Home » Glossary of Supply Chain and Logistics Terms » Backorder

Glossary

Backorder

Tags: Glossary

A customer order for a product that is not currently in stock and must be ordered from the supplier.

What is a Backorder?

In shipping, a backorder refers to an order for a product or item that is currently out of stock or unavailable, and therefore cannot be fulfilled immediately. 

 

When a customer places an order for a product that is on backorder, the seller typically notifies the customer of the delay and provides an estimated date for when the item will be available for shipping or pickup. The customer may choose to wait for the item to become available or may choose to cancel the order and receive a refund. 

Backorders can occur for a variety of reasons, such as unexpected demand, delays in production or shipping, or inventory shortages. They can be frustrating for both customers and sellers, as they can result in delayed shipments, lost sales, and increased costs associated with managing inventory and fulfilling orders. 

Related Glossary terms

Ready to get started?

Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

Share the Article