Back Orders; What are they? How to avoid them…

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Breathtaking design for home living.

The Benefits of Outsourcing Your Fulfilment…

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Breathtaking design for home living.

The 3PL that delivers on time, every time

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We’re not just another order fulfilment company. We’re the industry leader that delivers the highest quality B2B and B2C services to supercharge your business. If you’re looking to scale your business with world-class services, we’re here for you

What is a back order?

Back order is a common term in the eCommerce industry. When an item is on ‘backorder’ it simply means that the order cannot be fulfilled at that current time due to the product not physically being in stock, though still purchasable. The order will then be sent as soon as the product(s) arrive at the warehouse.

Backorders are commonly used when the seller expects to receive the new batch of stock in the near future as this minimises the wait time for customers once their order has been placed.

Homeware; Exploring the growing market…

What is back-order?

Back order is a common term in the eCommerce industry. When an item is on ‘backorder’ it simply means that the order cannot be fulfilled at that current time due to the product not physically being in stock, though still purchasable. The order will then be sent as soon as the product(s) arrive at the warehouse.

Backorders are commonly used when the seller expects to receive the new batch of stock in the near future as this minimises the wait time for customers once their order has been placed.

Homeware; Exploring the growing market…

Backorder vs Out of Stock; Exploring the difference…

The main difference between the two is that an item that has been placed on backorder can still be purchased by customers, but as mentioned, the estimated delivery date will be longer than usual.

On the other hand, an item that is completely out of stock can not be purchased customers anymore, and this usually occurs when a seller doesn’t know when they will receive new stock, which eliminates the ability to put the item/order on back order. An out of stock item suggests it won’t be available for purchase/dispatch in the near future, unlike backorders.

Homeware; Exploring the growing market…

Common reasons for backorders…

Lets explore some of the main reasons that a backorder might occur, before we move on to how to avoid backorders…

Backorder vs Out of Stock; Exploring the difference…

The main difference between the two is that an item that has been placed on backorder can still be purchased by customers, but as mentioned, the estimated delivery date will be longer than usual.

On the other hand, an item that is completely out of stock can not be purchased customers anymore, and this usually occurs when a seller doesn’t know when they will receive new stock, which eliminates the ability to put the item/order on back order. An out of stock item suggests it won’t be available for purchase/dispatch in the near future, unlike backorders.

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Why do back orders occur?

Lets explore some of the main reasons that a backorder might occur, before we move on to how to avoid backorders…

Unpredictable Demand…

Sometimes demand can fluctuate, especially during seasonal peaks such as Christmas, but these demands are expected.

However, sometimes demand can be unpredictable too. Imagine a scenario where a post on social media of one of your products has went ‘viral’, which has encouraged many people to purchase it. The demand becomes unpredictable because you weren’t prepared for x amount of people to order the product at once. This could then cause the products/orders to go on back order since the demand is higher than the actual amount of stock you physically have at that time.

Unreliable Suppliers…

Regardless of how good your relationship is with your supplier, you may sometimes still find that certain suppliers are unreliable as a result of them directly, or due to unforeseen issues. The supplier themselves is not always to blame, but issues on their end can then cause issues on your end.

So, you may end up needing to put your products and orders on back order until your manufacturer/supplier can get the products to you, or until you find a new supplier/manufacturer.

Inadequate safety stock…

‘Safety stock’ is a term used to describe the amount of stock you have on hand in case of emergency, such as supply chain issues, increased demand, etc.

The less you have, the higher your chances are of having to put things on backorder, so its crucial that you always have the right amount of safety stock set aside.

Unclear Stock Levels…

Poor inventory management and tracking causes a plethora of issues, the main issue being that orders can be fulfilled straight away due to having incorrect stock levels.

Telling a customer post-purchase that their order has been placed on backorder isn’t ideal, and can lead to poor customer satisfaction, which causes issues in itself. Poor customer satisfaction can lead to an overall lower level of customer retention/loyalty and negative word of mouth.

Unpredictable Demand…

Sometimes demand can fluctuate, especially during seasonal peaks such as Christmas, but these demands are expected.

However, sometimes demand can be unpredictable too. Imagine a scenario where a post on social media of one of your products has went ‘viral’, which has encouraged many people to purchase it. The demand becomes unpredictable because you weren’t prepared for x amount of people to order the product at once. This could then cause the products/orders to go on back order since the demand is higher than the actual amount of stock you physically have at that time.

Unreliable Suppliers…

Regardless of how good your relationship is with your supplier, you may sometimes still find that certain suppliers are unreliable as a result of them directly, or due to unforeseen issues. The supplier themselves is not always to blame, but issues on their end can then cause issues on your end.

So, you may end up needing to put your products and orders on back order until your manufacturer/supplier can get the products to you, or until you find a new supplier/manufacturer.

Inadequate safety stock…

‘Safety stock’ is a term used to describe the amount of stock you have on hand in case of emergency, such as supply chain issues, increased demand, etc.

The less you have, the higher your chances are of having to put things on backorder, so its crucial that you always have the right amount of safety stock set aside.

Unclear Stock Levels…

Poor inventory management and tracking causes a plethora of issues, the main issue being that orders can be fulfilled straight away due to having incorrect stock levels.

Telling a customer post-purchase that their order has been placed on backorder isn’t ideal, and can lead to poor customer satisfaction, which causes issues in itself. Poor customer satisfaction can lead to an overall lower level of customer retention/loyalty and negative word of mouth.

Giving your brand a competitive edge; exploring your fulfilment options…

Why its important to avoid backorders…

Now that we’ve discussed what causes a back order, lets discuss the negative impact that a high volume of backorders can cause…

Why its important to avoid backorders…

Now that we’ve discussed what causes a back order, lets discuss the negative impact that a high volume of backorders can cause…

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Decline in sales…

eCommerce giants such as Amazon have helped shaped consumer expectations through their ability to offer both same day and next day delivery, which can be harder for smaller brands to follow due to lack of scale and resources.

Not being able to offer fast shipping could cost you sales, depending on how unique your product is, the customer may opt to shop elsewhere knowing the delivery time is quicker. Not only do you have to be price competitive, you need to be time competitive too.

Poor customer retention…

As mentioned earlier, backorders and delayed shipping can lead to poor customer satisfaction, low customer retention, and negative word of mouth, leading to a decline in sales.

One of your main goals as a seller is to build a loyal relationship with customers so they keep coming back, but it is hard to do so if their orders repeatedly get put on back order which is why ensuring you always have the right amount of stock is crucial.

Decline in sales…

eCommerce giants such as Amazon have helped shaped consumer expectations through their ability to offer both same day and next day delivery, which can be harder for smaller brands to follow due to lack of scale and resources.

Not being able to offer fast shipping could cost you sales, depending on how unique your product is, the customer may opt to shop elsewhere knowing the delivery time is quicker. Not only do you have to be price competitive, you need to be time competitive too.

Poor customer retention…

As mentioned earlier, backorders and delayed shipping can lead to poor customer satisfaction, low customer retention, and negative word of mouth, leading to a decline in sales.

One of your main goals as a seller is to build a loyal relationship with customers so they keep coming back, but it is hard to do so if their orders repeatedly get put on back order which is why ensuring you always have the right amount of stock is crucial.

How to reduce the volume of backorders you receive…

Now that we’ve discussed the negative impact that backorders can have on your business, lets discuss how you can cut down the number of backorders you have.

Work with multiple suppliers…

Working with more than one supplier is always a good idea because its good to have multiple options available in the event that something goes wrong with one of your other suppliers or manufacturers.

Calculate re-order points…

Your re-order point/level refers to the time you place an order with the supplier or manufacturer. Re-order points should be set and re-analysed regularly to ensure your stock is replenished in a timely manner.

Put safety stock in place…

Ensuring you have safety stock in place is crucial in the event something goes wrong on the supplier or manufacturers end. Having safety stock in place means your orders and customers wont be affected.

Forecast demand…

Accurate demand forecasting helps to ensure that you stay ahead of the game by never running out of stock, therefore never having to place anything on back order. However, demand forecasting works off historical data so if your business is new, you may not be able to accurately analyse your demand forecasting.

Put extra inventory in storage

If you have a high volume of back orders, chances are you aren’t ordering enough stock from your supplier or manufacturer. While having balanced stock levels is important, it may also be a good idea to put a little extra to one side. Paying more for storage is better than losing out on customers and sales due to high back order volumes.

Outsourcing with a 3PL…

Accurate demand forecasting helps to ensure that you stay ahead of the game by never running out of stock, therefore never having to place anything on back order. However, demand forecasting works off historical data so if your business is new, you may not be able to accurately analyse your demand forecasting.

Giving your brand a competitive edge; exploring your fulfilment options…

How to reduce the number of backorders you have…

Now that we’ve discussed the negative impact that backorders can have on your business, lets discuss how you can cut down the number of backorders you have.

Work with multiple suppliers…

Working with more than one supplier is always a good idea because its good to have multiple options available in the event that something goes wrong with one of your other suppliers or manufacturers.

Calculate re-order points…

Your re-order point/level refers to the time you place an order with the supplier or manufacturer. Re-order points should be set and re-analysed regularly to ensure your stock is replenished in a timely manner.

Put safety stock in place…

Ensuring you have safety stock in place is crucial in the event something goes wrong on the supplier or manufacturers end. Having safety stock in place means your orders and customers wont be affected.

Forecast demand…

Accurate demand forecasting helps to ensure that you stay ahead of the game by never running out of stock, therefore never having to place anything on back order. However, demand forecasting works off historical data so if your business is new, you may not be able to accurately analyse your demand forecasting.

Put extra inventory in storage

If you have a high volume of back orders, chances are you aren’t ordering enough stock from your supplier or manufacturer. While having balanced stock levels is important, it may also be a good idea to put a little extra to one side. Paying more for storage is better than losing out on customers and sales due to high back order volumes.

Outsourcing with a 3PL…

Accurate demand forecasting helps to ensure that you stay ahead of the game by never running out of stock, therefore never having to place anything on back order. However, demand forecasting works off historical data so if your business is new, you may not be able to accurately analyse your demand forecasting.

Why Choose TSP?

Say goodbye to back-orders with TSP…

When you partner with us, you can eliminate your backorders while driving business growth. With over 20 years of experience, we specialise in B2C, B2B, and Amazon Fulfilment. We handle everything from picking, packing, and shipping, down to your returns management and customer service, making us your go-to eCommerce fulfilment centre.

Our expert, cloud based inventory management system is designed to help you make informed decisions about your stock, helping you eliminate back orders.

With over 150 integrations, we’ve got you covered regardless of what platform you use.

Explore our services below…

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Giving your brand a competitive edge; exploring your fulfilment options…

Say goodbye to back orders with TSP…

When you partner with us, you can eliminate your backorders while driving business growth. With over 20 years of experience, we specialise in B2C, B2B, and Amazon Fulfilment. We handle everything from picking, packing, and shipping, down to your returns management and customer service, making us your go-to eCommerce fulfilment centre.

Our expert, cloud based inventory management system is designed to help you make informed decisions about your stock, helping you eliminate back orders.

With over 150 integrations, we’ve got you covered regardless of what platform you use.

Explore our services below…

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Inventory Management

Good inventory management is key for any eCommerce business.

Poor inventory management can lead to unnecessary costs due to under or overstocking certain products, leaving you out of pocket.

Keep on top of your stock levels and never miss a sale with our industry leading inventory management system which is designed to be fully user friendly for easy management.

Order Processing…

We handle the entire order fulfilment process from start to finish. From picking and packing, to shipping directly to your customer or chosen retailer, our team is always on hand to ensure your orders are picked, packed, and shipped successfully.

Our dedicated team of staff have experience in picking, packing, and shipping orders from a range of different industries, meaning regardless of your product, we’ve got you covered with our tailored BigCommerce fulfilment services.

Shipping Solutions…

Thanks to our strong relationship with a variety of shipping couriers, we are able to offer our clients a range shipping options to suit your needs and budget, including domestically and internationally.

Returns Management…

Returns are inevitable when you’re an eCommerce seller, but it can be a time consuming process. That’s why we handle your returns for you, meaning you can spend more time growing your business.

Customer Support…

Our dedicated customer service team is always on hand to answer any of yours, and your customers questions, because we understand that customer satisfaction is key for any business.

Kitting and bundling…

Our expert fulfilment team are able to accurately build any kits and bundles that may be required for your orders

Inventory Management

Good inventory management is key for any eCommerce business.

Poor inventory management can lead to unnecessary costs due to under or overstocking certain products, leaving you out of pocket.

Keep on top of your stock levels and never miss a sale with our industry leading inventory management system which is designed to be fully user friendly for easy management.

Order Processing…

We handle the entire order fulfilment process from start to finish. From picking and packing, to shipping directly to your customer or chosen retailer, our team is always on hand to ensure your orders are picked, packed, and shipped successfully.

Our dedicated team of staff have experience in picking, packing, and shipping orders from a range of different industries, meaning regardless of your product, we’ve got you covered with our tailored BigCommerce fulfilment services.

Shipping Solutions…

Thanks to our strong relationship with a variety of shipping couriers, we are able to offer our clients a range shipping options to suit your needs and budget, including domestically and internationally.

Returns Management…

Returns are inevitable when you’re an eCommerce seller, but it can be a time consuming process. That’s why we handle your returns for you, meaning you can spend more time growing your business.

Customer Support…

Our dedicated customer service team is always on hand to answer any of yours, and your customers questions, because we understand that customer satisfaction is key for any business.

Kitting and bundling…

Our expert fulfilment team are able to accurately build any kits and bundles that may be required for your orders

Collate your product details and connect your stores / market places

Link you into our preferred courier network

Take delivery of your stock, go live!



Collate your product details and connect your stores & marketplaces.



Link you into our preferred courier network.

Take delivery of your stock, go live!

We don’t just meet the standard. We make it…