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In the fast-paced world of eCommerce, stock management can be a challenging task. Even with meticulous planning and risk mitigation strategies, businesses can still face the issue of backordered products. This situation arises when an item is temporarily out of stock but can still be purchased for future delivery. While it may seem like a setback, backordered products don't have to mean a halt in sales. In fact, with the right approach, they can become an opportunity to showcase your customer service skills and build brand loyalty.
Recent data shows that the average out-of-stock rate in eCommerce is around 8%, highlighting how common this issue is across the industry. Backorders can occur due to various reasons, including:
In this comprehensive guide, we'll explore effective strategies to manage backordered products, convert sales, and retain customers. By implementing these tactics, you can turn potential setbacks into opportunities for growth and enhanced customer satisfaction.
Before diving into strategies, it's crucial to have a clear understanding of what a backordered product is. A backordered product is an item that is currently out of stock on your website but is expected to be available in the near future. Customers can still place orders for these items, with the understanding that there will be a delay in delivery.
Think of it as a pre-order system. While the product isn't immediately available, customers can secure their purchase and receive it as soon as it's back in stock. This system allows businesses to maintain sales momentum even when faced with inventory challenges.
However, it's important to note that backordered products can be a significant turn-off for customers, especially if they're unexpected or not clearly communicated. They can negate the convenience of online shopping and prompt customers to seek alternatives from competitors. That's why it's crucial to handle backordered products strategically and transparently.
The foundation of successfully managing backordered products is honesty and transparency. There's no benefit in misleading customers about the availability of a product. In fact, doing so can lead to negative reviews and damage your brand's reputation.
To maintain trust and manage customer expectations:
By being upfront about the situation, you allow customers to make informed decisions and reduce the likelihood of disappointment or frustration later in the purchasing process.
When customers discover that a product is backordered, your goal should be to prevent them from immediately leaving your site to search for alternatives. Offer them clear, positive steps they can take to secure the product they want.
Consider providing the following options:
Ideally, customers will choose to purchase and pay immediately. However, all these options move customers further along the purchasing journey, increasing their commitment to buying your product. For instance, back-in-stock notifications have been shown to have a 25% conversion rate, demonstrating their effectiveness in retaining customer interest.
Additionally, for orders containing both in-stock and backordered items, offer customers the option to have products delivered separately at no extra cost. This ensures they receive available items promptly while waiting for backordered products.
When faced with a backordered product, customers might be tempted to search for the same item from a competitor who has it in stock. To counter this, you need to clearly communicate why customers should choose to wait for your product rather than opting for an immediate alternative elsewhere.
Consider offering additional value that sets you apart from competitors:
Another effective tactic is to create a sense of scarcity. Limit the number of backorders or waiting list subscriptions available. This can create a sense of urgency and exclusivity, encouraging customers to secure their order despite the wait.
Turn the situation of a backordered product into an advantage by generating hype and excitement. Present the product's "sold out" status as a testament to its popularity and quality. This can create a sense of FOMO (Fear of Missing Out) among potential customers, encouraging them to secure their order despite the wait.
Here are some effective ways to build anticipation:
By proudly highlighting the popularity of your product, you can turn a potential negative (being out of stock) into a positive (being in high demand).
To reassure customers that they'll receive their backordered product as soon as possible, consider offering free or discounted expedited shipping options. This can include 2-day or next-day shipping once the item is back in stock.
By distributing your incoming stock across a network of warehouses, you can achieve nationwide 2-day or even 1-day delivery, depending on the customer's location. This not only satisfies the customer's desire for quick delivery but can also help reduce your fast shipping costs through strategic distribution.
Partnering with a Digital Logistics Platform like FreightAmigo can help you achieve this nationwide rapid delivery capability efficiently and cost-effectively.
Whether you're following up on cart abandonment or updating customers on the status of a backordered product, it's crucial to use multiple communication channels. This approach ensures that your messages reach customers through their preferred medium and increases the likelihood of engagement.
Consider using a combination of:
By diversifying your communication channels, you allow customers to purchase backorders on their terms and chosen device. This flexibility can significantly improve your chances of converting a potential sale and keeping customers informed throughout the process.
Ordering a backordered product inherently carries some risk for customers. They might worry about extended delays or the possibility of price changes while waiting. To address these concerns and encourage purchases, consider implementing the following measures:
By proactively addressing potential customer concerns, you can build trust and encourage customers to proceed with their purchase despite the backorder status.
While the strategies above can help you make the most of backordered situations, it's important to remember that preventing backorders where possible is always preferable. Here are some best practices to keep in mind:
When executed well, managing backordered products can actually enhance customer loyalty. Customers who have a positive experience with a backordered product are more likely to purchase from you again, even if faced with another potential backorder situation.
In today's digital age, leveraging technology can significantly enhance your ability to manage backordered products effectively. Digital Logistics Platforms like FreightAmigo offer comprehensive solutions that can streamline your inventory management, order fulfillment, and customer communication processes.
Here's how a Digital Logistics Platform can support your backorder management:
By integrating these digital solutions into your operations, you can turn the challenge of backordered products into an opportunity for operational excellence and enhanced customer satisfaction.
While backordered products can present challenges, they also offer unique opportunities to showcase your commitment to customer service and build brand loyalty. By implementing the strategies discussed in this guide, you can effectively manage backordered situations, maintain sales momentum, and even turn potential setbacks into positive customer experiences.
Remember, the key to success lies in transparency, proactive communication, and a customer-centric approach. By keeping customers informed, offering them clear options, and going the extra mile to ensure their satisfaction, you can navigate the complexities of backordered products with confidence.
As you refine your approach to managing backordered products, consider leveraging the power of Digital Logistics Platforms like FreightAmigo. These solutions can provide the tools and insights you need to optimize your inventory management, streamline your fulfillment processes, and deliver exceptional customer experiences – even when faced with stock challenges.
In the ever-evolving world of eCommerce, adaptability and customer focus are key. By mastering the art of managing backordered products, you can set your business apart, build stronger customer relationships, and drive long-term growth and success.