What does backorder mean?

A backorder is an order a seller accepts for an item that is currently out of stock, promising to ship it when new stock arrives. The sale is confirmed and often paid for, but dispatch waits for the next delivery from the supplier. It is a deliberate choice to keep selling, unlike overselling, which happens by accident when channels show stock that isn't there.

What does "backordered" mean on an order, and can the customer cancel it?

It means the order has been accepted but the item isn't in stock yet, so it ships when the seller receives more. The seller should give an expected dispatch date. Buyers can usually cancel before it ships, and the seller then refunds any prepaid amount under its refund policy. If several items were ordered, the in-stock ones may ship first and the backordered one later.

What is the difference between backorder, out of stock and overselling?

When an item is out of stock, the seller stops taking orders until stock returns. On backorder, the seller knowingly keeps taking orders and ships them later, with a date. Overselling is an accident: channels showed stock that had already sold, so the buyer expects normal delivery and the order usually ends in a cancellation. Backorders need a date; overselling needs a fix to stock sync.

What is the difference between a backorder and a pre-order?

A pre-order is for an item that hasn't launched or been released yet, so nobody can have it before the release date. A backorder is for an item that already sells normally but has temporarily run out. Both take the order now and ship later, and both need a clear date, but a pre-order's date is usually fixed in advance.

Can sellers accept backorders on Amazon or Flipkart in India?

Not in the way a website can. Marketplace listings carry the stock count and dispatch timeline the seller sets, and Flipkart's seller documentation says sellers must manage both. An order the seller can't dispatch and then cancels counts against seller metrics; Amazon.in's seller blog (September 2020) says cancellations should stay below 2.5%. Check each marketplace's current seller help.

How do you allow backorders on a Shopify store?

In the Shopify admin, open the product or variant, go to its Inventory section and select "Continue selling when out of stock". Shopify's help centre says this works only when inventory is tracked, and doesn't apply to orders placed in Shopify POS. Tell buyers on the product page that the item ships later, with an expected date.

What causes backorders?

A seller chooses to allow them, usually because demand beat the forecast, a supplier delivered late or short, a sale or promotion sold more than planned, or stock was held for another channel. A backorder can also follow a stock error: if the system showed more stock than the shelf held, orders already taken may have to wait for new stock.

How do you calculate the backorder rate?

Backorder rate = units backordered ÷ units ordered, over a period. In the example on this page, 40 of 120 units were backordered, a rate of 33.3%. Some teams count orders instead of units: orders with at least one backordered line ÷ all orders. Pick one definition and keep it, so the trend means something.

What is a backorder?

A backorder is a customer order that a seller accepts for an item that is out of stock, on the promise to ship it when new stock arrives. The order is confirmed, and often paid for, but fulfilment waits for the next delivery from the supplier or factory. "Backordered" on an order means exactly that: accepted, not yet shipped.

How backorders work in an Indian D2C or omnichannel business

A backorder is a decision, not an accident:

Stock runs out for a SKU on a channel.
The seller chooses whether that channel keeps selling. If it does, new orders are accepted as backorders.
The buyer is told that the item ships later, ideally with a date.
Stock arrives and is received on a GRN.
Backorders are allocated first, oldest order first, before new orders take the stock.
The orders ship through normal order fulfilment.

Backorder, out of stock, pre-order, overselling and backlog compared

Term	What happens	Chosen or accidental?
Backorder	The seller keeps taking orders for an item already out of stock and ships when stock arrives	Chosen
Out of stock	The item can’t be ordered until stock returns	Chosen (the default)
Pre-order	Orders are taken for an item that hasn’t launched or been released yet	Chosen
Overselling	More units are sold than exist, usually because channels showed stale stock	Accidental
Backlog	Orders received but not yet processed, whether or not stock exists	Either

Example: a sale-day backorder. A brand has 80 units of a SKU on hand at ₹800 each and keeps selling during a sale. It receives 120 orders.

Line	Units
Ordered	120
Shipped from stock	80
Backordered	40

The supplier’s lead time is 10 days, and the warehouse needs 2 more days to receive and ship, so the brand promises backordered buyers dispatch within 12 days. If an illustrative 1 in 4 backordered buyers cancel while waiting, that is 10 units, or ₹8,000 of sales lost, plus any refunds to process. The backorder rate is 40 ÷ 120 = 33.3%. All figures are illustrative.

Common mistakes

Allowing backorders without a date. Buyers who don’t know when they’ll get the item cancel or complain.
Letting new orders take incoming stock first. Backorders should be allocated before new orders.
Allowing backorders on a channel that doesn’t expect them. A marketplace order you can’t dispatch on time becomes a seller cancellation.
Leaving long backorders on cash on delivery. A buyer who has waited weeks is more likely to refuse a COD parcel.
Not counting stock correctly first. If system stock is wrong, you may be overselling while believing you have stock. A cycle count catches this.

Backorder rate = backordered units ÷ units ordered. Example: 40 ÷ 120 = 33.3%.
Backorder cancellation rate = backordered units cancelled ÷ backordered units. Example: 10 ÷ 40 = 25%.
Average backorder age = average days from order to dispatch for backordered lines.

Backorders in the Indian context

On your own Shopify store. Shopify lets a seller keep selling a product after it sells out: select “Continue selling when out of stock” in the product’s or variant’s Inventory section. Its help centre says the option is available only when inventory is tracked, and that it doesn’t apply to Shopify POS orders.
On marketplaces. Flipkart’s seller API documentation says sellers must manage the stock count, price and dispatch SLA of their listings. Orders that can’t be dispatched in time tend to end as seller cancellations, which marketplaces measure: Amazon.in’s seller blog (September 2020) says total order cancellations should be less than 2.5%.
Quick-commerce POs. A platform’s purchase order isn’t a backorder. If you can’t supply a line, it is short-shipped, and your fill rate on that PO drops.

Questions and answers

What does backorder mean?: A backorder is an order a seller accepts for an item that is currently out of stock, promising to ship it when new stock arrives. The sale is confirmed and often paid for, but dispatch waits for the next delivery from the supplier. It is a deliberate choice to keep selling, unlike overselling, which happens by accident when channels show stock that isn't there.
What does "backordered" mean on an order, and can the customer cancel it?: It means the order has been accepted but the item isn't in stock yet, so it ships when the seller receives more. The seller should give an expected dispatch date. Buyers can usually cancel before it ships, and the seller then refunds any prepaid amount under its refund policy. If several items were ordered, the in-stock ones may ship first and the backordered one later.
What is the difference between backorder, out of stock and overselling?: When an item is out of stock, the seller stops taking orders until stock returns. On backorder, the seller knowingly keeps taking orders and ships them later, with a date. Overselling is an accident: channels showed stock that had already sold, so the buyer expects normal delivery and the order usually ends in a cancellation. Backorders need a date; overselling needs a fix to stock sync.
What is the difference between a backorder and a pre-order?: A pre-order is for an item that hasn't launched or been released yet, so nobody can have it before the release date. A backorder is for an item that already sells normally but has temporarily run out. Both take the order now and ship later, and both need a clear date, but a pre-order's date is usually fixed in advance.
Can sellers accept backorders on Amazon or Flipkart in India?: Not in the way a website can. Marketplace listings carry the stock count and dispatch timeline the seller sets, and Flipkart's seller documentation says sellers must manage both. An order the seller can't dispatch and then cancels counts against seller metrics; Amazon.in's seller blog (September 2020) says cancellations should stay below 2.5%. Check each marketplace's current seller help.
How do you allow backorders on a Shopify store?: In the Shopify admin, open the product or variant, go to its Inventory section and select "Continue selling when out of stock". Shopify's help centre says this works only when inventory is tracked, and doesn't apply to orders placed in Shopify POS. Tell buyers on the product page that the item ships later, with an expected date.
What causes backorders?: A seller chooses to allow them, usually because demand beat the forecast, a supplier delivered late or short, a sale or promotion sold more than planned, or stock was held for another channel. A backorder can also follow a stock error: if the system showed more stock than the shelf held, orders already taken may have to wait for new stock.
How do you calculate the backorder rate?: Backorder rate = units backordered ÷ units ordered, over a period. In the example on this page, 40 of 120 units were backordered, a rate of 33.3%. Some teams count orders instead of units: orders with at least one backordered line ÷ all orders. Pick one definition and keep it, so the trend means something.

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Last reviewed: 5 November 2026 by Fretron.

Sources

Selling out of stock products. Shopify Help Center. https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock (accessed 5 Nov 2026).
Flipkart Marketplace Seller Platform (Developer API v3.0 documentation). Flipkart. https://seller.flipkart.com/api-docs/FMPlatOverview.html (accessed 5 Nov 2026).
Things to avoid to ensure your account is not blocked. Amazon.in seller blog, 28 Sep 2020. https://sell.amazon.in/seller-blog/things-to-avoid-to-ensure-your-account-is-not-blocked (accessed 5 Nov 2026).