How to Handle Backorders and Stockouts Effectively on Shopify?

Running a Shopify store involves managing product availability in real-time, and one of the most common challenges store owners face is dealing with backorders and stockouts. These issues can significantly impact customer satisfaction, conversion rates, and long-term brand loyalty if not handled properly.

The good news is that Shopify offers flexible tools and integrations to help merchants effectively manage these inventory problems. This article provides a technical breakdown of how to handle backorders and stockouts efficiently on Shopify.

Understanding Backorders and Stockouts in E-Commerce

Backorders occur when customers place orders for products that are temporarily out of stock but will be available at a later date. Stockouts, on the other hand, happen when a product is unavailable and cannot be purchased until it is restocked. While stockouts halt sales, backorders allow you to continue taking orders despite low or zero inventory, with a promise of later fulfillment.

In Shopify, managing these scenarios requires both proper inventory tracking and strategic communication with customers to ensure transparency.

Configuring Backorders in Shopify

Shopify does not directly use the term “backorders” in its settings, but you can enable this functionality using the Continue Selling When Out of Stock option.

Steps to Enable Backorders in Shopify:

In your Shopify admin, go to Products.
Select the product you want to allow backorders for.
Scroll to the Inventory section.
Uncheck Track quantity if you do not want stock tracking, or keep it checked but enable Continue selling when out of stock.
Save the changes.

This setting lets customers purchase items even when inventory shows zero or negative quantities. Shopify records these sales, and you can fulfill them once the product is restocked.

Avoiding Overselling with Backorders

While backorders can prevent lost sales during temporary shortages, they can also lead to overselling if not monitored carefully. To avoid this, consider integrating inventory management apps such as:

Stocky (for Shopify POS and wholesale operations)

Trade Gecko (QuickBooks Commerce)

Cin7 or DEAR Systems

These apps synchronize real-time stock data across all sales channels and provide backorder limits to prevent excessive future commitments.

Handling Stockouts Effectively in Shopify

When stockouts occur, it’s crucial to handle them in a way that minimizes customer frustration and protects brand reputation. The first step is setting clear inventory tracking rules in Shopify to prevent unintentional sales of unavailable items.

Key Actions for Managing Stockouts:

Enable Inventory Tracking: This ensures that products automatically switch to “Sold Out” when inventory reaches zero.

Display Restock Notifications: Use apps like Back in Stock – Restock Alerts or Notify Me! to allow customers to subscribe to email or SMS alerts when the product becomes available again.

Show Estimated Restock Dates: Adding a restock date in the product description can reassure customers that the item will be available soon.

Leveraging Shopify’s Pre-Order Functionality

Pre-orders are an effective way to handle backorders and even some stockouts. Instead of marking a product as “Sold Out,” you can set it as a Pre-order item, allowing customers to purchase ahead of time with a clear delivery timeline.

You can create a pre-order setup in Shopify using:

Custom product templates with pre-order messaging

Shopify Scripts (for Plus merchants) to apply unique pre-order checkout conditions

Pre-order apps like Pre-Order Now, Timesact, or Globo Pre-Order

Using Inventory Forecasting to Prevent Stock Issues

Inventory forecasting is a proactive method to reduce both backorders and stockouts. Shopify provides some inventory reports by default, but advanced forecasting often requires third-party tools or integrations with ERP systems.

Popular tools for Shopify inventory forecasting include:

Inventory Planner – uses sales history to predict future demand.

Lokad – advanced statistical demand forecasting.

Brightpearl – combines forecasting with order and warehouse management.

By predicting demand accurately, you can schedule restocks before inventory levels become critically low.

Automating Supplier Reorders in Shopify

One of the most effective technical strategies for preventing stockouts is automating purchase orders with suppliers. Many Shopify inventory apps support supplier integration so that when inventory levels hit a predefined threshold, a purchase order is automatically generated and sent to the supplier.

For example:

Stocky (Shopify POS Pro feature) can automatically create supplier POs based on sales patterns.

Cin7 connects your store to suppliers and automates the reorder process.

This level of automation ensures you maintain consistent stock levels without manual oversight.

Communicating with Customers During Stock Shortages

Transparency is key to maintaining trust when handling backorders and stockouts. Shopify allows you to modify product pages, checkout messages, and order confirmation emails to communicate availability details.

Best Practices:

Add a Stock Status Message (“Ships in 2–3 weeks” or “Available on [Date]”) on the product page.

Send Order Confirmation Emails that clearly state estimated shipping dates for backordered products.

Follow up with Shipping Updates as restock dates approach.

Apps like Klaviyo or Omnisend can automate these communications to keep customers informed.

Offering Alternatives During Stockouts

When a product is unavailable, you can use Shopify’s related products feature or recommendation apps to suggest similar items. This not only prevents lost sales but also improves customer experience.

Apps like LimeSpot Personalizer or Rebuy Personalization Engine can dynamically display alternative products when a customer lands on an out-of-stock page.

Monitoring and Reporting Stock Performance

Regular inventory performance reporting helps identify recurring stockout patterns and assess the effectiveness of backorder handling. Shopify’s analytics dashboard provides:

Sales by Product – to see which items sell fastest.

Inventory Reports – to track stock levels over time.

Abandoned Cart Reports – to check if stockouts are contributing to lost sales.

By analyzing this data, you can adjust reorder points, refine supplier agreements, and implement faster replenishment cycles.

Final Thoughts

Handling backorders and stockouts effectively on Shopify requires a mix of technical configuration, automation, and proactive customer communication. By enabling backorders through Shopify’s “Continue Selling When Out of Stock” feature, using pre-order setups, integrating inventory forecasting tools, and maintaining transparency with customers, you can minimize the negative impact of stock shortages.