Glossary: Order rules

Backorder

A backorder is an order for a product that is temporarily out of stock, accepted now and shipped when new stock arrives. The buyer is told the expected date, and the order stays open until the goods can be fulfilled.

Reviewed by Hoa Nguyen, Senior Marketer. Last reviewed October 4, 2026
Last updated October 4, 2026

In detail

Backorders are common in wholesale, because buyers order ahead of restocking and manufacturers often ship in waves. Accepting them keeps a sale that might go to another supplier. The cost is delayed cash, extra admin and unhappy buyers if a date slips.

Set a policy before you switch backorders on. Decide which products qualify, how many units you will oversell, what ship date you promise, and whether to ship what is in stock now and the rest later or wait until the order is complete. Decide whether buyers can cancel and when you charge payment, at order or at shipment. Show the policy on the product page and in the order confirmation.

Keep the terms apart. A backorder is a product you normally stock that is out right now. A pre-order is a product not yet released. An out-of-stock product cannot be bought at all. Business buyers plan ahead, so a clear date helps them more than a plain yes or no.

Watch the numbers. Backordered units are a demand signal for your next purchase order, and you should not promise more than the next shipment can cover. If you sell on net terms, invoice at shipment so the payment clock starts when the goods leave.

Example

A distributor has no cartons of a sauce in stock and a pallet due on the 20th. It lets trade buyers order up to 10 cartons each as backorders, shows 'ships by the 25th' on the product page, and invoices each order when it ships.

On Shopify

In Shopify you can keep selling a product at zero stock by selecting 'Continue selling when out of stock' in the Inventory section of a product or variant. It works only when 'Inventory tracked' is on and applies to online orders, not Shopify POS. A product still shows as out of stock when the fulfilling location has zero or negative inventory. Shopify's page lists preorders and expected stock arrivals among the uses.

Source: Shopify Help Center: Selling products when out of stock (read October 4, 2026).