What is a Backorder? Meaning and How to Manage It

A backorder is an order for a product that is currently out of stock and will be supplied when more stock becomes available. You keep taking orders while shoppers agree to wait. Before accepting payment, give them a realistic delivery expectation and a way to resolve a delay.

What a Backorder Means

A backorder lets a shopper order an existing product while your store waits for replacement stock.

The product-page label “Available on backorder” allows a purchase with a wait for dispatch. An order labelled “On backorder” is already in that waiting state.

For example, a retailer sells out of a popular saucepan while a replenishment shipment is on its way. The product page allows another order and says dispatch will follow that shipment. That order joins the queue for incoming stock.

Use “backorder” as one word throughout your store. “Back order” is also used, but switching between the two adds no useful distinction. Neither spelling tells the shopper how long they will wait, so put the dispatch estimate beside the status.

Backorder vs Out of Stock vs Pre-Order

Backorder describes an order you accept while stock is unavailable. Out of stock describes availability, while pre-order describes advance ordering before an item is available for fulfilment.

Status	Ordering	Payment	Shipping expectation	Product availability
Backorder	Yes, for replenishment stock	Often taken at checkout; state your terms	An estimate depends on the incoming supply	Usually an existing product whose stock has run out
Out of stock	Usually unavailable to buy	No new purchase payment if ordering is disabled	No delivery promise until an order is accepted	Usually an existing product
Pre-order	Yes, ahead of availability	Full payment, a deposit or payment later, depending on the setup	Often tied to a release or production estimate	Can be an unreleased product or an existing item awaiting supply

These labels do not set payment terms by themselves. Shopify’s Help Center describes pre-orders for both unavailable new products and existing products that are out of stock. Explain what the shopper pays and when each item will ship.

Shoppers generally read “out of stock” as “I cannot buy this now”. “Temporarily out of stock” suggests the item will return, but promises no particular return date. If ordering stays open, add a backorder label so the buy button does not imply immediate dispatch.

Stock Status Labels Shoppers See

Each stock label sets an expectation about whether the selected item is ready to order and dispatch. Apply the label to the chosen size or colour, because one available variant does not make every variant available.

Label	Promise to the shopper
In stock	Available stock can fulfil the order within the stated handling time
Low stock	Some sellable stock remains, but the remaining quantity is small
Out of stock	No sellable stock remains for that variant; ordering is usually disabled
On backorder	The store accepts an order that waits for replenishment
Pre-order	The store accepts an advance order under stated availability and payment terms

Low stock does not mean out of stock. Keep the low-stock label while sellable units remain, then switch when that quantity reaches zero. If you allow backorders at that point, show the waiting condition instead of implying that stock is ready.

An incorrect message is “In stock” above a buy button when every remaining unit is already allocated to other orders. The correct message identifies the wait, such as “Available on backorder. Dispatch after the next shipment arrives”. Add the supported estimate beside it.

If the shopper needs something sooner, point them towards in-stock product recommendations. Keep the replacement’s availability separate from the original item’s backorder promise.

How Long Backorders Take and What to Tell Shoppers

A backorder takes as long as the remaining supply process plus your receiving, dispatch and delivery time. There is no standard backorder wait. A supplier’s arrival estimate is also different from the day the shopper receives the parcel.

The following are illustrative supply situations, not guaranteed delivery ranges. A local wholesaler with ready stock can involve a short replenishment wait. An overseas manufacturer can involve a wait measured in weeks or months if production and international transport are still ahead. Made-to-order goods depend on the production queue and the work required for that item.

Build your estimate from the supplier’s confirmed position. Allow for receiving and checking stock before dispatch. Say whether mixed orders ship together or whether available items ship separately, including any extra delivery charge before checkout.

The ACCC’s guidance on supplying paid-for products explains the Australian Consumer Law duties. You must not accept payment if you know, or ought to know, you cannot supply by the promised time or within a reasonable time. Explain known delays accurately before purchase.

If paid-for goods do not arrive on time or within a reasonable time, you must provide a solution. The ACCC says unexpected delays can give the business a chance to resolve the problem. For goods, that solution can include a refund or replacement. A late shipment is not automatically a breach, but silence does not resolve it.

Proactively email shoppers when the estimate changes. State the affected item, the revised expectation and the remedy available. Give them a contact route to request that remedy. Read the guide to consumer guarantees for the wider refund rules.

Keep backorder emails tied to the item’s progress:

• At confirmation, identify the backordered variant and the payment taken. Restate the estimated dispatch timing and whether other items wait with it.
• While waiting, send an update at the interval you promised. State whether the supplier’s estimate still holds.
• When the estimate slips, explain the new timing and the available resolution. Do not wait for the shopper to chase you.
• After dispatch, send the parcel tracking information and replace the waiting status with the dispatched status.

For example, a delay email can say, “Your saucepan is still awaiting replenishment. Our supplier has delayed the shipment. We expect dispatch in a further fortnight. Reply to discuss a refund”. Use that wording only when those facts and the remedy match the order.

For the broader process of answering delivery enquiries, read the guide to where-is-my-order questions.

Selling on Backorder in Shopify

Shopify’s “Continue selling when out of stock” setting lets tracked inventory sell beyond zero. Apply it to each variant you intend to backorder.

1. Open Products in the Shopify admin and select the product.
2. If the product has variants, open the relevant variant. Find Inventory.
3. Turn on “Inventory tracked”, then select “Continue selling when out of stock”. Save the change.
4. Repeat for other variants you intend to sell on backorder. Leave it disabled for variants you cannot replenish reliably.

The setting changes the variant’s inventory policy from “deny” to “continue”. Inventory can go below zero as orders are accepted. It does not create a delivery estimate or write a backorder notice for shoppers.

Add the waiting terms to the product page and order confirmation. Check the selected variant’s stock label and buy button in a storefront preview. With zero available stock, the intended backordered variant must remain orderable and show the waiting terms. Other unavailable variants must follow their own settings.

Use the checkbox for ordinary purchases that can wait for replenishment. Shopify’s pre-order purchase option requires a pre-order app. An app is the appropriate route when you need a deposit or deferred payment and a separate pre-order workflow. Shopify documents those pre-order payment options for Shopify Payments or PayPal Express.

If a variant still appears unavailable, check stock at locations that fulfil online orders and the variant’s saved setting. Inventory held at a location that does not fulfil online orders does not automatically make the storefront item available.

Back-in-Stock Alerts on Shopify

A back-in-stock alert tells interested shoppers when they can return to buy an item. It does not take an order or reserve stock. Use alerts when you want to stop accepting orders while replenishment remains uncertain.

On Shopify, a dedicated alert app can add a sign-up control to unavailable variants and send a restock message. Choose one that records the requested variant and responds to its inventory. Keep a notification sign-up separate from a paid backorder confirmation.

Klaviyo’s back-in-stock flow uses the “Subscribed to Back in Stock” event when someone signs up for an unavailable item. Its back-in-stock delay holds them until stock returns, then passes eligible subscribers to the message. A message after the delay must be Live or Manual for subscribers to join that waiting list. Draft messages do not admit them.

For a store on Adobe Commerce using Magento 2, built-in product alerts include email notifications when stock returns. Enable “Allow Alert When Product Comes Back in Stock” in the Product Alerts configuration. “Display Out of Stock Products” must also be enabled for the shopper’s notification link to appear. The Adobe setup guide cover these settings.

Before enabling alerts for shoppers, preview the sign-up for a specific unavailable variant. Confirm the notification points back to that variant when it becomes available. Choose paid backorders only when you can support the delivery promise. Use an alert when the shopper must wait to purchase.