A Back Order is a customer order for a product that is temporarily out of stock. When a back order occurs, the customer places an order for the item, but it cannot be fulfilled immediately because the item is not currently available in the supplier’s inventory. Instead, the order is recorded and fulfilled once the item is back in stock.

Here’s how the process generally works:

1. Customer Places an Order: A customer orders a product that the retailer or supplier does not currently have in inventory.
2. Back Order Notification: The customer is informed that the item is on back order, meaning it is not available for immediate shipping but will be delivered once the stock is replenished.
3. Stock Replenishment: The retailer or supplier receives new inventory of the out-of-stock item.
4. Order Fulfillment: The back-ordered item is shipped to the customer as soon as it becomes available.
5. Delivery: The customer receives the item, completing the order.

Back orders can occur for various reasons, such as unexpected high demand for a product, supply chain disruptions, or production delays. While back orders can be a sign of strong demand, they can also lead to customer dissatisfaction if the delay in receiving the product is too long. Companies often try to manage back orders carefully to balance customer expectations with supply chain realities.