Tips for Handling Backorders

If you want to implement a backordering system on your ecommerce site, communication is key – not just with your inventory managers but with your customers as well.

Before allowing customer to place backorders on your site, you should have a detailed understanding of your inventory management. Keep the lines of communication open and active with your fulfillment team to help determine the volume of backorders you’d be able to manage. Without this foundation, your backorder system could quickly start causing problems.

Once you’ve established that basis for working with backordered inventory, you’ll need to focus on the customer experience. From the shopper’s experience, ordering products that won’t be delivered right away can be risky or inconvenient. You can improve the backorder experience for your customers through informative communication. Be honest with estimated delivery dates and keep customers in the loop regarding delays as they happen. Let them know when you have the product back in stock, when their order is being processed, and when their order has shipped. If you predict another stockout, advise customers to order refills sooner, rather than later.

Using intel supplied by your inventory management team, you’ll be able to manage expectations and be forthcoming on order status to provide your shoppers with a smooth backordering experience.

Tips for Mitigating and Preventing Stockouts

The more retailers that you sell your products through, the more challenging it is to manage that inventory - and the costs of sub-optimal B2B inventory management can be steep. In 2015, CNBC reported that stockouts accounted for $634.1 billion in lost retail sales for the year. Those losses can easily pass on to you. If retailers are not confident in your product availability, they will find other suppliers.
    
Preventing stockouts with well-done B2B inventory tracking goes beyond keeping an accurate SKU count. Ideally, your inventory management software and staff should have the following capabilities.

Detailed tracking information

Your inventory feeds should provide your retailers with as much information as possible, such as:

  • Available inventory by location – not only can this free your retailers from being bound to a single inventory source, it can also be useful for shipping calculations
  • Restock dates – for low or out-of-stock units, provide both the amount and date by which the inventory will be replenished.
  • Real-time data

Comprehensive inventory management

Go beyond the management of in-stock inventory with more proactive services, like:

  • Stock alerts – actively communicate when products become out-of-stock, low stock, or back-in-stock
  • Allocated stock – allocating inventory for individual retailers helps to manage their expectations is very useful for preventing stockout issues
  • Internal backorder management – if it doesn’t take long for you to resupply stock, you may have the bandwidth to handle backorders on behalf of your retailers (or adjust their allocated stock accordingly)
  • Shipment notifications – automated shipment notifications with delivery timeframe estimates saves retailers the trouble of calling you, and gives them the information they need to reassure their customers.

If these upgrades to your inventory tracking sound too complex, Fulfillment Works can help! Our Client Access Center technology is customizable and lets you manage all aspects of your inventory from any internet connection (including mobile devices).

How to Have Smarter Inventory Management

Even if your ecommerce sales are through the roof, your success will be short-lived without capable inventory management. This is especially true if, like many of our customers, your wares extend across multiple marketplaces like Amazon, eBay, and even brick-and-mortar stores. To avoid stockouts or stagnation, it’s wise to invest in inventory management. More...

Improving your Reverse Logistics

Logistics management can be a challenge for many e-tailers, but reverse logistics can be even more complex. This was made even more apparent over the last holiday season when Forbes predicted as much as 10% of all holiday sales were returned. By investing in your reverse logistics system, you can minimize the cost of the return process and recoup lost profit from the returned product. Plus, customers love a smooth returns process, so your customer satisfaction can increase as well.  More...