In this article
Talk to our experts- Backorder
- A backorder is a business order, or part of an order, for an item that is out of stock and still awaiting fulfillment. The seller accepts the order now and ships the missing quantity once new stock arrives. The items that are in stock can ship first, with the backordered quantity following in a separate shipment.
Also called: back order
How it works
On Shopify, the seller chooses what happens when an item is out of stock: by default customers can't buy it until more stock is added, or the seller can let them keep buying. Shopify lists reasons to keep selling, including stock that is coming soon, selling first and ordering supplies later, and preorders.
A backorder then runs through this cycle:
The life of a backorder
The seller accepts the order even though the item's inventory level is at zero or below.
The seller fulfills the items it has and splits the out-of-stock item into its own fulfillment.
New stock from a purchase order or transfer is on its way and can't be sold until it is received.
When the incoming stock is received, its state changes to Available.
The out-of-stock item is delivered later in a separate package; the order shows Fulfilled once all its items ship.
Backorder, preorder and out of stock
- Out of stock: by default on Shopify, customers can't buy the item until you add more stock.
- Backorder: the item is out of stock, but the order is accepted and waits for new stock.
- Preorder: customers order and pay for products before they're ready to ship.
Ship dates and delays
The FTC's Mail, Internet, or Telephone Order Merchandise Rule (16 CFR Part 435) covers sales where the buyer orders by mail, internet or telephone, with exceptions such as collect-on-delivery orders, so it does not govern every B2B sale. For orders it covers, a seller needs a reasonable basis to expect it can ship within the time it states, or within 30 days if no time is clearly stated. That window is 50 days when the buyer applies to the seller for credit to pay for the order.
When a seller can't ship in time, it must offer the buyer a choice: consent to the delay, or cancel the order and receive a prompt refund. The offer must give a definite revised shipping date, or say that the seller can't give one.
Example
A contractor orders three lines from a distributor:
- 200 filters at $4 = $800
- 50 housings at $30 = $1,500
- 40 gaskets at $2 = $80
- Order total: $800 + $1,500 + $80 = $2,380
The warehouse has only 25 housings on hand. It ships the filters, the gaskets and 25 housings now: $800 + (25 x $30) + $80 = $1,630. The other 25 housings, worth 25 x $30 = $750, go on backorder.
In Shopify's terms, on hand is the sum of committed, unavailable and available. Before anything ships: 25 on hand, 50 committed to the unfulfilled order, 0 unavailable, so available is 25 minus 50 minus 0, or minus 25, the backordered quantity. Receiving a purchase order for 100 housings makes them available: minus 25 plus 100 gives 75, and the last 25 can ship.
On Shopify
An item is out of stock in Shopify when inventory is tracked and the inventory level is at zero or below. To keep selling, select Continue selling when out of stock in the Inventory section of a product or variant. You can only select it when the Inventory tracked setting is on. In the GraphQL Admin API, the same choice is the variant's inventory policy: CONTINUE lets customers buy after the variant is out of stock, and DENY stops them.
When an item in an order is out of stock, you can fulfill only some of the items and ship the rest separately. The order then shows as Partially fulfilled.
How Uncap helps
Uncap's Shopify ERP sync design spec says to decide the zero policy per SKU class: hard stop at zero, sell into backorder with an honest date, or presell against inbound purchase orders. Each is legitimate; the failure is not choosing.
Sources
Frequently asked questions
Does backorder mean sold out?
It means the item is out of stock right now, but the seller is still taking orders and will ship once new stock arrives.
How long does backorder take?
It depends on when replacement stock arrives. For orders the FTC rule covers, the seller needs a reasonable basis to expect shipment within its stated time, or 30 days if none was stated.
Can backorders be cancelled?
For orders the FTC rule covers, a seller that can't ship on time must offer the buyer the option to cancel and get a prompt refund. A buyer who agrees to an indefinite delay keeps the right to cancel at any time before the order ships.
