Be transparent about inventory status upfront. Provide order status updates via email or account dashboards. Give clear expectations on anticipated delivery dates. Highlight alternative product options or substitution policies.
Analyze which items are most frequently backordered to identify fast-moving SKUs to boost stock of. Let backorder volume inform decisions around safety stock levels, minimum reorder quantities, and future purchasing plans.
Leverage free economy shipping for backorders to manage costs. Upgrade fulfilled backorders to faster premium shipping as a goodwill gesture. Provide options for expedited delivery at an additional fee.
Communicate proactively about inventory status and expected delivery timeline. Offer relevant alternate or substitute items. Provide an incentive like discounts or free gifts upon delivery. Follow up post-delivery to encourage future purchases.
Lack of transparency around backorders erodes consumer trust over time. It also increases cart abandonment rates when shoppers aren’t aware that items aren’t readily shippable. Explicit backorder communication sets proper expectations.
Inventory management software provides crucial inventory tracking, analytics, and demand forecasting. Order management systems allow tagging of backordered purchases for order prioritization. Integrated systems enable automation around some backorder processes.
The FTC Mail Order Rule requires notification to customers of shipping delays with backordered items after 30 days. Retailers must outline customer options like consenting to ongoing delay or cancelling without penalty.
Accurate demand projections, safety stock buffers, diversified supplier network, flexible supply chain, and inventory optimization based on historical sales data and trends are key elements to minimizing backorders over time.
