Backorder Explained - Why it is so Prevalent in Todays Markets.
Posted by CALVIN HALE on
Did you just place a parts order, only to get the dreaded email saying that what you ordered is on backorder?! This is an extremely frustrating problem to run into as a consumer. But trust us, it is just as frustrating for us at the Lions Den Team. Here we are going to breakdown why this has become such a prevalent issue, and also why it probably isn't going away anytime soon, at least for very popular items.
First off, what is a backorder?
Backorder is really quite simple. All that it means is that this product has no stock or availability across the nation. It does not mean that there will not be anymore, it just means that they cannot manufacture and ship them in time to keep up with demand. Something to keep in mind, is pre-pandemic backorders were roughly 21 business days (max, in most cases). That has shifted to a current 3 month average, with some manufacturers being even longer, some shorter.
Why has backorder become more prevalent?
The main reason why this has become such a major issue, is quite simply the pandemic. Supply chains were stressed, shipping slowed, manufacturing slowed or stopped altogether. So that constant flow of products from manufacturer, to shipper, to warehouse, to customer; stopped somewhere along the way.
Then, all of the stock that was in everyone's warehouses began to get purchased, while it was not being replenished. Without it being replenished, each time a customer ordered a specific part, their order was backordered. No problem, their name is attached to the next one available. Well, then this snowballs. Now every time a new shipment arrives, or is made. All of the items are already spoken for, from a previous backorder customer. No stock is going to the warehouses to be held, its all already sold. This extends backorders even longer.
Why won't it go away anytime soon?
The supply cannot keep up with the demand. Everyone is so backlogged with backorders, that no product is actually being stored in the warehouses, or sells out at a rapid pace when it gets their. There is some hope, as I have been seeing more stock being held. But the extremely popular stuff, expect a backorder, or order early.
Why you should not cancel your order and reorder elsewhere?
This is a common explanation that I have given to many customers. If the product is backordered, its not just backordered for us. Its all of us. So, your best bet if you really want that product. Is to hold your spot in line with us, keep your order, and get in line for the next available product. If you cancel and reorder elsewhere the next day, you fall even further down the line of people who are waiting for that same product. There will be the rare occasion where a shop or store is holding stock on that specific item, so keep that in mind as well.
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