about lost sales—it's about lost marketplace ranking that can take weeks or months to recover. That's where backorders become your secret weapon for maintaining continuous availability while managing real inventory constraints.
But what exactly is a backorder, and how can you leverage this strategy to protect your business from the devastating effects of stockouts?
Understanding Backorders: The Definition
A backorder occurs when customers can purchase products that are temporarily out of stock, with delivery promised once inventory is replenished. Unlike a simple "out of stock" status that stops sales entirely, backorders allow you to:
- Continue accepting orders during stock shortages
- Maintain your sales velocity and marketplace presence
- Capture demand that would otherwise go to competitors
- Keep your product listings active and ranking
The formula is simple: Backorder = Order Placed - Available Inventory
When you have 0 units available but still accept an order for 5 units, you've created a backorder of 5 units.
Why Backorders Matter More Than You Think
The Hidden Cost of "Out of Stock"
When you mark products as unavailable on marketplaces like Amazon or bol.com, the algorithms interpret this as poor inventory management. The consequences cascade quickly:
Immediate impacts:
- Your Best Seller Rank (BSR) starts dropping within hours
- Organic search visibility decreases by up to 70%
- Sponsored ads lose quality score and cost more
- Competitors capture your hard-won customers
Long-term damage:
- Algorithm "trust" erodes with each stockout
- Recovery takes 3-4x longer than the stockout period
- Customer lifetime value drops as shoppers find alternatives
- Review velocity slows, affecting social proof
Research shows that sellers who experience frequent stockouts see average revenue drops of 23% over six months—even after restocking.
The Strategic Advantage of Backorders
Smart sellers use backorders as a continuity strategy rather than an emergency measure. Here's why:
Marketplace algorithm benefits:
- Consistent sales history maintains ranking momentum
- Conversion rates stay stable (algorithms favor this)
- Ad campaigns continue without interruption
- Seasonal trends remain trackable
Cash flow advantages:
- Customer payments arrive before supplier invoices
- Working capital requirements decrease
- Demand signals help optimize purchase orders
- Pre-orders validate new product launches
When to Use Backorders (And When Not To)
Ideal Scenarios for Backorders
1. Predictable replenishment cycles: You know exactly when new stock arrives. If your supplier delivers every 14 days like clockwork, backorders bridge the gap perfectly.
2. High-velocity products: Items selling 50+ units daily can't afford ranking drops. A two-day stockout could mean weeks of recovery.
3. Seasonal demand spikes: During Q4 or Prime Day, maintaining availability is worth the complexity of backorder management.
4. New product launches: Test market demand without over-investing in inventory. Backorders provide real purchase intent data.
When to Avoid Backorders
1. Unreliable suppliers: If lead times vary by weeks, you'll create angry customers and negative reviews.
2. Low-margin products: The cost of expedited shipping to fulfill backorders might eliminate profits.
3. First-time suppliers: Without proven delivery history, backorders become gambling with your reputation.
The Complexity of Multi-Channel Backorder Management
Managing backorders across multiple channels introduces layers of complexity that Excel spreadsheets can't handle:
Channel-Specific Requirements
Amazon FBA:
- Requires precise inventory planning
- Affects Inventory Performance Index (IPI)
- Must coordinate with FBA shipment creation
- Impacts storage fee calculations
Bol.com:
- Different backorder acceptance windows
- Specific customer communication requirements
- LVB (Logistiek via bol.com) coordination needed
- Affects seller rating differently than Amazon
Your own webshop (Shopify/WooCommerce):
- Full control over messaging
- Custom delivery promises possible
- Direct customer relationships
- Higher margin retention
The Synchronization Challenge
Without proper systems, multi-channel backorders create chaos:
- Overselling risk: Accepting 100 backorders across channels when only 50 units incoming
- Allocation conflicts: Which channel gets priority when stock arrives?
- Communication gaps: Different delivery promises to different customers
- Partial fulfillment complexity: Orders split between available and backordered items
How Modern Inventory Systems Solve Backorder Complexity
Automated Backorder Management in Stockpilot
Instead of manually tracking backorders in spreadsheets, modern inventory management systems like Stockpilot automate the entire process:
Organization-level backorder settings: Enable backorders globally with one switch. This allows your entire catalog to accept backorders based on your business rules, not arbitrary stockout events.
Intelligent order routing: When stock runs out, orders automatically move to a dedicated Backorder tab in your order overview. You maintain full visibility of what's pending without cluttering your active fulfillment queue.
Automatic order splitting: Partially backordered orders get split automatically. If a customer orders 10 units but you only have 6 in stock:
- 6 units process immediately for shipment
- 4 units move to backorder status
- Customer receives partial shipment with clear communication
3PL integration through Orderflow: Backorders integrate with your third-party logistics providers. The system knows which warehouse has incoming stock and routes backorders accordingly—no manual intervention needed.
The Power of Purchase Order Integration
The real magic happens when backorders connect to your purchasing workflow:
Automatic status updates: When you book new stock from a purchase order in Stockpilot, backordered orders automatically shift to open/processing status. No manual checking, no delayed fulfillment, no missed sales.
Inbound stock allocation: Configure rules for how incoming inventory applies to backorders:
- FIFO (First In, First Out) by order date
- Priority by channel margin
- Customer tier preferences
- Geographic optimization
Offered stock calculations: Here's where it gets sophisticated. Stockpilot can automatically include inbound stock in your offered quantities to sales channels. The formula:
Offered Stock = On Hand + Inbound - Reserved - Safety Buffer
This means you can show availability on marketplaces even before physical stock arrives, but with intelligent limits to prevent overselling.
Making Backorders Work in Real Life
Start Small and Learn
The biggest mistake sellers make with backorders is going all-in immediately. Here's a smarter approach that actually works:
Test with your bestsellers first. Pick your top 5 products—the ones you know inside out. You know exactly when your supplier delivers, how many units you sell daily, and what your customers expect. These products are your training ground.
For example, if you sell phone cases and your bestselling model moves 20 units daily with weekly supplier deliveries, you can confidently accept backorders for up to a week's worth of sales. You're not guessing—you're working with proven patterns.
Trust takes time to build. That new supplier promising amazing prices and 5-day delivery? Don't immediately accept two weeks of backorders based on their promises. Start by accepting orders for just 2-3 days beyond your current stock. As they prove themselves reliable over several months, gradually extend your backorder window.
Different Channels, Different Rules
Your backorder strategy can't be one-size-fits-all because each sales channel has its own personality:
Amazon is unforgiving. The algorithm punishes stockouts harshly, so keeping products available through backorders is crucial. But Amazon customers also expect fast delivery. The sweet spot? Accept backorders only up to your next FBA shipment. If you're sending inventory to Amazon every Tuesday, you can safely accept backorders through Monday.
Bol.com gives you breathing room. Dutch customers are generally more patient with delivery times, especially if you communicate clearly. You can accept longer backorder windows here—up to 10 days is often acceptable if you're transparent about delivery expectations. Plus, maintaining your Gold or Silver status matters more than perfect delivery speed.
Your own website is your playground. These are your most loyal customers who chose to buy directly from you. Be honest about delivery times, maybe offer a small discount for their patience, and most will happily wait. This is where you can be most aggressive with backorder acceptance.
Building Safety Nets
Smart backorder management isn't about preventing all problems—it's about catching them before they become disasters:
Watch for warning signs. If your steady 10-units-per-day product suddenly sells 50 units in an afternoon, something's happening. Maybe an influencer mentioned you, or Amazon featured you in a deal. Either way, your normal backorder rules just became dangerous. Build systems that alert you to these spikes so you can adjust quickly.
Know your real limits. If you have 100 units coming from your supplier, don't accept 100 backorders. Why? Because some will arrive damaged, some orders might be duplicates, and Murphy's Law is always lurking. A safe rule: only accept backorders for 70-80% of your incoming stock.
Track supplier reliability like your business depends on it (because it does). That supplier who's been "5-7 days" for six months straight? They've earned longer backorder windows. The one who delivered in 5 days twice, then 15 days, then 8 days? Keep them on a tight leash with minimal backorder acceptance.
Know If It's Working
You don't need complex spreadsheets to know if your backorder strategy is successful. Watch these simple signals:
Are customers complaining? If you're getting angry emails about delivery times, your backorder windows are too optimistic. Tighten them up.
Are you losing rankings? Check your key products' positions weekly. If they're sliding despite consistent sales through backorders, you might need to adjust your approach.
Is your team drowning? If managing backorders takes more than 30 minutes daily, you need better systems. This is where automation becomes essential—not optional.
Advanced Moves for Growing Sellers
Once you've mastered the basics, these strategies can give you a real competitive edge:
The Pre-Launch Power Play
Launching a new product? Open for pre-orders 30 days before stock arrives. This isn't just about early sales—it's about building algorithm momentum before you even have inventory. When your stock arrives and you can deliver immediately to new customers, you'll already have sales history and reviews building. Your competitors launching with zero history won't know what hit them.
Smart Seasonal Planning
Every e-commerce seller knows Q4 is make-or-break. In September, start gradually accepting more backorders. By October, customers expect longer delivery times. By November, they're just happy to find products in stock at all. Use this expectation shift to your advantage—accept backorders more aggressively during peak season when the alternative (being completely out of stock) is far worse.
Price Like a Pro
Here's a secret major retailers use: adjust prices based on stock levels. Running low but shipment coming in 3 days? Raise prices 5%—scarcity drives sales. Already on backorder? Drop prices 3% to reward patient customers. This isn't gouging—it's smart inventory economics that keeps sales flowing while maximizing margins.
Learning from Failures
Every seller has backorder horror stories. Here are the most common disasters and how to avoid them:
The Over-Promise Disaster: "We accepted three weeks of backorders because our supplier swore the shipment was coming. It arrived five weeks late. We lost 50 customers and our Amazon ranking tanked."Lesson: Never base backorder acceptance on promises. Base it on proven history.
The Double-Sell Nightmare: "We sold the same incoming 500 units on Amazon, bol.com, and our website. When only 500 units arrived, we had to cancel 1,000 orders."Lesson: Centralized inventory management isn't optional when accepting backorders across channels.
The Communication Breakdown: "We forgot to tell customers their orders were on backorder. The complaints and chargebacks nearly killed our business."Lesson: Automated customer communication must trigger the moment an order becomes a backorder.
The Manual Management Meltdown: "We tracked backorders in Excel. By the time we hit 50 backorders daily, our staff spent entire days just managing the spreadsheet."Lesson: Manual backorder management doesn't scale. Automate before you need to.
The Bottom Line: Backorders as Competitive Advantage
Backorders aren't just about avoiding stockouts—they're about maintaining momentum in algorithm-driven marketplaces where consistency beats perfection.
The difference between sellers who thrive and those who struggle often comes down to inventory continuity. While competitors lose ranking during stockouts, smart sellers use backorders to maintain their market position, preserve customer relationships, and optimize cash flow.
Modern tools like Stockpilot transform backorder management from a manual nightmare into an automated competitive advantage. By connecting purchase orders, multi-channel inventory, and intelligent order routing, you can accept backorders confidently—knowing that fulfillment happens automatically when stock arrives.
The question isn't whether to accept backorders, but how to implement them strategically across your entire operation. In today's marketplace landscape, where a single stockout can cost months of growth, backorders aren't optional—they're essential.
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