Mastering Backordered Products: Strategies for eCommerce Success

Introduction

In the fast-paced world of eCommerce, stock management can be a constant challenge. Even with meticulous planning and risk mitigation, stockouts are sometimes unavoidable. When popular items run out, businesses often turn to backordered products as a solution. But how can you ensure that backordered items don't drive customers away? In this comprehensive guide, we'll explore effective strategies to convert and retain customers when dealing with backordered products.

Understanding Backordered Products

A backordered product is an item that is currently out of stock but available for purchase, with delivery scheduled for when new inventory arrives. It's similar to a pre-order system, allowing customers to secure their purchase in advance.

Backorders are a common occurrence in eCommerce, with an average out-of-stock rate of 8%. Several factors can lead to backorders, including:

• Inefficient inventory management
• Unexpected product popularity
• Demand surges (e.g., during Black Friday sales)
• Supply chain disruptions (such as those experienced during the COVID-19 pandemic)

The Challenge of Backordered Products

Backordered products can be a significant turn-off for customers, especially when they're unexpected or not clearly communicated. They negate the convenience of online shopping and quick delivery, potentially pushing customers towards competitors. However, with the right approach, backordered products can still lead to sales and even enhance customer loyalty.

Strategies to Encourage Sales of Backordered Products

1. Transparency is Key

The first rule in handling backordered products is honesty. There's no benefit in misleading customers about product availability. Instead:

• Clearly update your product pages to show that items are on backorder
• Provide estimated delivery dates
• Consider adding warning pop-ups when customers add backordered items to their cart

By being upfront, you build trust with your customers and set realistic expectations.

2. Offer Positive Actions

When customers learn about a backorder, immediately present them with positive steps they can take. This approach prevents them from immediately searching for alternatives elsewhere. Consider offering these options:

• Purchase the product and pay immediately
• Purchase the product and pay upon shipment
• Sign up for in-stock notifications or join a waiting list

While immediate purchase and payment is ideal, all these actions move customers further along the purchasing journey. Even back-in-stock notifications have a 25% conversion rate, showing their effectiveness in retaining customer interest.

3. Highlight Your Unique Value Proposition

With backordered products, it's crucial to answer the question: "Why should a customer buy from you when competitors might have the item in stock?" Focus on offering value that sets you apart:

• Complementary products or services
• Customer loyalty programs
• Product guarantees or warranties
• Exclusive features or customizations

Another effective tactic is to create a sense of scarcity by limiting the number of backorders or waiting list spots available. This can drive urgency and encourage quicker decision-making.

4. Generate Excitement and Anticipation

Turn the backorder situation into an advantage by generating hype around the product. This can create excitement and encourage more sales. Consider these strategies:

• Add a countdown timer to your product page, building anticipation for new stock arrival
• Utilize social media platforms like Instagram Shops' Product Launch feature to create buzz beyond your website
• Showcase social proof and user-generated content to demonstrate the product's popularity

By proudly acknowledging the product's out-of-stock status, you can create a positive narrative around its desirability.

5. Offer Expedited Shipping Options

To reassure customers they'll receive their products as soon as possible, offer free or discounted expedited shipping options. This can include:

• 2-day shipping
• Next-day delivery
• Priority processing for backordered items

By distributing incoming stock across multiple warehouses, you can achieve faster shipping times while managing costs effectively. At FreightAmigo, our Digital Logistics Platform can help optimize your distribution strategy for faster and more efficient deliveries.

6. Leverage Multi-Channel Communication

Whether you're following up on abandoned carts or updating customers on backorder status, utilize multiple communication channels:

• Email
• SMS
• Push notifications
• Social media updates

This multi-channel approach allows customers to engage on their preferred platforms and increases the likelihood of your messages being seen and acted upon.

7. Mitigate Customer Risk

Ordering a backordered product involves some risk for customers. Address these concerns proactively:

• Offer flexible cancellation policies for backorders
• Provide regular updates on stock status and estimated delivery dates
• Guarantee price protection (refund the difference if prices decrease before delivery)
• Consider offering discount codes or free gifts as a gesture of goodwill

These measures can significantly reduce customer hesitation and build trust in your brand.

Best Practices for Managing Backordered Products

While the strategies above can help you make the most of backorder situations, it's essential to remember that some customers simply won't want to wait. To minimize negative impacts:

• Implement efficient inventory management systems to reduce backorder occurrences
• Communicate any delays in estimated shipping dates immediately
• Partner with reliable fulfillment services to ensure quick shipping once stock is available
• Always thank customers for their patience and understanding

Leveraging Digital Logistics Solutions

At FreightAmigo, we understand the challenges of inventory management and order fulfillment. Our Digital Logistics Platform offers comprehensive solutions to help businesses optimize their supply chain, reduce backorders, and improve customer satisfaction. With our platform, you can:

• Compare and book door-to-door freight quotes for various shipping methods
• Track shipments in real-time across more than 1000 airlines and shipping lines
• Streamline customs clearance, cargo insurance, and trade finance processes
• Automate shipment documentation
• Access 24/7 expert logistics support

By leveraging these tools, you can better manage your inventory, reduce the likelihood of backorders, and ensure faster delivery when backorders do occur.

Conclusion

While backordered products present challenges, they also offer opportunities for businesses to showcase their customer service, build trust, and even drive sales. By implementing the strategies discussed in this guide and leveraging advanced Digital Logistics Solutions like those offered by FreightAmigo, you can turn potential setbacks into opportunities for growth and customer loyalty.

Remember, the key to success with backordered products lies in transparency, proactive communication, and a customer-centric approach. By mastering these elements, you can ensure that backorders become a manageable part of your eCommerce strategy rather than a hindrance to your success.