If you’ve mastered the difference between a backorder and an out-of-stock status, you’re ahead of most eCommerce outfits. But there’s another distinction that trips up even experienced merchandisers and that’s back order vs. pre-order. Both keep your cart open when inventory isn’t sitting on the shelf. Both collect revenue before the product ships. And both, when managed poorly, detract the customer trust you’ve built up.
The difference comes down to product lifecycle. A backorder is a reactive play, your product already exists, it sold faster than expected, and you’re taking orders while the next batch is on its way. A pre-order is a proactive play, your product hasn’t launched yet, and you’re building demand before a single unit hits the warehouse.
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Back Order vs Pre-Order Definitions
A backorder is an order placed for a product that was previously in stock but has temporarily sold out. The item already has a sales history, a product page with reviews, and an established supply chain. You know it’s coming back because you’ve already received it before. You’re just waiting for the next shipment.
A pre-order is an order placed for a product that has never been available for purchase. It may still be in production, awaiting regulatory approval, or scheduled for a future launch date. The customer is buying a promise, they’re first in line when the product officially drops.
Side-by-Side Comparison
| Factor | Back Order | Pre-Order |
| Product Status | Previously available; temporarily sold out | Never released; still in production or planning |
| Customer Expectation | Restock within days to weeks | Delivery on or after a future launch date |
| Payment Timing | Charged at order or at shipment (varies) | Typically charged upfront to secure the reservation |
| Primary Goal | Recover revenue lost to stockouts | Gauge demand and generate early cash flow |
| Risk to Customer | Restocking delay longer than estimated | Product changes, delays, or cancellation before launch |
| Best For | Evergreen SKUs with proven demand | New launches, limited editions, seasonal drops |
When to Use Back Orders
Backorders work best when you have a confirmed restock date and a product your customers already know and trust. The customer’s mental model is simple: “I’ve bought this before, it’s temporarily unavailable, and I’m willing to wait a few weeks.”
Industry data shows that roughly 69% of shoppers will leave a site immediately when they hit a hard “out of stock” wall. A backorder option can recapture a significant portion of those would-be lost sales. The math is straightforward in that every disabled cart button is revenue handed directly to a competitor. Backorders keep the transaction alive.
Use backorders for standard, non-seasonal products with reliable supplier lead times. Avoid them when the restock timeline is genuinely uncertain, that’s when “out of stock” with a notification signup is the more honest (and safer) choice.
When to Use Pre-Orders
Pre-orders are your go-to when you’re launching something new and need to validate demand before committing to a full production run. They’re common in consumer electronics, fashion, beauty, and any category where hype drives early adoption.
From a cash-flow perspective, pre-orders are powerful. The revenue comes in before you’ve spent on warehousing, pick-and-pack, or last-mile delivery. For growing companies, that upfront capital can fund the very production run the customer is waiting for.
Pre-orders also reduce inventory risk. Instead of guessing how much to manufacture and hoping the forecast is right, you’re using real purchase data to size your first batch. Overproduction drops, dead stock shrinks, and your holding costs stay lean.
What’s the trade-off? Expectations are high. A customer who pre-orders a product three months before launch will hold you to the promised date. Miss it, and deal with a wave of cancellations, chargebacks, and negative reviews that can tank a launch.
References
HotWax Commerce. “Pre-Orders vs Backorders: What’s the Difference?”
GritGlobal. “Backorder vs Preorder: What’s The Difference and Which One Works For You?”
Sana Commerce. “Leveraging Pre-Order & Backorder Functionality To Drive Sales”
StoqApp. “Preorder vs Backorder vs Restock: Understanding the Differences”
ShipStation. “Backorder Meaning and How it Works in Ecommerce”
CodeDecorator. “Pre Order vs Back Order: A Complete Comparison Guide”
ConnectPOS. “Backorder vs Preorder: Which is the Game-Changer for Your Business?”
