“Not in stock” doesn’t have to mean that your ecommerce product is not for sale. Tools for preorders, backorders, and email marketing help you keep clients interested. To use these features correctly, you have to understand the difference between preorders and backorders.
Is There a Difference Between a Preorder and a Backorder?
Both preorders and backorders involve making sales when an item isn’t available in inventory; however, there are key differences between the two when it comes to order management, customer expectations, shipping costs, and best practices.
Timing is the biggest difference between preorders and backorders. Preorders happen before you’ve even offered the product in your store, while backorders come up after you run out of previously sold items.
What Is a Preorder?
Preorders are orders for items that haven’t been launched yet. In addition to building hype, you also take orders on Shopify ahead of time.
Preorders can also include follow-up sales when launch-day products sell out quickly. The demand for some tech and fashion items (like iPhones) is so high that even waiting lists aren’t enough to satisfy everybody who wants to buy.
Preorders for Exclusives
Preorders are an especially effective tool for popular brands that have a loyal fanbase because they can serve as:
- An option for people to buy limited-edition products before they’re gone
- An exclusive “members-only” reward
- An organized “waiting list” for custom goods that take you time to create
- A way to avoid unexpected sales surges around the holidays
It’s not just clothing brands that deal with insatiable demand. Collectibles, event merch, and other high-demand items can sell out just as quickly.
What Are Backorders?
Backorders are orders for items that you normally sell but that are out of stock at the moment. The customer receives a receipt, and the missing items are placed on a backorder list for expedited delivery as soon as they’re back in stock again.
Sometimes, the buyer knows that the item isn’t available but decides to purchase it anyway and wait. Other times, backorders catch your store and your clients by surprise. For example, a supplier can accidentally ship custom products to the wrong address, so you have no choice but to backorder the items.
Backorders for Ecommerce and B2B
What if your store follows a dropshipping or print-on-demand model? Is it even possible to run out of products? Yes, in several situations:
- Social media trends take your manufacturing partner by surprise.
- There are supply chain disruptions, such as your normal shipping companies announcing they’re not delivering to U.S. warehouses anymore.
- Confusing import regulations or tariffs cause your dropshipping supplier to cancel orders.
- You sell the same fashion goods as many other ecommerce stores, which means supply waves often vanish quickly.
Shopify stores that focus on B2B sales can face backorders for other reasons, like orders that simply exceed your production or shipping capabilities. When you have to juggle raw materials, manufacturing, distribution, and order fulfillment, mistakes can happen.
How Do You Set Up Backorders and Preorders on Shopify?
Another difference between backorders and preorders is how much experience you need to set them up. Luckily, getting started with backorders is a breeze, even with basic Shopify tools.
Set Up Backorders on Shopify
Here’s how you enable backorders in Shopify:
- In your Shopify admin, go to “Products,” then select the product you want to edit.
- Scroll down to the “Inventory” section.
- Enable “Track quantity” for any products that support backorders, and set correct inventory levels.
- Check the box marked “Continue selling when out of stock.”
- Save the changes.
Repeat these steps for each product or variant you want to allow backorders on. Unfortunately, you cannot make global changes.
Set Up Preorders on Shopify
Shopify doesn’t have a built-in preorder feature the way it does with backorders. Preorders require more complex functionality: signups, tracking, partial payments, discounts, and back-in-stock emails. Even if you have experience editing your site’s code, DIY solutions are tricky.
Fortunately, Shopify apps provide a smooth workaround. Apps specifically designed for preorders, such as Pre-Order Now, make it easy to customize how preorders work for specific items. You can control everything from a dedicated tab in your Shopify dashboard.
Preorders vs. Backorders: Are They Good or Bad for Online Stores?
Contrary to what you may think, both backorders and preorders are good for your business. The trick is knowing how to balance them with the best customer service.
Advantages of Offering Preorders
You don’t need a massive social media following to benefit from preorders on your Shopify store. Preorders can help your Shopify store in several key ways:
- Lower Risk: Gauge how much interest your target audience has in new designs.
- Immediate Working Capital: Use the money from preorder sales to support production.
- Fewer Missed Opportunities: Avoid losing out on potential sales.
- Immersive Marketing: Let shoppers take action right away when they see pre-launch ads.
Limited-edition batches can also give your products a premium feel.
How To Handle Preorders
Preorders require careful planning. Will you offer special preorder pricing in return for the immediate boost in sales? Is there a time limit on refunds? How many items can each customer preorder?
Above all, be transparent. Keep the experience positive by avoiding surprises.
Ways Backorders Can Help Your Business and Customers
There’s nothing inherently wrong with backorders, especially if they happen because of high demand. Giving customers the option to purchase backordered items can result in a better shopping experience for many reasons:
- Buyers don’t have to feel like they missed out.
- Clients can choose the exact style, color, and size they want instead of feeling forced to “settle” for a different item.
- People don’t have to stress about competing with a small group of lucky shoppers for the item.
Done right, backorders mean less frustration and more buyer satisfaction. Plus, they can lower your overhead related to warehouse storage and personnel.
The Problem With Backorders
Backorders are a problem when they’re a symptom of management issues. Knowing how to gauge the ordering patterns of your clients accurately is vital for both B2C and B2B on Shopify.
If it takes many weeks to deliver backordered items, you may lose important clients. On the other hand, explaining the situation, quickly resolving unforeseen issues, and providing good service can make a positive impression.
Discover Apps To Manage Preorders and Backorders Skillfully
There may be big differences between preorders and backorders, but understanding both strategies is important to run a healthy store. With app integrations, you can design a customer-friendly process that your audience looks forward to. The Pre-Order Now Shopify app makes it easy to turn “out of stock” items into sales opportunities, build anticipation for upcoming launches, and give customers the flexibility to order in advance with confidence. Try out our premier app for preorders on Shopify today to take advantage of this powerful marketing and sales tool.
