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It is important for any business to have Backorder, especially in the E-commerce Field. It lets merchants sell products which are currently out of stock. It will also help in increasing customer satisfaction with the brand.
Magento comes with a built-in feature of Backorder which you can turn on easily whenever you need.
There might be the number of things you want to know about Backorder. Like what is Backorder? How to enable Backorder in Magento?, etc. Read on to know more about it.
1.What is Backorder?
Backorder is an order which contains products which are not available in merchant’s inventory, but at the same time customer can place its order so they will receive the product as and when the seller restock it again. It works as a good indicator of your business’s health by evaluating the amount of backorder per total order, or average period of backorder. It also helps in solving a problem which is faced by the business owner.
You want to buy a CD of Ed Sheeran’s album. You go to your favorite CD store and you quickly realize that the edition was sold out after week.
The web store notifies you that you can still place an order and you will receive the edition when the product is present in their inventory. Hence when you place an order it gets stored on Merchant’s backorder.
Since you had paid for your Backorder items which you have actually not received so now its seller’s responsibility to get it delivered to your address when it’s available.
Further, the CD Shop also places an order to their supplier soon after noticing the quantity of Ed Sheeran’s album reached to below 1. Their supplier (record label) is out of stock too and so he will continue to produce more as he will see the demand for it. Then the Supplier will allows CD shop to order 1000 copies and receives money from the CD shop as a down payment.
If you allow customers to place a backorder then pay more attention to, how you notify them of the condition and also to the time when it takes for goods to be refilled, payment mode (before or after the goods are received) with backorder cost.
Just-in-time inventory management strategy usually has backorders and therefore merchants can easily predict the demand. In companies, backorder management plays an important part.
2. What is the difference between Backorder and Pre-Order?
|1. Backorder means when the product was in stock but the moment customer wanted to buy it. It was not available and a customer will receive only when it restocked.||1. Pre-order means customer demand on not-yet-released products in the market and they want to buy it soon as they are available.|
|2. For example: Due to more demand for iPhone X after its release Apple doesn’t have enough goods so now you place a Backorder and wait for its available again,||2. For example: Months ago, Apple was preparing to release their latest phone which is iPhone X and you wanted to be first to buy it so you place a pre-order for it.|
3. How can you enable Backorder on your Magento backend?
There are 2 ways to enable Magento backorder settings.
a. If you want to enable for new product
Step 1: Login to Magento backend.
Step 2: On the menu bar, choose System then click Configuration
Step 3: Now on the next page, you can see the Inventory tab under Catalog section
Step 4: Click to open the Product Stock Options in Backorders dropdown you will see three options No Backorders, Allow Qty Below 0, Allow Qty Below 0 and Notify Customer.
Step 5: After choosing, click on the save config button.
No Backorders: It is selected by default. If the quantity of the product is below 0 then a customer cannot buy until you replenish again.
Allow Qty Below 0: In this, if your inventory is out of stock then also customer can buy the product. It will show no difference to buyer’s perspective.
Allow Qty Below 0 and Notify Customer: It allows customer to place an order and they will receive a notification of the backorder status in the frontend.
It all depends on the strategy of your business. Keep in mind all the options and choose wisely between the second and the third option to avoid customer oriented problems.
b. If you want to config backorder for existing products
Step 1: In Menu bar, Choose Catalog and click on Manager Products
Step 2: The next screen will display all your products then you need to select desired products on which you want to apply backorder config.
Step 3: On the Action drop-down Menu, choose Update Attributes then click on Submit.
Step 4: Then Click on the Inventory. You will see the backorder row, click on change box, and then the drop-down menu will automatically light up and then you will get 3 options from that click the most suitable one. Then, find the stock Availability row, then check the change box and change the status from Out of Stock to In Stock
Step 5: Save the changes.