A backorder occurs when a customer places an order for a product that is currently out of stock, with the expectation that it will be fulfilled once stock is replenished. Managed well, backorders retain customer revenue and loyalty. Managed poorly, they generate cancellations, negative reviews, and chargebacks. Here's how a 3PL helps you handle them professionally.
Backorders create operational complexity at every stage: you need to communicate accurately with the customer about expected delivery timelines, hold the order in a pending state in your WMS, process it the moment new stock arrives, and dispatch it ahead of any new orders for the same product. Without a system, backorders get lost, customers receive no updates, and cancellation rates spike.
A warehouse management system handles backorders systematically. When a product reaches zero stock, the WMS flags the backorder state, holds the order against the incoming purchase order, and releases it automatically when the replenishment stock is received and booked in. The seller can see the backorder queue in real time and communicate with customers from an accurate position.
The most important element of backorder management is communication. Customers who are proactively informed of the delay — with an accurate expected delivery date and an option to cancel if they prefer — convert into patient buyers at a much higher rate than customers who simply don't receive their order and have to chase. Your 3PL's WMS should provide the order status visibility you need to send accurate, proactive updates.
The best backorder management is preventing backorders from occurring. A WMS with clear reorder point visibility — showing when each SKU is approaching its reorder level based on current stock and recent sales velocity — allows you to raise purchase orders before you run out rather than after. PackPro's WMS provides this visibility for all clients as standard.
When a client's stock runs out on a SKU, PackPro holds the pending orders in our WMS and prioritises them the moment new stock arrives — releasing and dispatching them ahead of standard order flow. Clients can see their backorder queue in real time through their dashboard. Learn more about inventory management with PackPro, explore our full UK 3PL logistics services, or get in touch.