Backorder vs Out of Stock: Key Differences Every eCommerce Owner Needs to Know

Have you ever visited an online store, found the perfect product, and then discovered it wasn’t available? 

This is a common situation in e-commerce, where inventory can quickly run out due to high demand, supply delays, or inaccurate stock forecasting. 

Two common stock statuses used in online stores are backorder and out of stock. While both indicate that a product is currently unavailable, they convey different meanings. 

Backorders allow customers to purchase an item that will be shipped later, while an out-of-stock status prevents new orders until the product is restocked.

In this guide, you’ll understand the difference between backorder and out-of-stock statuses, which helps businesses manage inventory better, improve the customer experience, and reduce lost sales opportunities.

What Is a Backorder?

A backorder is a business strategy that occurs when a product is temporarily out of stock, but customers can still place an order for it. In eCommerce, this means the item is not currently available in the warehouse, but the store expects to restock it soon and deliver it to customers once the inventory arrives.

In online stores, backorders allow businesses to continue accepting orders even when the product is unavailable. Customers complete the purchase as usual, but the order is fulfilled later when the new stock arrives. Most stores inform customers about the expected shipping date to maintain transparency and avoid confusion.

What Does “Out of Stock” Mean?

An out-of-stock status means a product is currently unavailable, and customers cannot place an order for it. In eCommerce, this happens when all available inventory has been sold, and the store has no remaining units ready to ship.

When a product becomes out of stock, the online store usually disables the Add to Cart button or displays an “Out of Stock” label on the product page. Customers must wait until the item is restocked before they can purchase it again. Some stores also offer a back-in-stock notification so shoppers can be alerted when the product becomes available.

Backorder vs Out of Stock: Side-by-Side Comparison

Backorders and out-of-stock statuses both indicate unavailable products, but they work differently. 

Backorders allow customers to place orders even when inventory is low, helping maintain sales and forecast demand. While out-of-stock items prevent purchases until restocked, signaling zero availability. 

Choosing the right approach depends on your inventory strategy, product demand, and customer communication priorities.

To help you quickly understand the key differences between backorders and out-of-stock items, here’s a side-by-side comparison:

Feature	Backorder	Out of Stock
Product Availability	Product is temporarily unavailable, but customers can still place orders to be fulfilled later.	The product is unavailable and cannot be ordered until restocked.
Purchase Option	Customers can buy the product and wait for restocking.	Customers must wait until the product is restocked.
Inventory Impact	Helps forecast demand and manage pre-sales.	Signals zero stock; no new orders processed.
Revenue Impact	Can generate sales even when stock is depleted.	No immediate revenue from the product.
Customer Communication	Requires clear communication of delivery delays.	Customers know the product is unavailable and may look elsewhere.
Sales Opportunity	Helps maintain sales despite inventory shortages.	Leads to potential lost sales.
Customer Experience	Keeps customers engaged and allows them to secure the product.	Often causes frustration and may push customers to competitors.
Use Case	High-demand products, seasonal items, or manufacturing delays.	Products that are discontinued or temporarily unavailable.

👉 Good Read: Pre Order vs Back Order

Backorder vs Out of Stock: Pros and Cons 

Choosing between backorders and out-of-stock status depends on your sales strategy and inventory management. 

Backorders keep products available for purchase, helping maintain revenue and gauge demand, but may risk delivery delays. Out-of-stock status prevents orders, simplifying inventory but potentially losing sales. Clear communication and understanding customer expectations are key to using either approach effectively.

Before deciding which approach fits your store, it’s helpful to weigh the advantages and disadvantages of each:

Aspect	Backorder	Out of Stock
Pros	Risk of delayed deliveries and unhappy customers. Requires clear communication of timelines. Can complicate inventory tracking	Prevent overselling and order cancellations. Clear signal that the product is unavailable. Easier inventory management
Cons	Risk of delayed deliveries and unhappy customers. Requires clear communication of timelines. Can complicate inventory tracking	Missed sales opportunitiesMay frustrate customers looking to buy. Can reduce product visibility and momentum

Backorders vs Out of Stock: When to Use 

Choosing between backorders and out-of-stock status depends on your inventory flow, supplier reliability, and customer expectations. Here’s when each strategy works best:

When to Use Backorders	When to Use Out of Stock
You expect the stock to arrive soon. The product is in high demand. You want to avoid losing sales. You can clearly communicate delivery timelines. You manufacture or restock products regularly.	Restock timing is uncertain. The product is discontinued or seasonal. You want to prevent overselling. Supplier delays are unpredictable. You prefer strict inventory control.

How To Manage Backorders And Out-Of-Stocks Effectively?

Effectively managing backorders and out-of-stock products helps maintain customer trust and protect revenue. 

By combining clear communication, accurate inventory tracking, demand forecasting, and proactive restocking strategies, you can reduce missed sales opportunities while ensuring a smooth and reliable shopping experience for your customers. 

Here are practical strategies to handle both efficiently:

• Clearly communicate availability: Always display accurate stock status and estimated restock dates. Transparency reduces customer frustration and builds trust.
• Set realistic delivery expectations: If allowing backorders, provide clear shipping timelines and send automated updates about order progress.
• Use inventory alerts: Enable out-of-stock notifications to restock products before they completely run out.
• Offer alternatives: Suggest similar or related products when items are out of stock to minimize lost sales.
• Analyze demand trends: Track which products frequently go out of stock to improve forecasting and supplier planning.
• Enable back-in-stock notifications: Allow customers to subscribe to restock alerts so you can recover potential lost sales.

👉 Good Read: Recover Abandoned Carts

How Backorders and Out of Stock Status Affect Customer Experience

Both Backorders and out-of-stock status strongly influence how customers interact with your store. 

In WooCommerce, both backorder and out-of-stock management features help store owners control inventory effectively. These features are available in ShopBuilder – Elementor-based WooCommerce Solution, giving store owners an easier way to manage product availability while maintaining a smooth shopping experience.

Clear stock management and transparent communication about product availability help build trust, improve customer satisfaction, and increase conversions.

Both stock statuses affect how customers interact with your store, but their impact can be quite different. The table below highlights these differences.

Impact of Backorders on Customer Experience	Impact of Out-of-Stock Status on Customer Experience
Customers can still place an order even when the product is unavailable.	Customers cannot purchase the product immediately.
Helps retain potential sales and keeps customers interested in the product.	Often leads to lost sales as customers may leave the store.
Creates anticipation and encourages customers to wait for the product.	Can cause frustration if no restock information is provided.
Builds trust when delivery timelines are communicated clearly.	May damage brand perception if products remain unavailable for long periods.
Maintains engagement and customer loyalty when managed properly.	Customers may switch to competitors offering similar products.

Frequently Asked Questions (FAQ) 

Conclusion 

Understanding the difference between backorder vs out of stock status is essential for managing customer expectations and protecting your sales. While an out-of-stock label simply informs customers that a product is unavailable, backorders provide an opportunity to continue accepting orders and maintain demand for popular items.

However, both strategies require proper communication and inventory management. Clear stock updates, transparent delivery timelines, and smart inventory planning help build trust and improve the overall shopping experience. By using the right approach at the right time, store owners can reduce lost sales, keep customers engaged, and create a smoother purchasing journey.