A backorder is an order, or the part of an order, that a seller has accepted but cannot fill yet because the item is out of stock. It ships when new stock arrives. If a customer orders 10 packs and the shop has 6, the shop can send 6 now and put 4 on backorder. The customer has bought all 10, but only 6 arrive on the first delivery.
What backorder means
A backorder sits between two other situations a shop deals with every day:
| Situation | Can the customer order? | What happens next |
|---|---|---|
| In stock | Yes | The order ships in full |
| Backorder | Yes, beyond the stock on hand | Part ships now, the rest ships when stock arrives |
| Out of stock, no backorder | No, the item cannot be added | The customer waits or buys elsewhere |
| Pre-order | Yes, for a later date on purpose | The order ships on the date or launch it was taken for |
The word is the same whether you write it as one word or two. "Back ordered" on an order status means the item is confirmed but waiting for stock.
The formula
- Ships now = the smaller of (quantity ordered, quantity in stock)
- Quantity on backorder = quantity ordered - ships now
- Value on backorder = quantity on backorder x price
If the stock covers the order, the backorder is zero and nothing waits.
Worked example
The figures below are an example, not data from any shop. The arithmetic is ours.
Example: a customer orders 10 packs of rice at Rs 150 a pack, so the order is 10 x 150 = Rs 1,500. The shop has 6 packs in stock.
- Ships now: the smaller of 10 and 6 is 6 packs, worth 6 x 150 = Rs 900.
- On backorder: 10 - 6 = 4 packs, worth 4 x 150 = Rs 600.
- Delivery: if one delivery costs the shop Rs 40, sending the 4 packs later costs another Rs 40. Delivery on this order is now Rs 80 instead of Rs 40.
If the customer paid online, they have paid Rs 600 for goods they do not have yet. That is why the customer needs to see the split clearly. To work out what each extra delivery costs you, use our free delivery cost per order calculator.
What the customer sees
A backorder is clear to the customer when the order shows four things:
- What shipped and what did not. "6 of 10 packs sent. 4 packs on backorder."
- When the rest is expected. A date, or a plain line that the date is not known yet.
- What they paid for each part. Rs 900 sent, Rs 600 waiting, in the example.
- What they can do. Wait, change the item, or cancel the rest for a refund, if the seller allows it.
Without this, the customer opens a bag of 6 packs, counts again, and calls the shop.
Some sellers choose not to take backorders at all. They stop selling at zero stock, so a customer can never pay for stock that is not there. The cost is a missed sale when stock arrives the next morning.
What we do not know, and what varies by business
- Whether a backorder suits your product. Fresh food and items with a short shelf life are hard to promise later. Packaged goods with a steady supplier are easier.
- How long your restock takes. The expected date is only as good as your supplier's delivery.
- What your customers prefer. Some would rather get part now; some would rather wait for one full delivery.
- The rules where you sell. Consumer rules on delays, cancellations and refunds differ by country. The United States has a federal rule for mail, internet and telephone orders (see sources). We have not reviewed the rules for other countries in this article.
Where Ordrio fits
On an Ordrio Online store, an item marked out of stock cannot be ordered, so the customer does not pay for stock you do not have. For items you plan to sell ahead on purpose, Ordrio supports pre-orders, slots and scheduled delivery.
Stock is easier to keep right when the counter and the website share one count. Bills & Books runs counter billing on the same products and stock as the Online store, with low-stock alerts, so a sale in either place updates both. Our grocery store website and app guide shows four habits that keep the website from selling stock the counter has already sold.
Related reading: what MOQ, minimum order quantity, means, and purchase order vs invoice, the document that brings the stock back in.
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Sources
- Federal Trade Commission (United States), "Business Guide to the FTC's Mail, Internet, or Telephone Order Merchandise Rule", September 2011, with civil penalty amounts updated in January 2025. Read on 5 November 2026. It covers delay notices, the buyer's choice to accept a delay or cancel, and refunds.
- All figures in the worked example are example figures. The arithmetic is ours and can be repeated with a calculator.
- Product details: ordrio.com pages for the Online store, delivery features and Bills & Books, read on 5 November 2026.
Ordrio: Sell. Run. Deliver. Online store, app, billing and delivery for shops and restaurants.