Advantages of Backordering as a Strategy
It's important to understand the strategy behind what they're doing.
If I were you, I'd read this article: What is a Backorder in Sales?
However, this backorder situation needs to stop, to be honest. You've been waiting over a month to receive your items. If they had simply stated the item was out of stock, I'd be okay with that. They could order, let's say, 20 units, stock them, sell them, and then mark them as out of stock again. They know VKBS produces quality joysticks at a reasonable price compared to some higher-end options on the market.
But at the same time, they're also getting a bad reputation, which is why they give out free sticks to YouTubers to generate as much PR as possible. When your favorite YouTuber says they love the product, it makes you want it more and increases your trust in making a purchase.
The reason for the backorder, and why it can take as long as they like, is that people really want the product.
By the way, you have consumer rights. This company is based in the Netherlands, which is in Europe, so they have to follow European regulations. However, a lot of companies seem to sidestep the laws regarding backorders. You can Google your rights to learn more.
but tbh the guys at VKB needs to read this
https://www.ecommercefulfilment.com/en/ ... r-meaning/How to reduce backorders
Do you have too many backorders? Backorders happening too often? Here are some of the most effective ways to cut down backorders for your business.
Work with multiple suppliers
When choosing suppliers, it’s important not to put all of your eggs in one basket. By working with multiple suppliers, you can ensure that if one supplier becomes unavailable, you have alternatives to fall back on.
Calculate reorder points
A reorder point, or reorder level, refers to the time an eCommerce business makes an order with a supplier. It’s important to set and review reorder points regularly to ensure that stock is replenished in a timely manner, resulting in assured availability of your goods.
Put safety stock in place
Safety stock acts as a buffer against supply chain disruptions, supplier issues, and other external factors that can impact your logistics plan and result in delays. Setting a generous level of safety stock can keep backorders at bay, even if you need to burn through some of this stock should the unexpected happen.
Forecast demand
Demand forecasting can help you stay ahead of the game and allow for proactive rather than reactive stock management. You’ll need to have some historical data at your disposal to forecast demand accurately, which means that demand forecasts are only effective when you’ve been trading for some time.
Put more inventory in storage
If you find yourself putting products on backorder often, the likelihood is that you aren’t ordering enough product from your supplier. While it’s important to strike a balance between having enough stock to meet demand without overpaying on storage costs, it’s better to pay a little more on storage than have your reputation and cash flow be at risk due to regular backorders.
Outsource to a 3PL
Most of the time, backorders happen due to poor inventory management. If you’re fulfilling orders in-house, it’s unlikely that you have the technology and infrastructure to track and manage inventory effectively. Equally, you probably don’t have the time to improve inventory management because you’re too busy with the order fulfilment process.
A 3PL can fix both of these problems. Firstly, you’ll no longer have to worry about storing, picking, packing, and shipping your orders to customers. Simply send your SKUs to a 3PL, integrate your shopping channels with their inventory management platform, and let them take care of all aspects of fulfilment.
3PLs can also help you to hugely improve inventory management with inventory analysis tools. At James and James, our award-winning platform, ControlPort, provides you with all the information you need to set adequate safety stock, set up reorder points, reduce wastage, optimise costs, and so much more.
Eliminate backorders with James and James Fulfilment
Say goodbye to regular backorders and hello to business growth by partnering with James and James Fulfilment. Founded in 2010, we’re an industry leader in eCommerce fulfilment, with a network of fulfilment centres across the UK, EU, and US, with more on the way.
We specialise in helping eCommerce brands of all sizes improve their bottom line, delight their customers, and reach new heights by combining quick, accurate fulfilment with our sophisticated inventory analysis software, ControlPort.
What’s more, if backorders do happen, we’ll ensure that your orders are sent out as soon as they’re back in stock, mitigating the impact backorders have on your customer relationships.