Backorder Rate
Backorder rate is the percentage of orders, or order lines, that contain at least one item that could not ship immediately because it was out of stock and was placed on backorder.
Why it matters for ecommerce brands
Backorder rate shows how often customers order items you cannot ship yet, so it measures lost speed and revenue at risk. Each backorder can mean a split shipment with a second postage charge, extra support contacts, and cancellations. Track it by SKU to separate planned preorders from forecasting misses. For example, 240 orders with a backordered line out of 8,000 is a 3% backorder rate. If half of them involve one SKU, raising that SKU's safety stock fixes most of the problem.
Formula and calculator
Backorder rate = orders with at least one backordered line ÷ total orders × 100
Common questions
- Is a high backorder rate bad for an ecommerce brand?
- Usually yes, unless backorders are deliberate preorders. Unplanned backorders delay revenue, increase cancellations and support tickets, and often add the cost of a second shipment.
- How do you calculate backorder rate?
- Divide orders with at least one backordered line by total orders, then multiply by 100. 240 out of 8,000 orders is 3%.
- What is the difference between a backorder and a preorder?
- A backorder is an order for an item that should be in stock but is not. A preorder is a planned sale of an item before its release, with the wait disclosed upfront.