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Intermediate Certificate on pass

Backorders & Pre-orders

Sell what you do not yet have — safely — by managing backorders and pre-orders with clear promises.

4 lessons 35 min 5-question assessment 75% to pass
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What you’ll learn

  • Distinguish a backorder from a pre-order
  • Capture demand when stock is zero
  • Fulfil backorders in the right order
  • Set honest customer expectations

Course content

4 lessons · 35 min of reading
01
Lesson 1 of 4 Reading 8 min

Backorder vs pre-order

A backorder is an order for an existing product you have temporarily run out of. A pre-order is an order for a product that has not yet been released or first stocked. Both are sales made before stock is in hand.

The distinction matters because the customer promise differs: a backorder says "this is coming back soon", a pre-order says "this arrives on launch". Confusing them sets the wrong expectation.

A customer wanting a popular shoe you have sold out of is a backorder — it returns when your next PO lands. A customer reserving next season’s model before it is released is a pre-order. Tagging each correctly lets AWRA fulfil the backorder the moment restock arrives and hold the pre-order until launch day.

Key takeaways

  • A backorder is for an existing, temporarily out-of-stock item.
  • A pre-order is for an unreleased or not-yet-stocked item.
  • Both are sales made before stock is in hand.
  • Example: a sold-out shoe is a backorder; next season’s model is a pre-order.
02
Lesson 2 of 4 Practice 9 min

Capturing demand at zero stock

When stock hits zero you can still capture the sale as a backorder rather than turning the customer away. The order is recorded against incoming stock, and available-to-promise reflects what is on order.

Capturing this demand matters because a recorded backorder is a kept customer and a signal to buying — it tells you exactly how much extra to order, instead of a lost sale that leaves no trace.

If a SKU stocks out but 25 customers place backorders before your PO of 100 arrives, you know to fulfil those 25 first and that real demand outstripped your last order. Without backorders those 25 simply vanish — no sale, no data, no idea you under-bought by at least a quarter.

Key takeaways

  • At zero stock, capture the sale as a backorder.
  • Orders are recorded against incoming stock.
  • Backorders are kept customers and a demand signal.
  • Example: 25 backorders before a 100-unit PO reveal under-buying.
03
Lesson 3 of 4 Reading 9 min

Fulfilling in the right order

When restock arrives, backorders should generally be filled first and in the order they were placed (first-come, first-served) before new walk-in sales. The earliest waiting customer should not lose out to a latecomer.

Fulfilment order matters because backorder customers have already waited; serving fresh demand ahead of them breaks the promise that made them wait in the first place.

A PO of 100 units lands against 120 backorders. You fill the first 100 by order date and the remaining 20 stay on backorder for the next delivery — you do not let a walk-in buy units owed to someone who ordered last week. AWRA can ring-fence incoming stock for the backorder queue before it touches available.

Key takeaways

  • Fill backorders first, in the order placed (FCFS).
  • Waiting customers come before new walk-ins.
  • Restock can be ring-fenced for the backorder queue.
  • Example: a 100-unit PO fills the first 100 of 120 backorders by date.
04
Lesson 4 of 4 Reading 9 min

Setting honest expectations

A backorder or pre-order is only good if the date is honest. Quote a realistic restock date based on supplier lead time, and tell the customer if it slips — surprises break trust faster than delays.

Honesty matters because customers will wait for a clear promise but feel cheated by a vague or broken one. The date you quote is a commitment, not a hope.

If your supplier lead time is 14 days, promise "back in stock in about 2 weeks", not "any day now". If the truck is delayed to 21 days, tell the waiting customers proactively. A backorder kept honestly converts to a sale; one quoted carelessly converts to a refund and a bad review.

Key takeaways

  • Quote a realistic date from supplier lead time.
  • Tell customers proactively if the date slips.
  • The quoted date is a commitment, not a hope.
  • Example: promise "about 2 weeks" for a 14-day lead time, not "any day".

Finished the material?

Take the 5-question assessment and earn your certificate — 75% to pass.

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