Back Order

A back order is defined as an order for goods or services that cannot be supplied immediately because demand exceeds available supply. In business, a back order is often created when customer demand outpaces production capacity.

Back orders can be frustrating for both businesses and customers alike. For businesses, back orders can create logistical nightmares and eats into profits. For customers, back orders can cause frustration and delays in receiving the products they need.

How a business handles back orders can be the difference between a satisfied customer who continues to do business with the company, and an disgruntled customer who takes their business elsewhere. Businesses need to have systems in place to efficiently manage back orders, communicate with customers about expected wait times, and work to prevent future back orders from occurring.

With careful planning and execution, businesses can use back orders as an opportunity to build customer loyalty and grow their business.