Buy Out of Stock Products with Magento 2 Allow Backorders

• What Are Backorders in Magento 2?

• 5 Key Purposes of Backorders

• 8 Key Features of Backorders

• Difference Between Magento 2 Backorder and Pre-Order

• 6 Benefits of Allowing Backorders

• 6 Risks of Allowing Backorders

• 5 Best Practices for Managing Backorders in Magento 2

• FAQs

• Summary

What Are Backorders in Magento 2?

Backorders allow customers to buy products that are out of stock for some time.

The feature helps store owners accept orders even when inventory levels hit zero. It ensures no missed sales.

Magento 2 offers flexible backorder settings, globally or per product, and three options. When enabled, the system tracks backordered items and fulfills them once stock replenishes.

Backorders help manage demand and avoid lost revenue during stockouts. It is especially for fast-moving or high-demand products with frequent restocking.

5 Key Purposes of Backorders

1. Prevent Lost Sales

• Backorders ensure that customers can complete their buy in any case. It is possible even if a product is out of stock for some time.

• Magento 2 allows you to accept and fulfill the order once the stock replenishes. You don’t lose a sale due to inventory shortages.

• It keeps revenue flowing and helps meet customer demand.

2. Enhance Customer Satisfaction

• Allowing backorders shows customers that your store is accommodating.

• When you inform buyers that an item will ship later, you can still order it. They feel more valued.

• The transparency builds trust and improves the shopping experience.

3. Support Inventory Flexibility

• With backorders, merchants don’t need to halt sales during restocking periods. It provides the flexibility to continue operations without waiting for physical inventory.

• It helps businesses with just-in-time inventory models. It also helps those affected by supply chain delays.

4. Enable Demand Forecasting

• Monitoring backordered items gives insight into which products are in high demand.

• You can use the data to enhance inventory planning and reduce future stockouts.

• Magento 2 offers built-in reports and integration with inventory management tools. It helps track and analyze this demand.

5. Better Customer Loyalty

• Customers tend to return if they know your store can meet their needs. It is even when items are not in stock.

• Offering backorders for popular products encourages shoppers to stay loyal. They also remain confident they can get what they want without switching to a competitor.

8 Key Features of Backorders

1. Flexible Configuration Options

Magento 2 gives merchants the ability to control backorder settings at two levels:

1. Global Configuration: Apply a universal backorder policy across all products through the admin panel.

2. Product-Level Settings: Override the global settings for specific items. It is useful when allowing backorders for certain bestsellers or pre-sold products. It keeps others unavailable when out of stock.

2. Different Backorder Modes

Magento 2 offers three backorder modes. These define how the system behaves when the stock reaches zero:

1. No Backorders: The default setting. Customers cannot order out-of-stock items.

2. Allow Qty Below 0: Customers can place orders even when the stock quantity is negative. They are not notified.

3. Allow Qty Below 0 and Notify Customer: It is like the previous option. Magento displays a message to the customer indicating the product is on backorder. The setting improves transparency and customer trust.

3. Customer Notification Support

• Magento can notify customers when they are purchasing a product on backorder. It is especially helpful in setting delivery expectations and reducing support inquiries.

• The backorder message appears during checkout. Order confirmation email can also include it.

4. Automatic Stock Handling and Order Fulfillment

• Once a product is back in stock, Magento 2 processes the backorders in the received order.

• Store owners don’t have to adjust or focus on orders. It ensures a simplified order management workflow and minimizes fulfillment errors.

5. Real-Time Inventory Visibility

• Magento's stock management tools allow merchants to track inventory levels. It also helps track backorder status in real time.

• Reports can show how many units they backorder. It helps businesses make informed restocking decisions and track product demand trends.

6. Integration with Magento Order Management System (OMS)

• It integrates backorders with Magento’s native OMS and inventory modules.

• Once an item is available, it moves into the fulfillment process. It doesn’t disrupt the sales pipeline or shipping schedule.

7. Support for Partial Shipments

• If an order includes both available and backordered items. Magento supports partial shipments based on your shipping configuration.

• You can send in-stock items right away. The backordered ones follow when available. It keeps customers satisfied with quicker partial deliveries.

8. Customizability via Extensions

• For businesses needing more control, third-party extensions can enhance backorder functionality.

• It adds features like expected delivery dates or limiting backorder quantity per customer. It enables powerful inventory management.

Difference Between Magento 2 Backorder and Pre-Order

Aspect	Backorder	Pre-Order
1. Definition	It allows customers to order items that are currently out of stock. These were earlier available.	It allows customers to buy items. It is before the release or is available in inventory.
2. Product Availability	The product was available before. It has been out of stock for some time.	The product is not released or stocked.
3. Inventory Status	Magento allows orders even when the quantity is below zero.	Product inventory is set to 0 until the launch date.
4. Use Case	It is ideal for products that often sell out. These will be in stock soon.	It is perfect for upcoming product launches or marketing campaigns.
5. Customer Communication	It sends an optional message during checkout: “This item is on backorder.”	Label the item as “Pre-Order” with estimated shipping/release date.
6. Fulfillment Timing	Fulfills the order when stock replenishes.	Fulfills the order after the official release or launch date.
7. Sales Impact	It prevents lost sales during stockouts.	It builds anticipation and demand before launch. It secures early revenue.
8. Checkout Behavior	Customers can add to the cart and pay as normal. It shows an optional backorder note.	Customers see pre-order notices and pay in advance for future delivery.
9. Order Visibility	Orders appear in Magento as regular sales with negative inventory if needed.	It tracks each pre-order. You can fulfill it on release day.
10. Extensions Support	You can enhance using extensions like Amasty or Mageplaza Backorder tools.	You can manage it through pre-order extensions that handle visibility and timing.

6 Benefits of Allowing Backorders

1. Capture Missed Sales

• When a product goes out of stock, not offering backorders means a lost sale. Backordering allows customers to continue placing orders. It is even if the item isn’t immediately available.

• The strategy helps businesses avoid revenue loss. It also helps meet customer demand without keeping excess inventory on hand.

2. Improved Inventory Efficiency

• Backorders reduce the need to overstock items to meet unpredictable spikes in demand.

• Businesses can adopt a lean inventory model. They can focus on stocking items that are in demand. They will still be able to sell others on a backorder basis.

3. Predictable Demand Forecasting

• Allowing backorders provides insight into customer demand trends. For example, if you backorder a product, it signals high interest. It enables better planning for future restocks.

• It helps reduce deadstock and improves supply chain efficiency.

4. Stronger Customer Loyalty

• Customers who trust your brand can wait for a product to become available.

• Transparent communication can turn a delayed order into a loyalty-building experience. These can be about shipping timelines and proactive support.

5. Positive Cash Flow Impact

• Accepting payment for backordered items can provide an immediate boost in cash flow.

• It is especially beneficial for smaller businesses that rely on pre-sales. They can fund production or restocking.

6. Market Testing Without Overproduction

• Backorders offer a low-risk way. It helps gauge interest in new products or limited-edition items.

• You don’t need to invest more in stock that might not sell. You can list the item with a backorder option. Only produce what’s required based on actual demand.

6 Risks of Allowing Backorders

1. Customer Frustration and Negative Experience

• If customers are unaware that you backorder an item. Also, if estimated delivery dates are inaccurate. It can lead to frustration.

• It may lead to order cancellations or negative reviews. These can damage your brand’s reputation.

2. Increased Operational Complexity

• Managing backorders adds another layer of complexity. It is to your order processing and fulfillment workflow.

• Accurate inventory tracking and supplier coordination help avoid delays and errors.

3. Dependency on Supplier Reliability

• Your ability to fulfill backorders depends on supplier performance.

• If your supplier faces delays, it creates a ripple effect. It affects your business and customer satisfaction.

• Disruptions in the supply chain can lead to unfulfilled promises and lost trust.

4. High Cancellation and Refund Rates

• Customers may place a backorder but lose interest. They might find an alternative elsewhere before shipping the item.

• Managing refunds or cancellations can eat into profits and create administrative challenges.

5. Inventory and System Discrepancies

• Poor integration between your eCommerce platform and suppliers. It can result in inaccurate stock levels.

• It could lead to overselling and longer wait times. It can also lead to the inability to fulfill certain backorders. It impacts customer satisfaction.

6. Legal and Compliance Concerns

• Some regions sell backordered items without a clear delivery timeline or refund policy. It may violate consumer protection laws.

• It is important to have transparent terms and conditions for handling such orders.

5 Best Practices for Managing Backorders in Magento 2

1. Be Transparent with Product Availability

• Always be upfront with customers when an item is on backorder. Don't let them discover it after checkout; label them “Backordered” on product pages.

• Alongside the label, provide an estimated shipping date or restock timeline. It helps set realistic expectations and prevents confusion or frustration.

• Transparency builds trust. Most customers will wait as long as they know what they are waiting for.

2. Frequent and Clear Communication

• Don’t leave customers guessing. Once you place an order, send regular updates about its status.

• If there are changes in delivery timelines or supplier issues, notify customers soon. Use several channels, such as email or account dashboards, for these updates.

• Consider setting up automated notifications through your eCommerce system. It helps keep communication consistent and timely.

• Frequent updates reduce cancellations and show that your business is managing the situation.

3. Offer Incentives for the Wait

• Waiting for a product can be inconvenient. Ease that frustration by offering small incentives. It could include:

  1. A discount on the current order

  2. Free shipping for the backordered item

  3. Coupons or store credit for future purchases

• They also encourage repeat business and improve customer satisfaction.

4. Set Clear Policies for Returns and Cancellations

• Well-defined policies should back your backorder process. These are easy to understand and accessible before and after the buy. Explain:

  1. How long customers can expect to wait

  2. What happens if the item isn’t delivered within the estimated time

  3. Whether they can cancel and receive a full refund

  4. How to return the item if they no longer want it once it arrives

• Post these policies on your product pages and FAQ sections. A clear, customer-related policy helps avoid disputes and builds confidence in your store.

5. Use Real-Time Inventory and Order Management Software

• Accurate inventory tracking helps manage backorders. Relying on manual updates can lead to overselling and fulfillment errors. Invest in a powerful inventory management solution that:

  1. Updates stock levels in real-time

  2. Tracks backordered quantities

  3. Integrates with your suppliers or warehouse

  4. Syncs across sales channels

• It helps you track stock availability and fulfill orders on time.

FAQs

1. How do I enable backorders in Magento 2?

Go to Stores > Configuration > Catalog > Inventory. Under Product Stock Options, select the option to allow backorders. Configure it based on your preferences. The setting helps customers place orders even when stock runs out.

2. How do I configure backorders for products in Magento 2?

You can configure backorders at the product level. After enabling backorders globally, go to the product page in the admin panel. Select the Stock Status section. Set the backorder options to Allow Qty Below 0 or Notify Customer.

3. How different are backorders and pre-orders?

Backorders help customers to buy out-of-stock items. Pre-orders let customers order products before the release. You can enable or disable each option. It depends on the product’s availability and business needs.

4. Can I enable or disable backorders in Magento 2 based on stock status?

You can enable or disable backorders based on stock status for each product. Configure the stock settings on the product edit page. It allows backorders if inventory reaches zero. Disable it if you prefer to stop sales during stockouts.

Summary

Magento 2 allow backorders let customers buy out-of-stock products. It helps merchants avoid missed sales. The article explores the benefits of the feature, including:

• Accept orders even with zero stock to maintain revenue flow.

• Notify customers about delayed shipping to build trust.

• Enable demand forecasting and smarter inventory planning.

• Integrate with OMS and support partial shipments for efficiency.

Boost your sales potential with smart inventory strategies. Pair it with managed Magento hosting to ensure smooth backorder management.