Introduction

Backorders are a powerful tool for eCommerce businesses, allowing you to keep sales flowing even when inventory is temporarily out of stock. In Magento 2, backorders enable customers to place orders for products that are not currently in stock, providing flexibility to handle demand fluctuations and maintain customer satisfaction. This guide explains the steps for setting up and managing backorders in Magento 2, so you can effectively use this feature to boost your store’s performance.

Table of Contents

~ What Are Backorders?

~ Benefits of Using Backorders in Magento 2

~ Setting Up Backorders in Magento 2

~ Configuring Global Backorders Settings

~ Managing Backorders at the Product Level

~ Testing and Monitoring Backorders

~ Tips for Managing Backorders Effectively

~ Conclusion

1. What Are Backorders?

Backorders allow customers to place orders for items that are currently out of stock. When a customer places an order for a backordered product, they understand the item will ship later once inventory is replenished. Backorders are particularly useful for businesses that want to retain sales even when demand exceeds supply, and they allow you to better manage your stock levels.

2. Benefits of Using Backorders in Magento 2

Backorders can provide several advantages:

• Continuous Sales: Keep sales active for out-of-stock products, reducing lost sales opportunities.
  
  
• Customer Satisfaction: Offering backorders communicates availability to customers, giving them the option to wait for products they really want.
  
  
• Inventory Management: Backorders allow you to manage stock levels more dynamically, adjusting to trends without overstocking.

3. Setting Up Backorders in Magento 2

In Magento 2, backorders can be configured globally for all products or on a per-product basis, providing flexibility in how they’re applied across your store.

To set up backorders, follow these steps:

1. Log in to Magento Admin.
   
   
2. Navigate to Stores > Configuration.
   
   
3. Under the Catalog tab, select Inventory.
   
   
4. Open the Product Stock Options section to access global inventory settings.

4. Configuring Global Backorders Settings

You can configure global backorder settings that apply to all products by adjusting the Product Stock Options. Here’s how:

1. Go to Backorders in the Product Stock Options section.
   
   
2. Choose from the following options:
   • No Backorders: Backorders are not allowed for any product.
     
     
   • Allow Qty Below 0: Allows backorders and will accept orders even if inventory is below zero.
     
     
   • Allow Qty Below 0 and Notify Customer: Enables backorders and notifies the customer that the product is on backorder.
     
     
3. Set the Out-of-Stock Threshold to control when a product is considered out of stock (e.g., at zero or a negative quantity).
   
   
4. Save the changes once your configurations are set.

These global settings ensure that all products adhere to the same backorder policy unless overridden at the product level.

5. Managing Backorders at the Product Level

If you want to enable backorders for specific products, follow these steps:

1. Go to Catalog > Products in the Magento admin panel.
   
   
2. Select the product you want to configure and open its Advanced Inventory section.
   
   
3. In the Backorders dropdown, choose the appropriate setting for this product:
   • No Backorders: Disables backorders for this product.
     
     
   • Allow Qty Below 0: Allows orders even if stock is depleted.
     
     
   • Allow Qty Below 0 and Notify Customer: Enables backorders and alerts customers.
     
     
4. Set the Out-of-Stock Threshold for this product, if desired.
   
   
5. Save the product configuration.

This option is useful if you want to offer backorders only on specific high-demand items rather than the entire inventory.

6. Testing and Monitoring Backorders

Testing your backorder setup is essential to ensure that it functions as expected:

• Simulate a Purchase: Place an order for an out-of-stock item to see if the backorder setting is working.
  
  
• Check Customer Notifications: If using the “Notify Customer” option, verify that notifications are displayed on the product page.
  
  
• Monitor Inventory Levels: Regularly check stock levels and backordered quantities to manage replenishment effectively.

7. Tips for Managing Backorders Effectively

1. Communicate Expected Shipping Times: Ensure customers know the estimated shipping timeline for backordered items.
   
   
2. Track Backorder Metrics: Analyze how many products are backordered to assess demand trends and forecast inventory needs.
   
   
3. Set Notifications for Low Stock: Use Magento’s low stock notifications to know when backorders might become necessary, and communicate with suppliers for timely restocking.
   
   
4. Balance Stock Levels: Avoid excessive backorders that could create delays and lead to potential customer dissatisfaction.

8. Conclusion

Backorders are a valuable feature in Magento 2 that can help you maintain sales momentum and manage inventory efficiently. By configuring and monitoring backorders, you can offer customers the chance to purchase in-demand products even when stock is low, ultimately enhancing customer satisfaction and operational flexibility. Implementing backorders allows your store to adapt more readily to demand, keeping you responsive to customer needs and inventory challenges alike.

Magento 2’s backorder functionality provides an excellent solution to streamline your store’s inventory management, allowing you to retain customers and increase conversions even when products are temporarily out of stock.