Backorders vs. Out of Stock- Things to Know About Keeping Items Available

What are the main benefits of accepting backorders?

The main benefits are: - Improved cash flow since payment is collected before shipping - Increased customer satisfaction by keeping shoppers updated and holding items - Better inventory management without excess stock building up - Gain insight into product demand to inform future production runs

How can I avoid frustrating customers with long backorder waits?

Be transparent about estimated shipping times. Provide order status updates through email/SMS alerts. Offer alternative products or discounts if the wait is extended. Manage expectations by communicating timelines.

Should I accept backorders if I can't guarantee when stock will be replenished?

It depends. For niche or exclusive products customers may wait. Avoid backorders for commoditized products easily bought elsewhere. Be upfront about unpredictable delays to set proper expectations.

What backorder cut-off threshold should I set before canceling orders?

There's no one-size-fits-all. Set a cut-off based on your acceptable lead time and production capacity. 30-60 days is reasonable for specialty consumer goods; consider longer for custom/hand-made items.

How can backorders improve cash flow for my business?

Collecting payment upfront before needing to ship items lets you bank revenue ahead of incurring manufacturing costs. This helps ease cash flow gaps from order to delivery.

Should I require full or partial payment on backordered items?

Full payment reduces canceled orders once back in stock. Partial payment also works for pricier items. Make your refund/cancellation policy clear. Payment plan options can help ease customer concerns.

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