Importance of a Standard Backordering Feature
Time is crucial in an e-commerce platform, but what would happen if you have a specific piece of clothing you love accompanied by the information that it is out of stock and the company does not restock? They lose sales opportunities and, most importantly, the trust of their customers. Say ‘no’ to stockouts, and stop your customers—and your profits—walking out the door.
Back ordering keeps customers from going elsewhere when the item they want is unavailable because they can order it and wait for it to become available. It was also found that more than 71% of consumers prefer to shop at a store that provides back ordering of products, for those that are out of stock. Any online store in particular must have a basic back-ordering function as a real necessity. It assists in ensuring customer loyalty, minimizing cases of abandoned carts, and increasing sales.
This article discusses why having a standard back-ordering feature in an online store is mandatory, the consequences of its lack in BigCommerce, or any other similar platform, and what other platforms are better.
Understanding Backordering
Definition and Functionality
Another interesting concept in e-business is back order, which can be defined as a practice whereby customers can order products that are not currently in stock but will be replenished in the future. This functionality is beneficial for online stores since it assists the business in ordering, stocking, and selling merchandise. This means that when an item is put on backorder customers can order it even where this particular item is not in stock in the warehouse. The store then completes the order once the item is available again to make sure that the store does not lose sales because the item is out of stock.
The backorder process typically involves a few key steps:
- Customer Notification: The customer was informed that the item was out of stock but available for backorder. This can be communicated through product pages, shopping cart messages, or checkout notifications.
- Order Placement: Usually the customer accepts the back order with the restocking date included in the delivery process of the order.
- Inventory Management: The retailer monitors the back order list and reorders the list when the out-of-stock items are in stock.
- Order Fulfillment: In the case of back orders only, the order is processed and forwarded to the customer once the item is available.
Customer Benefits
Back-ordering is one of the attributes that play a great role in boosting customer satisfaction levels. This feature enables customers to place orders for products that are currently in the inventory and it has several advantages, some of which include:
Availability
Backordering helps customers continue to buy the products on display even when there are none in the store. This is an indication that instead of missing out on favorite or seasonal products, shoppers are given a chance to order and wait for their buys to be delivered once such products are in the market. It is convenient in maintaining sales and fulfilling the demand in cases of stock-in, out, or low supply.
Convenience
Online stores ensure that they can satisfy the needs of the customers through such features as backorders. Rather than making the customers look for the product in other stores or get a different one altogether, back ordering enables the customer to order the product and wait till the store restocks it. This helps the customer avoid the need to keep on closing the page to check whether some products have been restocked, thereby making their shopping easier and more convenient.
Increased Choice
Backordering expands the range of products available for purchase, even beyond current stock levels. This increased choice can be particularly valuable for customers looking for niche products or those seeking items in high demand but out of stock. It ensures that customers can access a broader selection of products without being limited by immediate inventory constraints.
Transparency and Communication
The back-ordering system implies communicating to the customers about the stock status of orders and the approximate time it will take for the orders to be restocked after they are sold out. Communicating on back orders assists in controlling the customers’ expectations hence eliminating frustrations that would otherwise affect their shopping experience.
Business Benefits
Backordering provides several key advantages for businesses:
Revenue Capture
Backordering is especially useful because it retains customers the business would normally be forced to lose due to stockout. It also allows a business to sell out-of-stock items to the customers thus increasing its sales, during some time that it might not have stocked these items.
Inventory Management
Backordering assists in the management of inventory since it gives information regarding the requirements of clients. This ensures that businesses stock their inventories more closely to the demand, thus exerting tighter control over the stocks and saving money.
Customer Loyalty and Retention
They also enable the customer to order an out-of-stock product at a later time and thus improve customer loyalty. Customers another factor is their capability of reserving their preferred products in case they are not immediately available. This feature in the theory helps businesses to cope with customer retention by satisfying the needs of the customers to enable them to come back for more business.
Competitive Advantage
Backordering is an advantage given it sets a business apart from its competitors in the market. Consumer buying behavior Consumer buying behavior refers to the pattern exhibited while making buying decisions. Businesses that allow back ordering can increase their customer base and thus the overall market share and this ensures that their business is well positioned to compete in the market.
The Impact of Absence in BigCommerce
Current Limitations
BigCommerce, while a powerful e-commerce platform, lacks a standard back-ordering feature, which presents several notable limitations for online retailers:
- No Built-In Backordering System: BigCommerce does not have a native backordering feature, which is a problem. The opportunities to produce goods that may not be in the store temporarily are difficult to offer merchants to customers. This lack of communication makes it impossible for businesses to control inventories and satisfy consumers’ demands for products that are out of stock, within the platform.
- Dependence on Manual Processes or Third-Party Apps: For backorder management, BigCommerce users have to update manually or use some other third-party applications. This leads to complication and uncertainty since the merchants will manually have to monitor the stock levels, and when best to reorder. It also indicates that back ordering elements are not integrated as a feature so to manage the inventory properly one has to go through extra steps that may cause problems and errors.
- Potential Revenue Loss: A lack of back ordering may prove inconvenient to consumers primarily because businesses would cut their selves out of some potential sales. Consumers who reach the checkout only to find out that certain items are out of stock when back-ordering is not an option are likely to ‘leave’ and go to other stores. This can lead to loss of sales and poor client satisfaction since customers may get annoyed and prefer to shop from other stores that offer better solutions when it comes to inventory.
Customer Experience
The absence of a back ordering feature on BigCommerce negatively impacts the customer experience in several ways:
- Frustration and Disappointment: Whenever buyers discover that a particular product they want is unavailable and cannot be ordered from the manufacturer for resupply to the store later, they must develop negative feelings. This is even so if the customer has spent considerable time browsing and making decisions on items. A missing backorder facility makes the customer have no choice but to either forfeit the merchandise or look for it from another store, making the shopping experience inconceivable.
- Lost Sales Opportunities: The lack of backorder means that such customers will have no option but to abandon their shopping carts if they come across items out of stock. This could eventually result in reduced sales opportunities for the business of a drastic level. Several studies show that a large patronage of clients appreciates back ordering more than searching for a substitute product or supplier. The lack of this option poses a risk to BigCommerce merchants as customers will engage businesses that provide a flexible shopping mode.
- Reduced Trust and Loyalty: Some of the drawbacks include customer frustration which results from the inability to buy products that are out of stock thus minimizing customer trust and loyalty. Sometimes customers may lack confidence in their needs and demands being fulfilled, they may attend to other rivals with better stock management and back-ordering performance. This can deteriorate the customer base and reduce the factors of repeated shopping since customers are not willing to revisit a store in which they are frustrated.
Business Implications
When BigCommerce lacks a standardized back-ordering feature, producers face several issues that raise expenses and threaten to lose buyers to competitors with more advanced back-ordering.
- Increased Costs: There is also the disadvantage of high operating costs since there is no back ordering system incorporated in the businesses. Handling out-of-stock orders on your own or paying other apps to handle it can be time-consuming and costly. These additional costs may harm profitability, as businesses have to consume more and more money and time on the tracking of stock inventories, and conveying the restocking information to their customers.
- Competitive Disadvantage: Currently, BigCommerce has some limitations and it’s one of those platforms that may put businesses that use it at a disadvantage because it does not support back-ordering. Companies using platforms that allow for backorder can provide a smoother shopping experience to consumers thereby resulting in capturing the market share for those willing to deal with an out-of-stock situation. This feature brings in more and also maintains the customer base and the company’s consumers, while BigCommerce rivals may face difficulties in retaining buyers.
- Inventory Challenges: The lack of a backorder feature complicates inventory management. Businesses are unable to gauge real customer demand for out-of-stock products, potentially leading to overstocking or understocking. This can result in higher inventory holding costs or missed sales opportunities, further impacting the bottom line.
- Potential Customer Loss: The inability to backorder items may lead to customer dissatisfaction, as shoppers are forced to look elsewhere when desired items are unavailable. This can result in lost customers, particularly if competitors offer more flexible options. Over time, this could lead to a decrease in customer loyalty and a shrinking customer base.
Benefits of Alternative Platforms
Comprehensive Inventory Management: Back-order solutions are available in inventory management systems such as DCKAP Commerce. This capability enables businesses to order their stocks in the right amounts and at the right time to offer their products to customers without stock out. With backorders, the merchants adapt and still make sales and profits when the store’s products are out of stock, they get the consumers’ attention and money.
Enhanced Customer Satisfaction: Backordering goes a long way in increasing customer satisfaction because the shoppers can order items that they want but which are not in stock at the time of ordering. This cuts down customer frustrations and makes shopping efficient and preferably satisfying to the customers. When customers are assured that they can get a product that is out of stock, they will go through with the whole purchase process and repeat their shopping hence increasing customer loyalty.
Increased Sales and Revenue: Because sales that might be lost because of the stock-out of certain products are availed for by back-ordering of features, total sales and total revenues are improved. Consumers willing to wait for an out-of-stock item are likely to desert the shopping cart hence, low conversion rates. This makes back ordering an important tool for any e-commerce business that intends to maximize its profits.
Competitive Advantage: Backorder is a very useful feature that gives a lasting competitive edge. Companies that allow backorders have a chance of standing out from the rest of the market and with that the companies become even more attractive to people. This feature not only helps maintain the existing customer database but also attracts new customers who consider back ordering as a convenient service that can improve the company’s image and its position on the market.
Conclusion
A standard back-ordering feature is crucial for e-commerce success, as it helps manage inventory effectively, increases customer satisfaction, and boosts sales by allowing customers to purchase out-of-stock items. Platforms like DCKAP Commerce offer robust back-ordering capabilities that address these needs, providing a more seamless shopping experience and reducing the risk of lost sales.
For online store owners using BigCommerce, it’s time to consider alternative platforms that offer comprehensive back-ordering options. These features can give your business a competitive edge, attract customers, and enhance customer loyalty. Embracing customer-centric features like back ordering is essential for staying competitive in the ever-evolving e-commerce landscape and ensuring long-term success.
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