A backorder is an order accepted for a product that isn't currently in stock, to be fulfilled once new inventory arrives. The sale is confirmed and the customer commits to buy — they're just waiting on supply rather than browsing something unavailable. It's distinct from a simple stockout, where the product is removed from sale entirely until it's back.
Whether a backorder is a sign of healthy demand outrunning supply, or a symptom of poor demand forecasting and thin safety stock, depends entirely on whether it was expected.
Backorder vs. stockout vs. preorder
| Term |
What's happening |
Can the customer still buy? |
| Backorder |
Product has existed and sold before; new stock is inbound but not yet arrived |
Yes — the order is accepted now, fulfilled later |
| Stockout |
Product is simply unavailable, with no order being accepted against future stock |
No — the listing is typically unpurchasable until restocked |
| Preorder |
Product hasn't launched or shipped for the first time yet |
Yes — but there's no prior sales history to set expectations against |
The distinction matters operationally: a stockout is usually a pure loss of that sale, while a backorder at least captures the demand — provided the customer is willing to wait and is told honestly how long for.
What makes a backorder a good outcome vs. a bad one?
- Was it planned? A brand that deliberately sells through remaining stock while the next shipment is already in transit is managing cash flow well. A brand surprised by a backorder because nobody was tracking sell-through has a forecasting gap.
- Is the timeline communicated honestly? A backorder with a realistic, updated ship date is a normal part of commerce. A vague or repeatedly-missed date erodes trust fast — and on marketplaces, can trigger account-health penalties.
- Is it a one-off or a pattern? An occasional backorder on a breakout SKU is healthy demand outrunning a forecast. Backorders that recur on the same SKU every cycle point to a structural gap between reorder timing and actual demand.
How do backorders play out differently across channels?
On a brand's own D2C store, a backorder is a policy choice — the brand decides whether to accept orders against incoming stock and how to message the wait. On marketplaces, it's far more constrained: platforms like Amazon generally don't support a backorder state the way a D2C checkout can — a listing without inventory simply stops being purchasable, which turns what would be a captured backorder on your own site into a pure lost sale on the marketplace. That difference is one more reason safety stock planning needs to be set per channel, not just per SKU.
What do brands get wrong with backorders?
- Treating every backorder as a failure to fix. Some backorder rate is normal and even efficient — the goal isn't zero backorders, it's making sure they're expected rather than a surprise.
- Giving a ship date the supply chain can't actually hit. An optimistic date that then slips repeatedly does more damage to trust than an honest, slightly longer one stated upfront.
- Not distinguishing backorder rate by cause. A backorder from unexpectedly strong demand is a different problem than one from a missed customs delay or a late factory shipment — the fix depends entirely on which it is.
- Assuming marketplace and D2C behave the same way. A backorder strategy built around a D2C checkout experience doesn't transfer to a marketplace listing that simply goes unavailable instead.
FAQ
What is the difference between a backorder and a stockout?
A backorder still accepts the sale, fulfilling it once new stock arrives. A stockout means the product simply isn't available for purchase at all. A backorder captures demand that a stockout loses entirely.
Are backorders bad for a brand?
Not inherently. A planned, clearly communicated backorder can reflect healthy demand outpacing a shipment still in transit. It becomes a real problem when it's unplanned, poorly communicated, or recurring on the same SKU cycle after cycle.
Can you backorder a product on Amazon?
Generally, no — most marketplaces don't support accepting an order against inventory that hasn't arrived yet. Without stock, the listing typically becomes unpurchasable, which is why safety stock planning matters even more for marketplace-heavy SKUs than for a brand's own D2C store.
Whether a stock gap becomes a captured backorder or a lost sale depends on forecasting, safety stock, and honest timelines — set per channel, not guessed at. eBrands manages that discipline for every brand and market we operate. See how we run inventory and fulfillment end to end.
