Backorder
A backorder is an order, or part of an order, that cannot be filled now because the item is out of stock, but the buyer still wants it shipped when inventory returns. It is recorded against the original order and fulfilled later. High backorder rates signal demand outrunning supply or forecasting gaps.
How backorders are handled
The available quantity ships, the shortfall is flagged as backordered, and a second shipment follows when stock arrives. The order system tracks the open quantity so it is not lost or double-shipped. Buyers often set rules on whether to backorder or cancel the shortfall.
Backorders and order accuracy
A backorder is legitimate, but a short shipment that should have been flagged as a backorder and was not looks like an error and can trigger a chargeback. Capturing the backorder status in the acknowledgment and ASN keeps the buyer and supplier aligned.
Related Terms
Related Resources
Frequently Asked Questions
A backorder is an out-of-stock item the buyer still wants, committed against the original order and shipped once inventory is replenished.
Out of stock means the item is simply unavailable. A backorder is a committed order for that item, held and fulfilled when stock returns.
How to Answer "Are You EDI Capable?"
A buyer asked, and you need to answer this week. The four things they are checking, what you can say yes to today, and a realistic date for the rest.
- What a buyer is really asking when they ask this
- The minimum set-up that makes the answer yes
- What you can answer today versus what needs building
- Rough timelines, so you can give a date rather than a maybe
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